It has been a beautiful weekend in Austin, Texas, where I spoke earlier today (Sunday) at the annual HARDI conference. I spoke at the steel council, which consists of HVAC wholesalers who sell galvanized sheet/coil products, manufacturers supplying the wholesalers and a couple of service centers who sell galvanized sheet and coil to the wholesalers. […]
Both Steel Market Update and the CRU Group forecast lower steel prices next year. With a new North America free trade agreement soon to be signed, the U.S. is likely to lift or modify the Section 232 tariffs on Canada and Mexico, opening the borders to more imports and adding to the downward pressure on […]
Editor’s note: The following global perspective was contributed by the CRU Group’s international team of steel analysts. Steel sheet prices are trending downward in most parts of the world. North America Sheet prices in the U.S. Midwest market continued to decline with HR and CR coil prices falling the most. Declines have come alongside weak […]
We had a great webinar on Wednesday, despite some technical glitches. I am looking forward to making webinars a standard practice for Steel Market Update. We do not yet have a date/subject set up for the next webinar. I am traveling this weekend and early next week. I will be speaking on Sunday morning in […]
After rising in October and November, ferrous scrap prices are expected to move sideways in December with the possibility of a small $10 per ton increase for some grades. But weakness overseas complicates predictions longer term, say Steel Market Update sources. “December is generally a month when scrap prices rise,” said CRU North America Steel […]
The announcement by General Motors today is going to be a precursor for more bad news, in my opinion. With every action there is a reaction, and the expectation that raising steel prices by an extra 25 percent (and more) would not have an impact on the competitiveness of U.S. made products is being short-sighted. […]
Last week, Steel Market Update conducted our mid-November analysis of the flat rolled and plate steel market trends. During the process, we reviewed demand, lead times, negotiations, service center spot pricing, steel pricing and a myriad of other important issues of interest to buyers and sellers of hot rolled, cold rolled, galvanized, Galvalume and plate […]
By the CRU Zinc Analysis Team After reaching a 3-month high above $2,700/t on Oct. 24, zinc’s price shed $200/t in a matter of days as a tech stock rout caused shares to plunge in Asia and the USA, compounded by concerns over the outlook for global trade and economic growth. The tide briefly turned […]
Steel buyers can be fickle people. They are tasked with keeping their company in product, and that those purchases be competitively priced at the time they are used. This is a daunting task when markets ebb and flow, and even more difficult when the government decides to become a major player in determining who will […]
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 […]
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 […]