We didn’t get the transcript of the AK Steel earnings conference call until this evening. A little late to do a full blown article. However, there were a few items that I wanted to point out to our readers. AK Steel reported that approximately 50 percent of their business is related to automotive. They reported […]
For the majority of the month of October, the SMU Steel Price Momentum Indicator was referencing lower prices for the next 30 to 60 day period. At the end of the month, we revised our Indicator to Neutral due to AK Steel, US Steel and Nucor having made $20 per ton price increase announcements. It […]
Prices dropped on all of the indexes and all of the products followed by Steel Market Update. The average for hot rolled, based on the four indexes, was $641 per ton. Steel Market Update saw the market as being down to an average of $630 per ton just prior to the AK Steel announcement. The […]
Today’s hot rolled coil and ferrous scrap futures article is written by Bradley Clark, Director of Steel Trading at Kataman Metals. The market seems to have bottomed out with the CRU coming in at $640 yesterday. Positive sentiment has outweighed any negatives in the market with AK Steel recently announcing a price hike of $20/ton […]
Steel Dynamics announced that effective immediately Don Switzer will be assuming the role of Manager of Sales for its recently acquired steel-making facility in Columbus, Mississippi. Switzer will succeed Kasandra Lutzko who recently left the company to pursue other interests. Mr. Switzer joined Steel Dynamics in 2006 as Product Manager for pre-painted products and most […]
I adjusted the SMU Price Momentum Indicator from Lower to Neutral in recognition of the attempt by the domestic steel mills to reverse the price trend and move prices higher. A Neutral indicator means prices could move in either direction (or remain stable) over the next 30 days. I understand two mills have made very […]
AK Steel became the first mill since mid-August 2014 to announce an increase on flat rolled steel products. This evening AK Steel advised through a press release (which is normal for them) the following: WEST CHESTER, OH, October 28, 2014 — AK Steel (NYSE: AKS) said today that it will increase current spot market base […]
There has been a flurry of activity as buyers and sellers of steel anticipate a possible price increase announcement (which came late this afternoon in the form of a $20 increase out of AK Steel). Buyers reported the domestic mills as being aggressive this week and we saw our price averages negatively impacted as prices […]
This article was written just prior to the AK Steel announcement of a $20 per ton price increase which we received after 5 PM this afternoon. Steel Market Update reported in a recent issue (SMU Oct. 23rd) recently that this is the time of the year that the domestic steel mills traditionally move to stem […]
This is good. There is a debate going on within the industry regarding the need for a price increase and whether the customers (tail) are wagging the dog (mill). One buyers ask SMU, “Knowing their history of lacking price discipline…taking advantage of their fear and uncertainty of not filling mill and talking the market down […]
The steel market seems fragile right now said members on this morning’s monthly steel conference call hosted by the Heating, Air conditioning, Refrigeration Distributors International (HARDI). Pricing is beginning to slip as demand remains steady was the consensus of most callers. A HVAC wholesaler noted the mills are “negotiating more readily than they were at […]
Steel Market Update received the following from a member of the financial community regarding consolidation and its impact on the steel industry both short and long term. I am reproducing the email in its entirety and you are welcome to add your comments: “Hope you are well. Wanted to touch base on your recent steel […]
The market believed that consolidation of the steel mills would result in a much more disciplined industry, especially regarding flat rolled steel prices. Larger steel mills and fewer players would mean less negotiating and better control of production facilities. That is what the market wanted to believe. However, it is not easy for a leopard […]
After the recent sell off of HRC futures, it appears the market has reached a critical support level with Cal 15 trading at $620. Near months aren’t much higher with Nov14 trading around $623 and Dec14 at $621. The selloff came as concerns over the global economy came to light in recent weeks. The International […]
SMU was reading a blog post put up by Metal Miner this morning regarding the consolidation of the steel industry. The main premise of the guest article from James May of Steel-Insight out of Canada, was 81 percent of the hot rolled production in the United States and Canada is controlled by four companies: ArcelorMittal, […]
2015 annual contract negotiations have begun, according to both manufacturers and service center steel buyers. The next month or two should be quite interesting as the process continues. Early reports are suggesting that the domestic steel mills may be more “flexible” in their flat rolled steel price negotiations than they were at this point in […]
We are starting to see continuous movement in flat rolled steel prices – especially on hot rolled coil which was down another $5 per ton this week. Steel Market Update is also starting to gather price points beyond the range of “slippage” and we have therefore adjusted our Price Momentum Indicator from Neutral to Lower […]
Our Price Momentum Indicator has been stuck in “Neutral” since the last day of June 2014. We are now entering our 4th month and hot rolled steel prices have barely budged from the center line (OK, there have been some mild gyrations but no clear cut path up or down during the past three months). […]
Steel Market Update spent the last two days canvassing end users and service centers to see where flat rolled steel prices are at the moment and where they might be heading from here. We heard from many service centers and end users that business conditions and demand for their products are doing quite well. We […]
Everyone continues to watch for how the consolidation of the Severstal NA assets (Dearborn and Columbus steel mills) will impact the flat rolled steel markets. Early indications are for shorter lead times out of the SDI Columbus facility and Dearborn lead times are shorter than the Middletown and Ashland plants for AK Steel. But, it […]
On Wednesday, Steel Market Update (SMU) participated in a monthly steel conference call hosted by the Heating, Air-conditioning , Refrigeration Distributors International (HARDI). HARDI wholesalers supply galvanized sheet and coils to the mechanical contractors involved in residential, multi-family and commercial construction segments of the construction industry. Consolidation was the first topic of discussion with AK Steel […]
Steel buyers think the domestic mills are riding high at today’s prices. Iron ore prices are dropping, coking coal is down and scrap has been treading water and the word is it may dip a bit as we enter the month of October. Steel buyers think the mills are floating on the top of the […]
Allegheny Technologies, Inc. (ATI) is considering US Steel as a potential partner for a joint venture on its new hot-rolling and processing facility in Brackenridge, Pa., according to equity research firm Cowen and Co. ATI, a diversified specialty materials and components producer, is working with two steel mills to secure the joint venture, according to […]
For those who are keeping track I will be in Arkansas tomorrow for the Big River Steel groundbreaking. It will be interesting to see for myself what all the fuss is about… More about the groundbreaking (and maybe some of the fuss) in Tuesday evening’s issue of SMU. We have also been working on a […]
Steel Market Update (SMU) conducted our mid-September flat rolled steel market analysis this week. We invited slightly more than 600 companies to participate in the latest survey which analyzes various trends which affect the flat rolled steel market. One set of questions had to do with the consolidation of the steel mills as SDI and […]
It will be interesting to see how AK Steel and Steel Dynamics (SDI) interact with the newly purchased Dearborn and Columbus steel mills. One SDI customer told us today that the mill tends to be very deliberate in their decision making process and they did not expect radical changes for a number of weeks if […]
Spot prices remained stable this week as steel buyers wait to see how the absorption of Severstal by AK Steel and Steel Dynamics will affect the marketplace. It is anticipated that it could take 3-4 weeks before we get a clear indication as to how the commercial departments for each mill will integrate the former […]
AK Steel announced today the completion of the $707 million purchase of Severstal Dearborn, which includes a cokemaking facility and interest in three joint venture steel processing facilities. The mill will be renamed “Dearborn Works.” “At AK Steel, the future is now, and the future is bright, as our acquisition of Dearborn Works makes us […]
On Monday, Nucor announced their intention to acquire Gallatin Steel and its approximately 1.8 million tons of hot rolling capacity. Today, AK Steel and Steel Dynamics (SDI) completed the purchase of the Severstal North America assets. The biggest pieces of the Severstal deal are the Dearborn steel mill, which went to AK Steel, and the Columbus […]
On Monday, Nucor announced their intention to acquire Gallatin Steel and its approximately 1.8 million tons of hot rolling capacity. On Tuesday, AK Steel and Steel Dynamics (SDI) completed the purchase of the Severstal North America assets. The biggest pieces of the Severstal deal are the Dearborn steel mill, which went to AK Steel, and the […]