Are We in a Dead Cat Bounce Market?

We live in a time when nothing is as it seems and uncertainty rules the roost. This can make for a daunting task when considering when, what and how much steel you need to purchase at any point in time. It appears the second price increase announcement out of Nucor moved some of the end users into the market, which has caused lead times to tick up – slightly. However, as we explained in the last issue of Steel Market Update, lead times are nowhere near what they were one year ago, and this is at a time when foreign steel imports are waning.

Earlier today, I received a message from a consulting friend of mine who spends much of his time in Europe working with European steel mills. I was asked my opinion as to whether the steel market was undergoing a “dead-cat bounce.” He went on to point out that in Europe prices are up 10 to 15 euros, but overall demand is falling. He told me, “Not a good combination, especially with the unknown of Brexit.” He also pointed to slow production numbers on automotive here in the United States.