I got a note from a manufacturing company regarding the size of the Nucor move on galvanized coating extras. The comment that was made was, “Zinc average for 2014 is up 8.6% since average of 2012. Nucor increase is way too high.” This steel buyer went on to comment, “Aluminum average in same time period […]
Olympic Steel & Aluminum posted the highest net sales in its history. Second quarter sales increased 16.7 percent year-over-year to $386.0 million, due to increased market share and higher sales volume. Net income jumped 38 percent to $3.5 million from $2.5 million in Q2 2013. Flat product volume was up 17 percent in Q2 to […]
At the end of each month Steel Market Update takes a look back at the data we have compiled and does a quick analysis for our readers. This is different than our SMU Key Market Indicators which is also included in this newsletter. Benchmark hot rolled coil prices averaged $667 per ton (SMU) for the […]
AK Steel posted an adjusted profit in second quarter despite adverse weather early in second quarter that delayed iron ore shipments forcing reduced production. Adjusted net income was $2.9 million. AK Steel shipped 1,397,500 tons of steel in the second quarter for sales of $1.53 billion. Average selling price rose 3.2 percent to $1,095 per […]
Reliance Steel and Aluminum reported a net income of $96.5 million for second quarter, up 11 percent from the previous quarter and 19 percent year over year. Sales were at a record $2.62 billion, up 2.5 percent on a quarterly basis. Improved metals pricing contributed to improved gross profit margins. Demand was below expectations with […]
Based on a quick analysis of the just released July steel import license data (through the 15th of July) we see the foreign steel imports continuing at very high rates. The import data suggests we will see July imports at levels similar to that of May and June. May had the highest level of imports […]
Spot zinc prices on the LME are closing in on $1.05 per pound as the metal has traded just above $1.04 over the past four business days. The metal has moved from $0.9508 per pound on the 16th of June to its current level at $1.04 per pound. It is important to watch zinc pricing […]
Chuck Bradford of the Metals Industry Advisory Group is a well known steel analyst. Mr. Bradford will be participating in our 2014 Steel Summit Conference in Atlanta. Mr. Bradford will be part of a panel discussing commodity prices and the influence of China on the world steel industry – especially here in the United States. […]
Steel price inputs were mixed during the month of June. Shredded and heavy melt scrap prices declined $8 and $4 per ton respectively while busheling scrap prices increased by $3 per ton. Iron Ore prices increased for 62% Fe grades but decreased for 58% Fe. Zinc and Aluminum prices showed a slight increase of $0.0437 […]
U.S. light vehicle sales increased in May to nearly 16.8 million units at a seasonally adjusted annual rate, (SAAR) up from an average of 15.8 million units in the first five months of 2014 and the strongest rate since February 2007. Light vehicles are autos and light trucks (GVW Classes 1-3, under 14,001 lbs.). Automotive […]
For those buying coated products, zinc prices have been rising and by the end of the month of June were reported by the LME to be $1.0045 per pound. This is the first time zinc has exceeded $1.00 per pound since September 2011 just prior to the adjustment of the galvanized coating extras in January […]
Each month the Bureau of Labor Statistics, (BLS) puts out its series of producer price indexes, for thousands of goods and materials. The latest release on Friday reported May results. These statistics are a useful way to evaluate any changes in the competitive position of steel against competing materials and this month for the first […]
U.S. light vehicle sales increased in May to nearly 16.8 million units at a seasonally adjusted annual rate, (SAAR) up from an average of 15.8 million units in the first five months of 2014 and the strongest rate since February 2007. Light vehicles are autos and light trucks (GVW Classes 1-3, under 14,001 lbs.). Automotive […]
Andre Marshall, CEO of Crunchrisk and our Managing Price Risk I & II workshops instructor writes about the financial and futures markets, including hot rolled futures and busheling scrap futures trading over the past week. You will also be able to see Andre speak at our Steel Summit Conference in September (3 & 4) in […]
From time to time Steel Market Update writes an article that seems to touch the collective nerve of the steel community. A number of our articles which we have published under the “Steel Buyers Basics” title fit in that category. The article we have shared with both our Steel Market Update members as well as […]
Steel inputs were steady to down during the month of May. Scrap prices declined $18 to $3 per ton while iron ore prices were down $20.60 to $13.60 per ton. Zinc and Aluminum prices showed a slight increased of $0.0105 to $0.0074 per pound.
This article is part of a series of articles written by John Packard originally under the heading “Steel Buyers Basics.” Recent articles have focused on the steel sales process, but sales and purchasing are connected. The fact that my experience is associated with the flat rolled steel markets and products does not detract from the […]
There are questions about potential manipulations of zinc and zinc trading which may have artificially inflated the metal’s price since 2010. Zinc, which is the metal used to coat galvanized steel as well as Galvalume, Galfan and ZAM, is believed to have been manipulated by The London Metal Exchange, Goldman Sachs, JP Morgan, Glencore Xstrata […]
Iron ore spot prices in China have been falling and may continue to decline to the lows last seen in September 2012 when prices for 62% Fe fines reached into the $80’s (currently trading at $97.5/dmt). Steel Market Update has been reviewing the relationship between iron ore and ferrous scrap prices using shredded scrap as […]
The key highlight of first quarter was the Calvert acquisition, said ArcelorMittal CEO Lakshmi Mittal in the company’s first quarter earnings call. ArcelorMittal’s 50 percent ownership of AM/NS Calvert gives AM the capacity needed to supply AHSS solutions for the auto industry in the US and Mexico. ArcelorMittal has been focusing on light weight steels […]
On Tuesday of this week, Steel Market Update publisher, John Packard met with Saikat Dey, CEO of Severstal North America (NA), and discussed a wide range of topics including foreign steel, supply and demand issues, steel prices, the F-150 move to aluminum and much more. In the article below we will focus on Mr. Dey’s […]
The $156 million judgment against Nucor, Reliance Steel & Aluminum, American Alloy Steel and JSW Steel (USA) will be delayed two weeks while the defendants file a motion for a new trial in the anti-trust lawsuit brought by MM Steel LLC. Last week US District Judge Kenneth Hoyt ruled that a $52 million jury verdict […]
Damages in an anti-trust lawsuit against Nucor Corp, Reliance Steel & Aluminum, American Alloy Steel, JSW Steel and one individual defendant have been tripled to a final judgment of $156 million. US District Judge Kenneth Hoyt granted MM Steel LP’s motion to treble the $52 million jury verdict, rejecting motions by the defendants to delay […]
The following article is a continuation of our Steel Buyers Basics series written by Mario Briccetti. Mario is Principal of Briccetti & Associates, a Supply Chain consulting firm, and can be reached at Mario@mbriccetti.com In my series of articles, I have stressed that buyers should have the best information possible in order to effectively negotiate pricing […]
April is now behind us and it proved to be one interesting month. In looking at the key data we follow on a monthly basis for our readers, SMU Price Momentum Indicator ended the month where it began pointing to higher prices over the near term. SMU Steel Buyers Sentiment Index ended the month at […]
“We weathered not only the economic storm with five years of losses but also the first quarter’s extreme weather,” was one of the opening remarks by Executive Vice President & CFO David Burritt in the US Steel Conference Call on Thursday. Weather played a huge part in operations at US Steel in the first quarter. […]
Reliance Steel & Aluminum, the largest metals service center in the United States, announced earnings earlier today. The company reported net income of $87.2 on sales totaling $2.09 billion. Sales included the recent acquisitions of Metals USA and Haskins Steel. The company reported an 8.4 percent improvement in same store sales over the same quarter […]
For our plate customers, SSAB announced a $40 per ton plate price increase effective immediately. We will see if it sticks in the marketplace. We have a couple of minor bugs and tweaks we are working out of our systems and then we will release our Managing Price Risk II: Strategies & Execution workshop for […]
AK Steel reported a net loss of $86.1 million in the first quarter of 2014, compared to a net income of $35.2 million in the previous quarter. Net sales for Q1 were $1.38 billion on steel shipments of 1,262,100 tons, compared to Q1 2013 net sales of $1.37 billion on shipments of 1,289,800 tons, and […]
We learned today that ArcelorMittal will be taking down their #7 blast furnace at Indiana Harbor for two months: June & July 2014 (scheduled maintenance). The #7 furnace is capable of producing up to 11,500 tons of molten pig iron per day when ready at full capacity. Our assumption is US Steel Gary Works should […]