According to the latest Steel Market Update data, the spread between hot rolled coil prices and prime scrap is slowly shrinking from the September 2021 peak. The latest spread is in line with levels seen in early-2021 but two times higher than pre-pandemic spreads. {loadposition reserved_message} Last week, the SMU hot rolled price average declined for the […]
U.S. heating and cooling equipment shipments in December rose 3.7% from November to 1.85 million units, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Total shipment levels are up 2.4% from those seen one year prior. Recall that 2020 monthly shipment levels were somewhat erratic; shipments in the second quarter were significantly impacted […]
According to the latest Steel Market Update data, the spread between hot rolled coil prices and prime scrap is slowly shrinking from the September 2021 peak. The latest spread is in line with levels seen in early-2021 but two times higher than pre-pandemic spreads. Last week, the SMU hot rolled price average declined for the 18th consecutive […]
December U.S. steel exports fell 10% from the month prior to 654,000 net tons, according to the latest U.S. Department of Commerce data. While the last few months have seen declining export levels, the 12-month moving average through December is now at a 33-month high. December exports are up 6% compared to levels one year […]
Final Census data shows U.S. steel imports fell 8% from November to December to 2.89 million net tons, the fifth highest monthly level in 2021. January import licenses through Feb. 7 are currently at 3.04 million tons, a 5% jump from December, but down 4% compared to November. Recall that total imports in September had reached a 28-month […]
U.S. raw steel production marginally increased from November to December to 7.83 million net tons, according to recently released American Iron and Steel Institute data. Recall that in August, production reached a 20-month high of 8.29 million tons. December production was up 691,000 tons or 10% compared to the same month last year. Note that […]
The Energy Information Administration’s February Short-Term Energy Outlook (STEO) continues to predict a wide range of potential outcomes for future global energy consumption, due to the ongoing pandemic recovery and evolving effects of consumer behavior. EIA forecasts oil prices to remain near current levels in the coming months, while natural gas prices could experience volatility as winter temperatures drive demand and prices. Spot […]
Sheet prices continue to fall, but the pace of declines has moderated on the hot-rolled coil side. SMU’s average hot-rolled coil price now stands at $1,190 per ton ($59.50 per cwt), down $45 per ton from $1,235 per ton last week. This weeks’ drop was less than half the $100-per-ton decline recorded last week. And […]
The number of active oil and gas drill rigs continued to recover in both the U.S. and Canada this past week, according to data released Friday by oilfield services company Baker Hughes. The rig count is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand. The […]
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.” The historical survey results presentations also are available in the Survey Results section for “Survey Results History.” If you […]
Hot rolled imports continue to tempt U.S. buyers with potential discounts of 14-23% over domestic prices, according to Steel Market Update’s latest foreign versus domestic price comparison. Foreign hot rolled steel prices are now theoretically $177-283 per ton cheaper than domestic steel, after taking freight costs, trader margins and tariffs into consideration. However, this foreign […]
Flat rolled steel prices declined by another $60-100 per ton in the past week, pushing the benchmark hot rolled price down to $1,235 per ton. That’s a decline of about 37% or a total of $720 per ton since the market peaked five months ago. Why the sharp decline? An imbalance between supply and demand […]
SMU continues to hear that domestic HR prices are moving lower, in particular for large orders. Are mills trying to keep lead times above three weeks, are we going back to a cost plus model on the EAF side, or is it something else entirely? This isn’t 2008-09 or even 2014-15. The music hasn’t stopped […]
January marked the fifth consecutive month of declining steel prices, following a year-long streak of continuous price increases. Hot rolled prices declined $200 per ton throughout the month, with the SMU index averaging $1,335 per ton ($66.75 per cwt) as of Tuesday, Jan. 25. The SMU Price Momentum Indicator for sheet products remains at Lower since its mid-October adjustment. January […]
Preliminary Census data shows that steel imports in December fell 8% month-over-month to 2.89 million net tons, the fifth highest monthly level in 2021. January import licenses through Jan. 26 are currently at 2.42 million tons, a 16% decline from December and down 23% compared to November. Recall that September imports had reached a 28-month […]
Prices for four of the seven steelmaking raw materials tracked in this SMU analysis increased over the last 30 days, while three products decreased. Through Jan. 26, coking coal prices rose 26% from one month prior, aluminum prices increased 10%, iron ore prices rose 8%, and zinc prices were up 2%. In that same time […]
Steel prices saw a big dip this week as the benchmark hot rolled price dropped to $1,335 per ton. That’s down more than 30% since the September peak and the lowest HR has been since the end of March 2021. Except for plate, which was pretty stable, flat rolled prices declined anywhere from $50-90 per […]
Our upcoming Introduction to Steel Hedging: Managing Price Risk course will run LIVE in-person on Feb. 14-15, 2022, in Tampa, Fla. alongside the Tampa Steel Conference. Don’t miss this opportunity to meet face-to-face with our expert instructors to gain a thorough introduction to hedging in the flat-rolled steel market and to take advantage of live class discussions and networking. Would you like to learn how […]
Reflecting higher energy prices, the number of active oil and gas drill rigs increased in both the U.S. and Canada this past week, according to data released Friday by oilfield services company Baker Hughes. The rig count is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) […]
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.” The historical survey results presentations also are available in the Survey Results section for “Survey Results History.” If you […]
As we enter the fifth month of declining domestic steel prices, hot rolled imports continue to tempt U.S. buyers with potential discounts of 26-34%, according to Steel Market Update’s latest foreign versus domestic price comparison. Foreign hot rolled steel prices are now theoretically $365-490 per ton cheaper than domestic steel, after taking freight costs, trader […]
As we enter the fifth month of declining domestic steel prices, hot rolled imports continue to tempt U.S. buyers with potential discounts of 26-34%, according to Steel Market Update’s latest foreign versus domestic price comparison. Foreign hot rolled steel prices are now theoretically $365-490 per ton cheaper than domestic steel, after taking freight costs, trader […]
Steel Market Update’s check of the market this week shows a few hot rolled transactions at prices below $1,400 per ton ($70 per cwt) as flat-rolled steel prices continue their correction from record highs last year. The average price for HRC dropped by another $55 per ton in the past week to $1,425 per ton. […]
U.S. heating and cooling equipment shipments in November declined 12.9% from October to 1.78 million units, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). However, November shipment levels are up 7.6% from those seen one year prior. Recall that 2020 monthly shipment levels were somewhat erratic; shipments in the second quarter were […]
The Energy Information Administration’s January Short-Term Energy Outlook (STEO) continues to reflect high levels of uncertainty for future global energy consumption due to the ongoing pandemic recovery, impact of the Omicron variant, and unpredictable winter weather. EIA forecasts oil prices to remain near current levels throughout 2022, while natural gas prices could experience volatility as winter temperatures drive demand and prices. […]
The Dodge Momentum Index declined 3% in December to a reading of 166.4, according to Dodge Data & Analytics. Though the year ended on a down note, 2021 was a good one for construction with the index rising by 23%, its strongest annual gain in 15 years. Both components of the construction index also declined from November […]
U.S. apparent steel supply levels remained high through November, down less than 1% from the month prior to 9.77 million net tons, 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 over six years, going back to January […]
As widely expected, steel prices continued to slide this week with hot rolled dipping below $1,500 per ton for the first time since April 2021. The big difference being that last April the HR price was on an upward trajectory that would eventually take it to a high of $1,955 per in early September. Since […]
November U.S. steel exports increased 1% from October to 725,000 net tons, according to the latest U.S. Department of Commerce data. While October and November levels are down compared to the summer months, the 12-month moving average through November is now at a 32-month high. Recall that March and June of 2021 were the two […]
We are delighted to announce that the next Introduction to Steel Hedging: Managing Price Risk course will run in-person on Feb. 14-15, 2022, in Tampa, Fla. alongside the Tampa Steel Conference. Don’t miss this opportunity to meet face-to-face with our expert instructors to gain a thorough introduction to hedging in the flat-rolled steel market and to take advantage of live class discussions and networking. We […]