The long-awaited rebound in steel prices was the biggest story of the month in July. Steel Market Update’s Price Momentum Indicator was pointing firmly upward by the end of the month following three $40 price increase announcements by flat rolled steel producers. The benchmark price of hot rolled steel hit $580 per ton in July, […]
The wait is over—Steel Dynamics has announced it will build its new $1.9 billion flat rolled steel mill in Sinton, Texas, 30 miles northwest of Corpus Christi. The new steel mill will serve the four-state Texas area, the western U.S. and Mexico market regions, representing approximately 27 million tons of relevant flat rolled steel consumption—7 […]
Steel Dynamics is expecting modest growth for steel consumption in the second half of 2019 supported by the end of steel inventory destocking and further reduction of steel imports. “The team delivered a solid second-quarter performance in a challenging steel pricing environment,” said SDI President and CEO Mark Millett. “A weakening scrap price environment coupled […]
Domestic steelmakers showed solidarity this week in their pursuit of higher flat rolled steel prices with most major mills announcing their third $40 increase in just the past month. U.S. Steel and USS-POSCO Industries (UPI) were the latest to notify customers of their price change on Tuesday, following on announcements Monday by Nucor and ArcelorMittal […]
Ferrous scrap prices for July settled down $10 per ton in the Western Pennsylvania/Ohio/Indiana markets, stayed sideways in the southern markets, and saw a combination of the two at points west, reported Steel Market Update sources. “This is a far cry from recent expectations of down $20-30/GT and represents what I believe is the bottom […]
Ferrous scrap prices are widely expected to move up in August anywhere from $10 to $30 per ton, lending support to higher finished steel prices. “Most of the trade on both sides of the aisle are expecting the August market to strengthen, though there is debate on how much,” said one Steel Market Update source. […]
The steel price increases announced by the major mills have not had much effect on the HVAC sector yet, but members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) are hopeful the market has bottomed and the value of their inventories has stabilized. “There hasn’t been much change in behavior on the street […]
Steel prices dominated the industry headlines in June, falling between $60 and $85 per ton depending on the product, or roughly 10 percent. Steel Market Update received reports of deals on hot rolled steel below $500 per ton. The mills also made headlines late in the month with their announcement of a $40 per ton […]
Declining ferrous scrap prices are expected to finally bottom in July, but only after backsliding by at least $10 per ton for one more month, predict Steel Market Update sources. Flat rolled steelmakers announced a $40 per ton increase in finished steel prices this week, which brings increased scrutiny to the price of scrap. Scrap […]
Last night, Steel Market Update participated in the annual Bank of America Merrill Lynch dinner hosted by metals and mining analyst Timna Tanners. We also spoke at the CRU Steel Briefing a little earlier in the day. Here are some of the key takeaways from those meetings. Mill Lead Times Short Flat rolled steel mill […]
Steel Market Update’s Steel Buyers Sentiment Index dipped below the +50 mark and continued to erode last month as the uncertainty over tariffs and trade had a negative effect on buyers’ attitudes. With OEM and service center executives feeling less positive about their prospects for the next few months, as indicated by SMU Future Buyers […]
With prime steel prices continuing to slide, market conditions for distributors of secondary steel are a bit discouraging. The cheaper the prime products, the less incentive for buyers to seek out deals on nonprime material. Nonprime or secondary steel includes coils that are rejected because they failed to meet the specifications for their original use, […]
Ferrous scrap prices are down again in May by roughly $30 for obsolete grades and $40 for prime grades, report Steel Market Update sources. May marks the fourth month this year that has seen scrap prices decline. With the mills reportedly cranking out steel at over 80 percent of their capacity, the apparent weakness in […]
Ryerson President and CEO Eddie Lehner said he expected the price of ferrous scrap to fall by $20-30 per ton in May, not to fall to $230 per ton as reported in Thursday’s issue of Steel Market Update in an article on Ryerson’s quarterly conference call. Lehner was also misquoted in a comment that should […]
Following a slower than expected first quarter, activity has begun to pick up in the nonprime/secondary steel market, report service center executives. “Maybe that’s good news for April going forward,” said Lisa Goldenberg, president of Delaware Steel of Pennsylvania, Fort Washington, Pa. Nonprime or secondary steel includes coils that are rejected because they failed to […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. This is a quarterly analysis that SMU performs using data from the Iron and Steel Statistics Bureau in the UK. We believe that to improve our understanding of the […]
Editor’s note: The following comments on where ferrous scrap settled for April come from one of SMU’s sources: U.S. scrap market prices gave way to a lull in export demand, mill outages and a perceived increased flow of obsolescent scrap due to the onset of spring weather. It ignored the flooding, which has inhibited the flow […]
Ferrous scrap settled up $20 per ton in March, but demand is softening and supplies are building, leading to predictions of April scrap prices that move sideways or decrease by $5 to $10 per ton. Outages at five mills in late March and early April will dampen scrap demand, said CRU North America Analyst Ryan […]
Finished steel price momentum has been particularly difficult to gauge of late and what happens to ferrous scrap prices next month may be telling. Scrap for May appears to be under pressure. Despite relatively healthy U.S. steel demand and domestic mills cranking out flat rolled steel at nearly full capacity, scrap prices have seen declines […]
Finished steel price momentum has been particularly difficult to gauge of late and what happens to ferrous scrap prices next month may be telling. Scrap for May appears to be under pressure. Despite relatively healthy U.S. steel demand and domestic mills cranking out flat rolled steel at nearly full capacity, scrap prices have seen declines […]
Ferrous scrap prices are poised to drop substantially in May, anywhere from $20 to $50 per gross ton, predict Steel Market Update sources, adding to the downward price momentum on finished steel. Scrap prices moved down or sideways in three of the first four months of the year. CRU North America steel analyst Ryan McKinley […]
Ferrous scrap prices for June are difficult to predict, report Steel Market Update sources, who disagree on the degree to which the lower tariffs on Turkish steel will affect demand for scrap exports from the U.S. Most expect scrap prices to settle sideways next month after declines for most of the year, but a small […]
Ferrous scrap prices for June have settled down another $30/GT, surprising a market that was expecting little or no decline this month and adding further pressure to already weak finished steel prices. Scrap prices have been on a downward trajectory since January. The drop in scrap prices this month was caused by low mill demand […]
Ferrous scrap prices for June have settled down another $30/GT, surprising a market that was expecting little or no decline this month and adding further pressure to already weak finished steel prices. Scrap prices have been on a downward trajectory since January. The drop in scrap prices this month was caused by low mill demand […]
Commercial Metals Company reported net earnings of $14.9 million on net sales of $1.4 billion for the second quarter of its fiscal 2019 year ending Feb. 28, 2019. Revenue for the quarter increased 33 percent year-over-year due to favorable market conditions and strategic growth initiatives, including completion of the Gerdau S.A. acquisition in November. The […]
Ferrous scrap prices for March settled up $20/GT, report Steel Market Update sources. “The ferrous market was up $20 across the board without much deviation across the country. That puts Midwest shred at around $355-360 and busheling at $370-380. Export has rebounded this week by about $5-10 from recent sales. The most recent sale to Turkey […]
Ferrous scrap prices are expected to settle around $20/GT higher for March following weakness in January and February, report Steel Market Update sources. “The March domestic market seems to have $20/GT baked into it,” commented one dealer in the Northeast. “Poor inflows due to bad weather and seasonality, along with a stronger export market, are […]
Ferrous scrap for February is settling at sideways prices for obsolete grades and down about $20 per ton for prime grades, report Steel Market Update sources. This latest dip follows on a $30-40 per ton decrease in January, largely attributed to weak demand from overseas. “A rising export market, which curtailed East Coast suppliers from […]
Steel Market Update sources disagree on whether ferrous scrap prices will see a small decline or move sideways in February. But the market remains unusual for this time of year when scrap prices normally increase as the mills restock ahead of new-year steel demand. Scrap prices surprised the market with a $30-40 per ton decrease […]
Steel Dynamics is excited about its recently announced plans for a new steel mill in the Southwest. After an outstanding year, breaking records for shipments, sales, net income and cash flow, CEO Mark Millett is looking forward to filling a steel void in the southwestern U.S. and Mexico. Steel Dynamics hopes to announce a site […]