Flat Rolled = 63.9 Shipping Days of Supply Plate = 67.1 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories jumped in December, in line with seasonal trends. At the end of December, service centers carried 63.9 shipping days of supply on an adjusted basis, up from 57.1 in November, according to […]
Monthly Key Market Indicators continued their shift to a neutral position throughout December, according to the latest analysis by Steel Market Update. Positive indicators held for the first time in seven months, while negative indicators eased. Ongoing economic dynamics such as an underperforming job market, supply-chain bottlenecks, rising inflation and producer prices, as well as a […]
Steel Buyers Sentiment, as measured by Steel Market Update, saw its highest readings ever in September 2021. Not coincidentally, so did steel prices. In the four months since then, steel prices have softened by some 20%. Industry sentiment has also softened, but to a lesser extent – and it remains well above year-ago levels. SMU surveys buyers […]
Lead times on spot orders from domestic steel mills continue to decline, with no sign yet of how soon they might level out. Declining lead times are a leading indicator of declining steel prices. The average lead time for hot rolled is now approaching four and a half weeks, while cold rolled and galvanized are […]
After a year in which steel mills could basically name their price, 2022 is shaping up to be a buyer’s market – at least for the foreseeable future. Nearly all (96%) of the service center and manufacturing executives responding to Steel Market Update’s survey this week reported that the mills are willing to negotiate prices […]
There’s surprisingly little consensus among market participants about where steel prices will be next year, even though 2022 is just around the corner. That’s a big departure from the last 12 months, when respondents to Steel Market Update surveys were roughly in agreement on where prices would be in the future – or at the very least […]
Steel Buyers Sentiment, as measured by Steel Market Update, has not reacted much to declining steel prices. Perhaps because prices remain well above historical averages even after big declines – more than 18% when it comes to hot-rolled coil – over the past three months. Indeed, 2021 was a record year for many companies, leaving […]
In line with the declining steel prices, lead times for spot orders from the mills continue to shorten with the average for hot rolled now below five weeks and cold rolled and galvanized now below eight weeks, based on Steel Market Update’s check of the market on Monday and Tuesday. Lead times for all products […]
As the upward slope of the green bars in the charts below clearly illustrate, the bargaining position in steel price negotiations has been steadily shifting in favor of steel buyers for the past three months. Since September 2020, it had been a seller’s market, with steel in short supply. Until lately, the mills have had […]
Monthly Key Market Indicators, as analyzed by Steel Market Update, continued their shift to a neutral position over the past month with positive indicators eroding further, slipping for the sixth successive month. What began as a typical summer slowdown, worsened by a surge in Delta cases and a less-than-ideal job market, has been compounded by […]
Flat Rolled = 57.1 Shipping Days of Supply Plate = 60.2 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories rose again in November, according to Steel Market Update data. At the end of November, service centers carried 57.1 shipping days of supply on an adjusted basis, compared to 56.7 shipping days […]
With 2022 just around the corner, steel buyers are looking back at one of the most profitable years in their history – thanks to all-time-high steel prices seen in 2021. That explains some of the staying power of lofty readings in Steel Market Update’s Sentiment Index. SMU surveys buyers every two weeks and asks how they view […]
Lead times for steel sheet and plate continued to decline over the past two weeks, shortening by an average of more than a week. The move correlates with a sharp downtrend in steel prices. Steel Market Update’s latest check of the market shows the average lead time for hot rolled orders nearing five weeks. Cold rolled […]
The pendulum has passed bottom and finally begun to swing the other way in price negotiations. Steel mills no longer hold a dominant bargaining position over spot buyers. That shift is consistent with the shortening lead times and declining prices reported by Steel Market Update. SMU asks buyers every two weeks whether mills are willing […]
Looking for floor plate for Christmas? What about hot-rolled coil for the New Year? You’re in luck. Cleveland-Cliffs Inc.’s steel mill in Riverdale, Ill., can get floor plate to you by Dec. 25, or just 18 days from now. And most of its sheet mills can get you hot-rolled coil by Jan. 1, or 25 days […]
Published mills lead times are back, another sign that the steel market is returning to something resembling normal. Hot-rolled coil lead times, for example, are three to four weeks at some mills. That would be unremarkable in a normal market. But it is news after a year in which customers were either on allocation or […]
With steel prices trending downward as 2021 comes to a close, there is a different tone to annual contract negotiations, respondents to Steel Market Update’s market trends questionnaire said. Talks are more contentious, reported many buyers, as mills seek to lock in volume near current prices for 2022, while service centers and OEMs are reluctant to […]
Steel Buyers Sentiment saw a notable dip this week, as did steel prices. Industry sentiment tends to track with steel price tags – the stronger the prices, the more optimistic service center and OEM executives who respond to SMU’s surveys. While sentiment remains near record levels, the downtrend suggests optimism, like prices, may have peaked. SMU […]
Steel buyers have gained a clear advantage when it comes to negotiating lower prices for hot-rolled coil and galvanized product. The change in pricing power toward buyers – following a year in which mills could name their price – comes as prices for most products are down, lead times are coming in, and inventories are increasing. SMU […]
With relatively few exceptions, buyers tell Steel Market Update they sense the market is changing, and they expect steel prices to continue falling – though most expect the declines to be gradual. Their views are likely informed by price trends to date, which have been incremental, at least so far. The average price of hot rolled […]
Steel Market Update is pleased to share the below excerpt of a Premium item with Executive members. SMU publishes service center shipment and inventory data for Premium subscribers on the 11th business day of each month, one day after our data providers receive the data. Premium member reports include expanded analysis with detailed shipment and inventory levels, […]
Flat Rolled = 56.7 Shipping Days of Supply Plate = 62.0 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories increased in October, as shipments slowed, according to Steel Market Update data. At the end of October, service centers carried 56.7 shipping days of supply on an adjusted basis, compared to 54.5 […]
Monthly Key Market Indicators, as analyzed by Steel Market Update, edged down over the past month as positive indicators have decreased successively since June. A typical summer slowdown started the momentum shift, however, a surge in COVID variant cases, compounded by a slow-moving job market and supply-chain bottlenecks have continued to push the market indicators […]
Steel prices are on the way down, but not steel buyers’ optimism – at least not yet. Steel Market Update’s indexes for both Current and Future Buyers Sentiment registered lofty readings of +78 this week. Could this be industry optimism at its peak? SMU surveys buyers every two weeks and asks how they view their chances […]
Buyers continue to gain leverage in steel price negotiations, especially for hot rolled products. Steel Market Update asks buyers every two weeks whether mills are willing to talk price on spot orders. Nearly three out of four (72%) of the hot rolled buyers responding to this week’s poll said mills are now willing to negotiate HR […]
Lead times for orders of flat rolled and plate steel continue to shorten, as expected in a period when steel prices are declining. SMU’s latest check of the market shows the typical hot rolled lead time has now dipped below seven weeks for the first time since November 2020. That’s nearly a month shorter than […]
Despite all the uncertainty over the economy and steel prices as the year nears an end, sentiment among steel buyers remains extremely optimistic versus historical levels, as measured by Steel Market Update. But this week’s check of the market saw a small decline to the lowest sentiment reading since July. SMU surveys buyers every two […]
Lead times for orders of flat rolled and plate steel from the mills have shortened again compared to this time last month. About 60% of the buyers responding to Steel Market Update’s survey this week describe lead times as just “slightly longer than normal.” Only 15% still consider them “highly extended.” SMU’s check of the […]
Steel Market Update data suggests buyers continue to gain some leverage in price negotiations. SMU asks buyers every two weeks if the mills are willing to talk price on spot orders. Around 50% of hot rolled buyers responding to this week’s poll said some mills are now willing to bargain to secure an order. That’s […]
Monthly Key Market Indicators, as analysed by Steel Market Update, softened again in the past month. A typical summer slowdown followed by a surge in COVID variant cases, compounded by a lackluster job market, reflects an uneasy economic landscape. Consumer confidence has dwindled, highlighted by decreases in key indicators across the marketplace. SMU’s Key Market Indicators […]