With the shuttering of up to 150 million tons of induction and EAF steelmaking capacity in China reducing its consumption of ferrous scrap, the Asian giant has actually begun exporting scrap material. Steel Market Update (SMU) has been following the progress of the Chinese as they attempt to enter the ferrous scrap export markets. They […]
With the exception of ArcelorMittal and Cliffs Natural Resources, the U.S. steel industry passed on making statements about climate change and how much the steel industry has done over the past twenty years to minimize its carbon footprint and to reduce pollutants in the air and water. The rise of Electric Arc Furnaces (EAF) and […]
On Friday of this past week flat rolled steel buyers were lighting up the Steel Market Update inbox with questions or comments about a potential flat rolled steel price increase to be announced as early as Monday of this week. Steel buyers and executives associated with the service centers were telling SMU that Nucor is […]
Multiple sources are advising SMU that California Steel (CSI) has announced a $30 per ton ($1.50/cwt) increase for production orders during the first two weeks of July. After that they will evaluate pricing and make a further announcement. We will investigate this further over the next couple of days and advise our readers what this […]
For our USA customers welcome back from the Memorial Day Holiday weekend. Our scrap sources are advising us that as of today they are not aware of any cancellations of existing ferrous scrap orders by the domestic steel mills. This expectation is for a “soft sideways” market, meaning prices would remain the same, although there […]
Steel Market Update has begun to ask our scrap sources to provide some color as to what we can expect. Early indications from our sources are to expect ferrous scrap prices to trade “sideways” (unchanged) from the levels reported at the beginning of May. One of our sources told us, “The June market looks to […]
Steel Market Update (SMU) first reported that the Chinese were exporting ferrous scrap in an article on April 19, 2017. With the forced shut-downs of induction and electric arc furnaces by the Chinese equivalent of our EPA, the net result is that there is an abundance of ferrous scrap needing a home. Some of that […]
It is the first week of May and the negotiations between the long and flat rolled steel mills have been in full swing all week. By late today (Thursday) word of how the scrap dealers had fared has been coming into our offices. The first region to settle was Detroit which was up $10 on […]
Ferrous scrap prices settled in Detroit with prime grades (bundles/busheling) settling at $360 per gross ton. At the same time there is Chinese auto bundles for sale at very low prices FOB China. Chinese scrap exports are new for the Chinese and there are issues that need to be overcome before they become major suppliers […]
The domestic steel mills did not cancel scrap orders for April delivery that had not yet arrived. This is a sign that the steel mills believe prices will be sideways to slightly higher for May delivery than what they negotiated for April. All is quiet as the steel mills and their scrap suppliers jockey for […]
SMU sources are expecting scrap prices to remain somewhat range-bound as the scrap dealers begin negotiations with the domestic steel mills for the month of May. Most dealers are forecasting May settlement prices to be within $10 per ton of what we saw in April and this can vary from region to region. We understand […]
We have an unusual market. What Steel Market Update is seeing is confidence by most of the steel mills. They feel there may be some minor adjustments in spot pricing as a few mills jockey to maintain their order books. At the same time, most steel buyers are being supportive of the price levels we […]
Last week, Steel Market Update (SMU) conducted our mid-April flat rolled steel market trends analysis. Over the course of the week we invited 670 individuals representing approximately 650 companies to participate in our survey. The breakout of the participants was a little different than what we have been seeing over the course of a number […]
Correction: In last Thursday’s issue of Steel Market Update we mistakenly referenced earnings from a previous period instead of the 1Q 2017 report. Here is what Steel Dynamics had to say in their announcement on April 19, 2017: FORT WAYNE, Ind., April 19, 2017 /PRNewswire/ — Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced first quarter […]
Steel Market Update is asked many times where we think flat rolled steel prices are heading. Our current SMU Price Momentum Indicator is at “Neutral” which means we believe the market to be in transition and, prices could move in either direction from this point. We adjusted our indicator just recently from Higher to Neutral […]
Scrap dealers are pointing at the order book at the domestic mills as one of the main reasons why ferrous scrap prices inched back after the domestic mills initially pushed for shred and obsolete grades to be lower by $30 per gross ton. The mills could not get enough dealers to fill their scrap order […]
April ferrous scrap prices continue to be in negotiation as the domestic mills try to drive down the buying prices while the dealers try to hold on because they know the mill order books are still good – especially on the sheet mills. We learned from one of our sources in the Ohio Valley the […]
At the end of March the domestic steel mills cancelled any open portion of their ferrous scrap orders for March delivery with their scrap suppliers. This is always the first sign of an expectation of a drop in ferrous scrap prices once the negotiations begin in earnest for April delivery. Even with the tight supplies […]
This is only our second ever write up of global scrap trade. In future we will report quarterly because we believe that to understand the gyrations of the domestic scrap market we should be aware of where the US stands as a global player. This data is not very current because some nations are slow […]
Buyers and sellers of flat rolled steel having been bouncing like the proverbial rubber ball over the past six weeks as they try to make sense of where steel prices are heading over the near term. Steel Market Update (SMU) asked those responding to our flat rolled steel market trends survey last week where they […]
Early indications (and we should put special emphasis on the word “early”) are for ferrous scrap prices to trend slightly lower on shred and obsolete grades while prime grades (busheling/bundles) are expected to trade sideways due to strong demand from sheet mills. In March, prices for prime grades of scrap rose $60-$65 per gross ton […]
Steel Dynamics expects a meaningful increase in first quarter profits. Earnings per diluted share are expected to be in the range of $0.77 to $0.81 compared to $0.08 per diluted share in Q4 2016 and $0.26 per diluted share in Q1 2016. In first quarter guidance comments, SDI attributed stronger results to higher shipments and […]
Flat rolled steel prices are reacting to the two $30 per ton price announcements made by the domestic steel mills over the past month. The culprit (or scapegoat depending on your perspective) has been the rapid rise in ferrous scrap prices which are the primary inputs for electric arc furnace (EAF) steel mills and is […]
Flat rolled steel order books have been helping push ferrous scrap prices higher for March delivery to the domestic steel mills. Steelmakers have paid $50 to $80 per gross ton higher prices than February for prime grades such as busheling and bundles. Sheet mills pushed their buying prices in order to get the supply of […]
On Friday of last week Nucor Plate Mill Group announced a $30 per ton price increase on carbon and alloy plate and $50 per ton on heat-treated plate. The increase was to be effective immediately. Today, ArcelorMittal USA also followed the Nucor lead with an increase of their own. A Nucor plate customer told SMU […]
We are still early in the negotiation process for ferrous scrap pricing for the month of February. The expectation is for much higher than originally thought (sideways to +$30) a couple of weeks ago. SMU scrap sources are advising the Detroit market settled today at up $40 per gross ton on obsolete and shred grades […]
Steel Market Update (SMU) has adjusted our Price Momentum Indicator to reference spot prices as moving higher from this point over the next 30 days. Our decision to move our indicator is due to the continued high prices for steel mill inputs, such as 62% Fe iron ore fines in China being sold at $91.50/dmt […]
The rumors about March ferrous scrap prices have been flying ever since prices rebounded early in February from the initial down $10-$30 per gross ton we saw in the early negotiations. As the month of February continued scrap prices rebounded and, in some cases, returned to levels seen in January. As we prepared for March […]
We are moving into another exciting week for the flat rolled steel industry. Ferrous scrap negotiations will begin this week and how they are resolved will determine whether flat rolled steel prices roar higher from here or wander around looking for a soft landing. We will be watching and listening for clues about scrap prices […]
Scrap, scrap, scrap, scrap and scrap…that is what everyone is going to be talking about for the next week to ten days. David Feldstein in tonight’s HRC Futures article suggested prime grades could go higher in March by as much as $80 per gross ton. I have read articles that suggest the numbers could be […]