Cleveland Cliffs reported a dramatic increase to $249 million in adjusted EBITDA in the second quarter compared to $21 million in the first quarter of this year. Seasonality and stronger than expected demand resulted in shipping volumes of 6.2 million long tons. The full year pellet forecast remains at 20 million long tons despite reduced […]
By CRU Principal Analyst Josh Spoores and CRU North America Analyst Ryan McKinley U.S. domestic scrap prices fell by $10 /l.ton m/m in the Great Lakes and Ohio Valley for most grades prior to the Independence Day holiday, but dealers the following week pushed back on the price decline, with some successfully securing little to […]
Imports of “finished” foreign steel are trending below 2 million net tons for the month of July. Overall, the trend, based on the first two weeks of license data for all products, is for a 3.2 million net ton month. SMU believes these numbers are overstated due to the opening of a new quarter and […]
SMU contributor Gaurav Chhibbar 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 Gaurav’s previous role, he was a trader at Cargill spending time in […]
Total U.S. raw steel production in the month of May rose 2.7 percent to 8,325,489 net tons, reports the American Iron and Steel Institute in Washington. May production was at one of the higher levels in recent history, only surpassed by March 2019 and October 2018. Prior to those three months, the last time production […]
U.S. steel exports in May totaled 630,107 net tons (571,624 metric tons), up 4.6 percent from April, but down 26.5 percent from levels one year ago. May levels are on the high side for 2018, but low comapred to the past few years. This time last year, exports were averaging 840,000 to 860,000 tons. The […]
We saw upward price movement in flat rolled steel prices this week. Benchmark hot rolled prices now average $550 per ton, up $15 per ton over the past week. All of the other products indexed by Steel Market Update also moved higher. Here is how we see prices this week: Hot Rolled Coil: SMU price […]
The U.S. mill capability utilization rate increased by 1.1 percent from the previous week, edging back up over 80 percent, reported the American Iron and Steel Institute. Raw steel production for the week ending July 13 totaled 1,867,000 net tons, for a mill utilization rate of 80.2 percent. Production was up by 1.6 percent compared […]
By CRU Senior Analyst Erik Hedborg Iron ore prices jumped back in the past week as Chinese iron ore demand remained steady while weak seaborne supply from Australia has kept port inventories at a low level. On Tuesday, July 16, CRU has assessed the 62% Fe fines price at $122.00 /t, a $4.00 /t increase […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
California Steel Industries is the latest mill to raise flat rolled steel prices. In a letter to customers on Wednesday, the Fontana, Calif.-based steelmaker said transaction prices for hot rolled, P&O, cold rolled and galvanized steels would increase by $40 per ton ($2/cwt) effective immediately. CSI’s move follows on similar announcements this week from Nucor, […]
Total rolled product imports in June were down by 20.5 percent on a three-month moving average (3MMA) basis year over year. This follows the 27.4 percent decline in May on the same basis. This early look at June’s import volume is based on Commerce Department license data (see explanation below.) This import analysis includes all […]
The analysis breaks down the imported tonnage of six flat rolled products into the district of entry and the source nation. We believe that misinformation (or lack of) about local import volumes is often used to influence purchase decisions. Our intent with this analysis is to describe in detail what is going on in a […]
As widely expected, U.S. Steel, NLMK USA and USS-POSCO Industries notified customers Wednesday that they have increased flat rolled steel prices by $40 per ton, following on similar announcements by Nucor and ArcelorMittal the day before. All total, U.S. steelmakers have raised prices for hot rolled, cold rolled and galvanized steels by $80 per ton […]
Steel imports into the U.S. in June potentially jumped by more than 30 percent in a comparison of May final Census data with June import license data. The final tally of June imports has not yet been released by the Commerce Department. Total steel imports in May, at around 2.1 million tons, were well below […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations made by […]
By CRU Principal Analyst Josh Spoores Sheet price movements have varied across the major markets since mid-June. There were slight gains in China and South East Asia, while prices in Europe were primarily steady m/m. However, for all other markets including North & South America, CIS, India and Japan, prices were lower by 3-9 percent […]
Our pricing data was collected on Monday and Tuesday of this week prior to the new Nucor price increase announcement on flat rolled steel. We are seeing the market as stable to slightly higher. This week, especially in light of the second price announcement (combined totaling $80 per ton), we will be able to see […]
Nucor and ArcelorMittal announced a second price increase on flat rolled steel today, and other mills are likely to follow suit. Effective immediately on new orders, prices for Nucor’s hot rolled, cold rolled and galvanized steel products are increased by $40 per ton ($2/cwt). Following Nucor’s lead, ArcelorMittal USA also raised base prices on its […]
Ferrous scrap prices for July settled down $10 per ton in the Western Pennsylvania/Ohio/Indiana markets, stayed sideways in the southern markets, and saw a combination of the two at points west, reported Steel Market Update sources. “This is a far cry from recent expectations of down $20-30/GT and represents what I believe is the bottom […]
Ferrous scrap prices are widely expected to move up in August anywhere from $10 to $30 per ton, lending support to higher finished steel prices. “Most of the trade on both sides of the aisle are expecting the August market to strengthen, though there is debate on how much,” said one Steel Market Update source. […]
By CRU Senior Analyst Erik Hedborg The high volatility in the iron ore market continues. After peaking on June 2, iron ore prices fell sharply at the end of last week before rebounding on Monday and Tuesday. On July 9, CRU has assessed the 62% Fe iron ore price at $118 /t, down $6.00 w/w. […]
The U.S. mill capability utilization rate saw a slight dip again last week to 79.4 percent–below the 80 percent level steelmakers had hoped to maintain. Raw steel production for the week ending July 6 totaled 1,847,000 net tons, the lowest level seen since last fall. Production was down 0.2 percent from the previous week, but […]
Last week, the domestic steel mills raised prices on hot rolled, cold rolled and coated products (galvanized, Galvalume, etc.) by approximately $40 per ton ($2.00/cwt). Since then, we have seen lead times move on hot rolled by about 1 to 1.5 weeks, according to the steel buyers canvassed yesterday and today. Cold rolled and coated […]
Steel Market Update asked steel buyers this week to respond to the following question: Do you believe a floor has been put on prices and they will rise from here? Here are some of the responses received: “A floor is possible, but I fear that if we see the expected downward move for scrap prices […]
As many predicted, the mill capability utilization rate was bound to dip below 80 percent soon as domestic steelmakers ease back on production to trim supplies in pursuit of higher steel prices. Indeed, average utilization dipped last week for the fifth week in a row, by a full percentage point, to 79.5 percent. Raw steel […]
By CRU Senior Analyst Erik Hedborg Iron ore prices continued to climb in the past week as port stocks fell further and the market enters a period of weaker seaborne supply. On Tuesday, July 2, CRU assessed the 62% Fe fines price at $124 /t, up $7.50 /t w/w. Demand in China remains strong as […]
By CRU Analyst Erik Hedborg The iron ore price averaged $106 /t in June, which brings the 2019 year-to-date price as high as $90 /t. However, in the second half of the year, we see a few bearish factors that will contribute to prices being lower than they are today. Those factors include: • Demand contraction […]
U.S. steel imports saw a big drop in May, from unusually high levels in April, according to preliminary Census data. Total steel imports declined to less than 2.1 million tons in May from more than 3.3 million tons in the prior month. Imports were down significantly from April in all product categories except for Galvalume. […]
Iron ore mine Magnetation is back in the news. Last time we reported on the company, the Iron Range was a hotbed of investment. Magnetation had been rescued from bankruptcy by Tom Clarke of ERP Iron Ore who was also rekindling operations at Mesabi Metallics (formerly Essar Steel Minnesota) with Chippewa Capital Partners. ERP filed […]