Final Thoughts
December 9, 2020
Final Thoughts
Written by Tim Triplett
Steel supplies are so tight these days that $1,000 hot rolled is not out of the question. Which makes predictions of a coming “Steelmageddon” seem that much harder to believe. In fact, 60 percent of the service center and manufacturing executives who responded to Steel Market Update’s questionnaire this week do not view Steelmageddon as a threat to steel prices in 2021–but the other 40 percent remain concerned.
Steelmageddon, as most of you know, is a term coined by Bank of America Analyst Timna Tanners, who predicted that if all the new steelmaking capacity on the drawing board actually makes it to market in the next few years, that overproduction will far exceed demand, creating an oversupply that will drive steel prices down to disastrously unprofitable levels.
