Steel prices saw a big dip this week as the benchmark hot rolled price dropped to $1,335 per ton. That’s down more than 30% since the September peak and the lowest HR has been since the end of March 2021. Except for plate, which was pretty stable, flat rolled prices declined anywhere from $50-90 per […]
Ferrous scrap prices in the U.S. saw a big, $60-per-ton drop in January – a surprise in a month when scrap prices usually rise. That makes it trickier than usual to predict what will happen to scrap prices in February. Experts said the January decline brought domestic prices more in line with foreign, and also […]
Global pipe producer Tenaris is boosting production of oil country tubular goods at its welded mill in Hickman, Ark., to support growing customer demand in the U.S. “Hot rolled coil prices have begun to drop following massive gains last year, and customer demand continues to grow for domestically made pipe. These conditions make it the […]
Domestic raw steel production totaled 1,803,000 net tons in the week ending Jan. 22, down 1.6% versus the prior week and slipping for the first time in three weeks, reported the American Iron and Steel Institute. Despite the decrease, last week’s output marked a 3.9% gain over the same period last year when production was […]
In another skirmish in the battle between steel and aluminum for a greater share of the automotive market, aluminum producer Novelis Inc. plans to invest $365 million to build a highly advanced recycling center adjacent to its new automotive finishing plant in Guthrie, Ky. Groundbreaking is scheduled for early 2022, with commissioning expected in 2024. Aluminum producers claim the high […]
By Greg Wittbecker, Advisor, CRU Group One of the hot topics resonating through commodity market forecasts is the risk to demand from a faltering Chinese real estate market. The well-publicized financial difficulties of Evergrande have raised fears that the property markets could destabilize. Other developers such as Kaisa and Sinic Holdings have also struggled to […]
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 For obvious reasons 2021 was a very active year for HR futures – the runaway rise in prices helped bring […]
As we enter the fifth month of declining domestic steel prices, hot rolled imports continue to tempt U.S. buyers with potential discounts of 26-34%, according to Steel Market Update’s latest foreign versus domestic price comparison. Foreign hot rolled steel prices are now theoretically $365-490 per ton cheaper than domestic steel, after taking freight costs, trader […]
By CRU Principal Analyst Erik Hedborg and Research Analyst Aaron Kearney-Keaveny, from CRU’s Steelmaking Raw Materials Monitor, Jan. 19 Over the past month, the iron ore price has continued its rise that started back in mid-November, reaching $125 /dmt on Jan. 18. The rise has been more volatile than the previous month, but has shown […]
By CRU Senior Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service, Jan. 20 U.S. sheet prices fell sharply in the last month, as mills had issues filling their order books and offered steep discounts to convince buyers not to book imports. Multiple buyers said that imports were $400 /s.ton lower than current domestic […]
Steel Market Update’s check of the market this week shows a few hot rolled transactions at prices below $1,400 per ton ($70 per cwt) as flat-rolled steel prices continue their correction from record highs last year. The average price for HRC dropped by another $55 per ton in the past week to $1,425 per ton. […]
Raw steel production by domestic mills improved for the second straight week, totaling 1,833,000 net tons in the week ending Jan. 15. The increase marked a 5.6% gain over the same period last year and up 1.1% from the prior week when production was 1,813,000 tons, reported the American Iron and Steel Institute. Mill capacity […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor January 2022 The CRU metallics price indicator (CRUmpi) fell in January m/m by 4.4% to 383.9, which is an unusual move for this time of year. Demand in most markets, particularly in Europe and the USA, was weaker-than-expected, and relatively mild weather conditions leading up […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor, Feb. 10 The CRU metallics price indicator (CRUmpi) rose in February m/m by 2.4% to 392.9, gaining back some of the ground lost during January’s unusually bearish market. This slight upward trend was driven primarily by supply scarcity for obsolete grade scrap and pig iron, […]
Prices for secondary steel are headed sharply downward along with prime steel, challenging purveyors of nonprime products in ways that sharply contrast with last year. “Secondary prices are following the herd. There’s nothing to compare this to. The rocket ship up last year and the plunge down this year is unprecedented on every level,” said […]
U.S flat products import volumes in November were at their highest level in more than six years, and while import data for December has not yet been finalized, the U.S. likely imported at least 1.2 million metric tons of flat products last month, based on import license data from the Commerce Department. November’s import volume tipped the […]
Imports of less-expensive sheet and plate products continue to arrive on U.S. shores, a steady increase over the past seven months, driven by the need for buyers to find relief from inflated steel prices in the U.S. Although domestic steel prices have been declining, November Commerce Department data show imports’ shares of the U.S. flat products markets […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Before joining Metal Edge Partners, Bryan held a variety of commercial […]
South Korean mills are out with new lower prices for steel sheet and steady prices for plate, according to recent offers reviewed by Steel Market Update. The trend is important because U.S. mills are increasingly willing to compete with imports, meaning that the latest import offers give an indication of where domestic prices are headed. […]
By Principal Analyst Josh Spoores from CRU’s Steel Sheet Products Monitor, Jan. 22 Trends in the North American sheet market have picked up where 2021 left off, particularly a continued decline in sheet prices. Various supply pressures have overwhelmed demand and led to lower sheet prices in all North American markets. In the U.S. Midwest […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor, Feb. 9 Sheet prices in the North American sheet market have continued to collapse due to a temporary supply surplus. Since prices peaked in late September/early October, the price decline for HR and HDG coil has been at a larger amount in USD […]
U.S. apparent steel supply levels remained high through November, down less than 1% from the month prior to 9.77 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. Recall that in September we saw the highest supply level in over six years, going back to January […]
As widely expected, steel prices continued to slide this week with hot rolled dipping below $1,500 per ton for the first time since April 2021. The big difference being that last April the HR price was on an upward trajectory that would eventually take it to a high of $1,955 per in early September. Since […]
November U.S. steel exports increased 1% from October to 725,000 net tons, according to the latest U.S. Department of Commerce data. While October and November levels are down compared to the summer months, the 12-month moving average through November is now at a 32-month high. Recall that March and June of 2021 were the two […]
U.S. steel mills shipped 7,893,990 net tons in November, a 16.9% increase from the same month last year, but a decline of 3.9% from the previous month, the American Iron & Steel Institute reported. Shipments by U.S. steelmakers year to date through November totaled 86,848,042 net tons, a 17.4% increase versus 2020 shipments of 73,950,515. […]
Steel production by domestic mills rose during the first full week of the New Year, pushing capacity utilization up over 82%. U.S. raw steel output totaled 1,813,000 net tons in the week ending Jan. 8, up 4.4% from the same period last year and up 1.6% from the prior week when production was 1,785,000 tons, reported […]
By Greg Wittbecker, Advisor, CRU Group Virtually every mention of the infrastructure spending plans and Build Back Better touts renewable energy. We thought it might be worthwhile to talk about some of the tangible effects of that on solar photovoltaic (SPV) energy generation. The Solar Energy Industries Association (SEIA) is the best source of data […]
Ferrous scrap prices in the Midwest saw a big $60 drop in early trading for January – a surprise in a month that historically sees scrap prices rise. While trading continues in other regions, sources tell Steel Market Update they expect the market to settle in the next few days at down $40-50/GT for obsolete […]
By CRU Research Analyst James Mills and Multi Commodity Analyst Alex Christopher, Jan. 6 The synchronized rise in commodity prices in 2021 prompted some market commentators to speculate the beginnings of a “supercycle.” At CRU, we are more cautious. In the past year, commodity prices have been more volatile than in the preceding years, with […]
Final Census data shows that steel imports in November rose 15% month-over-month to 3.15 million net tons, not far from September’s 28-month high of 3.26 million tons. December import licenses through Jan. 6 are just shy of 3.00 million tons, a 5% decline from November but up 9% compared to October. Total finished steel imports were nearly 2.60 million tons in […]