Here are today’s flat rolled steel market pricing numbers:
HR: At its’ highest mark in 3-1/2 years
This week up $12/ton ($0.60/cwt) to $673 ($33.65) we would have to track prices back to May of 2014 when HR was at $687 ($34.35) to see prices this high…
CR: Actually dropped $7/ton this week ($0.35/cwt)…Now at $831 ($41.55)
GV: Up $13 to $914 ($45.70)
From the looks of things, the market should be ready to go crazy. The hitch is though, that I am not seeing just that. Thankfully things are pretty steady but the phone is not ringing off the hook so something does not seem to line up….. If you think that it is just me, think again. Although this is anecdotal, many of the people that I have spoken to (that are further down the supply chain from us) recently have expressed the same sentiment.
if you look at the stock market the Dow barreled through 26,000 points (and then subsequently gave some of it back….) and people are a bit skittish about it overheating.
The truth is though, that even if things might be heating up too quickly, with the recent massive corporate and personal tax cut that was signed into law, there was an immediate impact on wages, bonuses, benefits, and not to mention actual net take home pay.
Talk about a shot in the arm of the economy! What a very impressive list – and probably more to come!! So even though, from my standpoint, we have not seen things kick in to high gear, my gut feeling is that they will – and it should be for a sustained period in a very robust way.
Take a look here at some manufacturing data as well as unemployment reports:
Very promising indeed! I guess this is a question of timing and some good old fashioned patience – Time will tell of course.
Also, do not forget that Section 232 action has a 90 day deadline that is looming.
The President must act if he plans on following through with his threats of slapping tariffs on imported steel.
To put things in perspective, it would seem wise not to sit out on the sidelines waiting for pricing to soften. You may catch a break in a very narrow window but overall it would seem that the market WILL tighten up and stay that way for a while.
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Ben Levi – Premium Steel Sales
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