No one anticipated in August how quickly prices would go up, said CRU Principal Analyst Josh Spoores during this week’s SMU Community Chat Webinar. As four criteria lined up—steel-intensive industrial demand, low supply chain inventories, low imports, and domestic prices below global levels—steel prices in the U.S. surged at the fastest rate in 41 years, […]
On Tuesday and Wednesday of this week, I will be an instructor at our Steel 101: Introduction to Steel Making and Market Fundamentals Workshop. We have a full class with a mixture of steel service centers, manufacturing companies, steel mills, traders, analysts, and suppliers to the industry. I am looking forwarding to discussing supply, demand, […]
Steel prices continued to climb in November on strong demand and tight steel supplies. Steel Market Update’s hot rolled price index reached $770 per ton by the end of November, up 10 percent from the beginning of the month. The SMU Pricing Momentum Indicator remained at Higher, indicating prices are expected to rise further over […]
Steel Market Update’s check of the market this week shows another jump for both flat rolled and plate, taking the benchmark price for hot rolled steel to an average of $805 per ton. Sources commonly reported paying as much as $840 to secure hot rolled in a market where availability is becoming a critical issue. […]
Flat rolled steel prices just keep ratcheting up as supplies remain extremely tight, with lead times continuing to extend and sources warning of impending shortages of some products (see related articles in this issue). Steel Market Update’s check of the market this week moves the benchmark price for hot rolled up to $770 per ton, […]
Flat rolled steel prices just keep ratcheting up as supplies remain extremely tight, with lead times continuing to extend and sources warning of impending shortages of some products (see related articles in this issue). Steel Market Update’s check of the market this week moves the benchmark price for hot rolled up to $770 per ton, […]
How much further can lead times extend? We’ll let you know. But there is no sign yet that they have peaked. Lead times for delivery of spot orders continue to stretch with hot rolled now averaging nearly seven weeks and coated steel orders nearly nine and a half weeks. Lead times are an indicator of […]
Lead times for spot orders of hot rolled steel have extended by another half-week as demand persistently outpaces supplies. Lead times for steel deliveries continue to stretch with hot rolled now averaging nearly seven and a half weeks and coated steel orders around nine and a half weeks. Lead times are an indicator of steel demand—longer […]
In a market where supplies of various products are so tight that some buyers say they would be willing to pay almost any price just to get material, there is very little negotiation going on between the mills and their spot market customers. The mills have no reason to bargain when demand is so far […]
There is very little negotiation going on between the mills and their spot market customers as supplies remain extremely tight and buyers are happy just to find available material, even if they have to pay a substantial premium. It has been a seller’s market since September, with the mills enjoying most of the leverage, and […]
Plate prices have finally gained some traction, seeing a notable jump this past week to an average of $720 per ton, according to Steel Market Update’s latest check of the market. Nucor and SSAB Americas announced plate increases this week in hopes of maintaining that upward momentum. Flat rolled prices continued their relentless climb, with […]
National level import reports do a good job of measuring the overall market pressure caused by the imports of individual products. The downside is that there are huge regional differences. This report examines other metallic coated imports (mainly Galvalume) by region through September 2020. In September, OMC imports were up by 0.9 percent at the […]
The Perfect Storm: Long lead times, late deliveries, low service center inventories, strong demand, higher prices, lack of foreign steel imports, mill outages both planned and unplanned, maximum capacity utilization rates at a number of mills, NLMK USA strike, higher ferrous scrap prices that are expected to go much higher in the coming months, restrictions […]
Steel Market Update’s check of the market this week shows that the flat rolled mills are extremely busy and operating near full capacity. More than 80 percent of the service center and OEM executives responding to SMU’s questionnaire said they are seeing late deliveries from their mill suppliers. More than 60 percent expect a shortage […]
The SMU Steel Price Momentum Indicators on all flat rolled and plate steel products are currently pointing toward higher prices over the next 30 days. We expect hot rolled, cold rolled, galvanized, Galvalume and steel plate pricing to increase during the coming weeks. The two major reasons for our position are the limitations of supply […]
Flat rolled steel prices continued to rise last week, though at a modest $5-10 per ton pace. The exception was Galvalume, which jumped by $40 as demand continues to outpace supplies. The benchmark average for hot rolled coil, at $710 per ton, surpassed the $700 level, where many had expected it to peak. With demand […]
Among steelmaking raw materials, the prices of pig iron, scrap, zinc and aluminum have seen big gains in the past three months. Pig iron and scrap prices have seen significant increases compared to the late summer months. Iron ore and coking coal prices had widened through mid-September but have since declined, with coking coal prices […]
I am hearing negotiations on 2021 flat rolled contracts are quite contentious. OEM buyers are telling me the domestic mills are so aggressive with their pricing offers that buyers are having to look for alternative suppliers. As one manufacturing buyer put it to me yesterday, “[The steel mills are] effectively asking us to review other […]
Growing up I was a bit of a history nerd and my original intention was to be a political science major when I entered Hamline University where I went to college. Over time I morphed into a bit of a political nerd, so elections are exciting times for me. They may not be for many […]
Steel Market Update’s check of the market this week puts the average price for hot rolled steel at $700 per ton, a psychological milestone for the steel sector as the economy continues to make progress from the severe early effects of the COVID pandemic. This marks the 12th week in a row that flat rolled […]
Lead times for spot orders of steel continue to extend with hot rolled delivery now averaging more than six and a half weeks and coated steel orders around eight and a half weeks. Lead times are an indicator of steel demand—longer lead times mean the mills have more orders to process and are less likely […]
Signaling that the mills remain busy, lead times for delivery of spot orders continue to lengthen with hot rolled now averaging more than six and a half weeks and coated steel orders around nine weeks. Lead times are an indicator of steel demand—longer lead times mean the mills have more orders to process and are […]
Mills continue to control negotiations over hot rolled, cold rolled and coated steel orders as they seek to collect higher prices in a market characterized by extended lead times and tight supplies. About 86 percent of the hot rolled steel buyers responding to Steel Market Update’s market trends questionnaire this week said the mills are […]
Mills continue to hold the upper hand in negotiations over hot rolled, cold rolled and coated steel orders as they work to collect higher prices in a tight market with extended lead times. Buyers report the mills will only negotiate on big tonnages to be delivered in 2021. About 86 percent of the steel buyers […]
Flat rolled steel prices increased by another $10-20 per ton in the past week as demand continues to outpace the tight supplies, lead times remain extended and there’s limited competition from imports. Only about one-quarter of the steel buyers polled this week believe prices are near a peak. So, with scrap prices expected to move […]
COVID-19 cases appear to be surging again, and we asked steel buyers to advise if they were seeing any changes to their business due to the new cases. Most reported no impact from the virus, but there were concerns about what government might do if cases continue to rise. No one wants another shutdown of […]
Steel prices are showing some strength in the fourth quarter as mill lead times remain extended, competition from imports is minimal, inventories are near record lows and demand is maintaining momentum as the economy slowly recovers from COVID. Supplies remain tight as a strike, unplanned outages and planned maintenance are keeping mill capacity below normal […]
Lead times for hot rolled steel now average longer than six weeks, and coated steel orders longer than eight weeks, as the mills remain busy in a market adjusting to business in a pandemic. Lead times are an indicator of steel demand—longer lead times indicate the mills have more orders to process and are less […]
The benchmark price for hot rolled remained unchanged at around $650 per ton, according to Steel Market Update’s check of the market this week, even as the mills worked to collect the price increases announced earlier in the month. Other flat rolled products saw a modest increase. Begging the question: Is the upward price momentum […]
Nucor Tubular Products led the pipe and tube manufacturers announcing a $50 per ton price increase this morning on HSS, pipe, mechanical and piling products. EXLTUBE advised they were following the Nucor lead and announced their fourth price increase on HSS and A53B products matching the Nucor $50 per ton. New orders for foreign steel […]