U.S. raw steel production in May rose 1.9 percent to 5,415,000 net tons, as reported last week by the American Iron and Steel Institute in Washington. May production was well below the 2020 average of 6,934,000 tons, and down nearly 3 million tons or 35.0 percent compared to the same month last year. May production […]
This week’s SMU comparison of foreign and domestic hot rolled prices shows that U.S prices continue gain a greater advantage over foreign imports, according to SMU and CRU indices. After shrinking in May, the price gap between domestic HRC compared to German, Italian, and East/Southeast Asian imports has widened over the last month. The following calculation […]
As expected, ferrous scrap prices declined in July, adding downward pressure to already weak finished steel prices. Steel Market Update sources report that obsolete scrap traded down $10-20 per ton, while prime grades were lower by $40 across the country. Scrap supplies have increased at a greater rate than steel production, say the experts, which […]
U.S. steel mills shipped 5,461,851 net tons in May, a 2.9 percent decrease from April, and a 32.9 percent decrease from the 8,142,270 net tons shipped in May 2019, reported the American Iron and Steel Institute (AISI). Shipments by domestic steelmakers year to date totaled 35,194,683 net tons, a 13.1 percent decrease versus 2019 shipments […]
U.S. steel exports in May slipped 13 percent past April’s low to their lowest level in more than 24 years as the coronavirus took a toll on economies all over the world. At 353,000 tons, May exports were down 44 percent from levels one year prior, according to recent U.S. Department of Commerce data. The 2020 […]
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 […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor Sheet prices in the U.S. Midwest market have fallen from their early June peak as end-user demand, although higher than April and May, remains historically low. Over the near term, sheet prices will fall further as demand is limited by weak underlying economic activity and […]
Flat rolled steel prices weakened further this past week with hot rolled averaging $475 per ton, according to Steel Market Update’s latest check of the market. With scrap prices for July poised to settle lower this week, and steel demand still very much in question due to the coronavirus, SMU’s Price Momentum Indicator continues to […]
Perhaps a reflection of an improving economy, steel production moved up for the fourth week in a row to a total of 1,268,000 net tons in the period ending July 4 with the mills operating at an average utilization rate of 56.6 percent, reported the American Iron and Steel Institute. Production was up 2.3 percent […]
Recently released Census data shows final May steel imports totaled 1.80 million net tons, down 35.1 percent from April, but up 2.8 percent over March, according to the U.S. Department of Commerce. The final May figure is just 9,700 tons higher than the preliminary May import figures SMU reported in late June. Finished imports in […]
By CRU Senior Analyst Erik Hedborg and Prices Analyst Rory Knight In the past four weeks, freight rates have nearly doubled as Brazilian iron ore shipments have increased while an increasing proportion of global exports are being shipped to distant markets, reducing fleet availability. This is benefiting European steelmakers, while hurting iron ore miners, particularly […]
After canvassing the market this week, Steel Market Update has moved its price momentum indicator on hot rolled, cold rolled and galvanized steel products to Lower. All three products saw further declines since last week as the market stuggles to gain some traction. With anxiety high over a possible surge in coronavirus cases, and scrap […]
Halfway through the year, steel production by U.S. mills is down by nearly 19 percent compared with the first half of 2019 as steel demand continues to suffer from the coronavirus. Adjusted year-to-date production through June 27 totaled 39,165,000 net tons at an average utilization rate of 67.0 percent, reported the American Iron and Steel […]
California Steel Industries notified customers on Monday that it will be lowering the extra charge for galvanized coatings due to declines in the market price of zinc. CSI advised customers: “Due to changing zinc costs, our Galvanized Coating Extras have been revised. These changes will be effective beginning with orders placed for August shipment and […]
Heidtman Steel, one of the country’s leading coil service centers, has expanded into tube manufacturing through a joint venture known as TNT Pipe and Tube. The new tube mill, located at Heidtman’s Erie, Mich., flat rolled processing plant, began initial production last month and will be fully operational by the end of August, said Heidtman […]
Heidtman Steel Products, Inc., a leading coil service center, has renamed its tube mill, formerly TNT Pipe and Tube, to Heidtman Tubular Products. The change comes as Heidtman Steel seeks to showcase its vertical integration and full ownership and commitment to the tubular business, the company said. “As one of the largest, privately held, flat […]
This analysis breaks down the imported tonnage of six flat rolled products into the district of entry and the source nation, describing in detail what is going on in a company’s immediate neighborhood, thus providing a negotiating advantage in purchasing decisions for Premium subscibers. Premium members will find reports on our website that break down […]
Ferrous scrap prices most likely will move lower in July as scrap supplies are increasing at a greater pace than steel demand. Finished steel prices have shown some weakness lately as the market struggles to get back on track and are unlikely to get any help from scrap next month. Ferrous scrap prices rose $30-40 […]
Recently released preliminary steel import data shows May imports totaling 1.79 million net tons, according to the U.S. Department of Commerce. This is down nearly 1 million tons compared to final April imports, primarily due to the quarterly reset on semifinished imports. Taking semifinished products out of the picture, imports of finished products are up […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor Steel sheet prices in the U.S. Midwest market were mixed this week with slight declines for both HR and HDG coil, while CR coil was slightly higher. Market contacts have noted that markets are weakening as demand has not come about as previously expected. Lead […]
By CRU Senior Cost Economist Ross Cunningham, from CRU’s Steelmaking Raw Materials Monitor The Brent crude price is often deemed a bellwether for the global economy. A high oil price increases inflation and impacts economic growth. It influences global confidence, affects investment decisions and weighs on exchange rates—particularly those of large oil exporters. In the […]
Flat rolled steel prices receded by $10-20 per ton in the past week as supplies continue to exceed orders even though demand is improving. The benchmark price for hot rolled dipped below the $500 per ton mark for the first time since the third week in May. Rumblings of furnace restarts could add to supplies […]
CRU analysts, speaking during a virtual version of their Annual New York Steel Briefing earlier today, said volatility is in the cards for steel pricing as demand increases and new EAF capacity comes online. CRU forecasts sheet consumption will fall 17.6 percent or 12.4 million metric tons year-over-year in 2020, and long and plate products […]
By CRU Senior Analyst Helen O’Cleary, from CRU’s Zinc Monitor U.S. industrial production increased by only 1.4 percent in May, well short of expectations, but market sentiment is generally positive as the Fed has confirmed it will do “whatever it takes for as long as it takes” to help get the economy back on track […]
Steel production in the week ending June 20 totaled 1,224,000 net tons with the mills operating at an average utilization rate of 54.6 percent. Production was up 1.2 percent from the prior week when the utilization rate was 54.0 percent. This is a notable improvement from the post-virus low point of 1,144,000 tons or 51.1 […]
By CRU Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service U.S. automaker restarts in May drove an increase in steel demand and helped to prop up sheet prices. There is concern, however, over whether there is enough new demand to support mills restarting or if manufacturers are mainly managing pent-up demand. We’ve heard […]
This week’s SMU comparison of foreign and domestic hot rolled prices shows that U.S prices have started to gain a greater advantage over foreign imports, according to SMU and CRU indices. After shrinking in May, the price gap between domestic HRC compared to German and Italian imports has now slightly widened, while the East/Southeast Asian […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel Uncertainty is leading to softer HR prices as optimistic forecasts are met by a slower than expected recovery process. A case […]
Steel Market Update’s canvass of the market this week shows hot rolled and galvanized steel prices down about $15 a ton, though plate is up about $10 a ton following last week’s price increase announcements by the mills. Prices have yet to gain much traction even though demand has improved as coronavirus restrictions have been […]
Steel production in the week ending June 13 totaled 1,210,000 net tons with the mills operating at an average utilization rate of 54.0 percent. Production was up 1.3 percent from the prior week when the utilization rate was 53.3 percent, reported the American Iron and Steel Institute. While improved, the current week’s production still represents […]