Final Thoughts
Final Thoughts
Written by Becca Moczygemba
March 2, 2023
Weekly pricing increases are giving a new reason to have the “Sunday Scaries.” But as we wind down this week, all is quiet on the western front, so far.
With regular news of price hikes, hearing mixed opinions from the market is no surprise. For every optimistic view, there’s a louder pessimistic one.
We have certainly heard our fair share of reports of stable demand. Some are even reporting strong backlogs into the third quarter. But on the flipside, there are plenty of buyers on the sidelines waiting for lower prices. That is, if and when those lower prices come.
The word “unprecedented” gets thrown around quite often. It makes me wonder, when does unprecedented just become the norm? Precedented or unprecedented, I’ve been in this industry long enough to know that there are highs and lows. You do the best you can to buy at the lowest price from the most reliable suppliers. And you never put all your eggs in one basket. Regardless of contract or spot buys, the end goal is always the same: Get the customer what they need as soon as possible, at a mutually beneficial price. Sometimes hitting the target comes at a premium.
So, we should simply accept high prices? No. However, broadening awareness to nuances around the market is integral to better understanding it. It’s easy to point fingers and break out the pitchforks and torches. But there’s always more than meets the eye.
We’ve seen that service centers are increasing prices. We’ve also heard that foreign, while still not the cheapest, is closing in on domestic pricing. Lead times will dictate which one pulls ahead. Regardless, production lines need to continue to run, orders need to be filled.
Whether you’re trying to fill holes in inventory, trying to get ahead on backlog, or sitting on the sidelines, three things are certain in life: death, taxes, and pricing changes in the steel business.
By Becca Moczygemba, becca@steelmarketupdate.com
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Becca Moczygemba
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Sheet prices didn’t roar back after Labor Day. But steel market news sure came out of the gate strong (or maybe chaotically is the better way to put it). First, the nearly $15-billion proposed sale of U.S. Steel to Nippon Steel exploded into the news. And when I say exploded, I mean that all sides seem to be escalating things now.
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Welcome back from Labor Day, from Steel Summit, and from whatever fun you might have had over the long weekend. Personally, I enjoyed camping with friends and family near Starved Rock. No one starved, there were no major injuries, and we enjoyed the many splendors of Mystical Fire. (Speaking of which, does that have industrial uses? But I digress.)
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I want to say a huge ‘thank you’ from all of us at SMU to all of you (more than 1,500!) who attended Steel Summit this year. We appreciate you taking time out of busy schedules to join us – whether that was up on stage, submitting thoughtful questions, or catching up over a drink and bite to eat. Also, a bit shoutout to everyone at SMU and at CRU who made this event possible. It’s no understatement to say that we have a fantastic team.
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Day one and two of SMU's Steel Summit 2024 are officially in the books. We covered a lot of ground, and the agenda sure did deliver.
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The big show is just about here. SMU Steel Summit will be getting underway on Monday. Where does the networking begin? I’d say at the airport. So don’t forget your business cards. And it can't hurt to wear a company golf shirt.