-Order intake is clearly slowing at the mills – the book is not being replenished as the combination of high inventories housed within distribution and high prices weigh on buyers.  Auto and energy continue to be the bright spots for end use demand.

-Pricing has been flat around the world recently due to the Chinese New Year and persistent economic worry in Europe.  North American pricing, though showing signs of weakening, has been sideways in recent weeks.  The delta between prices overseas and in the US has been maintained and expected import offers have been attractive and pervasive.  With delivery in May and June, however, these low priced offerings appeal to only a select group of buyers.

-Volume buyers may not have to purchase import tons to achieve sub-market numbers, as deals are rumored to be offered domestically for March steel.  We believe that with large volumes, pricing can be had closer to $700 than $ 740.

-The futures market continues to discount hot bands in the near and long term.  General consensus on February scrap pricing, until last week, was that scrap would be down $20- $30/ ton.  Now, down $40-$50 seems to be the more likely result of the imminent February published number. If we were running a steel mill’s commercial book – we would be out aggressively booking tons at $680-720 in order to fill March as soon as possible.