With relatively few exceptions, buyers tell Steel Market Update they sense the market is changing, and they expect steel prices to continue falling – though most expect the declines to be gradual. Their views are likely informed by price trends to date, which have been incremental, at least so far. The average price of hot rolled […]
The Oct. 31 agreement between the U.S. and the EU to replace Section 232 with a tariff-rate quota (TRQ) will likely serve as a model for similar trade deals with other countries that are chafing under the Trump-era tariff, said veteran Washington trade attorney Lewis Leibowitz during Wednesday’s SMU Community Chat. The Biden administration began […]
Distributors who sell galvanized steel products to the construction and HVAC sectors still feel very positive about their prospects heading into next year despite weakening prices and rising inventories. Declines in galvanized prices out of the domestic mills have been fairly minor so far and demand remains strong, reported members of the Heating, Air-Conditioning & […]
When President Biden signed his long-awaited infrastructure bill, he did far more than set out to make America’s roads and bridges safer. The $1 trillion measure promises to be a boon to the environment, and the steel industry in particular. The American Iron and Steel Institute (AISI) lauded the Infrastructure Investment and Jobs Act. “Modernizing […]
Steel prices are on the way down, but not steel buyers’ optimism – at least not yet. Steel Market Update’s indexes for both Current and Future Buyers Sentiment registered lofty readings of +78 this week. Could this be industry optimism at its peak? SMU surveys buyers every two weeks and asks how they view their chances […]
Steel Market Update’s price range for plate products raised a few eyebrows this week. Allow me to point out a few facts about SMU pricing data. SMU provides a weekly range as reference points for you to review. The reference points come from steel buyers and from steel mills. However, we place the most emphasis on […]
Buyers continue to gain leverage in steel price negotiations, especially for hot rolled products. Steel Market Update asks buyers every two weeks whether mills are willing to talk price on spot orders. Nearly three out of four (72%) of the hot rolled buyers responding to this week’s poll said mills are now willing to negotiate HR […]
Lead times for orders of flat rolled and plate steel continue to shorten, as expected in a period when steel prices are declining. SMU’s latest check of the market shows the typical hot rolled lead time has now dipped below seven weeks for the first time since November 2020. That’s nearly a month shorter than […]
Ferrous scrap prices saw an unexpectedly big jump in November, with shredded scrap selling as high as $75/GT above October levels. Prime scrap rose $20/GT, sources tell Steel Market Update. Observers were expecting higher prices in November on strong export demand and some seasonal tightening of supplies, but were surprised by the size of the […]
Ransomware is a growth industry, netting some $20 billion from victims in 2021. A ransomware attack can happen at any time, to any business large or small, with devastating consequences. “It’s not just the big Colonial Pipeline incidents you read in the news. It’s happening to smaller organizations as well. A lot of times it’s […]
Owen Industries, a service center, processor and fabricator of steel sheet and plate based in Carter Lake, Iowa, has acquired the assets of Omaha Steel, a steel foundry in Wahoo, Neb. The acquisition includes a newly built foundry facility that gives Owen Industries the opportunity to expand its offerings into the design and production of […]
Steel Market Update will once again be working with Port Tampa Bay as we host the 33rd edition of the Tampa Steel Conference. The 2022 TSC will be held on Feb. 14-16 at the Marriott Water Street Hotel in Tampa, Fla. This conference is the second largest steel conference of its type in North America […]
Canada’s Russel Metals reported “an exceptionally strong third quarter built on the back of a really strong Q2.” Company executives on Friday’s earnings call pointed to the various moves the company has made in the past two years to position it to take advantage of the prevailing market conditions. Most recent was this week’s announcement […]
Mill executives have been front and center over the past couple weeks during their earnings calls and the annual gathering of AISI and SMA members in Washington. Below is a sampling of some of their more notable remarks: • Just because the U.S. and EU managed to negotiate a quota to replace the controversial Section […]
The management team at Ryerson reported solid third-quarter results on Thursday and expressed optimism about underlying demand in the fourth quarter and into next year. “The pricing environment is still healthy and strong underpinned by good demand – demand deferred, not denied – and we see that continuing into 2022,” Ryerson President and CEO Eddie […]
The Steel Tube Institute has named Dale Crawford as its next executive director. He replaces Joseph Anderson, who is retiring. Crawford has served as director of STI’s Conduit Division since May 2017 and will continue in the Conduit Committee leadership role in addition to his responsibilities as executive director. Anderson, who has carried dual roles […]
Speaking at a steel industry gathering just two days after unveiling the historic trade deal she helped negotiate with the European Union, U.S. Trade Representative Katherine Tai described the progress made in steel trade and the challenges that still lie ahead in curbing global steel overcapacity. Following are her remarks today at the General Meeting […]
Total construction spending declined in September for the first time since February, as both residential and nonresidential construction slipped, according to a new analysis of federal construction spending data by the Associated General Contractors of America. AGC continues to lobby for the House to complete work on the bipartisan infrastructure bill that the Senate passed […]
The deal just announced between the U.S. and EU to replace the Section 232 tariffs with a tariff rate quota and to cooperate in reducing climate-changing carbon emissions was seen as a breakthrough by many – but not all. Trade groups representing steel consumers and producers from other parts of the world expressed “disappointment” that the […]
The U.S. and European Union (EU) announced a deal this weekend that removes Section 232 tariffs on imports from the EU and replaces them with a tariff rate quota (TRQ) system. The agreement ends a dispute dating back to 2018 when President Trump imposed Section 232 tariffs on steel and aluminum imports, and it heads […]
With record third-quarter earnings of $2 billion in the bank, U.S. Steel President and CEO David Burritt offered a bullish outlook for the steel industry and his company in 2022. Highlights of the company’s earnings call on Friday included an update on the steelmaker’s progress in finding a site for its new electric arc furnace […]
Despite all the uncertainty over the economy and steel prices as the year nears an end, sentiment among steel buyers remains extremely optimistic versus historical levels, as measured by Steel Market Update. But this week’s check of the market saw a small decline to the lowest sentiment reading since July. SMU surveys buyers every two […]
United States Steel Corp. today reported third-quarter 2021 net earnings of $2.0 billion on sales totaling $5.964 billion. That’s a huge jump from the net loss of $234 million on sales of $2.34 billion in the same quarter last year. “We continue setting records, including record net earnings, record EBITDA, record EBITDA margin, record liquidity, […]
“Business is great! Why is Steel Market Update always spreading so much gloom and doom about falling steel prices?” That’s not an actual quote, but we hear comments to that effect nearly every week. As if folks believe it will be a self-fulfilling prophecy. Of course, if prices decline, it won’t be because of some […]
This year’s third quarter was the best quarter on record for Reliance Steel & Aluminum Co., the nation’s largest service center organization. Reliance reported gross profit of $1.21 billion on sales of $3.85 billion in Q3. “Our resilient business model, favorable metal pricing trends and excellent execution combined to produce another quarter of record-setting financial […]
Lead times for orders of flat rolled and plate steel from the mills have shortened again compared to this time last month. About 60% of the buyers responding to Steel Market Update’s survey this week describe lead times as just “slightly longer than normal.” Only 15% still consider them “highly extended.” SMU’s check of the […]
Steel Market Update data suggests buyers continue to gain some leverage in price negotiations. SMU asks buyers every two weeks if the mills are willing to talk price on spot orders. Around 50% of hot rolled buyers responding to this week’s poll said some mills are now willing to bargain to secure an order. That’s […]
Steel imports into the United States jumped by nearly 35% in the first nine months of this year, versus the same period in 2020, according to Census Bureau data from the American Iron and Steel Institute (AISI). Tight supplies and record-high domestic steel prices have attracted a host of imports, which are reportedly some $400-800 […]
Distributors who sell galvanized steel products to the construction and HVAC sectors report a slight softening in demand at the same time that competition is firming up and prices are looking down. Market conditions overall are still favorable, reported members of the Heating, Air-Conditioning & Refrigeration Distributors International during HARDI’s monthly conference call today, but […]
(Editor’s note: The following commentary was submitted by Flack Global Metals Founder and CEO Jeremy Flack.) Looking to improve vendor relations during contract negotiations? Look no further than the forward curve. Contract season is underway, and we hear things are choppy out there. The mills are serving up a mixture of higher extras and lower […]