-The mills have reversed the multiple month price slide in the face of continued and significant downward input costs. 

-Last week, July scrap pricing settled.  In some cases, prices were down as much as $ 50/ ton month over month. However there are rumors that some dealers are holding inventories sensing a bottom and wanting higher prices.  A significant gap has opened up in EAF vs. integrated cost structures.  Tons vs. profits.  The EAFs should have an enviable choice.  

-At face value, the increases may seem to be an over reach when set against the backdrop of lower input costs, summer shutdowns and dour macro news. 

-Timing is everything, however, and the opportunity is now for producers.  Most mills have extended lead times—in some cases significantly.  In the US prices are still low enough quash the threat of massive imports.  USA pricing is close to that of Scrap, too, seems poised to bounce even sooner than the August settlement.

-If there is a next round of price announcements, both buyer and seller discipline will be tested.  However by 4q, strike issues will likely be settled, higher 3q transaction prices will have staved off any shuddering of capacity, and most of the domestic supply should be back online after planned maintenance.