Here’s the Steel Summit program for Wednesday, Aug. 24, at the Georgia International Convention Center in Atlanta: 7:30 a.m. – Doors open at GICC. All-day beverages sponsored by Felux and pastries sponsored by Ratner Steel 8:30-8:45 a.m. – Opening Remarks by SMU President and CEO John Packard and Senior Editor Michael Cowden 8:30-9:30 a.m. – […]
A technological revolution and the change to electric vehicles are coming faster than you think, Thomas Hosea, executive director of global purchasing and supply chain (GPSC) central operations at General Motors told attendees of Steel Market Update’s 2022 Steel Summit Tuesday morning in Atlanta. “This moment in time is historic for our company,” the GM […]
Cleveland-Cliffs Inc.’s chairman, president and CEO Lourenco Goncalves joined Steel Market Update senior editor Michael Cowden in the first fireside chat of this year’s SMU Steel Summit conference Monday afternoon in Atlanta. The Cliffs executive educated and entertained conference attendees with the unreserved honesty and candidness he has become well-known for in his long-term career […]
The House of Representatives on Friday approved the Inflation Reduction Act (IRA) on a party-line vote. This legislation, with only Democratic support, passed the Senate 51-50 last weekend. The bill now goes to President Joe Biden, who will sign it into law. This is by any measure a major piece of legislation. On the surface, […]
End use market demand is mixed as mid-year shipment data is reported The recession, inflation, and interest rates remain hot topics for aluminum producers and consumers. As new economic data is announced, both bright spots and points of concern emerge. First, this month’s report on inflation showed a drop month-on-month (MoM) and may signal that […]
Producer prices fell in July, stunning a 27-month growth run. Last month the headline index declined by 3.1%, seasonally adjusted, driven by a plunge in energy prices that slowed the pace of inflation, the US Labor Department reported. July’s producer price index (PPI), a measure of the prices received for final-demand products, fell 0.5% from […]
North Star BlueScope is “substantially complete” with a $700 million expansion that will provide the Delta, Ohio, EAF sheet mill with additional annual capacity of nearly 950,000 short tons (850,000 metric tonnes). The mill produced the first coil from its expansion in June and has begun the 18-month process of ramping up the facility to […]
We had a big development this week with London-listed Russian steelmaker Evraz Plc announcing plans to sell its North American operations. A move like this has been rumored for some time. We’ve heard versions of it going back to Russia’s full-scale invasion of Ukraine in late February. Still, it was something of a shock to […]
Underlying price function stops sliding and may have found basis for strengthening The London Metal Exchange (LME) may have found a floor to stop the slide it has experienced since April. Topping out near $3,400 metric tons earlier this year, the price of aluminum drifted lower steadily in the second quarter and into the third […]
We are now 11 days away from the start of the 2022 SMU Steel Summit Conference at the Georgia International Convention Center in Atlanta. As of Wednesday, we had 1,174 registered attendees from all over the world. This year’s conference will be the largest one ever conducted by Steel Market Update, and it will be […]
While steel service centers remain cautiously optimistic on their demand outlooks for the remainder of the year, most agree that the environment for mergers and acquisitions remains quite strong. This is according to executives from Reliance Steel & Aluminum, Ryerson, and Olympic Steel—some of the industry’s top players—speaking on their recent and respective second quarter […]
The US International Trade Commission (ITC) recently conducted hearings on the future of the Section 232 tariffs on steel and aluminum as well as on the Section 301 tariffs on imports from China. Congress mandated the ITC investigation in response to calls for the tariffs to be reduced or eliminated to fight inflation. Unlike the […]
Ball Corp. earnings alert market to slowing can demand Ball issued its second quarter earnings results on Aug. 4, and they have unsettled the market. The company reported a loss of $174 million while taking a non-cash asset impairment for its Russian operations, which it had previously stated it would suspend future investment in and […]
Ryerson expects “counter-cyclical business conditions” in the third quarter, with moderating demand and falling prices resulting in lower sequential sales and shipments. The Chicago-based service center made the comments in its second quarter earnings report after the market closed on Wednesday, August 3. For Q2, sales volumes of 524,000 tons were down 6% from the […]
Steel prices continued to fall in each week of July, following declines in May and June. Hot rolled prices were $955 per ton ($49.75 per cwt) the first week of July, slipping between $35 and $45 per ton each week to reach $840 per ton as of last Tuesday. The SMU Price Momentum Indicator for […]
By Greg Wittbecker, Advisor, CRU Group US International Trade Commission hearings provide little direction Last week in DC, the US International Trade Commission (ITC) held a series of public meetings and hearings to take comments on current Section 232 tariffs. Representatives from throughout the value chain were in attendance. The Aluminum Association participated in a […]
There’s plenty of doom and gloom these days in steel. Our recent Community Chat with Associated General Contractors of America chief economist Ken Simonson provided a welcome respite from the dreary mood among some steel buyers. But let’s not get carried away. Simonson didn’t say prices weren’t falling. In fact, it’s not just steel prices […]
Reliance Steel & Aluminum Co. “delivered an exceptional second quarter with record-setting financial performance and outstanding operational execution,” CEO Jim Hoffman said in the service center’s second quarter results release. Reliance reported record second quarter net income of $572.8 million on sales of $4.68 billion. The company’s top results were driven by “ongoing healthy demand” […]
Though steel prices might down from the historic highs of 2021, Reliance Steel and Aluminum sees its diverse product portfolio and end markets as a buffer, executives said during an earnings call with analysts on Thursday, July 28. “Our product breadth is so diverse, which is part of the strategy and design,” company president Karla […]
Inflation and slowing demand are hampering ArcelorMittal’s short-term outlook, but the global steelmaker remains bullish on steel’s long-term prospects. As it released its second quarter results, the Luxembourg-based company said the period was “overshadowed by the outbreak of war in Ukraine,” where it maintains steel and mining operations. “Globally the conflict is impacting growth and […]
Prices for all seven of the steelmaking raw materials tracked in this SMU analysis declined over the last 30 days, receding further from record-high levels seen in March and April. Through the latest data available as of July 27, coking coal prices decreased 56% compared to one month prior, pig iron and busheling scrap prices […]
Eyes glaze over when trade laws are discussed. Despite this, I think it useful to delve a bit into details on occasion. A couple of recent developments prompt me to do so this week. First, the US International Trade Commission (ITC) voted unanimously last week that material injury was not done to the domestic industry […]
Backward physical integration comes to the aluminum rolling industry SDI’s decision to “jump the fence” and enter the aluminum rolling sector was, in and of itself, blockbuster news. However, the repercussions on the aluminum scrap market may be even more profound. CRU has argued for some time that the big aluminum rolling mills would eventually […]
Producer prices rose moderately in June, maintaining a sustained 27-month growth run. Last month the headline index grew by just 3.3%, seasonally adjusted, but was up 23.4% compared to the same year-ago period, the US Labor Department reported. The wholesale level was hit hard by inflation as well in June. The producer price index (PPI), […]
Steel Dynamics Inc. (SDI) posted record second quarter profits despite a modest margin squeeze stemming from lower steel prices and higher scrap costs. The Fort Wayne, Ind.-based steelmaker also remains bullish about the second half of the year despite concerns about demand in some corners of the market. “Customer order entry activity continues to be […]
Steel Dynamics (SDI) this week announced plan to enter the aluminium flat-rolled products market. Pledging a $2.2 billion investment in rolling and recycling operations, SDI seeks to leverage its recycling expertise and technology, alongside its performance culture, to penetrate the underserved domestic can sheet and automotive flat-rolled markets in North America. With a nearly 30-year history […]
Steel Dynamics Inc.’s plan to construct a $2.2 billion recycled aluminum flat-rolled mill and two supporting recycled aluminum slab centers is an unprecedented and an exciting move for a steelmaker, its top executive said. “I haven’t been this excited about a project since we first launched this business,” SDI chairman, president and CEO Mark Millett said […]
Steel Dynamics, Inc. (SDI) unveiled its plan to build a $2.2 billion recycled aluminum flat-rolled mill and two supporting recycled aluminum slab centers. The proposed $1.9 billion aluminum flat-rolled mill will be located in the southeastern US, with an annual production capacity of 650,000 metric tons of finished products. It will serve the sustainable beverage […]
President Biden visited the Middle East last week. He touched down at Andrews Air Force Base in Maryland early Sunday morning. Every presidential trip is and must be evaluated by what else is going on. This one was originally billed as routine: to attend a summit meeting of the Gulf Cooperation Council (GCC), a group […]
The prices contractors pay for construction materials and services – chiefly for new nonresidential construction – rose by 1.1% month-on-month (MoM) in June, outpacing the rise in contractors’ bid prices, the Associated General Contractors of America (AGC) reported in its latest analysis of government data. AGC warned that rising materials prices were adversely impacting a […]