At the end of 2013, David Phelps retired as president of the American Institute for International Steel (AIIS) and has just joined Steel Market Update as a contributing writer. Mr. Phelps will be writing about topics concerning the steel industry – particularly in the area of imports and foreign steel. Steel Market Update had a […]
Schnitzer Steel Industries, a metals recycling business, reported an adjusted net loss of $5 million during the first quarter 2014, ending Nov. 30, 2013, compared to adjusted net losses of $14 million the previous quarter and $1 million a year ago. Losses reflected soft ferrous scrap prices early in the quarter and restructuring costs. “All […]
Final November trade data shows that the United States received a total of 2,592,549 net tons of steel for the month. This is a decrease of 16.4 percent compared to the 3,101,063 NT imported in October. It is also a decrease from November 2012 tonnage by 4.8 percent. December license data figures are estimated at […]
This is the first “official” week of the New Year and all eyes are on the domestic mills to see if they can continue to hold the line – take that back – if they can break the stalemate we saw during the month of December and push flat rolled steel prices higher from here. […]
The American Iron and Steel Institute (AISI) released data earlier this week for net shipments of steel mill products for the month of November. Total shipments for the month were reported to be 7,604,428 net tons (NT), down 8.2 percent from October tonnage but up 2.8 percent from November 2012. YTD tonnage through November was […]
Market sentiment in Asia is contrary to the United States. Finished steel sales have been very lackluster and slow. Main causes: • Exchange rates: US$ has been stronger recently, approximately 1.3-1.5% against most Asian currencies. This affect on exchange rates also is affecting Turkish buyers. On a currency exchange difference from 3 weeks ago, it […]
On Wednesday, January 2, 2014, ArcelorMittal Dofasco out of Hamilton, Ontario, Canada advised their customers through the use of an internal memo that their flat rolled steel prices would change. The company noted the changes were being made, “Due to recent changes in the exchange rates and market conditions for Flat Rolled products…” The company […]
In the United States approximately 60 percent of the steel produced is through electric arc furnaces (EAF) used by so-called “mini-mills.” Electric arc furnaces use primarily scrap along with pig iron or DRI (direct reduced iron) to charge the furnaces. All of the long products (rebar, bar, angles, beams) are produced through EAF technology and […]
In spite of new price increase announcements being made by the domestic mills just prior to Christmas, the flat rolled pricing cycle flattened out during the month of December with essentially no movement on all four of our product groups: hot rolled, cold rolled, galvanized and Galvalume steels. Hot rolled and cold rolled prices went […]
For the week ending January 4, 2014, the American Iron & Steel Institute (AISI) reported that the U.S. steel industry produced 1,822,000 net tons of raw steel, a 2.8 percent increase over the previous week and a 0.6 percent increase over the same week one year ago. The estimated capacity utilization rate is 76.1 percent, […]
The first couple of days of January did capture a few sales of shredded scrap into the Midwest/Ohio Valley markets. Early reports are a number of orders were taken to the domestic steel mills at higher numbers ranging from a low of up $15 to a high of up $25. This is at the low […]
The U.S. Department of Commerce recently released revised import statistics for the month of November and December. Total preliminary imports for November are 2,584,176 net tons (NT), down 16.7 percent compared to October import figures. November imports are below both the 3 month-moving-average (3MMA) and 12 month-moving-average (12MMA) calculated through October. December imports, based on […]
The year 2013 for hot rolled steel futures was a story of two halves, with the beginning of the year trading in a strong contango and the second half of the year stuck in backwardation. The beginning of the year was characterized by low prices and significant volatility while the second half of the year […]
Platts took all of their flat rolled sheet indices higher this past week and they now reference benchmark hot rolled at $685 per ton – $15 per ton higher than Steel Market Update and $17 per ton higher than CRU. With the New Year Holiday sandwiched in the middle of this past week SMU did […]
The American Iron & Steel Institute (AISI) reported their final raw steel production numbers for the month of November 2013. This estimation is different than the weekly raw steel production as it is based on 75 percent of the domestic mills reporting vs. 50 percent for the weekly estimates. Total raw steel production for the […]
According to Baker Hughes data from January 3rd, 2014, the U.S rig count for this week is 1,751 rigs exploring for or developing oil or natural gas. This count is a decrease of 6 rigs when compared to last week, with oil rigs down 4 to 1,378 rigs, gas rigs down 2 to 372 rigs, […]
Based on our channel checks over the Holidays we found little to no movement in flat rolled steel prices as buyers sat on the sidelines (or were on vacation) waiting for the New Year to begin. Steel Market Update published our latest prices on Tuesday afternoon in our website. Here is how we are seeing […]
For the week ending December 28, 2013, the American Iron & Steel Institute (AISI) reported that the U.S. steel industry produced 1,773,000 net tons of raw steel. This is a decrease in production in comparison to the first week of December when raw steel production was 1,829,000 NT (the highest production rate for the month). […]
Australian ports Port Hedland, Dampier and Cape Lambert resumed operations on Wednesday after Cyclone Christine tore through the area. The cyclone shut down operations and shipments but caused only minor infrastructure damage. BHP Billiton, Fortescue Metals Group and Rio Tinto reported all mines back in operation with no injuries to personnel. Only minor damage has […]
For the week ending December 28, 2013, the American Iron & Steel Institute (AISI) reported that the U.S. steel industry produced 1,773,000 net tons of raw steel, a 2.3 percent increase over the previous week but a 0.7 percent decrease over the same week one year ago. The estimated capacity utilization rate is 74.0 percent, […]
Ferrous scrap prices are expected to rise as we enter the New Year. Early indications are for scrap prices to make a rather serious move as cold weather sets into the North, further reducing already weak flows of the material into the scrap yards. Prices are forecast to move a minimum of $20-$30 per gross […]
Flat rolled steel prices remained range bound over the past few days due to the Holidays and most buyers being out of the office. At the same time, U.S. Steel, NLMK USA, Nucor and ArcelorMittal USA have all come out with new base price guidance for new orders. The expectation from most buyers is for […]
According to the most recent U.S. Department of Commerce import license data, Chinese exports of cold rolled into the United States are beginning to surge. Based on license data through the 24th of December, cold rolled imports from China totaled 76,419 net tons of the 159,416 net tons requesting licenses. Since October 2012 the previous […]
On Monday, December 23, 2013 Nucor Sheet Mill Group advised their flat rolled customers that “due to higher raw material prices, the Nucor Sheet Mill Group will increase base pricing to the following levels, effective immediately:” Hot Rolled = $35.00/cwt ($700 net ton) Cold Rolled = $40.50/cwt ($810 per ton) Galvanized = $40.50/cwt ($810 per […]
In a letter to their customers dated today, Monday, December 23, 2013 – NLMK USA opened their February order book and advised their customers of their “minimum” new base price levels: Hot Rolled $35.00/cwt ($700 per ton)Cold Rolled $40.50/cwt ($810 per ton)Coated $40.50/cwt ($810 per ton)Specialty $25/ton increase on all high […]
According to Baker Hughes data from December 27, 2013, the U.S rig count for this week is 1,757 rigs exploring for or developing oil or natural gas. This count is a decrease of 11 rigs when compared to last week, with oil rigs down 13 to 1,382 rigs, gas rigs up 2 to 374 rigs, […]
For the week ending December 21, 2013, the American Iron & Steel Institute (AISI) reported that the U.S. steel industry produced 1,733,000 net tons of raw steel, a 4.7 percent decrease over the previous week and a 2.9 percent decrease over the same week one year ago. The estimated capacity utilization rate is 72.3 percent, […]
I thought our Premium Level readers might appreciate the latest forecast from Timna Tanners, Bank of America Merrill Lynch metals and mining analyst. Timna was a little “light” in her price forecast for 2013 hot rolled coil which was originally $555 average and was upgraded during the year to $622. Tanners believes some of the […]
Production declined by 5.0 percent from October to 127,364,000 tonnes, partly due to less days in the month but this was also the lowest monthly tonnage since February. Capacity utilization was 74.0 percent. The annualized three month moving average production was 1.576 billion tonnes through November (Figure 1). Capacity is now 2.076 billion tonnes. Global […]
U.S. Steel – POSCO Industries (UPI) has opened their March flat rolled steel order book and in the process the company has put out a letter to their customers advising of the new minimum base prices the mill will be charging for hot rolled pickled & Oiled (HRPO), cold rolled (fully annealed) and hot dipped […]