By Lisa Morrison, CRU Principal Economist As of Nov. 15, with votes still to be counted in some districts, the Democrats had won 230 seats, and Republicans 199 seats, in the House of Representatives, where 218 of 435 seats constitutes a majority. Democrats that were elected by flipping a Republican seat are a more varied […]
On Wednesday, Nov. 28, Steel Market Update along with CRU will conduct our first SMU-focused webinar. This webinar is available to all current member companies as well as our potential new customers. I will be leading the discussion on how SMU is seeing the current market situation, and a mid-term forecast will be provided by […]
By CRU Senior Analyst Erik Hedborg Iron ore prices have lifted since last week, primarily due to concerns over BHP suspending operations on its Pilbara network. [Editor’s note: BHP suspended rail operations in Western Australia after it was forced to deliberately derail a runaway ore train on Nov. 5.] This caused iron ore prices to […]
On Wednesday, Nov. 28, Steel Market Update, along with CRU, will conduct our first SMU-focused webinar. This webinar is available to all current member companies as well as our potential new customers. I will be leading the discussion on how SMU is seeing the current market situation, and a mid-term forecast will be provided by […]
I am back in my office for a few weeks after having just gone to the Pittsburgh offices of CRU. I continue to be amazed at the strength of the people CRU has hired both in the United States and elsewhere around the world. They are very supportive of the Steel Market Update business, and […]
By CRU Chief Economist Jumana Saleheen The U.S. midterm elections brought few surprises; voter turnout was exceptional, the Republicans gained a majority in the Senate, and the Democrats in the House. What does this mean for U.S. policy and growth? Our view is that there is some scope for additional fiscal policy easing, which would […]
The laws of unintended consequences concern me. President Trump’s Section 232 steel and aluminum tariffs, as well as Section 301 tariffs, are only beginning to have an impact on the consumer. It is only a matter of time before consumers have to react as they do not have unlimited cash flow to pay higher prices […]
By CRU Steel Analyst Ryan McKinley CMC’s expanded footprint across the United States, following its acquisition of Gerdau’s assets, raises the probability that a rebar price increase is on the horizon. That said, price increases may be short-lived as Nucor works to bring two of its newest micro mill projects online in 2019. Rebar prices […]
It should come as no surprise that Big River Steel has decided not to sell the company. From my perspective it should be no surprise because I don’t think any other mill is willing to pay a premium over what it cost to build the mill, and I don’t think the owners of BRS wanted […]
Ferrous scrap prices have risen for the second month in a row as November buys settled early at up $10 for prime grades and up $20 for obsoletes, report Steel Market Update sources. “Dealers and mills both wanted to wrap things up given that November is a shorter shipping month and they need to get […]
My sources are telling me the electric arc furnace at JSW Ohio (former Mingo Junction) is almost ready to run. The company has been training and doing dry run testing, and I am being told they have enough crews to run 24 hours a day once the furnace comes back online. It appears the goal […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA 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 […]
The threat of any disruption at either U.S. Steel or ArcelorMittal USA is now off the table as AMUSA has reached a tentative deal with the United Steel Workers. U.S. Steel had reached an agreement a couple of weeks earlier. Now the industry focus is going to be on how much supply is coming online […]
CRU Steel Analyst Ryan McKinley offers the following brief analyses of steel prices in Europe, China and Asia and the factors that have influenced them this week. Europe Sheet prices in Germany have remained unchanged this week. Last week’s Euroblech trade fair has not brought any immediate change to the spot market, though this may […]
The following article was contributed by CRU North America Steel Analyst Ryan McKinley The trade dispute between the United States and Canada has caused inventories to build and put downward pressure on prices. The 25 percent duties on steel imports in place by Canada and the U.S. against one another is eroding profits and driving […]
Steel Market Update sources are expecting another $10-$20 per ton increase in ferrous scrap prices in November, much like the bump seen in October. “If there is a $10-$20 change, shredded scrap will be on the higher end, given typical seasonal slowdowns and lower scale prices,” said CRU North America Steel Analyst Ryan McKinley. Some […]
Finally, I am back in my office after what seems like one long continuous trip over the last six weeks. I expect to be in my office over the next few weeks until I head to Pittsburgh in mid-November to visit the CRU offices here in the United States. We have a couple of new […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Earlier today, I spoke to the RIPA/IPANA annual meeting about the steel industry, AD/CVD duties, Section 232 tariffs and a number of our proprietary products. No one fell asleep, which is always a good sign. I will be back in the office on Friday morning, and with the exception of one quick trip to CRU […]
In the last 12 months, the price of coking coal and scrap have continuously trended up, zinc has continuously trended down, and iron ore and pig iron have been erratic. Table 1 summarizes the price changes through November of the five materials considered in this Steel Market Update report. It includes the month/month, 3 months/3 […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA 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 […]
The flat rolled mills announced a price hike last week. This was at the same time Steel Market Update sources were advising of $38.00/cwt ($760 per ton) out of more than one domestic steel mill. The increase, announced initially by Nucor, was seen as an attempt to dry up the sub-$800 offers and put a […]
With the market sending mixed signals, distributors of HVAC products are keeping inventories lean as they wait to see if the price increase just announced by the steel mills gains any traction. “You can make a case for prices to go either way,” said one member of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI) […]
It is always a struggle to find the proper footing after the domestic mills make a price announcement that, on its face, appears to be a way of stopping the sub-$800 offers and put a floor (however temporary) to the market. To me, it is quite telling when one or two mills that normally follow […]
Yesterday, Nucor announced a $40 per ton ($2.00/cwt) price increase on all flat rolled products they produce. The increase was to take effect immediately on all “spot” orders. On paper, the increase announcement does not impact contract pricing. However, steel buyers are advising Steel Market Update that the reason behind the Nucor announcement was two-fold: […]
I have chosen not to include the sub-$40 hot rolled being sold by JSW Ohio (former Mingo Junction/Acero Junction). The mill is using slabs and is having a difficult time getting the slabs from the port to their facility. This has led to some on-time issues. They have only sold about 20,000 tons, which is […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA 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 […]
As of August, the U.S. economy had grown for 112 months in a row, the second longest growth streak in history. How much longer can that trend possibly continue? Is a recession inevitable? Not any time soon, predicts Lisa Morrison, Principal Economist for the CRU Group. Speaking at the CRU North American Steel Conference this […]
I am back in the office, at least for a few days, trying to catch up on paperwork that has been piling up, as well as working on our SMU Service Center Inventories report. I hope to have our “Flash” report out on Sunday. The “Flash” report gives a snapshot of how the data is […]