A lot to consider in the steel market this week.

Indexes showing slight drops in both HR and HDG. Additionally, CR picking a few dollars. Cleveland mill announcing a $ 30T increase on CR recently. Reflecting on that announcement is it an effort to maintain/improve the spread between CR and HR? conversely, it could be in anticipation of an influx of CR orders as Turkey was hit with a doubling of the tariffs, virtually shutting off the spigot of Turkish CR. This was somewhat reflected in the futures markets earlier this week as well.

Recent unscheduled mechanical downtime in Indiana Harbor mill coupled with the tariffs could be foreboding of potential supply constraints. Any changes in reduction in demand in the near term will reflect into year-end contract negotiations with the producing mills.

There really is a lot to consider…stay tuned

PM