Steel Market Update’s analysis of the Key Market Indicators shows a slight improvement in both our view of the present situation and in the trend of the indicators in June. This report is designed to be a big picture summary of data on which we have reported in detail during the month. In it we […]
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 […]
Steel Market Update is pleased to share this Premium content with Executive level members. For more information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. The price of iron ore has surged as scrap has declined benefiting the EAF producers in the U.S. over the integrated mills. Table 1 summarizes the price changes through June […]
In this report, we examine the change in currency values of the 16 preeminent global steel trading and iron ore trading nations. The currencies of these 16 don’t necessarily follow the Broad Index value of the U.S. dollar. In fact, at any given time, some are always moving in the opposite direction. The latest value […]
The U.S. dollar has strengthened against 13 of the 16 steel trading nation currencies in the last month. 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, dollar. […]
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 […]
By CRU Senior Analyst Erik Hedborg Iron ore prices have continued ascending in the past week as low port inventories in China have forced steelmakers to turn to seaborne cargoes. On Tuesday, June 18, CRU assessed the 62% Fe fines price at $108.00 /t, a $7.60 /t increase w/w. Seaborne supply has been particularly strong […]
By CRU Principal Analyst Chris Asgill Scrap supply has continued to outpace demand in most of the key scrap supply markets and CRU’s metallics price indicator (CRUmpi) has fallen a further 4.2 percent m/m to 231.2 (see chart). This is the lowest level for the indicator since June 2017. The depth of U.S. scrap price weakness surprised the […]
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 made by […]
We intentionally pack the third day of our conference with powerhouse programs and speakers. This year will be no different and we highly encourage attendees to remain through the final agenda item on the program. 7:00 AM – Doors Open at the Georgia International Convention Center Coffee, soft drinks and pastries will be available in […]
2019 SMU Steel Summit Conference – Day 3 Written by: John Packard, President & CEO, Steel Market Update RE: 2019 SMU Steel Summit Conference, Aug. 26-28, 2019 – Location: Georgia International Convention Center, Atlanta, GA In Thursday’s issue of this past week, I laid out the first-day agenda and speakers, then on Sunday I did […]
By CRU Senior Analyst Erik Hedborg Iron ore prices went through a correction in the past week as Chinese steel prices kept falling and seaborne supply remained robust. On Tuesday, June 4, CRU assessed the 62% Fe fines price at $98.50 /t, a $9.50 /t fall w/w. Our sources see the price fall as a […]
By CRU Principal Analyst Josh Spoores In the U.S. Midwest market, sheet prices have continued to decline on increased domestic, and now North American, supply. In addition to rising supply, falling scrap costs have also allowed EAF-based mills to remain competitive at these lower prices. It has now been one week since Canada and Mexico […]
Chinese steel trade data was recently released for the month of April 2019, providing updated data on iron ore imports, scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in April totaled 80,770,000 metric tons, a decrease of 6.5 percent from the previous month, and a decrease of 2.6 percent from […]
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 […]
By CRU Senior Analyst Erik Hedborg Iron ore prices continued to climb in the past week with a sharp price jump on Monday lifting prices to $108.0 /t on Tuesday, May 28. This translates to a $6.5 /t increase w/w. Seaborne supply outside of Minas Gerais is recovering. Supply from Port Hedland, although falling w/w, […]
Altos Hornos de Mexico (AHMSA) plans to increased steel production by 30 percent now that U.S. tariffs have been eliminated. The year-long Section 232 measures caused a 25 percent drop in AHMSA’s steel production and $300 million in lost revenue, said AHMSA President Alonso Ancira Elizondo. As orders from the U.S. fell due to the […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel The hot rolled steel market remains cautious but optimistic with domestic producer prices coming in at even larger discounts to foreign […]
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. dollar. In fact, at any given time, some are always moving in the opposite direction. The latest value of […]
By CRU Senior Analyst Erik Hedborg Iron ore prices have risen sharply in the past week as the strong Chinese demand has continued and fears of further supply disruptions have emerged in Australia and Brazil. On Tuesday, May 21, CRU has assessed the 62% Fe fines price at $101.5 /t, which translates to a $6.5 […]
I am in Atlanta speaking at a supplier conference for an OEM both today and again on Thursday. As expected, the questions were about Mexico and Canada and where prices go from here. There were also questions about our index versus the CRU index (different methodologies). I am looking forward to revising and doing it […]
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 made by […]
By CRU Senior Analyst Manjot Singh As has been the case in the last few weeks, Chinese BF utilization rates have remained above 80 percent and rebar inventories have continued to dwindle, suggesting buying appetite for raw materials has been robust in China. In terms of iron ore specifically, inventories at Chinese ports and mills […]
Good afternoon/evening from Davenport, Iowa. Davenport is where the Mississippi River flooded the downtown area a couple of weeks ago. Water levels are down four feet from their highest point, and the flood waters reached the parking lot of our hotel before receding back across the railroad tracks. The river is still in flood stage […]
ArcelorMittal faced a number of challenges that impacted earnings in the first quarter resulting in net income plunging 66 percent to $414 million from $1.19 billion reported in both the fourth quarter of 2018 and first quarter of 2019. Earnings reflected a $150 million impairment charge related to the sale of assets to acquire ArcelorMittal […]
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 […]
By CRU Analyst Michelle Liu Vale confirmed the suspension of tailings disposal at its Brucutu mine on Tuesday, May 7. After prices fell initially, there was a price rebound and the iron ore price ended up rising by $0.80 /t w/w to $94.90 /t for our assessed 62% Fe fines. On Tuesday, Brazil’s higher court […]
By CRU Research Manager Chris Houlden, CRU Principal Analyst Josh Spoores and CME Metals Products Manager Sean Kessler. U.S. Midwest HR coil price volatility has increased markedly in recent months as opaque policy decision-making processes and inelasticity of domestic supply have led to large variations in physical market price. Concurrently, volume and open interest on […]
Note: this article was corrected on 5/3/2019; scrap will be down by $20-$30 per ton-in May, not falling to $230 per ton as previously stated. Ryerson Holding Corp. is expecting a better second half for the steel industry despite some weakening economic data and inventory issues. “Last year was a very unusual time for our […]
Coking coal, scrap and zinc prices have weakened in the last month. Table 1 summarizes the price changes through April of the five materials considered in this analysis. It reports the month / month, 3 months / 3 months and 12 months / 12 months changes and tells us that at the three-month level only […]