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 […]
So far, I have found the CRU North American Steel Conference in Chicago today to be filled with some excellent speakers and topics. There has been a considerable amount of support for the policies of President Trump, especially with Section 232 tariffs and the handling of trade negotiations with China, Mexico and Canada. Perhaps panelist […]
One more day in Chicago before I head back to my office in Florida. I have been attending the CRU North American Steel Conference. CRU Principal Economist Lisa Morrison spoke about President Trump doing what he promised he would do on the campaign trail. “If he said he is going to do X, then we […]
Despite moderating prices, the outlook for the U.S. steel market is generally favorable for 2019, reported Josh Spoores, CRU Principal Analyst for North America, during a CRU Webinar on Friday. The Trump administration’s Section 232 steel tariff has limited competition from steel imports this year. Steel sheet arrivals into the U.S. are down 12 percent […]
I am in Chicago for the start of the CRU North American Steel Conference on Monday. I am looking forward to attending my first CRU hosted conference. Tim Triplett and I will let you know what we learned during the conference in Tuesday’s and Thursday’s issues of Steel Market Update. I got a note from […]
United Steelworkers at ArcelorMittal are preparing for a strike after failing to reach agreement with management over proposed concessions. “Although management certainly received the loud and clear message that we are united in solidarity and ready to fight for the fair contracts we have earned and deserve, the company continues to propose unfair and unnecessary […]
I am back in my office after four very long days, mostly due to long and late flights to Minnesota, Pittsburgh and back to West Palm Beach. I will be in the office for most of the day on Friday should you need to reach me. I am off again on Sunday as I head […]
Ferrous scrap prices have been on the decline, but may find a bottom in October, as most Steel Market Update sources forecast flat to slightly higher pricing next month. CRU Steel Analyst Ryan McKinley reports that sentiment seems to be building for a “strong sideways” market in October. “If this play’s out, it will be […]
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 following Trade Policy & Economic Briefing was authored by CRU Principal Economist Lisa Morrison Since March 2018, there has been a broad strengthening of the U.S. dollar. This has developed because of rising U.S. interest rates and strong U.S. economic growth, which is in relative contrast to continued, historically low Eurozone interest rates […]
As I mentioned in a recent newsletter, comments received from our readers will many times lead to an article, or even a series of articles. One of our goals is to dig into topics of interest to our readers from as many angles as possible, and then allow you to make your own conclusions. For […]
If your company is interested in a sponsor spot at the 2019 SMU Steel Summit Conference in Atlanta (Aug. 26-28), please contact Jill Waldman at Jill@SteelMarketUpdate.com so we can get you our sponsorship package as soon as it is ready. Those companies that were sponsors this year will have first crack at committing for 2019. […]
Ferrous scrap prices in most regions have settled down by $20 to $30 per ton in September and could fall further in October as mills schedule maintenance outages, report some Steel Market Update sources. Others believe stronger export demand could help sustain prices next month. Prime grades declined by $20, while obsoletes dipped a bit […]
There have been many comments regarding the recent article I did on steel index methodologies. Included were comments/answers from two of the price providers mentioned at the beginning of the article who were unable to get to me prior to our publication deadline. I am going to do a follow-up article on Sunday evening. What […]
SMU President & CEO John Packard will be the featured speaker at the AWMI Industry Dinner at the Carnegie Hall at Newport in Newport, Ky., on Oct. 18. The event is open to the public. The mission of the Association of Women in the Metal Industries (AWMI) is to educate, network and mentor those in […]
Written by John Packard, President & CEO, Steel Market Update When I was selling steel for a domestic mill (Winner Steel, now called NLMK Sharon), there was always cause for concern when steel buyers would contact me and reference a price from a trade publication that I knew to be “out of date” with the […]
Another busy week for me as our first Steel 201: Introduction to Advanced High Strength & Other New Steels workshop will be conducted at AK Steel on Tuesday and Wednesday (Monday is a travel day for me). We have a sold-out workshop, we have some new instructors and for the first time we will be […]
Section 232 tariffs on steel and aluminum products from Canada and Mexico are back in the spotlight now that NAFTA talks are, hopefully, nearing an end. Steel associations from Canada and Mexico are calling for the tariffs to be terminated while the negotiations are under way. Mexican association Canacero has stated that a NAFTA deal […]
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 […]
I have received many questions regarding the variance in pricing between the various flat rolled steel indexes out there. I have been researching the methodologies between the indexes. I am asking each one to explain how their index works and to provide details or a better explanation in some of the gray areas that may […]
The Trump administration tariffs have had the expected effect on steel imports and steel pricing this year, but prices for hot rolled coil and plate could moderate a bit next year as economic growth slows and the cost of steelmaking raw materials begins to decline, forecasts Josh Spoores, principal steel analyst for the CRU Group. […]
Our next Steel 101: Introduction to Steel Making & Market Fundamentals workshop will be held in Toledo, Ohio on December 11 & 12, 2018. We will be touring the North Star BlueScope steel mill. The NSB mill produces steel from scrap, pig iron and other iron units in their EAF (electric arc furnace). SMU would […]
Steel Market Update’s next Steel 101: Introduction to Steel Making & Market Fundamentals workshop will be held in Starkville, Miss., on Jan. 29-30, 2019. We will be touring the Steel Dynamics Columbus steel mill. The SDI mill produces steel from scrap, pig iron and other iron units in their EAF (electric arc furnace). SMU would […]
We sold out our first Steel 201 workshop which will be held next week at AK Steel in Middletown, Ohio. I am excited to conduct this workshop with the AK Steel team. It is the first time we have visited their Research and Innovation Center (RIC) and the fully integrated Middletown steel mill. Thank you […]
Ferrous scrap prices are likely to decline further in September after a modest drop in August, agree Steel Market Update sources. CRU Steel Analyst Ryan McKinley expects a drop of about $20 per ton across the board in September, driven primarily by an overhang of shredded scrap in the market and weak export demand. “There […]