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 […]
March apparent steel supply was calculated at 9,601,722 net tons, according to data released late last week. Apparent steel supply is determined by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports. March apparent steel supply saw a 333,756 ton or 3.4 percent decrease compared to the same month […]
Flat rolled and plate steel prices continued their slide this week. There continues to be a wide spread between hot rolled base pricing and that of cold rolled and coated steels. The changes in pricing shown below do not reduce the spreads, which have been running $150-$170 per ton. Normal spreads should be closer to […]
The U.S. mill capability utilization rate bumped up a half point to 82.8 percent for the week ending May 11, while raw steel production increased by 0.6 percent from the previous week to 1,927,000 net tons. The week’s production represented a 6.6 percent increase from the same period last year, reported the American Iron and Steel […]
Steel Market Update is sharing this Premium content with Executive-level members in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. Rolled product imports declined by 24.4 percent in April year over year on a three-month moving average (3MMA) basis. This early look at April’s import volume is based […]
U.S. steel exports in March totaled 589,057 net tons (534,384 metric tons), down 1.7 percent from February and down 32.2 percent from levels one year ago. This is the third lowest monthly export level seen in our 10+ year history, behind December 2018 at 519,099 tons and September 2018 at 584,858 tons. The total March […]
By CRU Senior Analyst Manjot Singh As has been the case in the last few weeks, Chinese BF utilization rates have remained above 80 percent and rebar inventories have continued to dwindle, suggesting buying appetite for raw materials has been robust in China. In terms of iron ore specifically, inventories at Chinese ports and mills […]
By the CRU Economics Team The Turkish economy is suffering its first recession in a decade. This has had knock-on effects on the global steel market, given Turkey’s prominence in this industry. A key question for the steel market is therefore, how long will the recession in Turkey last? We think that in the most […]
Metal fabricators are worried about how content provisions in the U.S.-Mexico-Canada Agreement will impact their industry. The proposed trade agreement for North America includes provisions on steel and aluminum regional content for automobiles, but may extend to other manufacturing sectors. “Too many people view NAFTA as just about cars when the agreement impacts virtually every […]
Total raw steel production for the month of March rose to 8,472,311 net tons, reports the American Iron and Steel Institute in Washington. This is the highest monthly production level seen in four and a half years, going back to August 2014 when it was 8,546,303 tons. Broken down by production method, 5,833,229 tons (68.9 […]
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 […]
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 […]
Steel imports into the U.S. in March, totaling 2.26 million tons, were down by 7 percent from the prior month led by a sharp decline in semi-finished imports, according to final Census data from the Department of Commerce. It does not appear the downtrend is continuing, however. Based on the latest license data, imports totaled […]
Zekelman Industries plans to invest $150 million to construct what it claims will be the world’s largest continuous ERW tube mill, making welded sections above 16-inch square available to the domestic market for the first time. Startup of the new mill is scheduled for September 2021. The mill will be capable of producing hollow structural […]
Steel buyers are still trying to get a sense for what is driving this market and market pricing. We are seeing weakness in prices even though foreign steel imports are down, import price offers are higher than domestic steel prices and demand is pretty good for most of the market segments using sheet or plate […]
Ferrous scrap prices are down again in May by roughly $30 for obsolete grades and $40 for prime grades, report Steel Market Update sources. May marks the fourth month this year that has seen scrap prices decline. With the mills reportedly cranking out steel at over 80 percent of their capacity, the apparent weakness in […]
U.S. raw steel production for the week ending May 4 increased by 1.1 percent from the previous week to 1,915,000 net tons, while the mill capability utilization rate bumped up almost a point to 82.3 percent. The week’s production represented a 6.6 percent increase from the same period last year, reported the American Iron and Steel […]
By CRU Analyst Michelle Liu Vale confirmed the suspension of tailings disposal at its Brucutu mine on Tuesday, May 7. After prices fell initially, there was a price rebound and the iron ore price ended up rising by $0.80 /t w/w to $94.90 /t for our assessed 62% Fe fines. On Tuesday, Brazil’s higher court […]
By CRU Research Manager Chris Houlden, CRU Principal Analyst Josh Spoores and CME Metals Products Manager Sean Kessler. U.S. Midwest HR coil price volatility has increased markedly in recent months as opaque policy decision-making processes and inelasticity of domestic supply have led to large variations in physical market price. Concurrently, volume and open interest on […]
Earlier this week the U.S. Department of Commerce released the latest foreign steel import license data. Based on this data, the trend is for 2.8 million net tons of foreign steel imports to arrive in the United States during the month of April. This is essentially unchanged from March, but higher than the 2.4 million […]
Coking coal, scrap and zinc prices have weakened in the last month. Table 1 summarizes the price changes through April of the five materials considered in this analysis. It reports the month / month, 3 months / 3 months and 12 months / 12 months changes and tells us that at the three-month level only […]
The Great Lakes continues to be the highest volume district of entry for hot rolled coil, and the Pacific South had the highest rate of increase year to date through February, according to Steel Market Update’s latest analysis of government data. SMU now offers a comprehensive series of import reports ranging from the first look […]
Cold rolled imports from Mexico through Laredo have surged in 2019 making this the highest volume region of entry year-to-date. For the nation as a whole, cold rolled imports year-to-date were down by 15.3 percent, but the Pacific South, (Los Angeles and San Diego) was up by 78.8 percent, according to Steel Market Update’s latest […]
This comment from a large national service center says it all: “Prices are all over the place. It’s as if the discipline is lost. Different mills all seem to have some sort of hole or gap they’re trying to fill causing pricing heartburn.” Steel Market Update saw further erosion in spot prices on flat rolled […]
Buyers of flat rolled and plate steels with whom Steel Market Update spoke today are concerned about the direction of steel prices, believing prices will continue to fall from here. Many buyers were debating how low prices would go over the next few months. A number have become believers that hot rolled coil will breach […]
U.S. raw steel production for the week ending April 27 decreased by 0.4 percent from the previous week to 1,895,000 net tons, while the mill capability utilization rate inched down to 81.4 percent. The week’s production represented a 6.5 percent increase from the same period last year, reported the American Iron and Steel Institute. Adjusted year-to-date […]
By CRU Cost Economist Ross Cunningham Six months ago, the U.S. surprised the oil market by making a U-turn on its previous decision to impose sanctions on Iranian crude by providing six-month waivers to the eight biggest buyers. These waivers were one of the key reasons leading to oil prices falling by ~30 percent from […]
When I was in Atlanta, the questions on the minds of the members of the Association of Specialty Cold Rolled Steel Producers were connected to trying to get a better handle on this market. The questions were less about the direction of flat rolled prices, but rather why are steel prices tumbling with Section 232 […]
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 […]
U.S. steel exports in February totaled 599,430 net tons (543,794 metric tons), down 5.8 percent from January and down 25.6 percent from levels one year ago. The total February export figure is above the three-month moving average (3MMA, average of December 2018, January 2019, and February 2019) but below the 12-month moving average (12MMA, average […]