Final Thoughts

We are seeing further erosion in flat rolled steel pricing this week with the possible exception of Galvalume. Our sources are advising that hot rolled numbers are being offered in the low $400’s for tons. As capacity reopens at integrated mills, the possibility exists for HRC prices to breach the $400 per ton level for mega orders and reach down to the low and mid $400’s for smaller orders. We did collect numbers as high as $480 per ton this week, so we are seeing a significant spread in the current numbers from high to low. SMU continues to have hot rolled, cold rolled and galvanized price momentum pointing to lower pricing over the next 30 days. We are neutral on Galvalume and plate.

I conversed with an international mill who told me their international business is “booming.” Iron ore is priced around $110 per metric ton, slabs are selling well, long products are selling well. However, the U.S. is lagging the rest of the world.