Ferrous scrap prices for February are down around $20-30/GT for obsolete grades and $10-20/GT for prime grades, report Steel Market Update sources, adding to the downward pressure already being felt on finished steel prices. “This price trend is in line with the 10-year average price movement for February,” said CRU Senior Analyst Ryan McKinley. “Buying […]
The frightening coronavirus outbreak in China has disrupted manufacturing and construction, which may lead to lower steel prices. Commerce at China’s many ports has also been impacted to varying degrees, reports a Steel Market Update source in Beijing. At some Chinese ports, ships are able to berth and unberth as normal. In other locations, loading […]
John Packard is traveling… Steel Market Update changed its Price Momentum Indicator from Higher to Neutral today. Not that steel prices couldn’t start inching upward once again in the coming weeks. It’s just that the direction is unclear and we need to wait and watch for the next trend to reveal itself. Lead times aren’t […]
With January in the record books, domestic steelmakers have managed to keep their raw steel production at a healthy 82 percent of capacity or better for the entire first month of the year, outpacing the rate in the beginning of 2019. Production in the week ending Feb. 1 totaled 1,914,000 net tons for a utilization […]
Editor’s note: The following commentary by economist Alan Beaulieu, president of ITR Economics, is excerpted from a recent blog, “A Good Day for Trade.” Beaulieu has been a popular presenter at several Steel Market Update Steel Summits and will speak once again at this year’s conference on Aug. 25 in Atlanta. Click here for more […]
Editor’s note: The following commentary by economist Alan Beaulieu, president of ITR Economics, is excerpted from a recent blog, “A Good Day for Trade.” Beaulieu has been a popular presenter at several Steel Market Update Steel Summits and will speak once again at this year’s conference on Aug. 25 in Atlanta. Click here for more […]
As advanced as steelmaking has become, producing steel is still an inherently carbon- and energy-intensive process. Steel mills in the United States and the rest of the world find themselves in the crosshairs of the many environmental and political groups now calling for dramatic steps to reduce harmful air emissions and slow the pace of […]
John Packard is traveling… The World Health Organization declared the coronavirus outbreak in China a global public health emergency earlier today. Six patients in the United States have been confirmed as infected by the potentially deadly virus…so far. Makes those seasonal sniffles you’re feeling even more disconcerting, doesn’t it? And what does it mean for […]
Domestic steelmakers kept their their raw steel production rate above 82 percent of their capability in the week ending Jan. 25. Production totaled 1,919,000 net tons for a utilization rate of 82.3 percent, down a slight 0.5 percent from the previous week but up 2.6 percent compared with the same week last year, reported the American […]
Steel imports into the United States in 2019, totaling 27.9 million tons, showed a decline of 17.3 percent versus 2018, and were at their lowest level since 2010 as the economy was recovering from the recession. Finished steel imports of 21.0 million tons were down 18.1 percent for the year. Finished steel imports held a […]
Steel buyers sentiment continued to improve through mid-January with Steel Market Update’s Current Sentiment Index registering +63, its highest reading since November 2018. Sentiment has been on the rise since October when it hit a low of +26, its most pessimistic reading since June 2013. (Historical low was in March 2009 when it hit -85.) […]
The benchmark price for hot rolled steel dipped by about $20 last week to an average price of $590 per ton, according to Steel Market Update data. Despite the small decline, most of the steel buyers responding to SMU’s latest market trends questionnaire believe prices still have upward momentum. Let’s look at the data for […]
Looking ahead to February, Steel Market Update sources predict ferrous scrap prices will decline by $10-20/GT, which has implications for finished steel prices next month. February is the shortest month of the year, so buying programs will be somewhat weaker, said CRU Senior Analyst Ryan McKinley. “It looks like the February scrap market will trade […]
Lead times for hot rolled and cold rolled steel have flattened out, seeing little change in the past month, as measured by Steel Market Update. Lead times for steel delivery are an indicator of demand at the mill level. The longer the lead time, the busier the mill. Lead times in general are about a […]
Negotiations between steelmakers and steel buyers on new spot orders appear to have loosened slightly on hot rolled and cold rolled, but not to levels we saw in late 3rd quarter 2019. In the hot rolled segment, the majority of buyers (58 percent) said the mills are now more willing to negotiate prices on HR, […]
Import/export steel prices lead the market higher, reported CRU experts in a webinar recorded on Jan. 17 as part of the monthly webcast series within CRU’s Global Steel Trade Service. The 25-minute presentation can be viewed any time by clicking the link below. Overview Matt Watkins discusses developments at the global level in the internationally […]
Acknowledging that “it’s a lot easier to sell steel when the price is going up,” distributors of steel products to the HVAC sector reported strong sales in the first month of the new year despite galvanized base prices that have risen by about $130 in the past 12 weeks to the current $800 per ton. […]
Domestic steelmakers increased their raw steel production for the seventh week in a row, raising the average capability utilization to 82.7 percent in the week ending Jan. 18. Raw steel production totaled 1,928,000 net tons, up 0.3 percent from the previous week and up 3.0 percent compared with the same week last year, reported the American […]
Steel and aluminum producers agree that lighter, more fuel-efficient vehicles are better for the environment—but that’s where the consensus ends. In letters to the editor published recently by Automotive News, the American Iron and Steel Institute and the Aluminum Association wielded dueling studies to support their claims that theirs is the material of choice to […]
2019 was a challenge for steel suppliers, with both demand and pricing on a downward slope for the first three quarters of the year. Although it’s still early, there are signs 2020 could prove to be a better year for the steel industry. Steel mills, and the service centers that process and distribute their products, […]
Looking back on 2019, it’s difficult to assess the success of Trump’s tariffs. A case for their effectiveness can be made either way. Judging by one measure, imports, it certainly appears the tariffs did their job. The American Iron and Steel Institute estimates that total steel imports declined by approximately 17.9 percent in 2019 to […]
Chinese mills cranked out a record 996.3 million tons of steel last year—just short of a billion tons—an 8.3 percent increase from 2018, according to Chinese government data. Higher steel consumption reportedly was driven by increased property construction and government spending on infrastructure. Crude steel production in December totaled 84.3 million tons, an 11.6 percent […]
In a concession to the Chinese as part of the phase one trade agreement signed Wednesday by President Trump and China’s Vice Premier Liu He, the U.S. will cut Section 301 duties on $120 billion in Chinese goods in half, from 15 percent to 7.5 percent, effective Feb. 14. China has agreed to increase its […]
Domestic steelmakers increased their raw steel production for the second time this year, raising the average capability utilization to 82.5 percent in the week ending Jan. 11. Raw steel production totaled 1,923,000 net tons, up 1.3 percent from the previous week and up 2.8 percent compared with the same week last year, reported the American Iron […]
As the laws of economics have proven time and again, supply and demand will determine whether steel prices continue to rise in 2020. Demand is set by the marketplace; supply can be controlled by producers. Steel Market Update canvassed the market this week, asking readers: Has enough flat rolled capacity been removed to keep prices […]
Lead times for coated steels and steel plate have extended a bit, but lead times for orders of hot rolled and cold rolled have seen little change in the past few weeks. Lead times for steel delivery are a measure of demand at the mill level. The longer the lead time, the busier the mill. […]
Negotiations between steelmakers and steel buyers were mixed in early January, depending on the product. Responses to Steel Market Update’s market trends questionnaire this week indicate that talks over price have tightened considerably for plate, while loosening slightly for hot rolled and cold rolled orders. In the hot rolled segment, the majority of buyers (56 […]
Steel buyers sentiment has seen a notable improvement as business conditions appear favorable to start the new year. Both the Current and Future Sentiment indexes had readings above +60 this week. The goal of SMU’s index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current […]
As widely expected, Nucor was the first to announce another $40 increase in flat rolled steel prices Wednesday, followed closely by ArcelorMittal USA, NLMK USA, California Steel Industries, USS-POSCO Industries and Algoma Steel. This represents the fifth round of price hikes by the major mills since late October totaling around $190 per ton. In a […]
Ferrous scrap prices are up another $20-30/GT in January, on top of similar increases the prior two months, lending support to the finished steel price increases announced this week. Sources put January scrap prices around the following: Shred, $315-330; HMS, $270-275; Bush, $320; and Plate, $285- $310 per ton. Scrap prices typically rise in January […]