Wholesalers of HVAC products have weathered the pandemic surprisingly well so far and are more concerned about construction demand months from now than they are about their near-term prospects. Consider what has happened since April as a result of the market’s response to the virus: Steel mills are operating at just above 50 percent of […]
With the expectation of higher scrap prices coming for the month of June, on top of the steep rise in ferrous scrap this month, the mills’ margins may well be squeezed, which will impact negotiations and pricing over the next few weeks. Most steel buyers anticipate a new round of price increases by late May […]
If there is one thing you can count on with the steel industry, it’s for rumors to begin flying as soon as the mills appear to have seized pricing momentum. The domestic steel mills, led by ArcelorMittal USA, began announcing price increases the week ending May 1. The announcements ranged from $50 to $60 per […]
If there is one thing you can count on with the steel industry, it’s for rumors to begin flying as soon as the mills appear to have seized pricing momentum. The domestic steel mills, led by ArcelorMittal USA, began announcing price increases the week ending May 1. The announcements ranged from $50 to $60 per […]
Ferrous scrap prices for May have settled up $30/GT for shredded and up $40-50/GT for busheling as the coronavirus shutdowns have disrupted scrap generation and collection, resulting in extremely tight supplies. Higher scrap prices may lend support to the higher finished steel prices announced by the mills this week. The tight supply is a more […]
Buyers of flat rolled and plate steels provided insights into the market to Steel Market Update throughout the day. On the flat rolled side, steel buyers seemed to be resigned to paying higher prices. Flat rolled price quotes are firming at the domestic mills, and the mills may well achieve their desired minimums of $500-$520 […]
Buyers of flat rolled and plate steels provided insights into the market to Steel Market Update throughout the day. On the flat rolled side, steel buyers seemed to be resigned to paying higher prices. Flat rolled price quotes are firming at the domestic mills, and the mills may well achieve their desired minimums of $500-$520 […]
“Vacation: An extended period of recreating, especially one spent away from home or traveling.” Last week I took “vacation” time off, and unlike the definition above I did little recreating, rarely strayed from home, and did no traveling. How restful is that? The big news from last week was an apparent “firming” of steel prices. […]
Today, Steel Market Update adjusted our flat rolled Price Momentum Indicator to Neutral. We are of the opinion, based on intelligence we are gleaning from steel buyers, that steel prices are in transition. We no longer believe prices on hot rolled, cold rolled, galvanized and Galvalume will decline over the next 30 days. However, a […]
“The scrap market is almost certainly going to go sideways if not higher in May due to the extreme supply squeeze we have seen this month,” said CRU Senior Analyst Ryan McKinley. Ferrous scrap prices weakened for much of the first quarter, punctuated by a $30-50 per ton decrease in April. But May scrap prices […]
John Packard is taking some time off. May could be a pivotal month for the U.S. economy and the steel industry. No reasonable person believes we will have the virus crisis behind us, but we should at least have more clarity on what lies ahead. States, to one degree or another, are loosening their restrictions […]
By John Packard and Tim Triplett Steel Market Update has been asked: How does the COVID-19 pandemic compare to the Great Recession, in terms of its impact on the steel market? The full effect of the coronavirus crisis on the U.S. economy and steel demand is still to play out, of course, but some comparisons […]
“The SDI team shines in moments of challenge,” said Steel Dynamics President and CEO Mark Millett. First-quarter results support that confidence as the company reported strong earnings for January-March despite the coronavirus pandemic. First-quarter net sales totaled $2.6 billion and net income $187 million, an improvement from Q4 2019 for both metrics. Selling price per ton […]
With much of U.S. manufacturing on hold to control the spread of the coronavirus, it’s no surprise that steel production and demand for scrap are substantially lower than last month. Ferrous scrap prices are generally trading down $50 per ton for obsolete grades and $30 per ton for prime grades in April, reported Steel Market […]
Schnitzer Steel Industries, a metals recycler and long products producer, posted revenue of $439 million for the second quarter of FY 2020. Net income was $4.5 million for the quarter, improving from a $7 million loss in Q1 but down significantly from income of $13 million in Q2 2019. Autos and Metals Recycling achieved operating […]
Ferrous scrap prices are expected to drop sharply in April as a result of all the market disruptions from the coronavirus. How sharply is unclear. Almost certainly lower scrap prices will add to the downward pressure already being felt on finished steel prices. Some reports claim scrap could plummet by as much as $100/GT, but […]
Ferrous scrap prices are expected to drop sharply in April as a result of all the market disruptions from the coronavirus. How sharply is unclear. Almost certainly lower scrap prices will add to the downward pressure already being felt on finished steel prices. Some reports claim scrap could plummet by as much as $100/GT, but […]
Steel prices saw further declines this week, but not a dramatic collapse. The benchmark price of hot rolled now averages around $560 per ton, down $5 from last week and down $50 from the mid-January high of $610. Most of the steel buyers responding to Steel Market Update’s check of the market this week expect […]
Global scrap trade has been trending down for two years and in Q4 2019 the U.S. share increased to 26.8 percent, the highest since Q1 2013. This is a quarterly analysis using data from the Iron and Steel Statistics Bureau (ISSB) in the UK. Some nations are slow to report, which results in the analysis […]
Steel prices are as unpredictable as the spread of a rogue virus, but one symptom of COVID-19 is likely to be lower steel prices. As of this writing on March 13, the price of flat rolled steel products had yet to see much effect from the global panic over the coronavirus. Steel Market Update’s latest […]
Ferrous scrap prices surprised to the low side in March, trading sideways to up just $10 per ton, well below initial expectations of up $10-30/GT. The mills were anticipating that higher scrap prices this month would lend support to the $40 increase in finished steel prices they announced last week. “In the Ohio Valley, obsolete […]
Steel Dynamics has agreed to acquire 100 percent of the equity interest of ferrous and nonferrous scrap metal recycler Zimmer, S.A. de C.V. The Monterrey, Mexico, operations will support raw material procurement for Steel Dynamics’ new Texas flat rolled mill. Zimmer operations consist of six scrap processing facilities located near scrap-rich industrial areas in Central […]
It is rare that market direction is clear and uncontested. There have been a few times during my 42-year steel career when it was obvious prices were going to be higher tomorrow than they are today. It was during one of those times in history that I began writing a note to my steel buying […]
It is rare that market direction is clear and uncontested. There have been a few times during my 42-year steel career when it was obvious steel prices were going to be higher tomorrow than they are today. It was during one of those times in history that I began writing a note to my steel […]
While America’s integrated steel producers are investing millions in R&D to reduce harmful emissions from their steelmaking process, the nation’s minimill steel producers have already claimed the high ground for environmental stewardship. Integrated mills and their blast furnaces heat iron ore and coking coal at high temperatures to produce high-quality virgin pig iron and steel. […]
Steel prices finished 2019 on an upward trajectory, giving the market hope for a stronger 2020. That trend proved short-lived, however, as prices stalled in January and February, leaving both buyers and sellers wondering what to expect in the weeks and months ahead. Steel prices rose in November and December on a series of price […]
We will begin our mid-February flat rolled and plate steel market trends analysis at 8 a.m. on Monday. Currently we are inviting approximately 560 individuals to participate in the market questionnaire, which takes about 4-8 minutes to complete. If you receive an invitation, please take a few minutes to provide your insights as they are […]
On Thursday February 13 we shared an overview of the 2020 SMU Steel Summit Conference agenda. If you did not see Thursday evening’s issue of Steel Market Update, you can find the agenda on our website. We also published some of the “keys” regarding this our 10th SMU Steel Summit Conference. Those were also published […]
Ferrous scrap prices for February are down around $20-30/GT for obsolete grades and $10-20/GT for prime grades, report Steel Market Update sources, adding to the downward pressure already being felt on finished steel prices. “This price trend is in line with the 10-year average price movement for February,” said CRU Senior Analyst Ryan McKinley. “Buying […]
John Packard is traveling… Steel Market Update changed its Price Momentum Indicator from Higher to Neutral today. Not that steel prices couldn’t start inching upward once again in the coming weeks. It’s just that the direction is unclear and we need to wait and watch for the next trend to reveal itself. Lead times aren’t […]