Steel buyers are resigned to paying record-high steel prices, if that’s what it takes to get the material they need to keep business moving. In their monthly conference call today, members of the Heating, Air Conditioning & Refrigeration Distributors International reported that demand for HVAC and construction products has seen little slowing, though they are […]
Wholesalers who sell galvanized steel products to the construction and HVAC markets are skeptical of analysts’ predictions of a big price correction in the next few months. Judging by the persistently strong inquiries from their customers, most believe the experts underestimated steel demand as prices were on the way up and may do the same […]
Forecasts of weakness in commercial construction have not played out as analysts expected, at least not yet, contend members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI). Robust demand for HVAC and other galvanized steel products has shown no signs of abating, said members of the wholesale trade group during their monthly conference call […]
Forecasts of weakness in commercial construction have not played out as analysts expected, at least not yet, contend members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI). Robust demand for HVAC and other galvanized steel products has shown no signs of abating, said members of the wholesale trade group during their monthly conference call […]
Flat Rolled = 51.3 Shipping Days of Supply Plate = 50.8 Shipping Days of Supply Flat Rolled Service center flat rolled steel inventories found their low point in November and bounced back up in December. Service centers carried 51.3 shipping days of supply at the end of December, up from 40 in November. The data […]
By CRU Senior Analyst Ryan McKinley and Analyst Dave Thewlis, from CRU’s Steel Long Products Monitor U.S. domestic long product prices rose further m/m in January, hitting multi-year highs (see chart) as limited supply met with strong demand. Buyers are increasingly relying on domestic mills to acquire material, as global prices have made importing less […]
By CRU Analyst Sam Grant, from CRU’s Steel Sheet Products Monitor Galvanized steel sheet equates to around 30% of refined zinc demand, making it the most significant first use for zinc globally. China is by far the world’s largest producer, responsible for 33% of the global total, with North East Asia, North America and Europe […]
By CRU Principal Economist Alex Tuckett and Chief Economist Jumana Saleheen from CRU’s Global Economic Outlook This month has brought good and bad news. On the one hand, vaccines are being rolled out, and further U.S. fiscal stimulus looks increasingly likely. On the other hand, the growing severity of the second wave of COVID-19 means […]
This report is an analysis of Bureau of Labor Statistics (BLS) data and is intended to provide subscribers with a view of the competitive positions of sheet steel, aluminum, plastic and wood. The analysis includes some downstream products and a comparison of truck and rail transportation. On Jan. 15, the BLS released its series of […]
By Greg Wittbecker, Advisor, CRU Analysis The primary aluminum industry has operated with the same technology since the large-scale production process was developed in 1886. It is a carbon-based electrolytic process. This process generates a lot of CO2. Global aluminum producers have been focused on reducing GHG for some time, but efforts have accelerated in […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor In the past week, iron ore has witnessed its steepest price fall since July 2019. Declining steel margins in China and mills having successfully built up inventories, in combination with an upcoming Chinese New Year (CNY) holiday, resulted in weaker buying interest. Supply side […]
By CRU Analyst Dave Thewlis, from CRU’s Steel Long Products Monitor U.S. long product prices continued to surge into the month of February due to ongoing market tightness and strong demand. Imports remain too costly to seriously consider for the majority of buyers, given high international steel prices coupled with costly shipping rates and tariffs. Rebar […]
By Greg Wittbecker, Advisor, CRU Analysis Like the steel industry, the aluminum industry has long recognized the economic value of scrap. Every time virgin aluminum prices have risen, buyers have accelerated substitution of scrap for virgin metal. Now, economic sensibility has been married to the new focus on sustainability. Consumer-facing market segments are leading the […]
By CRU Chief Economist Jumana Saleheen and CRU Research Director Lavan Mahadeva, from CRU’s Global Economic Outlook Editor’s note: This article was originally published by the Financial Times on Feb. 19. The sharp rise in commodity prices from the depths of the COVID-19 lockdown is fueling talk of a commodities “supercycle” with the greening of the global economy replacing […]
By CRU Principal Analyst James Campbell, from CRU’s Steel Long Products Monitor Global long product prices have increased to the highest level since 2008. Global supply has tightened due to production cuts and changes to export tax rebates in China. Demand is strong in many regions, but Covid-19 outbreaks and seasonal patterns mean some weakness […]
By Greg Wittbecker, Advisor, CRU Analysis Welcome to inflation after a 40-year absence. I spoke at the 2021 Aluminum Extruders Council Annual Meeting in March and said to the audience that if you were under the age of 55, you probably have never seen real inflation. The last time the U.S. experienced high, persistent inflation […]
By CRU Principal Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor The iron ore market has experienced one of the most volatile weeks on record. Prices have traded within a $40 /dmt range within the past week due to demand uncertainty in China. On Tuesday, May 18, CRU assessed the 62% Fe fines price […]
By Greg Wittbecker, Advisor, CRU Analysis Whenever prices for key commodities such as aluminum, steel, wood or rubber start to really rise, there is a natural tendency for Procurement Officers to say, “let’s look at alternatives.” That’s their job, and if they weren’t looking at options to compensate for cost increases, they would be fired. […]
Economic activity rose modestly for most Federal Districts as 2020 came to a welcome end. Two Districts reported flat activity while two others noted a decline, said the Federal Reserve its January 2021 Beige Book. The recent surge in COVID-19 cases resulted in another decline for retail sales and leisure and hospitality services. More Americans […]
Plate prices usually carry a premium to hot-rolled coil tags – but that typical relationship has been turned upside down since early October. The question now: Could price hikes of at least $140 per ton announced by some North American plate mills last week help narrow the gap? The Numbers SMU’s hot-rolled coil price currently […]
U.S. steel lobbying groups and the United Steelworkers union want the administration of President-elect Joseph Biden to keep Section 232 tariffs and quotas in place. The steel groups and the union think the protections are necessary because of global steel overcapacity and because of the economic impact of the Covid-19 pandemic, according to a recent […]
Despite market challenges related to COVID-19, Commercial Metals Company reported earnings of $63.9 million on net sales of $1.4 billion for the first quarter of FY 2021. CMC is encouraged by stabilizing backlogs and a renewed enthusiasm by clients to move forward with projects. “Market uncertainty continues to persist,” said Chairman, President and CEO Barbara […]
Most new U.S. flat-rolled electric-arc furnace steelmaking capacity won’t start up until the second half of this year, which could have big implications for spot hot-rolled coil prices. The back-ended nature of the capacity add means the market might sustain hot-rolled coil prices of $1,000 per ton or more longer than many buyers believe, industry sources […]
The economy lost 140,000 jobs in December after seeing repeated gains month on month since May, reported the Bureau of Labor Statistics (BLS). The pace of job additions had slowed significantly in November compared to October when additions were 245,000 and 638,000, respectively. The change in direction comes as the market enters the winter months and […]
Employment gains have slowed each month since June, and after a marginal increase in November, December employment numbers retracted for the first time since March, according to Steel Market Update’s latest analysis of the U.S. Bureau of Labor Statistics (BLS) data. The net change in employed persons in December was a negative 140,000, following a disappointing […]
The merger of Fiat Chrysler and Peugeot S.A. (Groupe PSA) was approved last week and is expected to be finalized on Jan. 16. The new company will be called Stellantis and will have a production capacity of 8.7 million vehicles per year. The lineup will include French carmakers Peugeot and Citroen, Jeep, Ram pickups, and […]
By CRU Research Analyst Eduardo Tinti, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices continued to rise over the past week. Due to offloading constraints at Chinese ports, iron ore port inventories declined, contributing to the recent price hike. On Tuesday, Jan. 12, CRU assessed the 62% Fe fines price at $172.0 /dmt, $5.0 […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) rose by 27.1% m/m in January to 349.9 after metallics prices rose notably in every market we cover. As this is the second month of large price increases, many markets are now at, or nearly at, record highs. […]
By CRU Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service U.S. steel service center inventories continue to remain low in terms of material in stock, as many buyers reported that they cannot secure all the sheet steel they require. Steel Market Update, which is owned by CRU, reported service centers carried 51.3 shipping […]
By CRU Analyst Helen O’Cleary, from CRU’s Zinc Monitor January 2021 After a turbulent start to 2021 for U.S. politics, President Biden begins his term with the unenviable task of bringing the Covid-19 outbreak under control and supporting the nascent U.S. economic recovery. He plans to start with a $1.9 trillion Covid relief plan and […]