Steel mill lead times, the amount of time it takes to get steel produced from the time a flat rolled steel order is placed, have apparently peaked and we are beginning to see signs of a slight pull back in all but coated products. Having said that, lead times still continue to be highly extended […]
The domestic steel mills are barely breaking a sweat as they have minimal need to negotiate flat rolled steel prices according to those taking our mid-June flat rolled steel market trends survey. Last week we invited hundreds of companies associated with the steel industry to provide their opinions on the flat rolled steel market. Over […]
There was very little movement in the SMU and Platts indices this past week. SteelBenchmarker, which only produces their index pricing twice per month, saw a modest rise in their numbers as they catch up with the other indices in the market. Hot rolled is about as close as it has been in many months […]
One of the articles in this evening’s issue of Steel Market Update is based on questions being asked during a conversation we had with a number of steel executives in New York City last week. About one quarter of our articles are prompted by questions or comments we receive from buyers and sellers of steel […]
Steel service centers based in the United States shipped and received fewer tons of steel products during the month of May, according to data just released by the Metal Service Center Institute (MSCI). Shipments of all steel products totaled 3,204,800 net tons at a daily shipment rate of 152,600 tons. Last month the daily rate […]
Earlier this week Steel Market Update began canvassing the flat rolled steel community to determine how buyers and sellers felt about their company’s ability to be successful in the current market environment. The result is the SMU Steel Buyers Sentiment Index which has been on a roll for a number of months setting new record […]
“If we all knew the direction steel prices were headed, well I wouldn’t be here with you guys….” This was how the conversation began with one of the contacts SMU made earlier this week while in New York City to attend a number of meetings surrounding the Steel Success Strategies conference. There were a number […]
Here are some of the comments made to SMU over the past few days both in New York City and upon our return to our offices. Regarding scrap prices, one of our sources was telling us that the domestic steel mills are making a mistake by attempting to push ferrous scrap prices lower, especially when […]
To everyone who was in New York City for the Steel Success Strategies conference or other meetings surrounding the conference, welcome home. I was quite pleased to hear that our Steel Summit Conference was being discussed in the halls and streets of New York. If everyone who told me they (or their company) were coming […]
For the third week the data points collected by Steel Market Update found the flat rolled steel market as stable with only one of our indices showing a minor change in our average since last week. Here is how we see prices this week: Hot Rolled Coil: SMU Range is $620-$650 per ton ($31.00/cwt- $32.50/cwt) […]
Over the past week Steel Market Update has been of the opinion that flat rolled steel prices may be reaching levels where a “pause” may be appropriate. Our SMU Price Momentum Indicator has been pointing toward Higher flat rolled steel prices since December 11, 2015 (6 months). Many of the reasons which caused Steel Market […]
Once a year, Steel Market Update goes to New York City to rub shoulders and swap tales with about 400 of our closest steel friends. The initial attraction is the Steel Success Strategies conference hosted by World Steel Dynamics. Over the years a number of events have been formed by steel publications, futures markets and […]
As most of you know, I am in New York City running with the steel crowd associated with the Steel Success Strategies and the surrounding steel “events” entertaining the industry over the first three days of this week. I have probably spoken to 60-70 individuals about many subjects of interest, pricing, lead times, potential for […]
Last week Steel Market Update advised our readers that we were considering removing the Comparison Price Indices article from our newsletter. The index has more value, in our opinion, when there is a wider array of data points available to be compared. We publish only the indices where we have permission to do so. Over […]
A reminder that I will be in New York City beginning on Monday and will not return to my office until late on Wednesday afternoon. I will be attending a number of steel-related meetings and conferences that surround the World Steel Dynamics Steel Success Strategies Conference. I do have some time slots open on Tuesday […]
There is a big difference between the settlement prices in the Midwest versus those on the East Coast. Ferrous scrap prices in the Chicago area saw shredded scrap drop by $30 per gross ton, cuts (obsolete scrap) was down $20 per ton while prime grades (bundles and busheling) went sideways. In the Detroit numbers shredded […]
A reminder that I will be in New York City beginning on Monday, June 13th and Tuesday, June 14th. I have a number of commitments but, if you would like to get together with me please shoot me an email: John@SteelMarketUpdate.com or you can text me while in NYC at: 770-596-6268. I will be at […]
Flat rolled prices are beginning to stabilize as a number of mills are not taking orders at this time and those that are are holding fairly firm at where they were a week ago. Our benchmark hot rolled average rose by $5 per ton while cold rolled, galvanized and Galvalume averages remained unchanged. When we […]
For many years, SMU publisher John Packard sold ultra light gauge galvanized steels (.019”-.010”) into the furnace pipe manufacturers across the United States and Canada. This product is one that is not championed by the domestic steel industry as the domestic steel mills would rather run thicker steels (more tonnage per hour through their mills) […]
I spent a good portion of my day today talking to traders (importers of foreign steel) as well as steel buyers. A number of questions were raised about the amount of foreign steel actually being offered as well as the amount of orders that were actually being placed. From my perspective, I am not seeing […]
Compared to what we have been seeing over the past two months, price movement last week was modest with hot rolled barely moving (SMU no change and Platts +$5, SteelBenchmarker did not report last week). Our hot rolled average is now $632.50 per ton. Cold rolled saw SMU take their price average up $15 per […]
Last week Steel Market Update conducted our early June flat rolled steel market trends analysis. Besides gathering data regarding how buyers and sellers of flat rolled steel feel about their company’s ability to be successful (SMU Steel Buyers Sentiment Index) we also asked questions about pricing, demand, buying patterns, foreign steel, lead times and negotiations. […]
SMU scrap sources on Friday divulged that negotiations have been slow with many mills not yet having bought as of this past Friday. Price indicators are running from sideways on prime grades (busheling/bundles) to down $10, $20, $30 in the Ohio Valley, Midwest and Southeast. The east coast was referenced as being down by even […]
I received a couple of notes from trading companies thanking me for my article on Thursday evening (The Sky is NOT Falling… at least not yet) as I tried to put into context some of the pricing available for foreign steel, correct some misinformation and look at the bigger picture. Even as questions arise about […]
Late this afternoon one of our readers forwarded to us an article from one of the other steel periodicals referencing foreign steel prices as “falling fast.” Steel Market Update’s perspective (and those from our steel trading sources) is different than what another periodical may be reporting. We believe that one must look at the bigger […]
Buyers and sellers of flat rolled steel continue to be optimistic regarding their company’s ability to be successful in both the current market environment as well as looking out three to six months into the future. The SMU Steel Buyers Sentiment Index for Current Sentiment rose +2 points from mid-May at +69. One year ago […]
Flat rolled steel mill lead times continue to be extended according to those responding to this week’s steel market trends analysis (lead times are the amount of time it takes for an order placed today until the steel is produced and shipped out of the domestic steel mill). Lead times now average two weeks or […]
Blue is the color of the sky and that may be the limit when it comes to domestic steel mills need to negotiate flat rolled steel pricing. Based on the results from this week’s flat rolled market trends analysis produced by Steel Market Update, steel buyers and sellers are reporting, almost unanimously, that all of […]
My understanding is most of the mills canceled any scrap not yet delivered by the end of May. They do this when they believe scrap negotiations for June will result in better prices for them. It is still very early in the negotiation process, especially considering that Monday was a holiday. One scrap expert told […]
With the extended weekend in the United States there was very little movement in flat rolled steel prices compared to late last week. Our benchmark hot rolled average remained the same although we did pick up some movement, especially with a tightening of the lower end of the range, on the other flat rolled products. […]