Memorize these words, “carbon border adjustment tax,” as they are being mentioned in the Senate Budget Committee, which is working on the $3.5 trillion reconciliation package the Senate advanced on Wednesday. The idea proposed would “account for the cost incurred by U.S. businesses to comply with laws and regulations limiting greenhouse gas emissions,” based on […]
Once Produced…Can We Even Get It Shipped? Transportation issues continue to plague the flat-rolled and plate steel markets. It’s bad enough that many steel mills are running one to four weeks late against their original promise date. We are hearing once the steel is produced it can take days to weeks of waiting for a […]
Once Produced…Can We Even Get It Shipped? Transportation issues continue to plague the flat-rolled and plate steel markets. It’s bad enough that many steel mills are running one to four weeks late against their original promise date. We are hearing once the steel is produced it can take days to weeks of waiting for a […]
By Michael Marley The mini sheet mills face a maxi problem, namely no additional supplies of prompt industrial scrap to feed their growing appetites for that raw material. As they move ahead with planned expansions of existing facilities and the construction of greenfield plants, electric arc furnace (EAF) steelmakers may be forced to rely on additional […]
By Greg Wittbecker, Advisor, CRU Analysis The COVID-19 pandemic’s effects on overall aluminum demand in 2020 was well documented. However, that storyline masked a remarkable rebound in the demand for aluminum beverage cans. Data from the Aluminum Association shows this: • 2020 total domestic shipments of can stock supplied to the can market rose 3.3% […]
Steel prices stand at $1,540 per ton ($77/per cwt) and are likely to hit at least $1,600 per ton – with no obvious signs of demand destruction in the short term, according to respondents to Steel Market Update’s most recent survey. And some respondents reported back that the only thing harder to find than metal […]
FOB mills prices aren’t the only thing on the rise – so too are service center resale prices, import tags and ocean freight rates. Service centers are selling amongst each other for nearly $1,400 per ton ($70/cwt), and certain master distributors are charging that much if not more for hot band, market participants said. That’s […]
The manufacturing sector continued to expand in January posting a PMI of 58.7 in the latest Manufacturing ISM Report on Business. The PMI slipped slightly from December’s reading of 60.5, but indicated an eighth month of expansion for the overall economy, said the Institute for Supply Management. “The manufacturing economy continued its recovery in January. […]
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 Analysis Advisor Greg Wittbecker Environmental, social and governance (ESG) is now core to most major corporations. Companies that don’t put strong emphasis on this do so at their peril. Many companies are using ESG as an opportunity to create competitive advantage. These advantages are coming through several approaches. Sustainable Production Sustainability can be […]
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. […]
The laws of economics state that rising prices eventually cut into demand. With hot rolled steel prices at a record high of $1,080 per ton, has steel demand begun to suffer? Comments from the service center and OEM executives responding to Steel Market Update’s questionnaire this week were evenly divided. “No, the high steel prices […]
I anticipate next week’s spot hot rolled and other flat rolled steel prices will be higher than what we reported on Tuesday evening (HRC = $1,080 per ton average). We received information from an end user today of hot rolled purchases of $1,140 per ton for end of March/early April production. An order for HR […]
“Life’s full of tough choices, innit?” Ursula, The Little Mermaid (1989) That memorable cinematic line brings to mind the dilemmas of trade, diplomacy and national security. Economic interests sometime interfere with military and human rights considerations. Add the COVID pandemic into the mix, which has profoundly affected international commerce. First, the changes in international trade […]
“Life’s full of tough choices, innit?” Ursula, The Little Mermaid (1989) That memorable cinematic line brings to mind the dilemmas of trade, diplomacy and national security. Economic interests sometime interfere with military and human rights considerations. Add the COVID pandemic into the mix, which has profoundly affected international commerce. First, the changes in international trade […]
Ferrous scrap prices are expected to rise anywhere from $40-70/GT in March after declines in February, lending further support to higher finished steel prices. Scrap prices are likely rise in March by at least as much as they fell in February, said CRU Senior Analyst Ryan McKinley. “The cold snap over the last few weeks […]
North American freight volumes are almost back to 2019 levels, says Cass Information Systems. The September Cass Freight Index for shipments rose 7.1 percent from August to September and was just 1.8 percent below last year’s levels. The index recovered 27.6 percent since reaching a low in April. Cass expects shipments to remain strong through […]
Ports on the West and East coasts were overwhelmed by a surge of imports in July and the trend is expected to continue into September. The Ports of Los Angeles and Long Beach report congestion and full warehouses due to a 40 percent increase in Asian imports from May to July. Chassis shortages are common […]
Ferrous scrap prices for August were not as weak as expected, but varied widely by region. Prices on the East Coast and in the Southeast were up $30/GT due to strong export demand, while prices in other parts of the country traded sideways for obsolete grades and down $20-30 for primes, report Steel Market Update […]
Last week, Steel Market Update conducted an analysis of the flat rolled and plate steel markets as we reached out to more than 500 individuals uniquely qualified to provide insights into these markets. What we found is an almost universal picture of a steel economy in a tailspin. Through our steel survey, SMU has seen […]
Last week, Steel Market Update conducted an analysis of the flat rolled and plate steel markets as we reached out to more than 500 individuals uniquely qualified to provide insights into these markets. What we found is an almost universal picture of a steel economy in a tailspin. Through our steel survey, SMU has seen […]
Steel Buyers Sentiment—how steel executives view their prospects for success—has continued to deteriorate as the market struggles with the coronavirus restrictions. Current sentiment dipped into pessimistic territory to a reading of -8 this week, the lowest level since November 2010. It is also the first time we have entered the pessimistic portion of our index […]
U.S. ports are canceling shifts and closing terminals due to shipping disruption stemming from coronavirus-related production cuts in China. The largest impact is on West Coast ports that serve as primary shipping destinations for Chinese imports. More than half of the volume at the ports of Los Angeles and Long Beach originates from China. Container […]
Based on our analysis of 10 economic indicators, the decline in manufacturing slowed in February’s data. This report summarizes 10 data streams that describe the state of U.S. manufacturing in general and the steel industry in particular. We have reported on most of these separately in our Steel Market Update publications, and therefore will be […]
The American Trucking Association appealed for the implementation of a fuel tax to support highway and border infrastructure during recent testimony in Washington by President and CEO Chris Spear. “The fuel tax is the most immediate, cost-efficient and conservative mechanism currently available for funding surface transportation projects and programs. Collection costs are less than 1 […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Based on Steel Market Update’s analysis of 10 indicators in January, the decline in U.S. manufacturing continues. This report summarizes 10 data streams that describe the state of U.S. […]
Based on Steel Market Update’s analysis of 10 indicators, there is a faint glow in the manufacturing environment. This report summarizes 10 data streams that describe the state of U.S. manufacturing in general and the steel industry in particular. We have reported on most of these separately in our Steel Market Update publications, and therefore […]
Steel Market Update is please to share this Premium content with Executive-level subscribers. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Manufacturing output shows contraction in nine of the 10 indicators analyzed by Steel Market Update, which helps to explain the current weakness in steel demand in some sectors. This report […]
Based on Steel Market Update’s analysis of 10 indicators, U.S. manufacturing output is now contracting and articles manufactured from iron and steel are down by 6.1 percent year over year. This report summarizes 10 data streams that describe the state of U.S. manufacturing in general and the steel industry in particular. In data released in […]
The growth of manufacturing in the U.S. is slowing, and on a single-month basis the ISM index became negative in August. This does not bode well for the balance of 2019 or for 2020, according to Steel Market Update’s analysis of 11 manufacturing indicators. This report summarizes 11 data streams that describe the state of […]