Final Thoughts
June 29, 2020
Final Thoughts
Written by John Packard
Today we officially took our SMU Price Momentum Indicator on hot rolled, cold rolled, and galvanized to Lower from Neutral. We are leaving Galvalume and plate at Neutral. We have seen prices slipping over the past few weeks, and we do not see any immediate signs of that trend reversing itself. There will be questions about supply and demand as integrated mills bring back capacity. Scrap prices are primed to move lower during the month of July. Contract prices are well below spot and contract buyers are not able to utilize all of the tons available to them. Demand will be the key moving forward, and there are concerns regarding the rising wave of coronavirus infections in the South and Western states.
U.S. Steel sent out a press statement late this afternoon advising they will be bringing back a blast furnace at their Gary Works. Here is what the mill had to say:
