Final Thoughts

NLMK USA was the first mill to raise prices, going up $40 per ton. I am hearing comments from both sides on whether the price increases are a good or bad thing. My personal opinion is prices got a little “over-done” last year and dropped too low. A hot rolled number closer to $500 may make more sense and hopefully a healthier steel industry. With China’s hot rolled market around $380 per metric ton and prices rising around the world, there may be longer “legs” to this market than many believe possible. I wouldn’t count on a big drop in prices over the next 60 days.

There are definitely pockets of strength out there. With the milder than normal winter we have seen the metal building and other construction segments of the economy doing much better than forecast. This is one of the reasons why you are seeing a strong galvanized and Galvalume order books. Are orders that would have been in the system for 2nd or 3rd quarter getting moved up?