The North American steel sheet market in 2018 was heavily influenced by effects from the Section 232 tariffs. These tariffs greatly increased U.S. sheet prices, while at the same time helped to further reduce imports. Our forecast today calls for a more measured rate of increase for underlying industrial growth, while prices will more closely […]
I heard from one of my trading contacts who lives inside of China over the weekend. He had attended an economic lecture, the topic of which has been banned in China. China’s economy is a mess. I will have more on the Chinese economy and what it might mean for North America in the coming […]
By CRU North America Analyst Ryan McKinley Long product prices in the U.S. are coming under downward pressure after a build-up in late-2018 inventory levels lingered into the new year and import prices became more attractive for domestic buyers. Price drops so far—where they have occurred—have been minimal but import deals with arrival dates 60-90 […]
With the partial government shutdown in its 20th day, the political standoff in Washington over President Trump’s border wall remains focused on his $5.7 billion budget request. The larger question is whether a construction project of the scale the president has proposed is even feasible, at any cost. From a steel industry standpoint, the project […]
It is so rare that I get to spend two weeks in the office, and I think I am going to be here for another week or so. At the end of the month, I will be in Mississippi to conduct one of our Steel 101 workshops. The Starkville workshop is close to being sold […]
People are beginning to ask questions about this year’s SMU Steel Summit Conference. Here is the most updated information: REGISTRATION IS OPEN Dates: Monday, Aug. 26 through Wednesday, Aug. 28, 2019 Location: Georgia International Convention Center (www.gicc.com) adjacent to the Atlanta International Airport (ATL). Same location as last year. Cost: $1,375 per person, prior to […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
When on calls with steel service center and manufacturing executives, one of the questions that always comes up is my view on the economy. I am not an economist and I defer to CRU and to economists like Alan Beaulieu of ITR Economics (Alan speaks at the SMU Steel Summit Conference). I know Dr. Beaulieu’s […]
Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in Metal and […]
By CRU Analysts Laima Balse and Director Paul Robinson Prices for all major commodities in the CRU price basket, except for U.S. steel, declined during 2018. There were a few factors that caused this downwards price trend and market volatility. This overview looks across the commodity groups at the common trends affecting the industry, and […]
The New Year has started, the pace is a little slow for some, others have told me that their order books got a kick start yesterday. I have to imagine the differences are based on geography and product. This afternoon I had an interesting conversation with the head of commercial for a domestic steel mill. […]
Welcome to 2019! As we begin the New Year, I want to welcome everyone back to their offices or plants. I am looking forward to another interesting year as we continue to deal with the effects of Steel 232, anti-dumping and countervailing duties, threats of Section 232 for automotive and Section 301 on finished goods […]
Editor’s note: Steel Market Update is sharing the following Premium content with all its readers in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. Table 1 summarizes the price changes through December of the five materials considered in this report. It reports the month/month, 3 months/3 months and […]
So, we have our service center inventories at 2.5 months of supply, down slightly from the 2.6 months we got from our distributor data suppliers the previous month. This is not from our survey; we decided to put that data aside as it was suspect – it had both buyers and sellers contributing to the […]
We have opened registration for the 2019 SMU Steel Summit Conference, which will be at the Georgia International Convention Center in Atlanta on Aug. 28-30, 2019. We anticipate that 1,000 executives from the manufacturers, service centers, steel mills, trading companies, fabricators, toll processors and others associated with these industries will be in attendance. “I have […]
Editor’s note: CRU Senior Analyst Erik Hedborg contributed the following snapshot of the iron ore market, and steel demand, in China and India. Chinese Production Cuts Cause Market Volatility China’s winter heating season production cuts officially started in mid-November and it quickly became clear that this round of production cuts was not as strict as […]
There is a “new domestic” steel minimill capable of producing 1.5 million tons per year of steel from scrap. On Friday, JSW USA restarted the electric arc furnace at the JSW Ohio steel plant at Mingo Junction and cast their first domestically produced slab. “The last month has been incredibly butt hard work,” said JSW […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
A new American Steel Index report by Business Forward shows U.S. steel prices have risen 7.4 percent since February, while foreign steel prices have fallen 9.8 percent. As a result, American manufacturers are paying 17.2 percent more for hot- and cold-rolled steel than their foreign competitors. “President Trump’s tariffs on steel and aluminum are increasing […]
By CRU Senior Analyst Helen O’Cleary Zinc’s price shed more than $1,000/t from its 2018 high in the mid-$3,500s in February to its year-to-date low of $2,311 in September, driven down by a combination of factors both in its own market fundamentals and in the broader political and economic landscape. The warranting of 78,950t in […]
By CRU Senior Analyst Helen O’Cleary The global transition towards sustainable energy sources is set to accelerate over the coming decades as some of the world’s largest consumers of energy look to reduce carbon emissions, with the USA and EU targeting net zero emissions by 2050 and China by 2060. In this Insight, we bring […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor The steel sheet market in North America is starting the second half of the year off with the same primary trends seen in the past few quarters: rising prices due to strong demand and supply that continues to be affected by unplanned disruptions. […]
By CRU Senior Editor Ryan McKinley, from CRU’s Steelmaking Raw Materials Monitor Upward momentum for the CRU metallics price indicator (CRUmpi) slowed in July, but still rose by 2.8% m/m to 413.5. Metallics price increases were strongest in Europe amid high steel demand, with both HBI and scrap prices there rising from June levels. Scrap […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: There are several currents surrounding the steel tariffs this holiday season. As we enjoy the end of this year, I am looking at the first few months of 2019 and how the steel trade situation could evolve. • […]
Ferrous scrap prices are down sharply in January, settling $30 to $40 per ton lower than December, report Steel Market Update sources. The decline was a surprise to many as scrap prices typically rebound in January following seasonal slowness at the end of the year. CRU Steel Analyst Ryan McKinley noted that this is the […]
Editor’s note: The following analysis of the U.S. rod and bar market was contributed by CRU Steel Analyst Ryan McKinley. Steel Market Update will periodically expand its coverage of the steel market with long products content from CRU as an added benefit to our members. U.S. mills announced wire rod price increases of $1.50/cwt across […]
It has been a busy week for Steel Market Update. I spoke at the HARDI annual conference in Austin, Texas, on Sunday and I was in Atlanta on Tuesday evening and Wednesday working with our web developers. I am in the office on Friday. Next week I will be in Toledo, Ohio, on Monday through […]
By the CRU Group Economics Team The meeting between Chinese President Xi Jinping and President Trump on Dec. 1 turned out to be better than expected. According to the White House press release and Chinese official reports, tariffs will not rise from their current levels over the next 90 days. Both sides agreed to enter immediate […]
On Sunday, the HARDI galvanized steel council met to discuss what has been happening in the industry that is impacting their relationship with their steel suppliers. John Packard, President & CEO of Steel Market Update, along with Josh Spoores, Senior Analyst for CRU, discussed the status of steel prices and the forecast for 2019. The […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]