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 […]
The recent mining accident in Brazil leading to lost production of iron ore at Vale is “shaping up to be a multi-year shortage of iron ore and pellets,” said Cleveland Cliffs CEO Lourenco Goncalves during earnings remarks on Thursday. “The catastrophic events in Brazil have provoked a radical change in the supply-demand dynamics of iron […]
In the last three months, the dollar weakened against seven of the 16 steel trading currencies that Steel Market Update tracks and strengthened against the other nine. At the one-month level, the dollar weakened against five of the 16, and strengthened against the other 11. At the seven-day level, the dollar strengthened against 12 of […]
By CRU Senior Analyst Erik Hedborg Demand for steelmaking raw materials has improved in April. Chinese steel prices have jumped on rising seasonal demand, particularly from the construction sector. Steel production in the country has also picked up, as indicated by the blast furnace (BF) utilization rate displayed in CRU’s Coking Coal and Iron Ore Dashboards. This has […]
ArcelorMittal received approval from the European Commission to sell several of its European steelmaking assets to Liberty House Group. The sale is part of a divestment agreement made by ArcelorMittal with the Commission to acquire the Italian steel mill Ilva. Included in the transaction is ArcelorMittal Ostrava (Czech Republic), ArcelorMittal Galati (Romania), ArcelorMittal Skopje (Macedonia), […]
By CRU Analyst Michelle Liu Turkish prices have continued to fall, down $7 /t w/w for the week ending Friday, April 12, to $305 /t CFR for HMS 80:20. Warmer weather has increased supply in the U.S. and Europe, placing downward pressure on scrap prices there. This was compounded by reduced scrap demand on both […]
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 […]
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 […]
Raw materials prices have lacked direction in the last month. Table 1 summarizes the price changes through March 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 iron ore and pig iron declined in […]
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 In the last month, the CME U.S. Midwest HR future front month price has declined over $40/ST. Latest indexes indicate spot […]
By Senior Analyst Erik Hedborg Iron ore price volatility continued in the past week as Vale’s lower guidance and Rio Tinto’s damaged port caused supply fears across the market. On Tuesday, April 2, CRU has assessed the 62% Fe fines price at $88.70 /t, a $3.30 /t rise week-on-week. The supply side news has been […]
One of the primary drivers of currency change is interest rate differential between currency pairs. The March 20 announcement by the Federal Reserve will take some of the steam out of dollar appreciation that occurred last year. On March 21, the Associated Press wrote, “The Federal Reserve left its key interest rate unchanged March 20 […]
Finished steel price momentum has been particularly difficult to gauge of late and what happens to ferrous scrap prices next month may be telling. Scrap for May appears to be under pressure. Despite relatively healthy U.S. steel demand and domestic mills cranking out flat rolled steel at nearly full capacity, scrap prices have seen declines […]
Finished steel price momentum has been particularly difficult to gauge of late and what happens to ferrous scrap prices next month may be telling. Scrap for May appears to be under pressure. Despite relatively healthy U.S. steel demand and domestic mills cranking out flat rolled steel at nearly full capacity, scrap prices have seen declines […]
Ferrous scrap prices are poised to drop substantially in May, anywhere from $20 to $50 per gross ton, predict Steel Market Update sources, adding to the downward price momentum on finished steel. Scrap prices moved down or sideways in three of the first four months of the year. CRU North America steel analyst Ryan McKinley […]
Ferrous scrap prices for June are difficult to predict, report Steel Market Update sources, who disagree on the degree to which the lower tariffs on Turkish steel will affect demand for scrap exports from the U.S. Most expect scrap prices to settle sideways next month after declines for most of the year, but a small […]
Ferrous scrap prices for June have settled down another $30/GT, surprising a market that was expecting little or no decline this month and adding further pressure to already weak finished steel prices. Scrap prices have been on a downward trajectory since January. The drop in scrap prices this month was caused by low mill demand […]
Ferrous scrap prices for June have settled down another $30/GT, surprising a market that was expecting little or no decline this month and adding further pressure to already weak finished steel prices. Scrap prices have been on a downward trajectory since January. The drop in scrap prices this month was caused by low mill demand […]