I am here in New York City participating in the Cowen & Company Global Metals and Mining Conference. Day one was dedicated to the steel industry and the various commodities (scrap, iron ore, metallurgical coal). I thought I would provide a snapshot into some of the comments made during the conference by various CEO’s. Lourenco […]
On Thursday we reported scrap prices moved sideways on certain grades in the east and were down by as much as $30 per gross ton the further west you went. Chicago ended up the week with the weakest prices as many mills did not buy due to tepid demand and a desire to drive inventories […]
Steel Market Update saw a note from Bank of America Merrill Lynch metals and mining research group out of the UK regarding takeaways from their recent trip to China. In the note the group was skeptical of the push by the Chinese central government to remove another 80 million metric tons (88 million net tons) […]
Olympic Steel reported a net loss of $600,000 for third quarter but managed to expand gross margin 21.2 percent, compared to Q3 2104, despite pressure on pricing and volume. Olympic lowered operating expenses by almost $20 million so far in 2015 as well as lowering debt by a total of $60 million. Sales volume decreased […]
Two dams at the Sarmarco Mineracao SA iron mine, jointly owned by BHP Billiton Ltd and Vale SA, ruptured on Thursday, triggering a mudslide that engulfed the village of Bento Rodgrigues. The flow was estimated to be eight kilometers long and 2.5 meters deep. The dams held tailings, mining waste, from ore operations. Samarco issued […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Here is how Andre saw trading over the past week: Financial Markets We are actually in a pretty […]
Steel Market Update asked one of our Asian iron ore and steel trading sources to comment on the recent decline in iron ore prices which recently broke below $50/dmt on 62% Fe fines in China. We also asked for a comment about the recent spat of trade suits and the Chinese mills not cooperating with […]
The following article was written by contributing writer Damon Sun of Daido International. The Asian ferrous scrap markets are still very weak, but there are some positives recently. Rebar demand seemed to have picked up some in the last two weeks and consequently, there has been more activity in the containerized scrap markets. For reference, […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
The following article is written by Spencer Johnson of FC Stone LLC. With six years of experience, Spencer provides his customers strategic and tactical advice on protecting themselves against commodity price volatility in the steel markets. Spencer will rotate weekly futures articles with Andre Marshall of Crunch Risk, LLC. Spencer can be reached at spencer.johnson@intlfcstone.com. […]
October was the second month in a row where SMU had our Pricing Momentum Indicator pointing toward lower pricing. SMU reports hot rolled coil, cold rolled, galvanized and Galvalume pricing every Tuesday evening. During October we produced our steel prices indices four times. HRC was reported at $420 per ton the first Tuesday of the […]
Seaborne freight is still experiencing low rates due to limited cargo volume in a general global economic slowdown, according to the latest MID-SHIP Report. Dry bulk market rates have been at historic lows this year as operators struggle with low demand and vessel oversupply. The Baltic Dry Index stood at 721 on Oct. 30, falling […]
The following article is written by Spencer Johnson of FC Stone LLC. With six years of experience, Spencer provides his customers strategic and tactical advice on protecting themselves against commodity price volatility in the steel markets. Spencer will rotate weekly futures articles with Andre Marshall of Crunch Risk, LLC. Spencer can be reached at spencer.johnson@intlfcstone.com. […]
Scrap prices were forecast a week ago to drop $10-$20 per gross ton in November. However, we are beginning to hear that the scrap markets may not be as dire as predicted and the numbers may be much closer to sideways than down once the negotiations are concluded next week. One of our scrap sources […]
Cliffs Natural Resources reported net income of $6 million for third quarter compared to a net loss of $6.9 million in Q3 2014. Cost cutting brought US Iron Ore Operations cash production costs down 16 percent to $49 per ton; Asian Pacific Iron Ore cash production costs decreased a record 49 percent to $27 per […]
Australian steel producer, BlueScope Steel has agreed to acquire Cargill Incorporated’s 50 percent share of North Star BlueScope for $720 million and $40 million in assumed debt, making BlueScope sole owner of the profitable Delta, Ohio mini-mill. BlueScope exercised its right of last refusal after Cargill was offered a bid for the North Star. BlueScope […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Here is how Andre saw trading over the past week: Financial Markets: The stock market continues to prevail. From […]
Chinese steel trade data was recently released for the month of September 2015, providing updated data on iron ore imports, scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in September were 86,120,000 metric tons, an increase of 16.2 percent from the previous month and an increase of 1.7 percent from […]
Shipping in the various transportation sectors is relatively subdued in October. Low freight rates for seaborne cargo continues to be a problem for carriers, according to the Oct. 15 MID-SHIP Report. Low volumes, weak worldwide economies, and a strong dollar are affecting rates for both bulk carriers and container lines. The Baltic Dry Index was […]
Cliffs Natural Resources is back pedaling after CEO Lourenco Goncalves said he would shut down a plant in the Iron Range if Essar Steel Minnesota goes into production. “If they go online, I will shut down a plant up there the same day,” Lourenco Goncalves said in an exclusive interview with the Mesabi Daily News […]
We have two data sources for this report: the Federal Reserve and the Oanda forex trading platform. An explanation of these sources is given at the end of this report. Oanda is current every day but the Federal Reserve daily Broad Index (BI) is normally about eight days in arrears. As of October 15th the […]
Essar Steel Algoma announced it has secured an alternate, interim iron ore supply and is withdrawing its motion for a Temporary Restraining Order against Cliffs Natural Resources. Essar will continue to pursue resolution of the matter of breach of contract through the court system. Cliffs Natural Resources, as of Oct. 5, canceled its 3 million […]
A debate has begun as to when flat rolled steel prices will bottom and begin to reverse course. Part of that dialogue is what will supply look like should US Steel go through with balancing their production by temporarily taking down their Granite City Works. This would be on top of the trade suits which […]
Cliffs Natural Resources has terminated its iron ore supply agreement with Essar Steel Algoma alleging Essar made multiple and material breaches under the agreement. “While the agreement has been terminated, Cliffs remains open to discussing supplying Essar with pellets on commercially reasonable terms consistent with a just-in-time iron ore supply arrangement,” said Cliffs in a […]
In the first eight months of this year bulk scrap exports were 8.801,000 tonnes for an annual rate of 13,202,000 tonnes, down by 15.4 percent from the first eight months of last year. The tonnages shown in Figure 1 are based on three month moving averages for 2015 and on the twelve month monthly average […]
The U.S. is not (yet) a closed market and therefore we have to remain aware of what is going on around the rest of the world and especially in China (iron ore/billets/steel) and Turkey (scrap). Ferrous scrap prices are expected to drop significantly for October 2015 shipment. When we checked with a couple of our […]
I, Hillary Clinton, Jeb Bush and a number of steel people are all in Davenport, Iowa enjoying the warmer than normal weather and great conditions to do a mill tour which is exactly what we did this afternoon (without Hillary and Jeb). I want to thank everyone at SSAB for their hospitality and for doing […]
One of the reasons SMU decided to go with an App for our Steel Summit Conference this year was the belief that the App was something that could be used prior to the conference as well as after the conference. For example, earlier today I was working on developing scrap information in relationship to iron […]
We ended the month of September recognizing that not only have steel prices been falling but the Momentum behind pricing turned negative during the month. Our SMU Price Momentum Indicator is now pointing toward Lower prices to be seen in the coming month or longer. Sentiment, another Key Market Indicator, has been dropping as you […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]