Final Thoughts
March 30, 2021
Final Thoughts
Written by John Packard
Market prices continue to rise, albeit not as quickly as what we were seeing a few weeks back. We cannot be sure as to when market prices will hit their peak. Market momentum is clearly on the side of the steel mills, lead times continue to be extended well beyond normal, and more orders are running 2-6 weeks late than are being delivered on time. At the same time, inventories continue to be low and companies have been unable to rebuild due to long lead times, late orders and the extremely high prices, which are too risky for many companies.
We are seeing companies that need inventory to manufacture parts going to non-traditional markets such as foreign steel, service centers or one of the trading platforms (Reibus, Felux, XOM, etc.) to secure enough material.
