Worthington Industries reported lower net earnings in its fiscal 3Q ended Feb. 28 vs. the same period a year earlier on lower steel prices. The Columbus, Ohio-based service center and processor posted 3Q 2023 net earnings of $46.3 million, down 18% from $56.3 million a year earlier on net sales that fell 20% to $1.1 billion. […]
Steel Dynamics Inc. (SDI) expects lower first-quarter 2023 earnings on costs related to its Sinton, Texas, flat-roll mill and the continued work-through of higher-priced pig iron purchased in 2022. The Fort Wayne, Ind.-based steelmaker expects Q1 earnings in the range of $3.47 to $3.51 per diluted share. This is down from $3.61 per diluted share […]
What’s perhaps most shocking about Cleveland-Cliffs starting the week up $100 per ton ($5 per cwt) on sheet and targeting $1,200 per ton for hot-rolled coil (HRC) is that many of you didn’t find it shocking. In early February, we got used to prices going up by $50 per ton from one week to the […]
Klöckner & Co. expects steel prices to come down later this year after a sharp rise in Q1, the company said in its 4Q earnings report. “Despite the rise in steel prices at the beginning of 2023, Klöckner & Co. expects a lower price level overall compared to the prior-year period and correspondingly lower sales,” […]
Steel Dynamics Inc. (SDI) has broken ground on its previously announced aluminum rolling mill outside of Columbus, Miss., according to local media reports. When local TV station WCBI asked SDI chairman, president, and CEO Mark Millett why the company chose the area, he said it was in large part because of opportunities in the beverage […]
SMU polled steel buyers on a variety of subjects on Monday and Tuesday of this week, including current and future steel prices, inventory strategies, supply, demand, and new mill capacity. Rather than summarizing the comments we received, we are sharing some of them in each buyer’s own words. We want to hear your thoughts, too! […]
Mexico has historically relied on steel sheet product imports to meet its demand as domestic suppliers, such as Ternium and AHMSA, had insufficient production capacity. But, in recent years, both Ternium and ArcelorMittal have built new capacities for hot-rolled (HR) coil in Mexico. Ternium is also in the process of building more downstream capacity and […]
Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from […]
On the morning of Feb. 24, the White House issued a proclamation to adjust aluminum imports and taking further action under Section 232 of the Trade Expansion Act of 1962. Following the guidance of the Secretary of Commerce, the president issued an order adding a 200% duty to Russian metal coming into the US. Imported […]
Nucor Corp. has increased its cost estimate for its new sheet steel mill in West Virginia by ~$400 million. The Charlotte, N.C.-based steelmaker said Feb. 23 that its board approved additional capital for the project. The company now expects a net cash outlay of ~$3.1 billion for the West Virginia electric-arc furnace (EAF) sheet mill, up from $2.7 billion when […]
North American auto assemblies rose 16.1% in January, recovering for the first time in three months. Last month’s assembly output was among one of the highest in nearly two years and 13.8% higher year on year (YoY), according to LMC Automotive data. On the supply side, inventory levels are expected to gradually improve this year as […]
US light-vehicle (LV) sales slowed to an unadjusted sales figure of 1.03 million units in January, the US Bureau of Economic Analysis (BEA) reported. Despite the month-on-month (MoM) decline, January’s total was still 4.2% higher year-on-year (YoY), and the sixth consecutive month to see YoY increases in sales. LV sales were up 17.73% MoM in December on […]
Cleveland-Cliffs has ruled out spending money to build new electric-arc furnaces (EAFs), the company’s top executive said. The Cleveland-based steelmaker will instead focus on decarbonizing its blast furnaces (BFs) and basic-oxygen furnaces (BOFs), which are better suited than EAFs to supply the automotive industry, company chairman, president, and CEO Lourenco Goncalves said. “Cleveland-Cliffs does not […]
The “new normal,” we have heard that a whole lot since the pandemic took hold. Are we really seeing a paradigm shift? Or is it just a trendy phrase? But, first, let’s talk about price hikes. If three’s a crowd, then what’s five – a herd? The week got off to a quick start early […]
Cleveland-Cliffs swung to a loss in the fourth quarter of 2022 but predicted better times ahead in 2023. Cliffs chairman, president, and CEO Lourenco Goncalves said that optimism comes because the economy in general is on a much better footing in 2023 than had been feared in late 2022, when hot-rolled coil prices fell into […]
The Covid-19-related shutdowns and subsequent supply chain disruptions emphasized the importance of onshoring. Geopolitical uncertainty, the war in Ukraine, and recent sovereign security issues, have added to global supply chain concerns. In the US, new legislation, the IRA, USMCA, and Build Back Better have focused on securing and bolstering North American manufacturing conditions. The task […]
SMU’s hot-rolled coil price has cracked $800 per ton ($40 per cwt), and so have prices on the futures market. The question of whether the $800-per-ton threshold would be breached has been answered. But it’s still unclear to me whether that threshold was breached by solid underlying demand or by momentum (buying ahead of the next […]
Ternium Mexico president César A. Jiménez sees the company’s investment in Pesquería, outside of Monterrey, as an opportunity to replace imports with steel produced in Mexico. Jiménez sat down with SMU managing editor Michael Cowden at SMU’s Tampa Steel Conference for a Fireside Chat. Beyond Pesquería, he gave his thoughts on a range of topics, […]
Whether it’s restarting blast furnaces in the US and abroad, or pushing full-steam ahead at its Big River Steel 2 project, US Steel Corp. is keeping abreast of current demand, with an eye toward a sustainable future. Ken Jaycox, US Steel’s chief commercial officer, sat down with SMU managing editor Michael Cowden on Feb. 7 […]
I am writing these Final Thoughts from an exhibition hall at Tampa Marriot Water Street hotel, where we just wrapped up the Tampa Steel Conference. The table I’m writing from is about to be taken down and packed up, and I have to get to the airport soon – so forgive me for what tonight […]
US Steel restarted the No. 3 blast furnace at its Mon Valley Works in western Pennsylvania because of stronger demand, company executives said. The Pittsburgh-based steelmaker intends to keep the No. 8 blast furnace at its Gary Works in northwest Indiana temporarily idled “for now,” chief financial officer Jessica Graziano said. “We’re watching the order […]
Now entering the second month of the year, prices are still a top-of-mind conversation. After its run-up to over $2,600/tonne, the London Metal Exchange calmed, and volatility dropped. This signals that, for now, it has hit resistance. The Midwest premium has followed a similar trend. After peaking just over $0.30/lb, it has started to come […]
Worthington Industries Inc. has announced the senior leadership teams for New Worthington and Worthington Steel. The appointments will be effective on completion of Columbus, Ohio-based Worthington’s planned separation of the steel processing business, tentatively set for early 2024. “The leadership teams of New Worthington and Worthington Steel reflect the unique focus and strategic priorities of […]
Cleveland-Cliffs Inc. has rolled out another $50/ton ($2.50/cwt) sheet price increase just a couple of weeks after doing the same in mid-January. The Cleveland-based steelmaker has also announced a target base price of $850 per ton for hot-rolled coil, up from the $800 per ton announced in mid-January. NLMK USA almost immediately upped the ante, […]
The big story of the new year continues to be the run-up of the regional Midwest premium (MWP). As January comes to an end, the MWP sits just over $0.30/lb, or almost 50% higher than December’s price. A return of market activity in general has pushed the premium back up closer to replacement cost levels. […]
We’re less than two weeks away from the Tampa Steel Conference. It’s not too late to register, but you should do it ASAP. The event will be at the Tampa Marriott Water Street hotel on Sunday-Tuesday Feb. 5-7. Approximately 445 people have already registered, which is more than total attendance last year. New companies are being added […]
Mill Steel Co. has acquired Cleveland Metal Exchange (CME) and Chicago Stainless Metal Exchange. A full line of stainless steel and aluminum products is now available through the Mill Steel Stainless and Aluminum division led by former CME CEO, Randy Horvat, and president, Jeff Haas. “We are thrilled to be entering the stainless and aluminum […]
North American auto assemblies declined 13.8% in December, slowing down for the second straight month. Last month’s assembly output was the second-lowest total in 2022 and just 3.4% higher year on year (YoY), according to LMC Automotive data. December finished as the third consecutive month at more than one million units. Though inventories have improved, the […]
US light-vehicle (LV) sales slowed further in December, with an unadjusted figure of 1.26 million units, the US Bureau of Economic Analysis (BEA) reported. Despite the month-on-month (MoM) decline, last month’s total was still 4.9% higher year on year (YoY), and the fifth consecutive month to see YoY increases in sales. Prior to August 2022, […]
Cleveland-Cliffs said it is raising current spot market base prices for all carbon hot-rolled, cold-rolled, and coated steel products by a minimum of $50 per net ton ($2.50 per cwt), effective immediately with all new orders. The Cleveland-based steelmaker said it had seen increases in both pricing and volume from its automotive steel business since […]