Keynote speaker Paul Lowrey presented at the SMU Steel Summit Conference today, explaining his market thoughts through data on US steel market capacity, steel mill consolidation, and the scrap market. As president of Steel Research Associates (SRA) with a career spanning 30 years, Lowrey opened his segment explaining, “I’ve been labeled by some as a […]
The number of active drilling rigs in the US and Canada was relatively flat in both countries this week, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of demand for oil […]
Steel Market Update’s Steel Buyers Sentiment Index eased from it’s early-August blip, as did our Future Steel Buyers Sentiment Index. The latest Sentiment Index is tied with the early-June reading for the third lowest level recorded this year. Future Sentiment is now at the fourth lowest level of the year. Recall that one month ago, […]
The latest SMU Market Survey results are now available on our website to all Premium members. After logging in at SteelMarketUpdate.com, visit the Analysis tab and look under the “Survey Results” section for “Latest Survey Results.” Historical survey results are also available in the Survey Results section under “Survey Results History.” If you need help […]
The percentage of buyers reporting that mills’ prices are negotiable contracted this week, following more than two consecutive months of rising negotiation rates. Four out of five steel executives polled this week reported that mills are willing to talk price to secure an order. According to our steel market surveys, a high willingness to negotiate […]
Steel mill lead times were relatively flat this week compared to our previous market check, with some products slightly up and others down. Hot rolled, cold rolled and plate lead times slightly declined compared to levels seen two weeks ago, while coated lead times increased. On average this week, lead times increased by 0.2 weeks […]
Steel mill lead times were mixed this week, with the processing time for some ordered products extending, shrinking for one, and another holding steady. Cold rolled and coated lead times increased compared to our previous market check, while plate lead times slightly declined and hot rolled lead times remained flat. On average this week, lead […]
Foreign steel imports from the three regions tracked by Steel Market Update have all but lost their price advantage over domestic steel, according to our latest foreign versus domestic hot rolled steel price analysis. After taking freight costs, trader margins and tariffs into consideration, foreign HRC prices for one region are more expensive than domestic […]
On Monday and Tuesday, SMU reached out to numerous steel buyers inquiring about market conditions this week. Sources were asked whether recently announced sheet price increases were sticking, and when they thought hot-rolled coil (HRC) prices might bottom out. The majority of the responses we received suggest that price increases are either partially sticking or […]
The Energy Information Administration’s August Short-Term Energy Outlook (STEO) remains subject to a high level of uncertainty due to the volitle global energy market. Contributing factors include Russia’s invasion of Ukraine, foreign and domestic oil production levels, and OPEC+ production decisions. Due to these variabilities, the EIA continues to warn that actual price outcomes could […]
The spread between hot-rolled coil (HRC) and prime scrap prices continues to narrow, according to Steel Market Update data. Busheling scrap prices have declined each of the last four months, as have hot-rolled prices – but at a greater rate than scrap. The result: a shrinking delta between the two products. The latest spread is one-third what […]
US heating and cooling equipment shipments increased 7% from May to 2.24 million units in June, according to data from the Air Conditioning, Heating, and Refrigeration Institute (AHRI). June represents the fifth highest monthly shipment rate in our 14+ year history. (Note that June tends to be the month with the highest shipment levels, as […]
US apparent steel supply declined 4% month-over-month to 9.05 million net tons in June, erasing May’s gains, according to the latest US Department of Commerce and American Iron and Steel Institute data. June supply is now at the second lowest monthly level seen in the past 12 months, above only the February 2022 figure. Recall […]
The temptation to purchase foreign hot-rolled coil (HRC) at a bargain remains low, with adjusted foreign prices now within $40 per ton of domestic steel, according to Steel Market Update’s latest analysis. For the past three months, the potential discount on imported products has been shrinking. After taking freight costs, trader margins and tariffs into […]
Eariler this week, SMU polled steel buyers on a variety of subjects including current and future steel prices, price increase announcements, supply, demand, and new mill capacity. Rather than summarizing the comments we received, we are sharing them in each buyer’s own words. We want to hear your thoughts, too! Contact Brett@SteelMarketUpdate.com to be included […]
US raw steel production eased to 7.45 million net tons in June, down 5% from May’s six-month high, according to recently released American Iron and Steel Institute (AISI) data. June is the third lowest monthly production figure seen in the last year and a half. Domestic production has trended downward since peaking last summer. Recall […]
US steel exports were up 1% from May to June, totaling just shy of 800,000 net tons, according to the latest US Commerce Department data. This is the third highest monthly export rate seen in the past four years. On a 12-month moving average (12MMA), June exports rose to a 3+ year record high. Total June exports are […]
Steel Market Update sources report ferrous scrap prices declined as much as $70 per gross ton from July to August, the fifth consecutive month of declines since March–April’s record high prices. Prime scrap fell by $70 per ton from the month prior, while obsolete grades declined $15–40 per ton. For the first time since late-2020, […]
Steel Market Update’s Steel Buyers Sentiment Index bounced back from its mid-July dip and is now at the highest level since early June. Our Future Sentiment Index also significantly recovered compared to our previous survey and is now at an eight-week high. SMU surveys steel buyers every other week, asking how they view their chances of […]
Final Census data shows that June steel imports totalled 2.84 million net tons, 24,000 tons higher than preliminary figures reported last week. June imports are down 8% compared to March’s 26-month high of 3.09 million tons. Import licenses for July now total 2.57 million tons through Aug. 3rd data. This is up from 2.15 million […]
The number of active drilling rigs in the US and Canada slightly declined in both countries this week, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of demand for oil country […]
The latest SMU Market Survey results are now available on our website to all Premium members. After logging in at SteelMarketUpdate.com, visit the Analysis tab and look under the “Survey Results” section for “Latest Survey Results.” Historical survey results are also available in the Survey Results section under “Survey Results History.” If you need help […]
The appeal to purchase foreign hot-rolled coil (HRC) further faded this week, with foreign prices now in close quarters to domestic steel, according to Steel Market Update’s latest analysis. Since mid-May, US steel prices have generally declined at a faster rate than foreign prices, meaning the potential discount on imported products has been shrinking for […]
As has been the case for six weeks now, nearly nine out of ten steel executives polled this week reported that mills are willing to talk price to secure an order. According to our steel market surveys, a high willingness to negotiate has been evident in each of our checks since early May. SMU polls […]
Steel mill lead times were mixed this week, with some products slightly up and others down, according to SMU’s latest market check. Hot rolled and plate lead times rose compared to what we saw two weeks ago, while cold rolled and coated lead times inched further downward. Is this just a blip or the start […]
Sheet prices continued to move lower this week, and plate joined the downward trend following a price decrease announced last week by Nucor Corp. Hot-rolled coil prices now have a tenuous grasp on $800 per ton ($40 per cwt). SMU’s average HRC price stands at $805 per ton, down $35 per ton from last week […]
US manufacturing activity expanded in July, but at a slightly slower pace compared to the month prior, according to the Institute for Supply Management (ISM). Indices for new orders, production, employment, supplier deliveries and prices all contracted in the month of July. July’s Manufacturing PMI fell to 52.8%, down 0.2 percentage-points compared to June’s reading. […]
Steel prices continued to fall in each week of July, following declines in May and June. Hot rolled prices were $955 per ton ($49.75 per cwt) the first week of July, slipping between $35 and $45 per ton each week to reach $840 per ton as of last Tuesday. The SMU Price Momentum Indicator for […]
Domestic raw steel production eased to a four-month low of 1,727,000 net tons for the week ending July 30, reported the American Iron and Steel Institute. This is the lowest weekly production figure reported since early April. The mill capability utilization rate declined to a 14-month low of 78.4%, marking the fourth week below 80%. US production is […]
The relationship between hot rolled and galvanized steel prices has been unstable since late 2021, with galvanized selling at a premium of anywhere between $135-545 per ton ($6.75-$27.25 per cwt) over hot rolled in the past year. The premium reached a record high in February but then quickly narrowed in March. Although steel prices have been […]