Final Thoughts
February 8, 2019
Final Thoughts
Written by John Packard
I continue to get mixed messages regarding the strength of the flat rolled steel market, and specifically lead times and pricing. I have heard from a number of steel buyers of longer lead times on galvanized at a couple of mills. The strength does not yet seem to be universal. Neither is the weakness. For those reasons, the SMU Price Momentum Indicator on flat rolled continues to be at Neutral. I am not yet sure what direction steel prices will move from here.
One of the concerns I have is the political situation. As Lewis Leibowitz has been pointing out in his articles, there just doesn’t seem to be any path as to what comes next. The March 2 deadline for Section 301 (tariffs on Chinese manufactured goods) is coming at us like a freight train.
