-The stalemate between buyer and seller continued for another week.  Buyers continue market entry at just sustainable levels.  Sellers continue to offer pricing at the psychologically significant (apparently) of $ 600+ for HRC. 

-The buy side notes continued weakness in pricing of input commodities.  Notably, scrap seems to be offering a semi-monthly price view now, with published anecdotes of lower pricing down $ 30 or more already.

-Suppliers speak of slightly better order books and planned maintenance outages curtailing some of the much maligned excess capacity.

-A quick look at the futures market and it seems the investment community is not buying the “chicken little” market view.  Of note is that at the end of last week the Euro weakened to break $1.25, copper weakened, oil broke the $80 mark, and gold eased.  More and more is being written about the China slow down and the rampant steel making over-capacity in that country.  How long does China continue to produce at such high numbers that are apparently buoying the spot ore market?  Q4 NYMEX futures are $625 bid and $640 offer.  Possibly there is a strike, maintenance/planned outage, election, Euro Zone stabilization, economic strengthening bump priced in here?  Uncertainty remains the topic. 

-Also – significant dichotomy is opening up between USA Integrated cost structures and USA EAF cost structures.  The mini mills appear to be set to make money this summer as input costs fall in dramatic fashion.  However, integrated costs remain sticky.    

-We will know more about this market’s equilibrium when major  spot orders are bid out to be won or lost by integrated and EAF producers alike.