By CRU Chief Economist Jumana Saleheen and Principal Economist Alex Tuckett, from CRU’s Steel Monitor In this Global Economic Outlook, we look ahead to 2021 and outline our top ten calls for the global economy. These include predictions on Covid-19 vaccines, world growth, the auto and construction sectors, the U.S. dollar, monetary and fiscal policy, […]
Ryerson Holding Corp. reported incremental improvement in third-quarter 2020. Ryerson’s Q3 revenue increased 7.7 percent to $832 million, but the service center company posted a net loss of $39.9 million, which included a $52 million charge related to pension liabilities and 17.1 million in expenses related to the refinance of 2022 notes. Adjusted net income was […]
Canadian steel processor Nova Steel plans to open a new tube manufacturing plant in Bowling Green, Ky. The $70 million project was announced Thursday and includes an initial investment of more than $20 million for the acquisition of a 108,000-square-foot building in the Kentucky Transpark and the purchase and installation of equipment. The plant will […]
U.S. Steel narrowed its loss to $234 million in the third quarter from a net loss of $589 million in the second quarter. Net sales increased to $2.34 billion from $2.09 billion. “Our third-quarter results exceeded our guidance and demonstrated the power of the actions we have taken since the onset of COVID-19 with dramatically […]
When I look at the results of our flat rolled survey, sometimes I have to scratch my head. In the survey we just completed last week, we asked at what point hot rolled prices would peak. Sixty-two percent of our respondents believe prices will peak at $700 or lower. To them I ask, what is […]
Ferrous scrap prices are expected to trade significantly higher again in January on strong demand from mills both domestic and foreign, report Steel Market Update sources. Scrap jumped by more than $70/GT in December and the uptrend is likely to continue into the new year, lending further support to higher finished steel prices. “Like many […]
Following big jumps in December and January, ferrous scrap prices are expected to moderate in February. Steel Market Update sources predict obsolete grades could drop by $30-50/GT and prime grades by $10-20/GT due primarily to the large amount of scrap offered to the mills in January and the weakening export market. “Scrap dealers are lowering […]
Ferrous scrap prices are expected to rise anywhere from $40-70/GT in March after declines in February, lending further support to higher finished steel prices. Scrap prices are likely rise in March by at least as much as they fell in February, said CRU Senior Analyst Ryan McKinley. “The cold snap over the last few weeks […]
Orders for durable goods increased for the fifth straight month, up 1.9 percent to $237.1 billion and surpassing expectations. Transportation orders led the increase with a 4.1 percent gain. Automotive orders rose 1.5 percent in September on continued strong sales for SUV’s and light trucks. The commercial airline industry, showing losses through the pandemic, had […]
The return of automotive manufacturing after closures due to the pandemic boosted demand for Cleveland-Cliffs’ products and resulted in revenue of $1.6 billion and net income of $2 million for the third quarter of 2020. “We were significantly affected in Q2 by the unprecedented shutdowns that took place throughout the entire auto sector for an […]
North Star BlueScope continues to shine for Australian parent company BlueScope Steel. North Star continues to ship at full capacity in the first half of FY 2021 driven by the rebound in the U.S. auto industry. Steel spreads have improved in the half due to higher HRC pricing, although earnings are expected to be somewhat […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Monitor Reflecting a basket of finished steel prices, CRU’s global finished steel CRUspi reached 162.9, its highest level since May 2019. This indicator, which covers Asia, Europe, and North America, increased 5.2% m/m and is now up 9.9% y/y, the first y/y increase since November 2018. […]
Nine days to go… I don’t know about you but my cell phone is being lit up with political calls/texts from both parties – including states I don’t live in. November 4th can’t get here fast enough… Steel Dynamics reported that their mills (all products) operated at 85 percent and their sheet mills achieved a […]
Nucor reported better than expected results for the third quarter of 2020. The company’s bar and structural mills led earnings, benefiting from a good nonresidential construction market. Joist and deck orders, quotes and backlogs are up year-over year with strong demand from nonresidential, including data and distribution center construction, company executives told investors and analysts […]
Revenues from construction and toll processing exceeded expectations in the third quarter, offsetting some of the weakness in aerospace and energy, reported Reliance Steel & Aluminum Co. in its quarterly conference call today. Touting a record gross profit margin of 32.4 percent, executives of the industry’s largest service center organization told analysts and investors they […]
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 […]
Iron ore trade on the Great Lakes felt the “pinch of COVID-19” during 2020, plummeting 30 percent from its normal levels, reported the Lake Carriers Association. The pandemic hit just as crews were readying ore vessels for the new shipping season in March. No plans were in place to guide maritime shipping. “The United States Coast […]
Steel Dynamics’ CEO Mark Millett was upbeat on the prospects for steel demand in the fourth quarter and beyond. “You can clearly see what is happening in the marketplace through one’s order book—ours is in pretty good shape,” said Millett. Flat rolled demand and momentum remain strong, inventories are at historical lows, imports continue to […]
By CRU Senior Analyst Helen O’Cleary The U.S. economy saw an impressive overall rebound through Q3, following severe Covid-19 disruption in Q2. We estimate that U.S. industrial production contracted 7.5% y/y in Q3, following a decline of 14.4% y/y in Q2. However, the momentum of the recovery is slowing as fiscal stimulus and the effects […]
By CRU Multi-Commodity Analysts Zanna Aleksahhina and Will Young Over the summer and into Q3 2020 commodity prices staged a remarkable recovery from Q2 lows and in October many prices are comfortably above where they started the year. Given that the major economies are still struggling to control the spread of Covid-19, underlying demand is […]
Ford has selected ArcelorMittal and its Fortiform 980 GI steel as its sole source of third-generation advanced high-strength steel for use in the 2021 Ford Bronco. The steel is produced at AM/NS Calvert and is designed for automotive application due to its strength and formability. “Ford called us to see if we could develop this […]
By CRU Principal Analyst James Campbell from CRU’s Long Products Monitor Global long product prices increased in many markets this month as strengthening demand combined with higher costs and for some products in particular. Strength was not uniform however; prices were weaker in Southeast Asia and China, the latter due to weaker sentiment following lower […]
The auto industry is expected to continue its quick pace to recovery with third-quarter retail sales up 27 percent from the second quarter of 2020, forecasts Tru Car and its subsidiary ALG, Inc. Sales in September are forecast to reach 1,221,092 units, down 12 percent from a year ago and down 4 percent from August […]
Recovery, fundamental, opportunity, strategic, exciting. These are the five words steel executives used during AIST’s Virtual Town Hall Forum Wednesday to describe the current state of steel. In the aftermath of an unprecedented upheaval for the economy and the industry caused by the COVID-19 crisis, executives from Big River Steel, Cleveland-Cliffs, Nucor, Steel Dynamics and […]
Building on the success of Steel Market Update’s Virtual Steel Summit in August, which attracted more than 900 attendees to the COVID-safe online event, SMU will host a virtual version of its popular Steel 101 Workshop on Oct. 20-21 using a similar online platform. SMU’s team of expert instructors will describe the structure of the steel […]
Mill lead times are extended, price increase announcements are being made (with ArcelorMittal USA putting a minimum base price on hot rolled out there of $650 per ton and cold rolled and coated at $850 per ton) and mills are holding the line on spot negotiations. Momentum is clearly on the side of the steel […]
Cleveland-Cliffs’ purchase of ArcelorMittal USA took many steel buyers by surprise this week. Initial reactions from some Steel Market Update readers ranged from “a major development” to “business as usual.” Here are some of their comments: “Quite surprised by this development. Initial reaction is this gives them an incredibly strong position with automotive. Not sure […]
ArcelorMittal’s divestment of U.S. assets to Cleveland-Cliffs completes the company’s $2 billion asset portfolio optimization and strategically repositions its North American platform. “This transaction is a unique opportunity for ArcelorMittal to unlock significant value for shareholders while retaining exposure to the North American economy through our high-quality NAFTA assets alongside a participation in what will […]
Cleveland-Cliffs is about to become the largest flat-rolled steel producer in North America. The company announced Monday that it will acquire the operations of ArcelorMittal USA and its subsidiaries for a purchase price of approximately $1.4 billion in equity and cash. The transaction includes 78.2 million shares of Cleveland-Cliffs common stock valued at $500 million, […]
Cleveland-Cliffs is about to become the largest flat-rolled steel producer in North America. The company announced Monday that it will acquire all of the operations of ArcelorMittal USA and its subsidiaries for a purchase price of approximately $1.4 billion. The deal is expected to close in the fourth quarter of 2020. The ArcelorMittal assets include […]