Cleveland-Cliffs Inc. posted a near-record profit in the fourth quarter and predicted that the good times would continue to roll into 2022 thanks to fixed-price contracts resetting at higher numbers. That prediction comes largely because automakers, which typically buy steel on contract terms, were forced to limit production in 2021 because of the global chip […]
General Motors, Ford, Toyota, Honda and Stellantis have all been forced to temporarily halt production at assembly plants in the U.S. and Canada due to truckers that are blocking critical roadways in protest of COVID vaccine mandates. Detroit-based GM, the largest of the “Big Three” automakers in the U.S., was forced to cancel two production shifts […]
North American auto assemblies expanded in January after falling to 2021’s second lowest monthly total in December. January’s production total was up 12.6% sequentially, but down 4.1% from the same month last year. Supply-chain and microchip limitations continue to impact the automotive sector despite broad production improvements across North American automakers. As a result, assembly […]
Ferrous scrap prices declined again in February after an unexpectedly big drop in January. Prime scrap traded down $35/GT in most regions, while obsolete grades traded sideways, sources tell Steel Market Update. That puts the February price for busheling at around $525-535/GT, shred at $470-480/GT and HMS at $430-440/GT. “Tepid demand is being offset by […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
By Trade Attorney Lewis Leibowitz The White House released a long-awaited decision on the future of special safeguard remedies for the solar industry on Friday. The decision may provide a glimpse into the trade philosophy of the Biden administration. First, a bit of background. The Trump-era tariffs began in January 2018 with decisions under the […]
By Greg Wittbecker, Advisor, CRU Group Nucor and Steel Dynamics Inc. (SDI) chose to acquire major metal recycling companies just before the Global Financial Crisis. SDI purchased Omnisource for slightly more than $1 billion in November 2007. Nucor followed suit with its $1.4 billion takeover of The David J. Joseph Co. in March 2008. The […]
Steel buyers remain a surprisingly bullish bunch despite rapidly declining steel prices as well as worries about COVID and the broader economy, . Steel Market Update’s survey this week asked service center and manufacturing executives if they are optimistic or pessimistic about their prospects in the first half of 2022. About 64% considered themselves optimists versus […]
Algoma Steel Group Inc. has awarded GE Gas Power (GE) the contract to upgrade its natural gas combined cycle power plant to support the power requirements of the steelmaker’s new electric arc furnace (EAF). The Sault Ste. Marie, Ontario-based steelmaker said the upgrade, which includes the installation of two gas turbine packages, is expected to […]
U.S. Steel isn’t letting current lower prices get it down after a record year in ’21 and in anticipation of more good times rolling into ‘22. The Pittsburgh-based steelmaker said it had expected the first quarter would be weaker but that such weakness would to be temporary. “Supply chain issues will ease, inflationary pressures will […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor, Jan. 26 Steel sheet prices in the U.S. sank by about 9% w/w as they continued to fall towards the global average. CRU’s weekly HR coil assessment in the U.S. was $126 /s.ton lower than the prior week, and high inventory levels relative to […]
Calling 2021 “the safest and most profitable year in the company’s history,” Nucor executives sounded “a consistent drumbeat on demand” in their outlook for 2022 during their fourth-quarter conference call with analysts and investors today. The Charlotte, N.C.-based steelmaker posted record earnings of $6.83 billion in 2021 on sales of $36.5 billion. Sixteen of its […]
The ongoing correction in steel prices is not a reflection of demand, which is strong now and is expected to remain so for the balance of 2022, Steel Dynamics Inc. (SDI) executives said. Hot-rolled coil prices are roughly in line with published price ranges of $1,300-1,400 per ton ($65-70 per cwt), although a limited number […]
In another skirmish in the battle between steel and aluminum for a greater share of the automotive market, aluminum producer Novelis Inc. plans to invest $365 million to build a highly advanced recycling center adjacent to its new automotive finishing plant in Guthrie, Ky. Groundbreaking is scheduled for early 2022, with commissioning expected in 2024. Aluminum producers claim the high […]
Steel Dynamics Inc. (SDI) posted record fourth-quarter earnings to finish a year of unprecedented profitability for domestic steel mills. And the Fort Wayne, Ind.-based steelmaker predicted that it would benefit from increased steel consumption in 2022 compared to 2021 levels. The company did not directly address a steep drop in prices that occurred in the […]
JSW Steel (USA) Inc., the U.S. subsidiary of Indian steelmaker JSW Steel Ltd., reported pretax earnings of more than $55 million in its third quarter of fiscal 2022 ended Dec. 31, 2021, outperforming year-ago results. JSW Steel’s EAF sheet mill in Mingo Junction, Ohio, reported third-quarter earnings of $42.12 million on sales of 92,557 net tons of hot […]
U.S. consumer confidence fell in January, the first decline in four months, reported The Conference Board. The headline index lost momentum at the onset of 2022 after staging a small recovery during the fourth quarter, rebounding from a summer lull. Sentiment towards current business and labor market conditions was slightly improved in January even though […]
U.S. auto sales fell further in December to 1.2 million units, down 26.4% versus the same year-ago period, according to LMC Automotive. The results caused the selling rate to decelerate to 12.4 million units annually, compared to 12.9 million units the month prior. Low inventories continued to plague the market and were the chief cause […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled For obvious reasons 2021 was a very active year for HR futures – the runaway rise in prices helped bring […]
Steel Buyers Sentiment, as measured by Steel Market Update, has seen little change in the past two months despite declining steel prices and concerns about the economy and COVID heading into 2022. SMU surveys buyers every two weeks and asks how they view their chances of success in the near and longer term. SMU’s Current […]
Among the attributes of the new, advanced minimill U.S. Steel plans to build in Osceola, Ark., next to its Big River Steel plant, is endless casting and rolling technology that will make the facility the first of its kind in the United States. What is endless casting and rolling, and what competitive advantages will it […]
North American auto assemblies contracted in December to the second lowest monthly total in 2021 after expanding the two prior months. December’s production total was down 14.7% sequentially, and down 15.0% from the same month last year. The ongoing microchip shortage and supply-chain disruptions are still limiting the automotive sector. And although most carmakers have […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor, Feb. 10 The CRU metallics price indicator (CRUmpi) rose in February m/m by 2.4% to 392.9, gaining back some of the ground lost during January’s unusually bearish market. This slight upward trend was driven primarily by supply scarcity for obsolete grade scrap and pig iron, […]
By Principal Analyst Josh Spoores from CRU’s Steel Sheet Products Monitor, Jan. 22 Trends in the North American sheet market have picked up where 2021 left off, particularly a continued decline in sheet prices. Various supply pressures have overwhelmed demand and led to lower sheet prices in all North American markets. In the U.S. Midwest […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor, Feb. 9 Sheet prices in the North American sheet market have continued to collapse due to a temporary supply surplus. Since prices peaked in late September/early October, the price decline for HR and HDG coil has been at a larger amount in USD […]
Nucor Corp. has confirmed that its greenfield, $2.7 billion electric arc furnace (EAF) sheet mill will be built in West Virginia. The Charlotte, N.C.-based steelmaker said the mill, expected to have capacity of three million tons per year, would be located in Mason County along the Ohio River. Additional sites in northern West Virginia are […]
After disappointing years in 2020 and 2021, the auto industry and its suppliers stand to enjoy a considerably better year in 2022, said Rod Lache, managing director and automotive analyst with Wolfe Research. “We think in the U.S. there are at least 10 million units of undersupply in the market, which represents pent-up demand and is […]
Popular analyst Timna Tanners may have changed where she works but not her view that there’s a “sheet storm” on the horizon, one that will bring in sharply lower steel prices over the next few years. Formerly with Bank of America, Tanners is now the managing director of metals and mining at Wolfe Research. Speaking […]
Stelco plans to enter the electric-vehicle (EV) battery recycling business with a new integrated shredding and hydrometallurgical refinery at its Lake Erie Works in Nanticoke, Ontario. The Canadian flat-rolled steelmaker said engineering studies for the new recycling operation are expected to be completed in mid-2022 with the plant anticipated to start up in 2023. The […]
Welcome back to those who took an extra day or two off after the New Year. This is my first article of the year as Michael and Tim continue to absorb more of my workload. For those of you who did not view or listen in on the SMU Community Chat we hosted yesterday with […]