Final Thoughts

I am sitting in Colorado Springs, Colorado after having spent the last few days attending the HARDI annual conference. I have been a member of HARDI and have participated in their steel committee for many years. After I stopped selling steel and began Steel Market Update as my main focus I was invited to remain a member and to continue to provide value to the group’s monthly conference calls. For a number of years I have been a speaker at their annual conference and we had a full house again this year as the wholesalers wondered where the galvanized steel market is going from here.

My opinion is that all of the cards seem to be in the hands of the domestic steel mills. We are seeing higher commodity prices around the world. We are seeing higher steel prices around the world as well. In another article in tonight’s issue one of our Chinese sources talks about HRC prices in the domestic market now being at $500/metric ton ($454 net ton). We learned from the wholesalers who are buying foreign steel that foreign prices on galvanized into the U.S. are also increasing and supply is becoming more limited with China, India (except Uttam), Vietnam and many other countries out of the market due to the AD/CVD suits. Zinc was trading just below $1.30 per pound earlier today (before added costs the mills have to pay to get delivery) and there is a concern about the possibility that coating extras may be revised early next year. A major concern for a galvanized buyer.