Sheet and plate prices were flat or down this week as some market participants questioned whether tags might be beginning to inflect lower. Hot-rolled and cold-rolled prices were down $5 per ton week over week. Galvanized (down $55 per ton) and Galvalume (down $40 per ton) fell more significantly. The steeper declines in coated products […]
Raw steel production by US mills fell for the second straight week and to the lowest total since February 2021. Domestic output was 1,715,000 net tons in the week ending Sept. 3, while capacity utilization was 77.8%. Utilization rates haven’t eclipsed the 80% mark in nine weeks, according to the latest data from the American […]
Nucor Corp. aims to keep prices for some plate products flat and to decrease prices on certain cut-to-length items by $50-150 per ton ($2.50-7.50 per cwt). The Charlotte, N.C.-based steelmaker announced the move with the opening of its October order book for plate. “We reserve the right to review and re-quote any offers that are […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
The temptation to purchase foreign hot-rolled coil (HRC) at a discount over domestic steel remains minimal. Adjusted foreign prices now offer little advantage over domestic steel, according to Steel Market Update’s (SMU) latest analysis. After taking freight costs, trader margins, and tariffs into consideration, foreign HRC prices for the three regions covered in this analysis […]
Prices for five of the seven steelmaking raw materials tracked in this SMU analysis decreased over the last 30 days, further declining from the record levels seen in March and April. Through the latest data available as of August 31, pig iron prices decreased 38% in the last month, busheling scrap prices fell 14%, aluminum […]
Flat-rolled steel prices were steady to up based on the data points SMU collected this week. There’s undoubtedly been pressure from recent mill price hikes, but it’s still far too early to tell if they will stick or if this is just a blip. Sheet prices rose for each of our products this week. The […]
Preliminary Census data indicates that July steel imports will total 2.67 million net tons, down 6% compared to June and the lowest monthly rate since February of this year. July figures are down 14% compared to March’s 26-month high of 3.09 million tons. Import licenses for August are currently at 1.98 million tons through August […]
Raw steel production by US mills was down slightly last week, following back-to-back weekly gains. Domestic output was 1,747,000 net tons in the week ending Aug. 27, while capacity utilization was 79.3%. Despite recent fluctuations, utilization rates haven’t eclipsed the 80% mark in eight weeks, according to the latest data from the American Iron and […]
Steel Market Update sources expect ferrous scrap prices to be sideways or rise slightly going into September. The move would potentially end the four-month streak of declines seen since the spring’s record high tags. Obsolete grades are anticipated to remain relatively stable from August to September, while prime scrap is expected to increase $20-$30 per […]
Economic conditions are still iffy at best. Housing data continues to suffer with new home sales plunging and inventory reaching the highest it has been since 2009. The Richmond and Kansas City Fed manufacturing indexes both plunged in July as well. The Richmond Fed’s manufacturing skill availability index, which indicates the demand for skilled labor […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
The temptation to purchase foreign hot-rolled coil (HRC) at a bargain has all but faded, with adjusted foreign prices now offering little or no advantage over domestic steel, according to Steel Market Update’s latest analysis. After taking freight costs, trader margins and tariffs into consideration, foreign HRC prices for two of the three regions covered […]
Sheet prices are down across the board this week, putting big cracks in any hopes that hot-rolled coil prices would find a bottom around $800 per net ton ($40 per cwt). The declines came as market participants reported that at least one large producer had cut deals at low levels and, in doing so, put […]
Raw steel production by US mills was up slightly last week, expanding for the second straight week. Domestic output was 1,756,000 net tons in the week ending Aug. 20, while capacity utilization was 79.7%. Though up, the result marks the sixth consecutive week below 80%, according to the latest data from the American Iron and […]
US plate prices edged down marginally this week, declining for the third straight week. The easing was driven by a tightening of the range, though sources feel pricing has flattened. The repeated declines are not exactly a surprise given plate prices have been holding an unsustainable premium over coil, while buying remains strategic and mainly hand-to-mouth. […]
End use market demand is mixed as mid-year shipment data is reported The recession, inflation, and interest rates remain hot topics for aluminum producers and consumers. As new economic data is announced, both bright spots and points of concern emerge. First, this month’s report on inflation showed a drop month-on-month (MoM) and may signal that […]
The following article on the hot-rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled Weekly changes in the value of spot HR have continued to drop an average of about $30/net ton but it should […]
Foreign steel imports from the three regions tracked by Steel Market Update have all but lost their price advantage over domestic steel, according to our latest foreign versus domestic hot rolled steel price analysis. After taking freight costs, trader margins and tariffs into consideration, foreign HRC prices for one region are more expensive than domestic […]
Sheet prices were mixed this week as market participants continued to debate whether a recent round of price hikes had stuck. While some said the increases would provide a floor and prevent further price erosion, others said prices were more likely to resume their downward trend in the weeks ahead. There were also questions about […]
Raw steel production by US mills edged up marginally last week after declining for two straight weeks. Domestic output was 1,742,000 net tons in the week ending Aug. 13, while capacity utilization was 79%. That marks the fifth week below 80%, according to the latest data from the American Iron and Steel Institute (AISI). US […]
The spread between hot-rolled coil (HRC) and prime scrap prices continues to narrow, according to Steel Market Update data. Busheling scrap prices have declined each of the last four months, as have hot-rolled prices – but at a greater rate than scrap. The result: a shrinking delta between the two products. The latest spread is one-third what […]
Steelmakers stand firm in the face of Russian aggression The invasion of Ukraine led to a sharp and sudden decline in steel production as steelmakers hurried to idle their assets in the face of military aggression. In the weeks that followed, some of these producers restarted their facilities – albeit at reduced capacity utilization. As […]
Imported sheet and plate products arrived at US ports at a higher clip in June, resulting in them accounting for a larger share of the domestic market, according to US Commerce Department data. Imports’ share of US sheet and plate markets peaked in December, with sheet reaching its highest level in the past 4.5 years. The trend […]
Underlying price function stops sliding and may have found basis for strengthening The London Metal Exchange (LME) may have found a floor to stop the slide it has experienced since April. Topping out near $3,400 metric tons earlier this year, the price of aluminum drifted lower steadily in the second quarter and into the third […]
SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. He and the firm design and execute risk management strategies for clients. They also provide process and analytical support. Before joining Metal Edge Partners, Bryan held commercial leadership roles involving purchasing, sales, and risk management […]
US plate prices edged down again this week after seeing their largest decline in nearly five years the week prior. The latest declines are not exactly a surprise given plate prices had been holding an unsustainable premium over coil and buying has been largely hand-to-mouth. But the straw that broke the camel’s back might just […]
US apparent steel supply declined 4% month-over-month to 9.05 million net tons in June, erasing May’s gains, according to the latest US Department of Commerce and American Iron and Steel Institute data. June supply is now at the second lowest monthly level seen in the past 12 months, above only the February 2022 figure. Recall […]
The temptation to purchase foreign hot-rolled coil (HRC) at a bargain remains low, with adjusted foreign prices now within $40 per ton of domestic steel, according to Steel Market Update’s latest analysis. For the past three months, the potential discount on imported products has been shrinking. After taking freight costs, trader margins and tariffs into […]
US raw steel production eased to 7.45 million net tons in June, down 5% from May’s six-month high, according to recently released American Iron and Steel Institute (AISI) data. June is the third lowest monthly production figure seen in the last year and a half. Domestic production has trended downward since peaking last summer. Recall […]