Final Thoughts

There seems to be little doubt that there is some strength in the cold rolled and coated products markets. The lead times are extended with ArcelorMittal being into May on galvanized according to one of their automotive service centers. We heard from a couple of the conversion mills who told us their orders books were “comfortable” and they were not having issues holding prices at the levels where they feel they need to be.

Steel buyers have mixed opinions ranging from those who firmly believe the domestic mills will raise prices on cold rolled and coated steels. However, just about no one thinks prices will go anywhere on hot rolled steel which still can be gotten within a couple of weeks of placing an order at a number of mills (not all). Buyers point to the shut down of capacity at US Steel and AK Steel and the shifting of production has created some issues. One automotive service center told SMU this evening that they were quoted a $29.50/cwt base on a potential automotive spot order this week. We heard from others that there were base price offers at over $29.00/cwt bases but no one would admit to actually paying that number (yet).