Final Thoughts

Non-coated flat rolled and plate prices are under pressure and there is worry coming from steel buyers about the second half of this calendar year. I am hearing mixed results regarding actual demand. The weather has finally broken in the north and products such as the metal building industry are seeing significant gains. We also anticipate a stronger energy market as we are hearing of jobs that still need to be placed.

Here is what the general manager of one of the larger service centers had to say to me earlier today, “I think things are getting looser for sure. Lead-times have stalled and have come backwards in some cases. When we consider the myriad maintenance outages being taken between now and June, and we still see lead-times weakening, it portends bigger challenges ahead. Lower scrap prices and still relatively high imports are only adding to the challenges the mills will face in the weeks ahead. There’s also newer indications that demand levels may be weakening on a more broad and sustained basis, but it’s difficult to discern whether this is temporary or a more long-term issue. Hearing that customers are catching up on past due order books and that future outlooks aren’t as rosy as hoped. The exception remains to be in the energy sector where large projects are still being consummated, and a number of them are on the board for the coming months…”