All of the major flat rolled steel producers have approached their customers and advised them of their intention to increase hot rolled, cold rolled, galvanized and Galvalume prices by a minimum of $30 per ton. As of this evening (Tuesday, June 6, 2017) we have seen price announcements out of California Steel Industries, USS Posco […]
Flat rolled prices were mixed this week as the domestic steel mills announced their $30 per ton price increase and steel buyers placed whatever orders they were allowed to under the existing pricing agreements. We saw a tightening of the range on hot rolled while cold rolled was unchanged, galvanized was down $5 per ton, […]
Over the course of the day today (Tuesday, June 6, 2017) Steel Market Update (SMU) spent time communicating with top executives at some of the largest flat rolled steel service centers in the United States about the steel price increase announcements and about the market as it exists right now. Four service center presidents responded […]
On Friday, the U.S. Department of Commerce released Final Census Data on foreign steel imports for the month of April 2017. As expected, the month was another large one with imports totaling 3,350,983 net tons. This is above both the 3-month and 12-month moving averages. License data for the month of May approached 3.6 million […]
With the exception of ArcelorMittal and Cliffs Natural Resources, the U.S. steel industry passed on making statements about climate change and how much the steel industry has done over the past twenty years to minimize its carbon footprint and to reduce pollutants in the air and water. The rise of Electric Arc Furnaces (EAF) and […]
On Friday of this past week flat rolled steel buyers were lighting up the Steel Market Update inbox with questions or comments about a potential flat rolled steel price increase to be announced as early as Monday of this week. Steel buyers and executives associated with the service centers were telling SMU that Nucor is […]
Flat rolled steel prices continued their decline this past week. We saw numbers sliding on all products on the indexes followed by Steel Market Update. Steel prices dropped on hot rolled, cold rolled, galvanized and Galvalume as well as plate products. Benchmark hot rolled pricing dropped $15 per ton to an average of $580 per […]
The following article is the testimony Daniel Pearson provided to the U.S. Department of Commerce in writing as he was not selected to speak to the full panel during the open hearing on the subject of Section 232 held on Wednesday, May 24, 2017. Mr. Pearson will be a speaker at the 7th SMU Steel […]
Multiple sources are advising SMU that California Steel (CSI) has announced a $30 per ton ($1.50/cwt) increase for production orders during the first two weeks of July. After that they will evaluate pricing and make a further announcement. We will investigate this further over the next couple of days and advise our readers what this […]
As the month of May comes to a close we are seeing import license data from the U.S. Department of Commerce suggesting foreign steel imports of 3.5 million net tons. This would be 200,000 tons higher than April and 100,000 tons above March – both of which we extremely high months for imports based on […]
The month of May saw flat rolled steel prices and our SMU Price Momentum Indicator take a turn and move lower. Benchmark hot rolled pricing was $625 during the first week of May and ended the month at $580 per ton. The HRC average for the month was $603 per ton, $6 per ton lower […]
I will be in New York City during this year’s Steel Success Strategies Conference. I just booked my hotel at the Marriott Marquise and for three days my total was just shy of $1700… Ugh. If you attend the SMU Steel Summit Conference and book while our room block is still available your cost for […]
Flat rolled prices continued their skid despite the Memorial Day Holiday. Prices were lower by $5 to $15 per ton depending on product. Steel buyers continue to be concerned about the direction of prices and how long this downward spiral will last. We have more on the comments received today as we canvassed both end […]
Steel Market Update (SMU) spend the majority of today discussing the flat rolled steel markets with steel buyers from around the country. The main topic of conversation was pricing, which is anticipated will drop over the next 30 days and Section 232 which is expected to end that drop… Flat rolled steel buyers reported most […]
Flat rolled steel prices dropped last week as all three of the indexes followed by Steel Market Update (SMU) reported lower pricing. Benchmark hot rolled prices dropped by double digits last week with SMU and Platts at $595 per ton as the week ended and SteelBenchmarker dropping $12 per ton to $611 per ton. The […]
For our USA customers welcome back from the Memorial Day Holiday weekend. Our scrap sources are advising us that as of today they are not aware of any cancellations of existing ferrous scrap orders by the domestic steel mills. This expectation is for a “soft sideways” market, meaning prices would remain the same, although there […]
The Chinese, Russians, Turks, Vietnamese, Koreans and to a lesser extent the Taiwanese ears were burning Wednesday after the “bad-mouthing” they got at the Section 232 hearing on steel. Of the 37 scheduled speakers 9 domestic companies/organizations along with four foreign entities (Russia, China, Ukraine and Eurofer) spoke on behalf of allowing foreign steel without […]
Steel Market Update (SMU) has been contacted by end users, distributors and steel mills regarding an article published by another trade publication on Galvalume. The article, which was published on Thursday, May 18, 2017, quoted Keith Medick, president and CEO of Union Corrugating Company, as he made the point that there is not enough light […]
During the Section 232 hearing at the Department of Commerce yesterday, Wilbur Ross told U.S. Congresswoman Marcy Kaptur (OH) that his report on steel Section 232 will be on the President’s desk by the end of June. This coincides with the prognostication of trade attorney Lewis Leibowitz who felt the President could react by the […]
“There’s been further erosion with EAF’s dropping spot to $570-$580, not necessarily tied to volume,” is what one large service center told us this afternoon. “[I am] afraid this market at risk of bigger drops than was anticipated.” Flat rolled price averages were lower across all products followed by Steel Market Update with the exception […]
Flat rolled steel distributors are reporting to Steel Market Update (SMU) that their inventories are balanced to slightly over-stocked and there is minimal need to build carbon sheet inventories from here. At the end of March the MSCI reported flat rolled steel inventories at 1.82 month’s supply. Last week the MSCI reported end of April […]
The U.S. Department of Commerce advised Steel Market Update, as a member of the media, who would be speaking at tomorrow’s (Wednesday, May 24, 2017) Section 232 hearing on steel. The hearing is part of the Commerce Department’s investigation about the need for steel for national security. Here is what we received from the US […]
The U.S. Department of Commerce (DOC) reported foreign steel import license data earlier today. May licenses continue at a 3.6 million net ton pace which is quite disturbing (and probably not well timed based on the Section 232 hearing happening on Wednesday). However, almost one-third of the imports are attached directly to the steel mills […]
A number of the Steel Market Update prognostications for service center inventories and shipments came true (well, almost). We forecast daily shipments would rise on a tons per day basis to 108,400 tons per day. In actuality they rose to 111,100 tons per day. Since April 2017 only had 19 shipping days (according to MSCI) […]
I have been working day and night trying to get a list of the invited speakers for the Section 232 (national security) hearing at the U.S. Department of Commerce on the morning of Wednesday, May 24th. The US Department of Commerce came out with the list to the media late this afternoon. The hearings starts […]
Steel Market Update has begun to ask our scrap sources to provide some color as to what we can expect. Early indications from our sources are to expect ferrous scrap prices to trade “sideways” (unchanged) from the levels reported at the beginning of May. One of our sources told us, “The June market looks to […]
Later this week the U.S. Department of Commerce will hold public hearings for interested parties to voice their opinions regarding the Section 232 (national security) inquiry into the steel industry. Many believe the conclusion of this investigation was predetermined at the time of the original announcement. In the Fact Sheet produced by the U.S. Department […]
Flat rolled steel prices continued to slip lower this past week according to the steel indexes followed by Steel Market Update. Benchmark hot rolled prices slipped $5 per ton on both Platts and our own index. SteelBenchmarker did not report prices as they only produce prices twice per week. The hot rolled average is quickly […]
Steel Market Update (SMU) first reported that the Chinese were exporting ferrous scrap in an article on April 19, 2017. With the forced shut-downs of induction and electric arc furnaces by the Chinese equivalent of our EPA, the net result is that there is an abundance of ferrous scrap needing a home. Some of that […]
Steel Market Update (SMU) had a number of conversations with steel buyers late last week during our trip to Chicago. Benchmark hot rolled prices offers have slipped below $600 per ton with one service center executive discussing a spot offer of $560 per ton coming from one mill (and complaining that they lost of the […]