SMU Packard Speaks with CEO's from SDI, Nucor & Cleveland Cliffs

Last week our average price on hot rolled coil (HRC) was $1,850 per ton ($92.50/cwt). We are not far away from $2,000 per ton ($100.00/cwt). The idea of HRC at $100.00/cwt is so far out of my historical perspective. I go back to the late 1970s when HRC sold under $10.00/cwt…. Jeez.

I saw an interesting note in the Financial Times today that referenced comments made by Valdis Dombrovskis who is the negotiator for the EU regarding the Section 232 tariffs. Essentially he believes the EU will not be able to remove all of the Section 232 tariffs as the Biden administration is keen to protect the U.S. steel industry. We need to watch for “other solutions” than a wholesale elimination of the tariffs.