Auto sales plummeted in March as stay-at-home orders kept consumers from dealer showrooms. March sales were down significantly following a strong showing in January and February. Toyota Motor NA reported U.S sales tumbled 36.9 percent for the month and 8.8 percent for the quarter. Fiat Chrysler and General Motors noted considerable declines in March and […]
Zooming – sounds like a new drug, doesn’t it? We will be hosting another SMU Community Chat Webinar on Wednesday, April 22, at 11:00 a.m. ET (and I promise to hit the “start” button on time this week). Speaking with me will be Bernard Swiecki of the Center for Automotive Research (CAR). We will discuss […]
Today we took our Price Momentum Indicator on flat rolled steel to Lower from Neutral. We are clearly seeing an erosion in pricing, which is expected to continue over the near term. The economy is heading into recession. Key indicators are pointing toward a slowdown in construction as states and local municipalities mandate construction projects […]
Today we took our Price Momentum Indicator on flat rolled steel to Lower from Neutral. We are clearly seeing an erosion in pricing, which is expected to continue over the near term. The economy is heading into recession. Key indicators are pointing toward a slowdown in construction as states and local municipalities mandate construction projects […]
Wholesalers in different parts of the country tell a different story about how the coronavirus restrictions are impacting their businesses. In one sense, the virus is picking winners and losers by geography. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International compared notes on their experiences in dealing […]
We are in uncharted waters. The key is not to panic. Learn to separate fact from rumor. I repeat, learn to separate fact from the rumors that tend to envelope this industry. For example: The “rumor” is the domestic steel mills are getting huge order cancellations. Is that a fact or is it conjecture based […]
AK Steel will idle the C blast furnace at Dearborn Works beginning this week for an undetermined period of time. Dearborn has been impacted by recent shutdowns in the automotive industry and has been criticized for its handling of safety measures during the coronavirus crisis. At least one employee at Dearborn has tested positive for […]
AK Steel will idle the C blast furnace at Dearborn Works beginning this week for an undetermined period of time. Dearborn has been impacted by recent shutdowns in the automotive industry and has been criticized for its handling of safety measures during the coronavirus crisis. At least one employee at the Dearborn steel mill has […]
Service centers polled by Steel Market Update this week reported layoffs and sales declines expected to range from 30-70 percent. Steel orders are being canceled or delayed at most companies as steps to fight the coronavirus take a toll on regional economies across the country. Following are some executives’ comments: “We have not had customers […]
Worthington Industries reported net sales of $764.0 million and net earnings of $15.3 million for its fiscal 2020 third quarter, ending Feb. 29, 2020. Sales were down 13 percent from the prior year due to lower average selling prices in Steel Processing and lower volumes in Pressure Cylinders. Steel Processing net sales were down 12 […]
Ferrous scrap prices are expected to drop sharply in April as a result of all the market disruptions from the coronavirus. How sharply is unclear. Almost certainly lower scrap prices will add to the downward pressure already being felt on finished steel prices. Some reports claim scrap could plummet by as much as $100/GT, but […]
Ferrous scrap prices are expected to drop sharply in April as a result of all the market disruptions from the coronavirus. How sharply is unclear. Almost certainly lower scrap prices will add to the downward pressure already being felt on finished steel prices. Some reports claim scrap could plummet by as much as $100/GT, but […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor In the U.S. Midwest market, sheet prices were split this week. The price of HR coil fell $21 /s.ton to $561 /s.ton while CR and HDG coil prices fell by only $1-$3 /s.ton to $770 and $747 /s.ton, respectively. The spread between HDG coil and […]
Three auto organizations have sent a joint letter to Congress requesting a delay for entry into force of the USMCA, currently scheduled for June 1. The CEOs of the Alliance for Automotive Innovation, the National Automobile Dealers Association (NADA) and the Motor & Equipment Manufacturers Association (MEMA) suggested several policy initiatives to address the COVID-19 […]
Orders for durable goods jumped 1.2 percent in February, but the uptick is not expected to last. Stay-at-home orders and rising unemployment due to the COVID-19 outbreak are likely to stifle demand as the economy heads into a recession. The volatile transportation category saw new orders for civilian aircraft dip 0.3 percent after a 356.7 […]
John Packard is taking some time off… Among the many effects of the coronavirus on the steel market, no one is talking about Steelmageddon much these days. Announcements of new mills and capacity additions have been replaced by news of facility closures and furnace idlings. Concern has shifted from fears of overcapacity in the next […]
Steel prices saw further declines this week, but not a dramatic collapse. The benchmark price of hot rolled now averages around $560 per ton, down $5 from last week and down $50 from the mid-January high of $610. Most of the steel buyers responding to Steel Market Update’s check of the market this week expect […]
Despite a flurry of maintenance projects completed in the second half of 2019, several steelmakers are planning outages or idling of operations during the next few months. Steel producing mills have been designated as essential critical infrastructure and are not subject to state COVID-19 shutdowns. ArcelorMittal, however, is adjusting production by idling its IH-4 furnace at Indiana Harbor […]
By CRU Principal Analyst Matt Watkins, from CRU’s Global Steel Trade Service Covid-19 is now the major driver of developments in the global steel industry, as indeed it is in the wider economy. Over the past month the virus has spread rapidly outside China and its growth remains uncontrolled. Europe has become a new epicenter […]
NLMK USA’s plant in Farrell, Pa., is running a full schedule right now, but will idle its hot strip mill next week as the plant is low on slabs. The mill is dependent on imports of slabs. Its allocation of slabs for the second quarter does not open until April 1. The mill expects slabs […]
John Packard is taking some time off… As we all hunker down (wondering if that’s the hint of a sore throat when we swallow), it’s easy to feel the walls closing in. The intellectual part of us knows the economy will return to normal eventually (indeed, there’s money to be made when the market comes […]
U.S. automakers are suspending production for nearly two weeks to help stop the spread of COVID-19. Ford, General Motors and FCA announced on Wednesday that they will stop all production in North America starting Thursday evening and tentatively ending March 30. “GM and the UAW have always put the health and safety of the people […]
Today, Steel Market Update had conversations with manufacturing companies across the United States. We found businesses reporting strong demand, plants are still open, office workers tend to be working from home and factory workers are being trained on social distancing as well as personal/equipment hygiene. Most of those we contacted either on the phone or […]
Today, Steel Market Update had conversations with manufacturing companies across the United States. We found businesses reporting strong demand, plants are still open, office workers tend to be working from home and factory workers are being trained on social distancing as well as personal/equipment hygiene. Most of those we contacted either on the phone or […]
The new normal for me is talking to an industry executive on the phone and listening to the kids playing in the background…. We had a 45-point drop in both the Current and Future SMU Steel Buyers Sentiment Index this week (article is at top of tonight’s issue). This is the largest one-week change in […]
The new normal for me is talking to an industry executive on the phone and listening to the kids playing in the background…. We had a 45-point drop in both the Current and Future SMU Steel Buyers Sentiment Index this week (article is at top of tonight’s issue). This is the largest one-week change in […]
By CRU Research Manager Paul Butterworth, from CRU’s Global Steel Trade Service Activity in steel end-use sectors in China is recovering as per CRU’s base case, but evidence suggests that demand may start to run ahead of our base case in the near term. Encouraged by government stimulus measures, there is a lot of optimism […]
The U.S. auto industry is taking steps to protect their workers in this unprecedented time of global pandemic. Ford, General Motors, Fiat Chrysler and the UAW have formed a COVID-19/Coronavirus Task Force to implement enhanced protections for manufacturing and warehouse employees at all three companies. In a joint statement, the leaders of GM, Ford and […]
Canada voted to approve the U.S.-Mexico-Canada Agreement without amendment on Friday, March 13, but its implementation may be delayed by the coronavirus. Following passage of the agreement, Canada’s parliament was dismissed for three weeks to combat the spread of the virus.The next step for Canada is “royal assent” by the governor general and a final […]
Steel prices are as unpredictable as the spread of a rogue virus, but one symptom of COVID-19 is likely to be lower steel prices. As of this writing on March 13, the price of flat rolled steel products had yet to see much effect from the global panic over the coronavirus. Steel Market Update’s latest […]