Even after a 20% decline in U.S. hot rolled coil prices over the past four months, imports still offer buyers a tempting price advantage with potential discounts of 31-38%, according to Steel Market Update’s latest foreign versus domestic price comparison. Foreign hot rolled steel prices are now theoretically $483-583 per ton cheaper than domestic steel, […]
Schnitzer Steel Industries Inc. posted its best first quarter earnings on record thanks to high prices and strong demand for both ferrous and nonferrous scrap. The Portland, Ore.-based scrap recycler and long steel producer recorded net income of $47 million in the first quarter of fiscal 2022 ended Nov. 30, 2021, more than triple the […]
Steel began the New Year with the same old trend of declining prices that began four months ago. Steel Market Update’s first poll of the market in 2022 shows flat rolled and plate prices down again anywhere from $10-65 per ton. The wide spread in this week’s price ranges most likely reflects business hiccups caused […]
Total steel imports into the United States jumped by nearly 45% in the first 11 months of 2021, reported the American Iron and Steel Institute, based on preliminary Census data through November. Imports for the year to date totaled 29.7 million net tons of steel, up 44.6% versus the same period in 2020, including 21.6 […]
AZZ Inc., Fort Worth, Texas, has acquired Steel Creek Galvanizing Co., a privately held hot-dip galvanizer based in Blacksburg, S.C., extending AZZ’s reach into the southeastern U.S. The new galvanizing facility – which will operate as AZZ Galvanizing-South Carolina – will be integrated into AZZ’s existing network of hot-dip galvanizing plants, increasing its total galvanizing network […]
By Greg Wittbecker, Advisor, CRU Group Happy New Year. We hope you had a healthy and happy holiday season. The aluminum market is slowing coming back to life and witnessing serious supply constraints. European primary production is withering under high power prices. The impetus behind the rally in price is simple – incredibly high spot […]
Nucor has decided to keep plate prices unchanged with the opening of its February order book. The current plate pricing levels – announced on Monday, Jan. 3, and effective immediately – are the same as those rolled out in late November for January orders. The Charlotte, N.C.-based steelmaker’s letter to customers also marks the first […]
Steel production by domestic mills saw a small dip over the holidays, but capacity utilization remains above a healthy 80% to start the New Year. Raw steel output totaled 1,785,000 net tons in the week ending Jan. 1, 2022, up 9.5% from the same period last year but down 0.9% from the prior week when […]
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: Does a scaled hedge approach work to hedging future HR exposures? What are the pitfalls? What benchmarks work? So, really, how volatile […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. Prices for three of the seven steelmaking raw materials tracked in this SMU analysis increased over the last 30 days, while three products decreased and one was unchanged. Through Dec. 21, iron ore prices […]
Steel Market Update’s check of the market this week – our last of 2021 prior to the holiday break – shows the benchmark price for hot rolled finishing the year around $1,600 per ton ($80/cwt). That’s down another $70 per ton from last week and a total decline of $355 or 18% since peaking at […]
By CRU Principal Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor, Dec. 21 Iron ore prices have continued to rise in the past week, a typical year-end development observed in recent years. This is the time when steelmakers start building iron ore stocks in anticipation of restricted transportation of ore from ports to mills […]
By Greg Wittbecker, Advisor, CRU Group Legislation passed Dec. 16 by the Senate and now on its way to the White House will all but ban imports connected at any point in the supply chain to materials from China’s Xinjiang Uyghur Autonomous Region. However well justified by human rights, this ban will be a challenge for […]
Tubular products producer PTC Alliance has agreed to purchase the business of Metal-Matic Inc., another maker of welded and drawn over mandrel (DOM) carbon steel tubing. The transaction, which will strengthen the company’s foothold in the Midwest, is expected to close by the end of the year. The deal will add four production facilities employing […]
Domestic raw steel production lost some ground in the week ending Dec. 18, slipping for the third time over the past four weeks and falling to its lowest total since the week ending May 22. U.S. mills produced an estimated at 1,805,000 net tons during the week, while the average mill utilization rate fell to […]
It’s not just domestic steel prices that are falling rapidly, so too are prices abroad. Case in point: South Korean steelmaker Hyundai. Its latest offer for hot-rolled coil for February-March shipment to the West Coast is $1,450 per ton DDP to Los Angeles-area ports. That’s down significantly from prior offers of $1,600-1,640 per ton, according […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Monitor, Dec. 15 Seasonal pressures are starting to temporarily slow demand for some steel products. For sheet, this weakness is adding to a monumental shift in supply fundamentals. For other products, an unseasonably warm start to December has allowed construction demand to remain stronger than normal. […]
By Greg Wittbecker, Advisor, CRU Group It’s that time of year when we start looking ahead as we put the current year in our “rear view mirror.” Here are some of the things that I circulated to the CRU Aluminum Analysis team for consideration among our “top calls for 2022.” These are not officially “blessed,” […]
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 remains high, with potential discounts of 22-40% compared to domestic steel. However, U.S. HRC prices are now declining at a greater rate than foreign prices, narrowing the gap, according to Steel Market Update’s latest domestic and foreign steel price comparison. Foreign hot rolled steel prices are now theoretically $373-673 per ton cheaper […]
U.S. Steel has released updated galvanized steel coating extras, with new prices going into effect on Jan. 2, 2022. Other mills have also adjusted their coating extras due to rising zinc costs in recent months; NLMK, Big River Steel, and Nucor all have revised extras going into effect in January 2022, and ArcelorMittal USA and […]
Apparent steel supply remained high in October at 9.86 million net tons, down just 0.6% from September, 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 more than six years, going back to January 2015 when supply surpassed 10 million tons. October […]
Steel sheet prices fell again this week as mills continued reducing prices on shorter lead times and increased competition from both imports and other domestic producers. Published lead times are as low as 3-4 weeks for hot-rolled coil, for example, and sources reported orders being processed early. Some said mill offers declined substantially over the […]
Domestic raw steel production recovered some ground in the week ending Dec. 11 after slipping for two straight weeks. U.S. mills produced an estimated at 1,818,000 net tons during the week, while the average mill utilization rate rose to 82.4%, according to the American Iron and Steel Institute (AISI). Production was up an estimated 0.6% […]
By Greg Wittbecker, Advisor, CRU Group The massing of Russian troops on the border with Ukraine has raised tensions to a high level on the political scene. It forces us to take another look at the repercussions of new sanctions on the Russian state should Putin decide to invade. 2018 Repeated? In March 2018, sanctions […]
Imports of less-expensive sheet and plate products continue to make their way into the U.S. market, a steady increase over the past six months as buyers continue to seek relief from record-high steel prices in the U.S. October Commerce Department data show imports’ shares of the U.S. flat products markets at their highest levels in the past […]
U.S. steel exports fell 2% from September to October and are now at 719,000 net tons, according to the latest U.S. Department of Commerce data. This is the lowest monthly export level in seven months. Recall that in March and June of this year, we saw the two highest monthly export levels in the last three […]
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 […]
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 […]
Final Census data shows that foreign steel imports in October totaled 2.74 million net tons, easing 16% from September’s 28-month high of 3.26 million tons. November import licenses through Dec. 6 were at 2.68 million tons, a 2% decline from October and down 18% compared to September. Total finished imports were 2.37 million tons in October, down 8% […]