Declining ferrous scrap prices are expected to finally bottom in July, but only after backsliding by at least $10 per ton for one more month, predict Steel Market Update sources. Flat rolled steelmakers announced a $40 per ton increase in finished steel prices this week, which brings increased scrutiny to the price of scrap. Scrap […]
Worthington Industries, Inc., reported net earnings of $153.5 million for its 2019 fiscal year ended May 31, down 21 percent from earnings of $194.8 million in the prior year. Earnings were hurt by inventory holding losses from declining steel prices, among other factors. Sales for the year totaled $3.76 billion, up from $3.58 billion last […]
U.S. Steel and ArcelorMittal USA are the latest steelmakers to announce a price increase. U.S. Steel informed customers today, June 26, that it has raised the base price for all new flat-rolled spot orders by $40 per ton ($2/cwt), effective immediately. Likewise, ArcelorMittal USA added $40 to the base price for its hot rolled, cold […]
Hoping to put an end to declining flat rolled prices, a handful of steelmakers announced $40 per ton increases today, effective immediately on unconfirmed orders. The Nucor Sheet Mill Group was the first to announce that it is increasing base prices on new orders of hot rolled, cold rolled and galvanized steel by a minimum […]
The market is keeping a close watch on capacity utilization by domestic steelmakers for signs the mills may be dialing back on their high production rates to better match supply with demand. While there was a small dip, mill utilization remained above the 80 percent level last week. The American Iron and Steel Institute reports […]
Have steel prices finally hit bottom? Nucor is counting on it. The industry-leading steelmaker announced a $40 per ton price increase on it’s flat rolled products earlier today. Other mills are expected to follow suit. Effectively immediately, the Nucor Sheet Mill Group increased base prices on new orders of hot rolled, cold rolled and galvanized […]
Have steel prices finally hit bottom? Nucor is counting on it. The industry-leading steelmaker announced a $40 per ton price increase on it’s flat rolled products earlier today. Other mills are expected to follow suit. Effectively immediately, the Nucor Sheet Mill Group increased base prices on new orders of hot rolled, cold rolled and galvanized […]
Nucor’s Sheet Mill Group announced a second price increase on flat rolled steel today. Effective immediately on new orders, prices for Nucor’s hot rolled, cold rolled and galvanized steel products are increased by $40 per ton ($2/cwt). The notice to Nucor’s customers comes just two weeks after the steelmaker announced the first increase, also of […]
By CRU Analysts Kevin Bai and Ruilin Wang Chinese economic stimulus in 2018 and 2019 will add a total of 21 Mt to Chinese domestic steel demand, most of which is expected to manifest in 2019. Including this, total Chinese domestic steel demand is now expected to grow at around 3 percent this year. Other […]
By Chris Houlden, CRU Research Manager CRU held its annual Steel Briefing in New York City on June 17. This Insight summarizes the key takeaways from papers presented by CRU North America market specialists Josh Spoores and Ryan McKinley. • Up to 20 Mt of new hot-rolling and over 8 Mt of steelmaking capacity could come […]
Industry optimism, as measured by Steel Market Update’s Steel Buyers Sentiment Index, remains in tepid territory despite slight upticks in both the Current and Future Index readings this week. This is the first time since early April that the indexes have not shown another decline, perhaps signaling some sort of emotional bottom. But weak steel […]
With steel prices at such surprisingly low levels, it’s only a matter of time before the domestic mills announce a price increase. The only point of debate is when. There’s clearly some disagreement over whether the market has found a bottom yet. Slightly more than half of the service center and OEM executives responding to […]
Steel price negotiations have been wide open for the past two months and there is no sign of that changing in Steel Market Update’s latest data. More than nine out of 10 steel buyers responding to SMU’s market trends questionnaire this week reported that the mills are still willing to negotiate on flat rolled and […]
The market is keeping a close eye on mill lead times, hoping for some sign they are extending and perhaps signaling a pickup in order activity at the mills. Steel Market Update’s latest numbers, which show little change in lead times, are sure to disappoint. Lead times for steel delivery are a measure of demand […]
By CRU Prices Analyst Estelle Tran Hundreds of steel executives from around the world gathered in New York City this week to hold meetings and learn about what will drive the steel markets in the second half of the year. The CRU Steel Briefing on Monday, June 17, provided attendees with our views on sheet […]
By CRU Senior Analyst Helen O’Cleary All eyes are on this month’s G20 summit in Osaka for a resolution to ongoing trade tensions between the USA and China, and markets are braced for U.S. tariffs on a further $300 billion of Chinese goods if negotiations do not progress to the USA’s satisfaction. News that Trump […]
Producing, processing and transporting steel are all hazardous undertakings—arguably made even more hazardous by the widespread legalization of marijuana. Trade associations and steel companies seem reluctant to comment on this subject. Some may see it as a minor issue as marijuana use is already so commonplace and relatively benign compared to other drugs. For others, […]
By CRU Senior Analyst Erik Hedborg Iron ore prices have continued ascending in the past week as low port inventories in China have forced steelmakers to turn to seaborne cargoes. On Tuesday, June 18, CRU assessed the 62% Fe fines price at $108.00 /t, a $7.60 /t increase w/w. Seaborne supply has been particularly strong […]
U.S. steel mill utilization inched up a half percent after four weeks of small declines to 81.1 percent in the week ending June 15. Raw steel production for the week totaled 1,887,000 net tons, a 4.0 percent increase from the same period last year, reported the American Iron and Steel Institute. Adjusted year-to-date production through June […]
By CRU Principal Analyst Chris Asgill Scrap supply has continued to outpace demand in most of the key scrap supply markets and CRU’s metallics price indicator (CRUmpi) has fallen a further 4.2 percent m/m to 231.2 (see chart). This is the lowest level for the indicator since June 2017. The depth of U.S. scrap price weakness surprised the […]
By CRU Senior Analyst Christine Meilton This month we’re looking at mine profitability and the tonnage at risk from lower metals prices and higher treatment charges, both for operating mines and new projects. Recent weeks have seen both zinc and lead prices tumble, and CRU believes that both metals have now passed a cyclical peak […]
XOM Marketplace—the latest online solution for buying and selling materials such as steel, stainless steel, aluminum and plastics—has gone live in the United States. Active in Europe since 2018, XOM Materials, the Berlin-based company behind the new online marketplace, already claims success in Germany and other European markets. Expansion into the U.S. marks a major […]
West Coast Steel & Processing U.S.A. has acquired a 68,175-square-foot manufacturing facility in Chino, Calif., for $10.7 million. West Coast Steel divisions include SteelCo USA, Great Pacific Elbow, Mission Metals and Deluxe Building Products. Located at 13900 Sycamore Way, the property will serve as SteelCo USA’s sixth facility in the Inland Empire. Built in 1986, […]
The U.S. mill capability utilization rate declined slightly for the fourth week in a row to 80.6 percent in the week ending June 8. Raw steel production dipped by another 0.8 percent from the previous week to 1,875,000 net tons. Current mill utilization is down about 2.8 percentage points from its peak earlier this year. […]
Suppliers of steel products to the HVAC industry find themselves stuck in a good news/bad news market. Demand remains good as the construction season ramps up, but pricing on galvanized steel continues to weaken. “Demand in the Southeast is still very good, even though there has been a painful devaluation of our inventory,” said one […]
By CRU Senior Analyst Erik Hedborg Iron ore prices went through a correction in the past week as Chinese steel prices kept falling and seaborne supply remained robust. On Tuesday, June 4, CRU assessed the 62% Fe fines price at $98.50 /t, a $9.50 /t fall w/w. Our sources see the price fall as a […]
Steel Market Update data supports the widespread view that steel demand is unusually sluggish for this time of year. Nine out of 10 steel buyers responding to Steel Market Update’s market trends questionnaire this past week characterized demand as flat or declining. Only a small single-digit percentage see improving demand. About 35 percent of the […]
Industry sentiment has continued to erode this month as the attitudes of steel executives appear to be suffering from the relentless uncertainty over steel pricing, demand and Trump administration trade policies. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current […]
Industry sentiment has continued to erode this month as the attitudes of steel executives appear to be suffering from the relentless uncertainty over steel pricing, demand and Trump administration trade policies. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current […]
It’s nearly unanimous that steel prices are in play. More than nine out of 10 flat rolled steel buyers responding to SMU’s market trends questionnaire this week reported that the mills are willing to negotiate price in order to secure the order. The vast majority even reported the mills willing to talk price on plate. […]