Following the exceptional rate of vehicle sales in the US in May the June rate fell from 17.8 million annualized to 17.2 million which is a more sustainable rate. The June pace was still higher than the 16.9 million units average of the past 12 months. Demand is being supported by easier credit terms, sustained […]
On Friday, Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. Now why did we go and do that? We have been stuck in a very tight trading range on most flat rolled steels since late April of this year. Benchmark hot rolled, which is used by most in the […]
Contract negotiations are currently underway between the United Steel Workers and steel companies US Steel and ArcelorMittal. The companies each met with USW bargaining committee members in Pittsburgh to begin working out details of new three-year contracts to replace the current ones expiring Sept. 1. USW Committee members are expecting the first proposal from ArcelorMittal […]
NLMK USA second quarter crude steel production rose to 130,000 tonnes (143,298 tons), a 39 percent increase from the previous quarter. Finished steel output totaled 490,000 tonnes (540,123 tons), up 20 percent q/q. USA sales in Q2 grew 12 percent q/q to 480,000 tonnes (529,100 tons). Hot rolled steel production was up 20 percent to […]
“I have not heard anyone all that concerned about supply disruptions other than the industry media. It seems there is plenty of material to go around and anyone who took a position is hoping that there will be an interruption so that their inventory will become more profitable.” Ohio Valley Service Center Earlier today, SMU […]
Steel Market Update found the results of one of the group of questions about service center spot sales from this past week’s flat rolled steel survey quite interesting. There have been two price increase announcements by all of the domestic mills and a third laying there from US Steel and our results suggests – well, […]
Contract talks opened July 13 between the United Auto Workers union and the big three Detroit automakers. As GM, Ford, and Fiat Chrysler enter negotiations, at issue for the companies is labor costs. GM and Ford are looking to cut labor cost that average $8 to $9 per hour higher than at Honda and Toyota. […]
ArcelorMittal responded Monday to rumors of a potential closure of Indiana Harbor West in East Chicago. Key Banc reported that sources indicated “ArcelorMittal USA is taking steps to reduce its sheet hot end and finishing capabilities via the closure of Indiana Harbor West.” A spokesperson at ArcelorMittal USA, in an email to Steel Market Update, […]
The four year contract between USW local 1196 and Allegheny Technologies expired at 11:59 on June 30, 2015 but an agreement has been reached, for now, to keep the plant operational under terms of the previous contract. ATI and USW officials say there are still a number of significant issues to be resolved before a […]
Chevy is taking on the aluminum Ford F-150 with a series of ads sure to tickle consumers and annoy Ford marketers. The new ads for the Chevy Silverado poke fun at the F-150 while lauding the benefits of steel construction. The ads which are currently running in social media, point out the disadvantages of aluminum. […]
The Department of Commerce said Wednesday that it will proceed on AD/CVD investigations of imports of corrosion-resistant steel products from China, India, Italy, Korea, and Taiwan. A petition to investigate the products was filed on June 3, 2015 by US Steel, Nucor, ArcelorMittal USA, AK Steel, Steel Dynamics, and California Steel Industries. The products covered […]
Worthington Industries closed fourth quarter FY 2015 with net sales of $846 million and net earnings of $28.9 million. Quarter earnings were negatively impacted by pre-tax impairment, restructuring and other charges, totaling $6.5 million. Earnings in Q4 2014 were $33.2 million. Steel processing net sales dropped 4 percent y/y to $540 million due to lower […]
This piece, written by Peter Wright, combines our own data analysis with recently published opinions about the iron ore, metallurgical coal and zinc markets that we find credible. Iron Ore: The Platts IODEX of 62 percent Fe delivered North China recovered to $61.25 on March 22nd, continued its upward trend in June then on June […]
Light vehicle sales in the US skyrocketed in May to a seasonally adjusted annualized rate of 17.8 million units. This is the strongest pace in almost 10 years. Auto sales were 7.4 million in April and rose to 8.1 million in May. Light trucks rose from 9.1 to 9.7 million. Imports in May were 3.8 […]
In its second quarter 2015 earnings guidance, AK Steel said it expects to report a net loss of $0.37 to $0.42 per diluted share of common stock. The company attributed negative results to low steel prices caused in part by high levels of unfairly traded imports. Shipments of 1.8 million were up 3 percent from […]
Steel Market Update has been asked if the domestic steel mills have made any moves to restart idled blast furnaces in order to increase production due to dumping suits, price increases and the anticipated stronger order book. People also want to know if ArcelorMittal and US Steel are building slab inventories in order to have […]
Metalforming companies are expecting little change in business conditions in the next three months according to the June 2015 Precision Metalforming Association (PMA) Business Conditions Report. Just 23 percent of members surveyed (down from 24 percent in May) think economic activity will improve in the next three months; 60 percent expect no change. New orders […]
Ferrous scrap prices rose in June as obsolete flows continue to be weaker than normal and the domestic mills have come back into the market. The strength of the market has come as a surprise to dealers and mills alike. Number 1 Heavy Melt (HMS) ranged from $230 to $265 per gross ton with the […]
The “not if but when” question has been settled as the long awaited trade case filing on galvanized steel finally occurred on Wednesday. Six domestic steel mills submitted a petition to the Department of Commerce asking for the imposition of anti-dumping and countervailing duties on certain corrosion-resistant steel products from China, the Republic of Korea, […]
A US Steel spokesperson reports that the Fairfield Works blast furnace is in the process of restarting. Notices were given last week to employees and customers that a blast furnace at Granite City Works will continue in operation. Analysts at Key Banc Capital Markets had the following comments on US Steel. “Fairfield is being restarted […]
AK Steel announced plans to introduce one of the first commercially available Next-Generation Advanced High Strength Steels. The new technology improves steel formability at higher tensile strength levels, perfect for customers seeking lightweighting for automotive manufacturing. The Hot Dip Galvanizing Line (HDGL) at AK Steel’s Dearborn works will be modified to produce both coated and […]
US Steel has purchased the remaining AK Steel shares of its joint interest in Double Eagle Steel Coating Company. AK Steel acquired 50 percent of Double Eagle when it acquired the Severstal Dearborn operations in 2014. With a payment of $25.2 million to AK Steel, US Steel now owns the 700,000 ton electrolytic-galvanizing line. The […]
May U.S. automotive sales exceeded expectations with a seasonally adjusted annual rate of 17.71 million vehicles, according to the final tally by WardsAuto. Predictions ranged from Bloomberg’s consensus of 17.0 million to GM’s prediction of 17.5 million. May sales were at the highest single-month level since July 2005. The final tally for April was 16.5 […]
Today SMU is not only going to discuss where flat rolled steel prices were this past week based on our analysis of steel pricing from our steel index as well as CRU, Platts and SteelBenchmarker, we are also going to discuss price momentum which our SMU Price Momentum Indicator currently points to higher prices over […]
PRO-TEC Coating Company, a 50/50 joint venture between United States Steel Corporation and Kobe Steel, Ltd., of Japan, announced today that its president, Bryan Vaughn, will retire effective June 1, 2015 after 34 years of service in the steel industry. Brent Rosebrook, currently vice president of finance and administration at PRO-TEC, has been named acting […]
One of the core themes in my series of articles on steel purchasing basics is the importance of the supplier/customer relationship. Many large OEM customers rate their suppliers as a tool in order to get them to improve their performance but generally they pay little attention to how their suppliers rate them. However, Planning Perspectives […]
AM/NS Calvert will be producing Ultra High Tensile Strength Cold-rolled and Coated steel sheets with high formability by the end of 2016. Nippon Steel & Sumitomo Metal Corporation (NSSMC), which is a joint partner with ArcelorMittal in the Calvert operations, says the materials of up to 1.2 gigpascals (GPa) tensile strength will be used for […]
The American Institute for International Steel (AIIS), Eurometal, and the International Steel Trade Association have agreed to establish a global steel supply chain partnership. The purpose is outlined in a press release from AIIS below: The purpose of their agreement is to establish a Global Steel Supply Chain Partnership as a framework for collaboration among […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
Metalforming companies are expecting softer business conditions during the next three months according to the May 2015 Precision Metalforming Association (PMA) Business Conditions Report. More participants surveyed thought economic conditions would remain the same (60 percent up from 58 percent) or decline (16 percent compared to 9 percent in April). Incoming orders are expected to […]