Steel Mills
October 19, 2017
SDI: Positive Pricing Environment Ahead
Written by Sandy Williams
Steel Dynamics and CEO Mark Millett are expecting a tighter steel market in the fourth quarter. After surging ahead of possible Section 232 trade action, import levels have declined and, coupled with strengthening order rates and longer lead times, steel prices are expected to appreciate significantly, said Millet in remarks during the company’s quarterly conference call.
In the macro economy, exports from China are down by half due to better internal demand. Steel pricing in Asia has appreciated, closing the spread between U.S. and global pricing and setting up a positive pricing environment through 2018. “If you look at the historical spread between domestic and global pricing, we should be much higher than we are today,” said Millett.
