Steel Market Update’s canvass of the market this past week reveals that many buyers are leaning pessimistic about their prospects for the fourth quarter. The majority responding to SMU’s questionnaire expect demand to continue weakening, prices to continue declining and growth to remain flat into the fourth quarter and possibly beyond. Demand SMU asked: At […]
More than nine out of 10 steel buyers responding to Steel Market Update’s market trends questionnaire this week agree that mills are willing to negotiate spot prices on all types of steel products to secure orders in the current, difficult market environment. In the hot rolled segment, 96 percent of respondents said the mills were […]
Mill lead times for all flat rolled sheet products continued to see slight shortening over the past month. The average lead time for hot rolled is now down to nearly three and a half weeks, cold rolled is less than five and a half weeks and coated steels are less than six and a half […]
The net situation changed little from August but the Treasury 10/2 yield spread became slightly positive on Sept. 27 and the SMU Steel Buyers Sentiment Index suffered a serious setback on Sept. 15. This report is designed to be a big picture summary of data on which we have reported in detail during the month. […]
Steel Market Update’s Buyers Sentiment Index saw a big change this week—and not for the better—with Current Sentiment dropping by 23 points to a reading of +29 and Future Sentiment dropping by 20 points to a reading of +31. Even though the +29 and +31 readings are within the optimistic range of our index, both […]
Steel buyers report flat or declining demand and expect spot steel prices to test the lows reached earlier this year, according to the findings of Steel Market Update’s market trends questionnaire this past week. The consensus view of the economy is more uncertain. Demand Nearly half of steel buyers responding to SMU’s questionnaire reported declining […]
It has clearly become a buyer’s market as the vast majority of service centers and OEMs polled by Steel Market Update now report the mills actively negotiating spot prices as necessary to win orders of all types of steel products. In the hot rolled segment, 92 percent of respondents to SMU’s market trends questionnaire earlier […]
Mill lead times for most flat rolled steel products continue to see a slight shortening, according to the latest Steel Market Update data. Lead times for steel delivery are a measure of demand at the mill level. The shorter the lead time, the less busy the mills, and the more likely they are to discount […]
Editor’s note: This article was originally shared on Tuesday, Sept. 17. The September Service Center Inventories Report will be sent to data providers on Monday, Oct. 14, and shared with Premium subscribers shortly after. Flat Rolled = 55.8 Shipping Days of Supply Plate Steels = 52.1 Shipping Days of Supply Flat Rolled Service center flat […]
Service centers and manufacturing companies are telling Steel Market Update of softening demand, shortening lead times (may not be in the published numbers, but orders are coming out early), and negotiable pricing. Many buyers are sitting on their hands and only buying what they need. On top of this, SMU Service Center inventories appear to […]
Steel Market Update’s analysis of flat rolled and plate inventories and shipments, reported earlier this week to data providers and Premium subscribers, shows flat rolled inventories of 55.8 days of supply, and plate inventories of 52.1 days, as of the end of August. Service center flat rolled inventories remained elevated, while plate saw a reduction […]
Steel Market Update’s analysis of flat rolled and plate inventories and shipments shows flat rolled inventories of 55.8 days of supply, and plate inventories of 52.1 days, as of the end of August. Service center flat rolled inventories remained elevated, while plate saw a reduction in supply last month to the lowest level seen all […]
Steel Market Update’s Steel Buyers Sentiment Index saw a slight uptick this week, but not one big enough to indicate a significant change of direction. Industry sentiment has trended downward for much of the year and has been stuck in a mediocre range for the last few months over concerns about demand and pricing. Buyers’ […]
The pendulum appears to have swung back in buyers’ favor as service centers and OEMs report most mills willing to negotiate to secure spot orders of all types of steel products. In the hot rolled segment, 82 percent of respondents to Steel Market Update’s market trends questionnaire this week said the mills were open to […]
Mill lead times saw a small uptick following the mill price increases announced in late June and July, but have since reverted back to relatively short levels. Lead times for steel delivery are a measure of demand at the mill level. The shorter the lead time, the less busy the mills, and the more likely […]
Steel Market Update is making adjustments to our Price Momentum Indicators on hot rolled, cold rolled, galvanized and Galvalume steels. The pressure behind rising steel prices seems to be subsiding as lead times at most mills are reasonable (especially considering the maintenance schedules in place for September and October). Steel buyers are beginning to tell […]
This report is designed to be a big picture summary of data we have reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for steel buyers and sellers. See the end of this piece for an explanation of the Key Indicators […]
Steel Market Update’s Steel Buyers Sentiment Index moved lower over the past two weeks as buyers appear concerned about the economy and steel demand. Steel prices remain a source of anxiety as the mills have been only partially successful at collecting their recent price increases. The goal of SMU’s Buyers Sentiment Index is to measure […]
If the price increases announced by the mills over the past two months were gaining real traction, it should be showing up in lengthening mill lead times. According to Steel Market Update data, the impact on lead times has been mixed and minimal. Lead times for steel delivery are a measure of demand at the […]
There has been little change in the tone of price talks over the past two weeks. The majority of buyers continue to report that mills generally are willing to negotiate to secure spot orders, even as they work to collect recent price increases on flat rolled and plate products. Since late June, the mills have […]
Using U.S. International Trade Commission (USITC) data, SMU has taken the import tonnage of cold rolled sheet and broken it down into coil and leveled, then into four thickness ranges, and then identifies how much was full hard, annealed and high strength. Through June 2019, of the total cold rolled sheet and strip imports into […]
The official economic statistics out of China showed a decline in industrial production in July. But in June, China’s share of global steel production was 55.1 percent. Once each quarter we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. We don’t know the accuracy of these numbers, […]
The upturn in steel prices appears to have some staying power as both service centers and their manufacturer customers reported rising prices in the first half of July, according to findings from Steel Market Update’s latest market trends questionnaire. As seen in the chart below, the majority of service centers (54 percent) said they are […]
Steel prices are up, but the same cannot be said for industry optimism. Following a brief uptick shortly after the mill price increases were announced last month, Steel Market Update’s Steel Buyers Sentiment Index has ticked back down. Steel buyers’ comments suggest that concerns about the economy, steel demand and the staying power of the higher […]
The mills may have the momentum today, but three out of four buyers responding to Steel Market Update’s market trends questionnaire this week expect that pricing push to be short-lived. About 73 percent said they expect steel prices to drop in the fourth quarter. Another 11 percent said they are not paying higher spot prices […]
For a steel industry that is hoping to collect higher prices on flat rolled and plate products, the mills seem surprisingly willing to negotiate, according to the findings from Steel Market Update’s latest market trends questionnaire. Well, then again, when you announce $120 per ton of base price increases (or more, depending on what your […]
Lead times for steel delivery are slightly longer for hot rolled, galvanized and plate steels following price increases announced by the major mills. The average lead time for hot rolled is now approaching four and a half weeks, cold rolled nearly six weeks, and coated steels around six and a half weeks. Plate lead times […]
Steel Market Update’s analysis of Key Market Indicators shows the present market situation was basically unchanged in the last month, based on data released in July, but half the 36 indicators trended positive and half negative. This report is designed to be a big picture summary of data on which we have reported in detail […]
Price momentum has shifted dramatically in the steel spot market since mid-June following three price increase announcements by the major mills. Both service centers and their customers report rising prices in today’s marketplace. As seen in the chart below, 81 percent of the service centers polled by Steel Market Update just six weeks ago said […]
Rising steel prices may be giving a lift to industry attitudes. Steel Market Update’s latest Steel Buyers Sentiment Index shows an eight point increase in Current Sentiment and an 11 point increase in Future Sentiment. While a single week’s results can’t reliably predict a new trend, the uptick is a notable change from sentiment data […]