Steel Market Update is sharing this Premium content with Executive-level subscribers in this issue. For more information on upgrading to a Premium-level membership, email info@SteelMarketUpdate.com Key market indicators were strong in March and the trends have improved since January. This report is designed to provide a big picture summary of data we have covered in […]
Steel Market Update is sharing this Premium content with Executive-level subscribers in this issue. For more information on upgrading to a Premium-level membership, email info@SteelMarketUpdate.com Steel Market Update’s analysis of Key Market Indicators shows that U.S. economic trends deteriorated in April to the worst level in 27 months. This report is designed to be a […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Ferrous scrap prices are expected to settle around $20/GT higher for March following weakness in January and February, report Steel Market Update sources. “The March domestic market seems to have $20/GT baked into it,” commented one dealer in the Northeast. “Poor inflows due to bad weather and seasonality, along with a stronger export market, are […]
By CRU Analyst Jordan Permain Iron ore prices declined for the second consecutive week as the market awaits the announcement of stimulus measures in China. On Tuesday, Feb. 26, CRU has assessed the 62% Fe fines price at $84.70 /t, down $1.90 /t w/w. Steel demand has remained weak in China in the past seven […]
In the last month, there has been a positive turnaround of raw materials prices. Table 1 summarizes the price changes through February of the five materials considered in this analysis. It reports the month/month, 3 month/3 month and 12 month/12 month changes and tells us that price movements with the exception of busheling have been […]
By CRU Latin America Analyst Thais Terzian On Jan. 25, one of Vale’s tailing dams located in Brumadinho, Minas Gerais, breached. The dam was part of Vale’s Córrego do Feijão mine and its breach tragically caused the death of several hundred people. On Jan. 29, Vale announced the suspension of production at nine mines in its […]
This morning, Steel Market Update adjusted our Price Momentum Indicator on flat rolled from Neutral to Higher. Our Price Momentum Indicator was last adjusted on Jan. 28, 2019, when we moved from Lower to Neutral as the domestic steel mills, led by Nucor, began announcing price increases. It is normal for SMU to adjust our […]
This morning, Steel Market Update adjusted our Price Momentum Indicator on flat rolled from Neutral to Higher. Our Price Momentum Indicator was last adjusted on Jan. 28, 2019, when we moved from Lower to Neutral as the domestic steel mills, led by Nucor, began announcing price increases. It is normal for SMU to adjust our […]
Canadian steel company Stelco announced a new CEO and defied U.S. tariffs with a strong earnings report for the fourth quarter. David Cheney, formerly chief business development officer, will assume the mantle of CEO from Alan Kestenbaum who will continue to serve as Executive Chairman. Cheney will have executive responsibility for the company’s day-to-day business, […]
The domestic steel mills have been able to put a floor on flat rolled steel prices since Nucor announced their $40 per ton price increase on Jan. 28, 2019. Now that they have a firm floor, the mills are slowly moving prices higher. In the process, they are very slowly shifting momentum. Steel Market Update […]
By CRU Senior Analyst Erik Hedborg During the past week, iron ore prices fell somewhat as weak Chinese demand continued to weigh on the market. On Tuesday, Feb. 19, CRU assessed the 62% Fe fines price at $86.60 /t, down $3.70 /t w/w. Again, the Vale dam accident dominated the talks in the market. Although […]
The United Steelworkers and Bedrock Industries announced they will begin negotiations for a new collective agreement for workers at the Pointe-Noire iron pellet plant in Quebec. Bedrock Industries notified the USW of its intention to purchase and restart the facility. The pellet plant, formerly owned by Cliffs Natural Resources, closed in 2013 and is currently […]
The following statement was extracted from the Federal Reserve website: “Effective on Feb. 4, 2019, the Federal Reserve Board staff has made major changes to the methodology used to construct the trade-weighted dollar indexes in the H.10, G.5, and G.5A releases. These changes affect the calculation of index weights and country composition. The new dollar […]
By CRU Senior Analysts Erik Hedborg and Andrew Gadd CRU’s research shows that the dam breach in Brazil, as well as the recent fire at Vale’s blending terminal in Malaysia, will have limited impact on the availability of high-grade fines. Iron ore prices of all different grades have increased since the dam breach, but the […]
It’s time to start thinking (and planning) for what you, your family and your company are going to do should the United States and China fail to reach a trade agreement. The Trump administration has threatened to impose 25 percent tariffs on $250 billion worth of products produced by Chinese factories. So far, President Trump […]
Editor’s note: The following is excerpted from the Feb. 13 CRU Steel Sheet Monitor; editing by CRU Principal Analyst Josh Spoores. In our Steel Sheet Products Monitor last month, we asked if the market was near an inflection point. That report was published on the sixth working day of the year and, at that point, global sheet […]
Steel Market Update asked: Will the newly announced flat rolled price increase “stick” and be collected? Maybe not, said most respondents to SMU’s market trends questionnaire last week, but it will at least stop the slide. Looking at the data, very few expect the mills to collect the full $40 per ton increase they announced […]
By Erik Hedborg, CRU Senior Analyst The recent dam breach in Brazil will complicate iron ore pellet premia negotiations and is likely to lead to steel mills eventually accepting sharp premia increases. As a result of the dam breach, Vale has suspended 11 Mt/y of pellet production in the Southern System and the recently revoked operating […]
The recent mining disaster in Vale prompted a flurry of concern from analysts on the Cleveland Cliffs earnings call. Cleveland Cliff’s CEO Lourenco Goncalves said on Friday that the impact from the Vale mining disaster has yet to be properly quantified. Estimates of 11 million tons of capacity loss are likely to be double that, […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
By CRU Senior Analyst Erik Hedborg Iron ore prices continued to climb during the week as uncertainty regarding Vale’s supply persists. With weak buying in China due to the holidays, we have seen the market react by pushing the 62% Fe fines price up to $86.00 /t, $7.40 higher w/w. The Vale story continues to […]
One constant I am hearing during my phone and email conversations is that January was a good month for shipments and February has started out strong. The construction community is pleasantly surprised, and I really have not heard anyone say business is bad in any market segment. One of the mills pointed out that much […]
Key Market Indicators in January, indicators of the present situation, remained strong, but trends deteriorated to the weakest level in two years. This report summarizes 36 data streams that we believe critically describe the state of and provide forward guidance for the steel market. Due to the government shutdown, 13 of the 36 indicators were […]
By CRU Senior Analysts Erik Hedborg and Andrew Gadd The death toll after the tailings dam accident at Vale’s Córrego do Feijão mine continues to climb, as 84 people are now confirmed dead and close to 300 are still missing. Five people have been arrested; three managers at the Córrego do Feijão mine site and […]
Major domestic steelmakers have announced a $40 per ton ($2/cwt) hike in the price of hot rolled, cold rolled and galvanized steel products, fueling the debate over whether current market conditions can support an increase or if the latest announcement is bound to flop like the last one in October. West Coast mills California Steel […]
By CRU Iron Ore Senior Analyst Erik Hedborg The tragic dam accident in Brazil together with a cyclone off the Australian coast lifted iron ore prices in the past week. On Tuesday, Jan. 29, CRU has assessed the 62% Fe, CFR China fines price at $78.60 /t, up $2.60 /t w/w. The tragic accident in […]
Nucor Corp. surpassed expectations for 2018, reporting net earnings of $2.36 billion for the full year compared to $1.32 billion in 2017. Net sales jumped 24 percent to $25.07 billion due to a 5 percent increase in tons shipped and an 18 percent jump in the average sales price per ton. Nucor shipped 27.9 million […]
A dam belonging to Brazil mining company Vale collapsed on Friday, killing numerous people and leaving hundreds missing. The dam, holding byproducts from the Feijao mining operation Brumadinho in Minas Gerai, released a torrent of sludge on the dam complex and nearby farms and neighborhoods. Approximately 300 Vale employees were working at the site when […]
There has been a downward reversal in raw materials prices in the last month. Table 1 summarizes the price changes through January 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 price movements have been negative for all materials except […]