By CRU Senior Analyst Erik Hedborg Further suspensions in Brazil lifted the iron ore market at the start of the week. Meanwhile, demand has yet to pick up in China after the National People’s Congress (NPC). On Tuesday, March 19, CRU assessed the 62% Fe fines price at $87.80 /t, up $4.40 /t w/w. This […]
As the market waits anxiously to see if President Trump gives in to the international pressure to rethink his national security tariff on steel imports, it’s clear that steel fabricators are not big fans of Section 232. Speaking at the Fabricators & Manufacturers Association annual meeting March 5 in Nashville, panelists’ comments reflected the divisive […]
The North American Steel Alliance, the member-owned purchasing cooperative serving the metals distribution industry, has added three new members, bringing its total to 124. Harris Steel, Cicero, Ill., is a flat rolled distributor specializing in unique steel grades, chemistries and tempers. It operates three coil-to-coil slitting lines for both ferrous and nonferrous products, supplying the […]
Are steel prices witnessing a dead cat bounce or the beginning of a bullish reversal? The market appears split on the feline vs. bovine analogy. In other words, there is a huge divergence of thought on what is going to happen to steel prices over the next three or four months. The benchmark price of […]
Steel market conditions and steel prices could be good for the next 18-24 months, but after that comes an unavoidable downturn that metals and mining analyst Timna Tanners has dubbed “Steelmageddon.” In fact, her company, Bank of America Merrill Lynch, has trademarked the term. Speaking at the S&P Global Platts North America Steel Conference March […]
By CRU Principal Analyst Josh Spoores As forecast, HR coil prices in the U.S. are rising – but when might they peak? Steelmakers in the U.S. have now announced their second $40 /s.ton price increase for sheet products. At CRU, we have been expecting the recent downward price cycle to turn and have been advising […]
The president’s authority to unilaterally withdraw the U.S. from NAFTA under U.S. law is unclear, according to a new report from the Congressional Research Service, but it does appear that the president would need congressional approval to terminate the U.S. law implementing NAFTA. The report’s conclusions could embolden lawmakers pushing back against President Trump’s threats […]
Editor’s note: Jim Burg will be a panelist at Steel Market Update’s Steel Summit Conference Aug. 26-28 in Atlanta. The U.S. economy is dependent on trucks. Trucking moves 50 percent of U.S. GDP. Seventy percent of all freight can only reach consumers by truck. Trucking employs 7.3 million workers of which 3.8 million are truck […]
U.S. steel mills continued to raise the productivity bar, reaching an average capability utilization rate of 83.4 percent in the week ending March 9. Domestic raw steel production for the week totaled 1,941,000 net tons, up 0.7 percent from the prior week and 6.3 percent from the same period last year, reported the American Iron […]
Members of the Heating, Air-conditioning and Refrigeration Distributors International, wholesalers of galvanized sheet and coil products, reported steady and strong demand in the HVAC market so far in 2019, but also growing concern about the direction of steel prices. One HARDI member on the trade group’s monthly conference call today described conditions as “somewhat fragile.” The […]
By CRU Senior Analyst Erik Hedborg In the past week, iron ore prices continued to decline as demand in China remained weak. Steel prices continued to fall and buying activities have yet to pick up after the 13th National People’s Congress (NPC) began its annual two-week meeting on March 5. On Tuesday, March 12, CRU […]
U.S. economic activity continued to expand in late January and February, but might have expanded more were it not for the government shutdown and harsh winter weather conditions, reports the Federal Reserve in its March 6 Beige Book. Ten of the Fed Districts reported slight-to-moderate growth, while Philadelphia and St. Louis reported flat economic conditions. […]
Declining steel prices may have turned around following price increase announcements from the mills, but there’s no sign yet of a similar uptick in steel buyers’ sentiment. Steel Market Update’s Steel Buyers Sentiment Index, which has been generally trending downward for the past year, saw another slight dip in early March. The goal of the […]
Steel Market Update asked: One year after President Trump announced the Section 232 tariffs on steel and aluminum, have the tariffs been good for your business? For a small majority, 54 percent, of those responding to SMU’s market trends questionnaire, the answer is no. For 46 percent, yes. Opinions are split nearly down the middle. […]
Maksteel, part of the Union Partners group of service centers, has completed the acquisition of LexWest Steel in Los Angeles. LexWest Steel is a full-line distributor of flat rolled steel products and will be rebranded as Maksteel USA under the expanding Union Partners portfolio. Maksteel USA is a U.S. division of Maksteel, which is based […]
Not surprisingly, steel buyers report a tightening in negotiations with the mills following the two $40 per ton price increases announced in January and February. However, the majority of those responding to Steel Market Update’s market trends questionnaire this week say the mills are still willing to talk price–on all products but plate and Galvalume–if […]
Mill lead times for spot orders of flat rolled steel continue to slowly move out as the market sees upward momentum following the mill price increase announcements in January and February. Hot rolled lead times now average more than four weeks, cold rolled and plate more than six weeks, and galvanized nearing seven weeks. Lead […]
SSAB Americas notified customers today, March 7, that it intends to raise its transaction prices by a minimum of $40 per ton effective immediately for all new non-contract orders acknowledged for shipment the week of April 28 and beyond. The increase applies to As-Rolled Mill Plate, Cut-To-Length Plate >72”, Hot Rolled Coils >72”, as well […]
SSAB Americas notified customers today, March 7, that it intends to raise its transaction prices by a minimum of $40 per ton effective immediately for all new non-contract orders acknowledged for shipment the week of April 28 and beyond. The increase applies to As-Rolled Mill Plate, Cut-To-Length Plate >72”, Hot Rolled Coils >72”, as well […]
Ferrous scrap prices for March settled up $20/GT, report Steel Market Update sources. “The ferrous market was up $20 across the board without much deviation across the country. That puts Midwest shred at around $355-360 and busheling at $370-380. Export has rebounded this week by about $5-10 from recent sales. The most recent sale to Turkey […]
U.S. steel mills reached an average capability utilization rate of 82.8 percent in the week ending March 2. Domestic raw steel production for the week totaled 1,927,000 net tons, up 1.0 percent from the prior week and 5.9 percent from the same period last year. This is the highest capacity utilization rate seen in over […]
The Steel Manufacturers Association remains a strong supporter of Section 232, even as the tariffs face increased scrutiny as a stumbling block to passage of the new U.S.-Mexico-Canada trade agreement. SMA President Phil Bell defends the 25 percent tariffs on steel imports from critics who contend they unfairly tax downstream steel consumers. “The gloom and […]
In the recent op-ed below, American Iron and Steel Institute President and CEO Tom Gibson reiterated AISI’s support of steel tariffs and opposition to congressional legislation called “The Bicameral Congressional Trade Authority Act,” which would prematurely terminate the tariffs. “The massive overcapacity in steel still exists globally. And China in particular is producing steel at record levels—exceeding […]
Service center executives polled by Steel Market Update on Monday and Tuesday reported spot prices firming up, though perhaps not enough for the mills to collect both $40 increases they have announced in the past month. Below are some of their comments on the current price momentum for flat rolled and plate steel, as well […]
The American Iron and Steel Institute and the Steel Manufacturers Association are among more than 200 companies and trade associations that have formed the USMCA Coalition to push for prompt congressional approval of the U.S.-Mexico-Canada trade agreement, the updated version of NAFTA. “We look forward to working with members of the USMCA Coalition to support […]
By CRU Principal Economist Lisa Morrison U.S. economic data for December and January are beginning to come in now that the federal government is funded for the remainder of this fiscal year, which ends Sept. 30. December housing starts showed a weak end to 2018 as the total of 1.247 million units for 2018 was […]
As a former White House press secretary, Ari Fleischer has extensive experience briefing the media and the public on the issues of the day. As a keynote speaker at Steel Market Update’s Steel Summit Aug. 28 in Atlanta, Fleischer will share “The Daily Briefing—Politics, Policy and the Economy,” giving attendees an insider’s view of current […]
(Editor’s note: John Packard is traveling.) Just as it appears steel prices have finally turned the corner the pressure is on to get final approval of the U.S.-Mexico-Canada Agreement. Trade officials in Canada and Mexico have stated in various press reports that they will not pass the new North American free trade agreement with the […]
NLMK USA was not among the mills to learn earlier today that the Commerce Department had denied their requests for relief from the Section 232 tariffs on imported slabs. California Steel Industries and Evraz got the bad news. But NLMK USA President and CEO Robert Miller is still angry about it. “The administration, Commerce, BIS […]
Ferrous scrap prices are expected to settle around $20/GT higher for March following weakness in January and February, report Steel Market Update sources. “The March domestic market seems to have $20/GT baked into it,” commented one dealer in the Northeast. “Poor inflows due to bad weather and seasonality, along with a stronger export market, are […]