Final Thoughts
Final Thoughts
Written by Ethan Bernard
October 29, 2023
The first rule of Steel 101 is that you’re free to talk about Steel 101. We actually encourage it. Last week on Tuesday and Wednesday, SMU’s Steel 101 was held in Mt. Pleasant, S.C. For those in the know, that’s right outside of Charleston and a stone’s throw from Nucor Steel Berkeley (more on that later).
We had 50+ attendees converge on the Hyatt Place Mount Pleasant Town Centre. Hailing from all over North America, and even as far away as Santiago, Chile, the diverse group represented all areas of the steel industry. There were 20-year veterans who were changing roles and wanted to learn about a different aspect of the market. There were also newbies in areas like sales and marketing who wanted to familiarize themselves with all things steel in an easygoing and welcoming environment.
In the Classroom
As many of you know, the chalkboard and white board of yesterday have given way to the PowerPoint presentation of today. Nestled comfortably in a conference room, our instructors took the students on the entire life-cycle of steel: from raw materials like scrap all the way to downstream applications like automotive—and everything in between.
Questions were encouraged, and an interactive dialogue prevailed. Whether it was the difference between an electric-arc furnace (EAF) and a blast furnace (BF), different grades of steel, or the intricacies of steel pricing, there was always enough time to meet the students where they were. And, luckily, another snack/coffee break was always lurking around the corner to space out the learning.
Beyond the snacks, we held a happy hour and meals where attendees could mingle and get to know each other. Perhaps share a business card or LinkedIn invite. And maybe even have a little fun in the process.
At the Mill
Definitely a major highlight of the course was our guided tour of the Nucor Steel Berkeley, which produces sheet and structural products. A quick 30-minute bus ride, and we were there. After donning our PPE, listening to a safety talk, and eating some Jersey Mike’s subs for lunch, we were ready to go.
Nucor metallurgists split us up into groups of 10 and took us on a two-hour guided tour. Workers explained to us the nature of their jobs as they took us up stairs, across hot rolling lines, and into pulpits. All the theoretical knowledge we learned in class turned real.
It’s one thing to see a PowerPoint slide but another to be in the pulpit and to stare out the window as an EAF gets charged. Nothing quite prepares you for the sight of tons of molten metal. A vacuum degasser might not sound impressive until you see one being used in front of you.
A huge thank you to all the Nucor staff who made this awesome experience possible!
A Wealth of Knowledge
I would be remiss if I didn’t give a formal shout out to our amazing instructors. Chuck McDaniels, Mario Briccetti, and Roger Walburn (pictured above from left to right, with me second to the right). Acquainted with just about every facet of the industry, they possess a wealth of knowledge, and a passion for sharing it. It was a great honor to share the podium with them.
I merely provided an introduction and a snapshot of current market conditions at the end of the course. They gave an in-depth tour of steel fundamentals. And they tailored it to the needs of the students.
We typically hold a live Steel 101 twice a year, once in the fall and once in the spring. Our spring Steel 101 is still in the planning stage. Stay tuned for more details. We hope some of you will be able to join us!
And if you do go this spring, a reminder (as I reminded those at Steel 101 last week) on attire for the tour. No open-toed shoes, and keep those ankles covered, folks! This is about safety.
Ethan Bernard
Read more from Ethan BernardLatest in Final Thoughts
Final Thoughts
SMU looks back at stories from Decembers past, one, five, 10, and 100 years ago.
Final Thoughts
It's that time of year again. You know, that time when people wonder if those things are drones in New Jersey or if the aliens are ready to come onto the stage just in time for Inauguration Day. What will that do for steel price volatility? In any case, the SMU team finds itself in Pittsburgh this week.
Final Thoughts
The Community Chat last Wednesday with ITR economist Taylor St. Germain is worth listening to if you couldn’t tune in live. You can find the replay and Taylor’s slide deck here. You can also find SMU reporter Stephanie Ritenbaugh’s writeup of the webinar here. Taylor is Alan Beaulieu’s protégé at ITR. Many of you know Alan from his talks at SMU Steel Summit. I found Taylor’s analysis just as insightful as Alan’s.
Final Thoughts
Cracks have formed in what has been presented as the Biden administration’s united front against Nippon Steel’s play for U.S. Steel. A report from the Financial Times said parts of the administration are at odds on the deal.
Final Thoughts
It’s been another week of torrid speculation when it comes Trump and tariffs. And another week of mostly flat price movement when it comes to steel sheet and plate. As far as Trump and tariffs go, I think I might have lost track. We've potentially got 10% blanket tariffs on imports from China, 25% tariffs on imports from Canada and Mexico, 100% tariffs on the BRICs, and 200% on Caterpillar. Canada might be the 51st state. Mexico could be the 52nd state. But all can be resolved if you stop by Mar-a-Lago and kiss the ring?