Auto sales in May are expected to be up 49 percent from April as the economy starts to reopen, says Cox Automotive. Sales are forecast to finish the year around 11.4 million vehicles, better than last month’s annual rate of 8.6 million, but far below the 17.4 million level seen in 2019, said Cox. “Recent […]
The Institute for Supply Management’s May Report on Business showed improvement, with the manufacturing PMI rising to 43.1 percent from a reading of 41.6 percent the previous month. The PMI score was at a contraction level not seen since April 2009, but the slight uptick was a promising sign. Manufacturers, however, continue to be guarded regarding […]
Olympic Steel is expanding its southeastern footprint with the opening of a new 120,000-square-foot metal processing facility in Buford, Ga., that will act as a primary flat rolled fabrication hub for the region, which also includes facilities in Locust, N.C., Winder, Ga.; and Hanceville, Ala. Olympic Steel’s facilities in the Southeast offer a wide array […]
Domestic steelmakers raised prices twice during the month of May, by a total of $90-100 per ton, hoping to establish a floor and set the stage for recovery in anticipation of improving demand as coronavirus restrictions ease in June and July. Service center and manufacturing executives responding to Steel Market Update’s market trends questionnaire this […]
New data from U.S. Federal Reserve Districts shows economic activity declined in all regions of the country in April and May due to disruption caused by the COVID-19 pandemic. Almost all areas of economic activity were negatively impacted during the period. Most districts reported a severe drop in manufacturing activity with production especially weak in […]
Memorial Day 2020 When you want to know where you are in life, look in your closet. There it was, bulging at the seams yet ignored. The cloth bag is blood red. I looked up the color online and the closest match was Vallejo Game Air Bloody Red. It is suspended by a white draw […]
While it seems counterintuitive given the difficult market conditions and weak demand due to the coronavirus, domestic steelmakers have raised flat rolled prices for the second time this month. Nucor, U.S. Steel, USS-POSCO Industries (UPI), AK Steel and NLMK USA informed customers today that prices for spot orders of hot rolled, cold rolled and coated […]
Neither rosy nor the voice of doom, IHS Markit analyst John Anton offered a realistic assessment of the U.S. economic recovery post-COVID-19 during Wednesday’s SMU Community Chat Webinar. Recovery from the current recession will not be a quick V-shaped rebound, said Anton, who is associate director of IHS Markit’s Pricing and Purchasing Service. Instead, he […]
Yesterday’s SMU Community Chat drew nearly 500 attendees to hear John Anton, associate director of the IHS Markit Pricing and Purchasing Service, give his analysis of the coronavirus pandemic’s impact on the U.S. economy and steel market. His presentation prompted nearly two dozen questions from listeners, too many to cover during the Q&A portion of […]
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 […]
While it seems counterintuitive given the difficult market conditions and weak demand due to the coronavirus, domestic steelmakers have raised flat rolled prices for the second time this month. U.S. Steel, USS-POSCO Industries (UPI) and NLMK USA informed customers today that prices for spot orders of hot rolled, cold rolled and coated products have increased […]
Wholesalers of HVAC products have weathered the pandemic surprisingly well so far and are more concerned about construction demand months from now than they are about their near-term prospects. Consider what has happened since April as a result of the market’s response to the virus: Steel mills are operating at just above 50 percent of […]
With the expectation of higher scrap prices coming for the month of June, on top of the steep rise in ferrous scrap this month, the mills’ margins may well be squeezed, which will impact negotiations and pricing over the next few weeks. Most steel buyers anticipate a new round of price increases by late May […]
Our Wednesday SMU Community Chat Webinars have been a tremendous success. Each webinar is unique as we try to vary the subject matter and speakers. For those who have been tuning in to these free sessions at 11 AM ET, you already know that our speakers don’t always agree with one another as to what […]
Our Wednesday SMU Community Chat Webinars have been a tremendous success. Each webinar is unique as we try to vary the subject matter and speakers. For those who have been tuning in to these free sessions at 11 AM ET, you already know that our speakers don’t always agree with one another as to what […]
Our Wednesday SMU Community Chat Webinars have been a tremendous success. Each webinar is unique as we try to vary the subject matter and speakers. For those who have been tuning in to these free sessions at 11 AM ET, you already know that our speakers don’t always agree with one another as to what […]
The United States is beginning to go back to work. Automotive plants are scheduled to begin opening this week. The U.S. is working with Mexico to ensure automotive suppliers in Mexico are deemed “essential businesses” and return to work. From my perch here in Florida, traffic has returned to normal, restaurants are open (50 percent […]
We are in the middle of a black swan event—an event that is expected but unexpected, said Chris Kuehl, managing director of Armada Corporate Intelligence during Wednesday’s SMU Community Chat Webinar. “Viral threats are not new and have been frequent in the past few decades, but we don’t know from year to year how they […]
We are in the middle of a black swan event—an event that is expected but unexpected, said Chris Kuehl, managing director of Armada Corporate Intelligence during Wednesday’s SMU Community Chat Webinar. “Viral threats are not new and have been frequent in the past few decades, but we don’t know from year to year how they […]
Like producers and distributors of prime steel, most sellers of nonprime or secondary steel have been hard hit by the virus. Yet secondary material is still available from the mills even though their production is way down. Some distributors are doing surprisingly well, depending on their customer base and location, while others are struggling. Secondary […]
SMU Contributor David Feldstein is president of Rock Trading Advisors (davidfeldstein@rocktradingadvisors.com, twitter @TheFeldstein). In addition to market analysis, RTA provides price risk management not only for ferrous products, but also base metals, energy and interest rates. RTA also trains sales staff and creates the infrastructure necessary for firms to offer their customers fixed pricing on […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) moved higher by 11.5 percent m/m to 202.4 in May. Supply constraints caused by the Covid-19 pandemic combined with either sustained or recovering scrap demand to lift prices across most of the globe, although pig iron demand was […]
Cleveland-Cliffs expects operations to normalize during the second quarter as end-markets begin recovering from the COVID-19 pandemic. “Although the pandemic effect led to automotive plant shutdowns over the past six weeks, the timing and pace of production restarts as well as consumer sales data have both exceeded our expectations,” said Cliffs’ Chairman, President and CEO […]
If there is one thing you can count on with the steel industry, it’s for rumors to begin flying as soon as the mills appear to have seized pricing momentum. The domestic steel mills, led by ArcelorMittal USA, began announcing price increases the week ending May 1. The announcements ranged from $50 to $60 per […]
If there is one thing you can count on with the steel industry, it’s for rumors to begin flying as soon as the mills appear to have seized pricing momentum. The domestic steel mills, led by ArcelorMittal USA, began announcing price increases the week ending May 1. The announcements ranged from $50 to $60 per […]
Bank of America is forecasting a slow recovery from the coronavirus crisis, one that will take years not just months, said Metals and Mining Analyst Timna Tanners, who was the featured guest speaker during Steel Market Update’s Community Chat on Wednesday. Bank of America economists anticipate a global recession in the second and third quarters. […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Long Products Monitor U.S. domestic long product prices were forced lower across the board as demand weakness caused by the Covid-19 pandemic combined with a substantial m/m decline in scrap prices. Construction activity in many states was either curtailed or prohibited entirely as local governments took measures […]
Buyers of flat rolled and plate steels provided insights into the market to Steel Market Update throughout the day. On the flat rolled side, steel buyers seemed to be resigned to paying higher prices. Flat rolled price quotes are firming at the domestic mills, and the mills may well achieve their desired minimums of $500-$520 […]
Buyers of flat rolled and plate steels provided insights into the market to Steel Market Update throughout the day. On the flat rolled side, steel buyers seemed to be resigned to paying higher prices. Flat rolled price quotes are firming at the domestic mills, and the mills may well achieve their desired minimums of $500-$520 […]
Auto sales were expected to be low in April and predictions were correct. Edmunds estimates U.S. sales fell 36.6 percent from March and 52.5 percent compared to April 2019. “April auto sales took the biggest hit we’ve seen in decades,” said Jessica Caldwell, Edmunds’ executive director of Insights. “These bleak figures aren’t just because consumers […]