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. Key Market Indicators showed a substantial improvement in market trends in the December data. This report is designed to be a big picture summary of data SMU has […]
By Peter Ghilchik, Head of CRU Multi Commodity Analysis and Production, from CRU’s Global Steel Trade Service CRU expects a return to commodity demand growth in 2020, albeit a weak recovery, as industrial production growth recovers to 2.2 percent; however, risk is heavily weighted to the downside. Economic uncertainty, weak demand and an increasing focus on […]
Chinese steel trade data was recently released for the month of November 2019, providing updated data on iron ore imports, scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in November totaled 90,652,000 metric tons, a decrease of 2.4 percent from the previous month, but an increase of 5.1 percent from […]
Key Market Indicators showed a substantial improvement in market trends in the December data. This report is designed to be a big picture summary of data SMU has reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for steel buyers and […]
The U.S. dollar has weakened against 12 of the 16 steel trading nation currencies in the last three months. In this report we examine the change in currency values of the 16 pre-eminent global steel and iron ore trading nations. The currencies of these 16 don’t necessarily follow the Broad Index value of the U.S. […]
In Steel Market Update’s latest raw materials report, Table 1 summarizes the price changes through Dec. 18 of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 months changes on a percentage basis. Four of the five materials under consideration had a positive price movement in December. […]
SMU contributor Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in […]
SSAB Americas plans to be the first supplier of fossil-free steel in North America. The company has targeted 2026 for its operations in Montpelier, Iowa, to be powered completely by renewable energy. The Montpelier facility is powered primarily by wind farms operated by MidAmerican Energy. The steel produced at the Iowa mill is used to […]
ArcelorMittal and Nippon Steel have completed their acquisition of Essar Steel Limited. The new joint venture will be called ArcelorMittal Nippon Steel India Limited (AM/NS India). ArcelorMittal will hold a 60 percent share of the new entity and Nippon 40 percent. Aditya Mittal, President and CFO of ArcelorMittal, has been appointed Chairman of AM/NS India, […]
After declining for much of 2019, steel prices have moved up substantially in the last two months. Will the trend continue into 2020? Flat rolled steel producers raised prices three times during October and November for a total of $110 per ton. (Editor’s note: ArcelorMittal USA announced an additional $40 flat rolled increase on Friday. […]
Steel consumption in China is expected to ease back to 881 Mt next year, down from the record 886 Mt anticipated this year, according to forecasts by China’s Metallurgical Industry Planning and Research Institute. Crude steel production is projected to mirror those figures by falling to 981 Mt in 2020 from a record 988 Mt […]
New rounds of flat rolled price increases began on Friday with ArcelorMittal USA and NLMK USA taking the lead at $40 per ton. My expectation is the other mills will follow on Monday and Tuesday of this week. Watch lead times – with some of the mills they are beginning to stretch. Steel Dynamics has […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations or comments […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations or comments […]
By CRU North America Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) rose by 7.9 percent m/m to 211.1 (see chart) following price increases in nearly every market. Pervasive market tightness caused by adverse weather and higher domestic demand in major exporting markets forced buyers in import-reliant markets to accept higher […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Throughout 2019, steelmakers’ willingness to pay higher prices for premium quality steelmaking raw materials has diminished. For iron ore, the spread between 65% and 62% Fe fines has fallen to $8 /t in Q4, well below the $28 /t peak in 2018 Q3. […]
Editor’s note: Steel is the largest producer of global industrial CO2 emissions. So, as stemming climate change takes on ever greater urgency, steelmakers are challenged to find production methods that emit fewer greenhouse gases. New technologies in development range from improving process efficiency to carbon capture to using hydrogen instead of coal as fuel. Following […]
In the last month, the prices of three of the five raw materials tracked by Steel Market Update in this report declined, one advanced and one was unchanged. Table 1 summarizes the price changes through Nov. 20 of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 […]
By CRU Senior Analyst Ryan Smith and Senior Consultant Sarah Macnaughton, from CRU’s Crude Steel Market Outlook Climate change is moving up the political agenda and putting increasing pressure on heavy industry to reduce their CO2 emissions. As the largest producer of global industrial CO2 emissions, the steel sector has a clear role to play in meeting […]
Cleveland-Cliffs and AK Steel Holdings surprised the market this morning, announcing the merger of their two companies. Under a definitive merger agreement, Cleveland-Cliffs will acquire all the issued and outstanding stock of AK Steel at $3.35 per share or $1.1 billion. Cliffs Chairman and CEO Lourenco Goncalves will lead the expanded organization and AK Steel […]
Early reviews of Cleveland-Cliffs’ decision to acquire AK Steel show mixed opinions among the market observers polled by Steel Market Update. On the surface, the marriage of the producer of value-added iron ore with the long-time steelmaker, its largest customer, seems a natural fit. But merging the two, very different companies may not prove so […]
By CRU Senior Analyst Dmitry Popov, from CRU’s Iron Ore Market Outlook After two weeks of increases, iron ore prices moved marginally lower this week by $1 /t w/w as CRU has assessed the 62% Fe fines price at $89 /t, CFR China. The end of the upward momentum in iron ore prices was primarily […]
Cleveland-Cliffs and AK Steel Holdings surprised the market this morning, announcing the merger of their two companies. Under a definitive merger agreement, Cleveland-Cliffs will acquire all the issued and outstanding stock of AK Steel at $3.35 per share or $1.1 billion. Cliffs Chairman and CEO Lourenco Goncalves will lead the expanded organization and AK Steel […]
Did everybody buckle up on your way to work on Monday morning? Boy, what a week it has been, and it’s only Tuesday! For those of you who are not aware of the events of the past few days, I will do a quick recap. Over the Thanksgiving Holiday, U.S. Steel had a large water […]
Ferrous scrap prices settled up $30-40/GT in December for most regions and most grades, on top of the $15-20/GT increase in November, lending further support to rising finished steel prices. Not only did prices find support from seasonally tighter scrap supply, but mill demand was stable or higher month over month for most regions, said […]
By CRU Steel Prices Lead Anh Nghiem, from the Steelmaking Raw Materials Monitor Iron ore prices have been gradually increasing over the past week with improving steel prices and positive signals from the Chinese futures market. According to a market source, market participants’ confidence has improved significantly since steel prices started to increase and this […]
Virgin steel is made with iron ore, coke and limestone. It was done that way, and only that way, for many decades. Then along came the “mini” mills. So-called minimills recycle ferrous scrap, mixing it with pig iron or other iron units and melting it down in large electric arc furnaces to produce new steel. […]
SMU contributor Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in […]
The U.S. dollar has weakened against 11 of the 16 steel trading nation currencies in the last three months. In this report we examine the change in currency values of the 16 preeminent global steel and iron ore trading nations. The currencies of these 16 don’t necessarily follow the Broad Index value of the U.S, […]
By CRU Research Manager Paul Butterworth, from CRU’s Global Steel Trade Service Although profitability for domestic sales in China has fallen sharply in 2019, steel exports from the country have not risen. Historically, when domestic profitability dropped, exports would rise. Prior analysis has shown that the strength of the domestic market is a key driver […]