Steel market conditions and steel prices could be good for the next 18-24 months, but after that comes an unavoidable downturn that metals and mining analyst Timna Tanners has dubbed “Steelmageddon.” In fact, her company, Bank of America Merrill Lynch, has trademarked the term. Speaking at the S&P Global Platts North America Steel Conference March […]
The U.S. Coast Guard commenced ice breaking on the lower St. Mary’s River last week in preparation for the 2019 Great Lakes shipping season and opening of the Soo Locks on March 25. The USCG will begin ice breaking operations in Sturgeon Bay on Friday. A tug and barge docked in Cleveland on Tuesday, ahead […]
By CRU Senior Analyst Erik Hedborg In the past week, iron ore prices continued to decline as demand in China remained weak. Steel prices continued to fall and buying activities have yet to pick up after the 13th National People’s Congress (NPC) began its annual two-week meeting on March 5. On Tuesday, March 12, CRU […]
We live in a time when nothing is as it seems and uncertainty rules the roost. This can make for a daunting task when considering when, what and how much steel you need to purchase at any point in time. It appears the second price increase announcement out of Nucor moved some of the end […]
We live in a time when nothing is as it seems and uncertainty rules the roost. This can make for a daunting task when considering when, what and how much steel you need to purchase at any point in time. It appears the second price increase announcement out of Nucor moved some of the end […]
As markets transition from one phase to another, the process can sometimes be “messy” until there is a clear direction as momentum shifts. Many steel buyers reported a higher sense of confidence that the market has “turned the corner” and will move higher from here. However, the feelings are not universally shared as some buyers […]
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 Metal and […]
Ferrous scrap prices for March settled up $20/GT, report Steel Market Update sources. “The ferrous market was up $20 across the board without much deviation across the country. That puts Midwest shred at around $355-360 and busheling at $370-380. Export has rebounded this week by about $5-10 from recent sales. The most recent sale to Turkey […]
The Soo Locks are scheduled to reopen on March 25 to begin the new shipping season on the Great Lakes. The last vessel through the locks was the Canadian bulk-carrier Manitoulin headed for Essar Steel on Jan. 15. The locks are currently closed for maintenance prior to the start of the 2019-20 season. During the […]
The Soo Locks are scheduled to reopen on March 25 to begin the new shipping season on the Great Lakes. The last vessel through the locks was the Canadian bulk-carrier Manitoulin headed for Essar Steel on Jan. 15. The locks are currently closed for maintenance prior to the start of the 2019-20 season. During the […]
Key market indicators were strong in February, but trends have been deteriorating for a year. This report summarizes 36 data streams that we believe critically describe the state of and provide forward guidance for the steel market. The government statistics departments are gradually catching up after the shutdown, but their revised schedules indicate that it […]
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 […]