Final Thoughts

It is always a struggle to find the proper footing after the domestic mills make a price announcement that, on its face, appears to be a way of stopping the sub-$800 offers and put a floor (however temporary) to the market. To me, it is quite telling when one or two mills that normally follow very quickly did not. The steel buyers with whom I speak on a constant basis have mixed emotions, but I would suggest the majority are “non-believers.” That doesn’t mean the mills don’t have their supporters; they do.

It was refreshing to participate in the HARDI steel council conference call this morning. The HARDI members are wholesalers who supply galvanized sheet and coil to the mechanical contractors who are actually involved with new and remodeling construction jobs. A couple of points that came out of the discussion: First, I heard that demand was “OK” (as in there was no joy in Mudville, for you baseball fans). The wholesalers weren’t complaining, but the signs of a slowing sure seemed to be suggested. Second, there didn’t seem to be one wholesaler who was a believer in prices moving higher from here. I kept hearing, “They are trying to put a floor on pricing” and “I think it will have an impact, but not until January.”