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 […]
Buyers and sellers of flat rolled steel continue to be optimistic about their company’s ability to be successful both now and into the future. However, Steel Market Update has been seeing small adjustments lower to both our current and future Sentiment Indices. Future Sentiment, which measures how buyers and sellers feel about their company’s ability […]
ArcelorMittal reported a net loss of $728 million in first quarter 2015 compared to a loss of $955 million in fourth quarter 2014. EBITDA was $1.4 billion. Steel shipments were up 3 percent year over year to 21.6 million tonnes. Iron ore shipments rose 5 percent to 9.4 million tonnes. Total sales for the company […]
Klöckner & Co SE EBITDA was heavily impacted by the sharp price declines in the U.S. EBITDA of €10 million ($11.2 million) was reported down from €45 million ($50.7 million) in Q1 2014 Shipments for Kloeckner Metals (the Americas segment) were up 0.6 percent y/y to 682,000 tonnes (751,763 tons). US shipments were up by […]
US automotive sales finished April at a seasonally adjusted annual rate of 16.4 million. Sales were slightly below expectations but still the highest April sales level since 2006. Sales volume for the month was at 1.448 million units, according to WardsAuto, a gain of 4.9 percent y/y. Light trucks and CUVs continued to lead sales […]
AK Steel earnings in first quarter were challenged by high levels of imported carbon steel products, said CEO James Wainscott. “The first quarter of 2015 was certainly more challenging than we anticipated. That because of the extremely high level of imported carbon steel products–unfairly traded imports, in our opinion–that hit our countries shores at the […]
Reliance CEO Gregg Mollins is expecting a steel price increase in the “not too distant future.” Steel prices have been bouncing near bottom due to a flagging energy industry and competition from extraordinary levels of steel imports. The spread between domestic and foreign is now thin, said Mollins, business is good, and demand is there. […]
March vehicle sales brought welcome new by bouncing back vigorously to 17.15 million units on a seasonally adjusted annualized basis, up from 16.23 million units in February. The March 2015 sales pace was 4 percent higher than the March 2014 pace. Cars had the greatest growth from 7.2 million units in February to 7.7 in […]
Steel Dynamics Inc. reported high levels of steel import and customer inventory reduced shipments for first quarter resulting in a 44 percent drop in consolidated operating income compared to fourth quarter. SDI adjusted net income was $40 million for first quarter 2015 with $2 billion in net sales. The adjusted income excludes $17 million in […]
Respondents in the April 2015 Precision Metalforming Association (PMA) Business Conditions Report found little to get excited about for the coming months. A third of participants in the monthly survey expect improved economic activity during the next three months but 58 percent forecast no change. Incoming orders are expected to remain steady during the period. […]
There has been a “calming” to the market although that has not stopped the slow trickle lower we are seeing in flat rolled steel pricing. We saw hot rolled break through the $440 level although we were told by steel buyers that were able to get those kind of numbers the last $5 per ton […]
A little more than two weeks have passed since Steel Market Update adjusted our forward looking Price Momentum Indicator from “Lower” to “Neutral.” Looking back on the historical trend for flat rolled steel Price Momentum you have to go back a year before you would see our Price Momentum Indicator pointing toward “Higher” flat rolled […]
The Bureau of labor Statistics, (BLS) reported on Friday: “Total non-farm payroll employment increased by 126,000 in March, and the unemployment rate was unchanged at 5.5 percent. Employment continued to trend up in professional and business services, health care, and retail trade, while mining lost jobs. The change in total non-farm payroll employment for January […]
Steel import levels continue to increase at ports around the U.S. SMU spoke with several ports and all but one expects imports to grow, not decrease, in the coming months. Out on the West Coast, the Port of Los Angeles is still working through congestion brought about by the recent labor dispute and chassis issues. […]
Worthington Industries reported net sales of $804.8 million and a net loss of $25.7 million for the third quarter of FY 2015 ending February 28, 2015. Results included a non-cash impairment charge of $81.6 million related to the Engineered Cabs business and a USD 2.3 million restructuring charge for severance benefits related to the workforce […]
So, why haven’t we released our program for the upcoming Steel Summit Conference in Atlanta on September 1 & 2, 2015? Well, we are waiting until we have all of our keynote speakers confirmed and committed. We believe we will have an exceptional program once again this year. As we have in the past, our […]
On a seasonally adjusted annual rate, light vehicle sales weakened in February to 16.2 million units, down from 16.7 million units in January but still up by 5.2 percent from February last year. The probable cause was inclement weather at the end of the month. Analysts had been expecting sales at a 16.7 million annual […]
Unfairly traded imports are negatively impacting AK Steel earnings in the first quarter of 2015. AK Steel expects a net loss of $0.23 to $0.28 per diluted share in the first quarter due to low carbon steel shipment and spot prices as a result of “unexpectedly” high levels of imports. Shipments are expected to decrease […]