Raw steel production by U.S. steelmakers in the week ending Jan. 19 totaled 1,912,000 net tons for a capability utilization of 80.7 percent. Steel production was up 1.1 percent from the prior week and up 11.5 percent from the same week last year when the utilization rate was 73.6 percent, reported the American Iron and […]
Economist Alan Beaulieu, president of ITR Economics, will make another appearance as a keynote presenter for Steel Market Update’s premier event, the 2019 Steel Summit Conference, set for Aug. 26-28 at the Georgia International Convention Center in Atlanta. He will offer an insightful overview of U.S. economic trends and their implications for the steel industry. […]
California Steel Industries (CSI) and USS-POSCO Industries (UPI) announced price increases of $40 per ton on Monday, hoping to stem the slide in flat-rolled steel prices that began last summer. The announcements do not include plate. In its Jan. 21 letter to customers, CSI stated that it is opening its order book for flat-rolled orders […]
By Stephen Miller Pig iron prices have declined by about $35/MT for sales concluded last week for delivery to the U.S. The latest sales are in the vicinity of $350/MT CFR. This has been a long time coming since the last confirmed cargoes were booked at $385/MT in November. Prior to November, many market participants thought […]
Phillips 66 Partners, Harvest Midstream Co. and PBF Logistics LP have agreed to jointly develop the ACE Pipeline System in Louisiana, which will move crude oil some 60-80 miles from the market hub in St. James to downstream refining destinations in Belle Chasse, Meraux and Chalmette. The partners may elect to add a delivery destination […]
By CRU Principal Analyst Josh Spoores Scrap prices in the U.S. fell $30 /lt m/m in January, the first time since 2006 that prices have declined in the month. The fall was also the largest December to January decrease in at least two decades for obsolete grades. The unusual decline occurred because supply outpaced demand […]
More than 800,000 car enthusiasts turned out for the North American International Auto Show this week in Detroit to admire the shiny new offerings for the 2019 model year. The steel industry is even more interested in what’s beneath those shiny exteriors. The Steel Market Development Institute displayed a degree of pride in congratulating the […]
Reliance Steel & Aluminum Co. has promoted Jeffrey W. Durham to the position of Senior Vice President, Operations, effective immediately. His responsibilities will include overseeing the operations of a number of Reliance subsidiaries and divisions. Durham has served as Vice President, Merchandising at Earle M. Jorgensen Company (“EMJ”), a Reliance subsidiary, since 2014. He joined […]
Sherwin-Williams has announced a 6 percent hike in the cost of paint effective in March, upsetting customers in the prepainted steel and aluminum market. “There is no justification for this paint increase,” said one coil coater. “Oil prices are at their lowest level in years.” Sherwin-Williams raised prices twice last year when oil prices were […]
Editor’s note: Steel Market Update’s source in China reports on recent remarks by Chinese economic expert Xiang Songzuo, who warned that the nation’s economy is showing signs of crashing. Xiang showed courage in being publicly critical of the government, which later banned his remarks from the internet. “You can look at the history: Only the […]
Raw steel production by U.S. steelmakers in the week ending Jan. 12 totaled 1,891,000 net tons for a capability utilization of 79.8 percent. Steel production was up 0.8 percent from the prior week and up 10.3 percent from the same week last year when the utilization rate was 73.6 percent, reported the American Iron and […]
Analysts at the CRU Group share their latest information on the global iron ore and coking coal markets. Iron Ore Prices Steady on Short Supply Weak seaborne supply kept iron ore prices elevated during the past week. The market is also closely following the development of the fire at Rio Tinto’s Cape Lambert port, which […]
When the public first learned the government was shutting down, many of us thought, “Glad I don’t work for Uncle Sam!” Now, as the shutdown extends its record as the longest in U.S. history, the effects are being felt well beyond the households of government employees. Even here at Steel Market Update. With government data […]
If the prevailing view in the market proves correct, steel mills will announce a price increase soon—but it won’t stick. Two out of three steel executives responding to Steel Market Update’s market trends questionnaire this past week believe the mills will announce an increase in flat rolled prices by the end of January. But given […]
The North American steel sheet market in 2018 was heavily influenced by effects from the Section 232 tariffs. These tariffs greatly increased U.S. sheet prices, while at the same time helped to further reduce imports. Our forecast today calls for a more measured rate of increase for underlying industrial growth, while prices will more closely […]
Steel Market Update asked: Are the Section 232 tariffs negatively impacting your business? The market is evenly split on the subject. About half of those responding to SMU’s questionnaire this week—primarily service center and OEM executives—say they have been hurt by the tariffs, while the other half say the tariffs have had no direct effect. […]
Mill lead times turned the corner on the new year little changed from mid-December. At less than four weeks for hot rolled and around six weeks for cold rolled and coated products, lead times for spot orders of most products are as short as they have been in over a year. While still in high […]
Steel Market Update’s first canvass of the new year shows a subtle shift in the price dynamic between mills and steel buyers. No doubt, buyers still have a lot of leverage and most mills are usually willing to talk price to secure the order. But SMU’s findings show a slight tightening in negotiations. In the […]
Steel Market Update’s Steel Buyers Sentiment Index began the year with another slight dip in optimism, as measured by both the Current Sentiment and the Future Sentiment three-month moving averages. 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 Index), […]
By CRU North America Analyst Ryan McKinley Long product prices in the U.S. are coming under downward pressure after a build-up in late-2018 inventory levels lingered into the new year and import prices became more attractive for domestic buyers. Price drops so far—where they have occurred—have been minimal but import deals with arrival dates 60-90 […]
U.S. mills began the new year with little sign of a slowdown. Raw steel production by U.S. steelmakers in the week ending Jan. 5 totaled 1,876,000 net tons for a capability utilization of 80.0 percent. Steel production was down a slight 1.2 percent from the prior week, but up 10.1 percent from the same week […]
The new year has gotten off to a positive start, though declining steel prices remain a concern for members of the Heating, Air-conditioning and Refrigeration Distributors International, who supply steel products to the HVAC market. As one HARDI member commented during the trade group’s monthly conference call on Tuesday, “Some of us feel like Alabama’s […]
With finished steel prices continuing their second-half decline through the end of 2018, the market is holding its collective breath to see if the mills announce a price hike this month. Many believe they will try to raise prices, but most are doubtful they will succeed. Following is what industry sources told SMU this week: […]
Perhaps it’s because the year started out with so much promise that the end of 2018 seemed so uninspiring. On balance, most in the steel business would call 2018 a good year, some even a great year. But few look forward to 2019 with the same optimism and confidence they felt a year ago at […]
Cranking out steel at more than 80 percent of capacity late in the year, U.S. mills produced over 95 million tons of raw steel in 2018, 6.2 percent more than the prior year, according to weekly production data from the American Iron and Steel Institute. The average capacity utilization rate for the year increased by […]
By CRU Analysts Laima Balse and Director Paul Robinson Prices for all major commodities in the CRU price basket, except for U.S. steel, declined during 2018. There were a few factors that caused this downwards price trend and market volatility. This overview looks across the commodity groups at the common trends affecting the industry, and […]
The service center sector will witness the return of a familiar old name in the new year. Norfolk Iron & Metal Co. has closed on its acquisition of O’Neal Flat Rolled Metals (OFR), which will now go to market under its former moniker Metalwest. Norfolk Iron purchased OFR from O’Neal Industries, based in Birmingham, Ala. […]
On Wednesday in New York, a three-judge panel on the U.S. Court of International Trade began deliberating a case that will examine the constitutionality of the Section 232 tariffs imposed by President Trump on imports of steel and aluminum in the name of national security. Opponents argue that such tariffs should be subject to congressional […]
Continual controversy over trade and tariffs, volatile steel prices and unrest on Wall Street have clearly left many in the industry anxious and pessimistic about the year to come. Only about 20 percent of the steel executives who responded to Steel Market Update’s latest market trends questionnaire expect 2019 to be a solid growth year […]
The SMU Steel Buyers Sentiment Index ended the year on a “down” note as our Current Sentiment Index, as measured this week as a single data point, was the lowest reading we have seen over the past two years. When viewed as a three-month-moving average, which helps smooth out the data and provide a clearer […]