Final Thoughts

A note that SMU adjusted our Price Momentum Indicator to Lower from Neutral on Friday. I have explained 10 of the reasons why (and there are more) in the first article in tonight’s newsletter. If you would like to make comments, feel free to reach out to me at John@SteelMarketUpdate.com.

I will be working on foreign steel offers early this week as there have been a number of comments from both buyers and sellers of steel about the high prices associated with foreign right now. I will be working on trying to explain what that means and what it might mean for domestic steel prices in the months ahead. The market has been waiting for a correction of foreign steel imports, but it has not happened despite antidumping and countervailing duties. It has not happened due to the threat of Section 232 (in fact, I believe the Section 232 investigation has worked against the domestic steel mills). Logic says if foreign prices are higher than domestic, that should create an environment that favors domestic steel mills. The question is, exactly when?