Do you sense the steel market is changing? “There is definitely a different tone to the market over the past few weeks,” said one of the many buyers responding to Steel Market Update’s questionnaire this week expressing similar views: “There are many more sellers than buyers now. Domestic pricing will slide soon.” “The market has […]
By Trade Attorney Lewis Leibowitz U.S. Trade Representative Katherine Tai has been traveling. She has a lot on her plate. In an effort to attract allies to the United States’ plan to rein in China, the U.S. has floated a proposal, according to reports, to replace the 25% steel and 10% aluminum tariffs with a […]
By CRU Analyst Helen O’Cleary, from CRU’s Zinc Monitor Zinc’s price started LME Week looking mildly bullish on short covering, with the 3-month official price settling at $3,246 /t on Oct. 12. By Oct. 15, it had reached $3,944 /t, turbocharged by news of smelter cutbacks in Europe due to soaring energy prices and the […]
By CRU Research Manager Eoin Dinsmore, from CRU’s January Zinc Monitor Buyers who are unfortunate enough to find themselves in the spot market are paying 18-23¢ /lb for SGH zinc. The most recent deals have all been at 20¢ /lb or higher. Buyers are fearful of being left short metal, while suppliers are either sold […]
By Philip Bell, President, Steel Manufacturers Association Editor’s note: Phil Bell and SMA are now periodic contributors to Steel Market Update. Look for Phil’s insights on steel and events in Washington in future issues of SMU. The U.S. and EU want to resolve the Section 232 steel tariff issue by Nov. 1. This is an […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled Three minutes of weightlessness before gravity takes hold! This month has been a mixed bag in HR futures. Lack of a […]
The U.S. will “move away” from Section 232 tariffs on steel from the European Union, Nucor’s top executive said. “What the final outcome looks like – whether it’s a tariff rate quota, we’ll wait and see,” Leon Topalian, president and CEO of the Charlotte, N.C.-based steelmaker, said during a conference call with analysts on Thursday. […]
NLMK USA posted record third-quarter earnings supported by strong downstream demand and historically high steel prices. The U.S. subsidiary of NLMK Group – Russia’s largest steelmaker – reported EBITDA of $354 million in the third quarter, a 66% surge from the previous high mark of $213 million in the second quarter and a big jump […]
Steel Market Update has adjusted our steel pricing momentum indicator for hot-rolled coil lower. That’s not something we’ve done since July 21, 2020 – and it’s not a decision we took lightly. But the evidence is hard to ignore. Our hot rolled coil price now stands at $1,910 per ton ($95.50 per cwt), down $10 per ton […]
Steel Dynamics’ President and CEO Mark Millett expects “transformational change” from SDI’s new electric arc furnace mill nearing completion in Sinton, Texas. “We are not simply adding flat rolled steel production capacity. We have a differentiated product offering, a unique regional supply chain solution, a significant geographic lead time advantage and offer a sustainable alternative […]
It’s hard for most service center executives to feel any urgent concern about declining steel prices as long as demand seems so strong. But there are signs in Steel Market Update’s survey data this week that suggest demand is moderating. With prices likely to follow. SMU asked: How are you seeing demand for your products? […]
By Stephen Williamson, CRU Research Manager, Aluminum Aluminum prices went through the $3,000 per metric ton mark on the LME this week. Fueled by energy constraints in China and tightening supply of alloy hardeners, the price broke through the $2,950 ceiling and ran up another $200. The price leveled at $3,150 as of this writing […]
By Stephen Williamson, CRU Research Manager, Aluminum Last week’s aluminum price below $3,000 per metric ton on the LME seemed like a bargain until it ran above $3,300 earlier this week. Yet, at week’s end, trading fell back to $3,050. Further confounding the market is magnesium supply and the prices raging on the hardener front. […]
SMU has updated the survey data we collect to better detect shifts in buying patterns between domestic and foreign steel. We know from Commerce Department figures that flat-rolled steel imports have been running at or above one million short tons a month since May – well above a monthly average of approximately 800,000 short tons […]
SMU has updated the survey data we collect to better detect shifts in buying patterns between domestic and foreign steel. We know from Commerce Department figures that flat-rolled steel imports have been running at or above one million short tons a month since May – well above a monthly average of approximately 800,000 short tons […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor After 14 consecutive months of rising global sheet prices, CRU’s Global Flat Products Steel Price Indicator (CRUspi flats) has fallen m/m. This indicator fell 3.5% as sheet prices continue to fall across most regional markets. The U.S. Midwest market remains the last holdout […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor Steel sheet price declines continue in the USA and Europe as lead times shorten further and inventories build. In the former market, small transactions are occurring at levels above $1,900 /s.ton, but there are many more deals occurring at well below this level. As […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Before joining Metal Edge Partners, Bryan held a variety of commercial […]
When the books are written on a historic year for steel prices, we will probably look back at August and September as the months when things started falling apart. Why? Because that’s when the extraordinay gaps – between U.S. steel prices and those abroad, between steel prices and scrap prices, and between market senitment and […]
Cheaper foreign hot rolled steel imports continue to tempt U.S. buyers over steel produced domestically, holding potential discounts of 25-43%, according to Steel Market Update’s latest foreign versus domestic hot rolled steel price comparison. Foreign hot rolled steel prices are now theoretically $483-832 per ton cheaper than domestic steel, after taking freight costs, trader margins […]
Since this time last year, mills have been in the driver’s seat when it comes to steel price negotiations. With demand exceeding supplies – and with buyers more concerned about finding steel than what they had to pay for it – mills have basically been able to steer prices wherever they wanted. That appears to be changing, […]
Sentiment among steel buyers tends to mirror steel prices. The higher the steel price, the higher the spirits of service center and manufacturing executives and the more optimistic they feel about their prospects. Steel Market Update data shows that the record-high steel prices of the past year have begun to moderate. But Steel Buyers Sentiment […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor North American sheet prices are lower m/m as prices in the U.S. have finally started to fall, at least for HR coil. Over the past several weeks, the amount and overall volume of spot transactions between mills and buyers have slowed, yet we […]
As I bounce around the market this week talking to steel buyers, I am trying to get a better feel for potential changes, how contract negotiations are going, how receptive end-user customers are toward the higher prices being offered (compared to one year ago), and what kind of foreign steel offers are out there. The […]
August apparent steel supply increased by 130,000 tons over July to 9.83 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. This is the highest supply level seen since January 2019, a 31-month record. August supply is up 2.69 million tons compared to the same month […]
As “the next precious metal,” prime scrap is a growth opportunity and a logical fit for Cleveland-Cliffs, which announced Monday that it plans to acquire Detroit-based Ferrous Processing and Trading Co. (FPT). The $775-million deal, Cliffs’ first foray into scrap, comes as no big surprise to most market observers. Cleveland-Cliffs is the largest producer of […]
Mill shipments of steel products jumped 11.2% in August to 9.69 million tons, following an increase of 2.0% the month prior. Apparent supply was up 7.8% in August after a 3.6% increase in July. August’s expansion is the sixth straight month of growth in the steel supply since February’s double-digit contraction. This analysis is based on […]
In the face of strong demand, limited availability and record-high prices in the U.S., steel buyers have looked overseas for relief. August Commerce Department data shows steel imports have been on the rise for the past three months, with imports’ share of total sheet product shipments reaching 17.5%, up from 16.7% the month prior, and the […]
Cleveland-Cliffs Inc. has agreed to acquire Midwestern scrap recycler Ferrous Processing and Trading Co. (FPT) for $775 million. The deal means the Cleveland-based steelmaker has secured its own reserves of prime scrap, which Cliffs Chairman, President and CEO Lourenco Goncalves has previously characterized as a “precious metal.” FPT recorded earnings before interest, taxes, depreciation and amortization […]
Cleveland-Cliffs Inc. has agreed to acquire Midwestern scrap recycler Ferrous Processing and Trading Co. (FPT) for $775 million. The deal means the Cleveland-based steelmaker has secured its own reserves of prime scrap, which Cliffs Chairman, President and CEO Lourenco Goncalves has previously characterized as a “precious metal.” FPT recorded earnings before interest, taxes, depreciation and amortization […]