-For two months, market watchers have checked off the days on their calendars counting down to this week.  The USW squared off against US Steel and ArcelorMittal. As expected, the USW and USS have reached a tentative deal with no work stoppage.

-The USW and ArcelorMittal have had more contentious negotiations throughout the summer.  The mere threat of a supply disruption due to a lockout or strike has been enough to prop up steel prices almost single-handedly for the previous two weeks.This week brings news of a likely settlement between labor and the mill that will result in no work stoppage.

-As the drama subsides, the fundamental drivers of North American steel prices should receive their just attention.The plummet of iron ore, coking coal and Chinese rebar over the summer has been largely overlooked by the steel market here. Scrap should settle flat at best, but will likely drift down a bit adding additional pressure to hot rolled prices  that are already severely challenged.

-The futures market portends tough sledding for HRC prices as the forward curve trades down in recent days.

-Fed Chair Ben Bernanke made the case for further monetary easing in his speech at Jackson Hole, WY last week.  Official fed action could be announced as soon as September 13 during the Fed’s policy making committee meeting. In a best case scenario, Fed action would likely result in, among other positives, higher commodity pricing. 

-It should be noted, however, that the boost that the US economy reaps from quantitative easing will be dependent on the scope of the action.The massive QE1 resulted in a substantial acceleration of the economy.  The smaller QE2 package in late 2010 achieved more modest results.

-If the ECB were to take action (as they are hoped to do), the combined affect of two central banks acting in relative unison would move the needle.