Couple of points from attending several conferences as related to the U.S. steel market:

Most speakers agreed that global steel demand was slowing. However, the consensus was that demand in 2019 will be likely the same as 2019.  We have also entered an era of protectionism that is accelerating a trade war as well as promoting uncertainty within the flat rolled markets. In important statistic is that China’s steel demand has declined at this juncture by 2%.

As in most businesses the current level of margin will attract more supply which could result in lower prices. The expectation is that China will remain out of the US market, preventing a collapse of price levels….just a slight retreat.

Stay tuned.

PM