October saw a gradual decline in steel prices for the second consecutive month, following one full year of continuous price increases. Hot rolled steel prices decreased $45 per ton throughout the month, with the SMU index averaging $1,885 per ton ($94.25 per cwt) as of Tuesday, Oct. 26. The SMU Price Momentum Indicator for hot […]
By CRU Senior Analyst Ryan McKinley from CRU’s Steel Sheet Products Monitor Falling demand in most markets around the world has continued to weigh on steel sheet prices. Meanwhile, the announcement that the USA will remove Section 232 tariffs on steel and aluminum producers in the EU and replace them with a quota system means […]
New orders, production and employment grew in October, while supplier deliveries slowed at faster rate and backlogs lengthened further, said the Institute for Supply Management in its latest Manufacturing ISM Report on Business. The Manufacturing PMI fell for the third straight month in October, down 0.3 percentage points to 60.8% in October, but still indicating […]
We’re all on the same price roller coaster, and that’s true whether we’re talking steel, plastic or wood. But we’re not all on the same car – and so your impression of the market might be vastly different if you’re in the front car instead of the back one. That’s the impression I got while speaking […]
“Business is great! Why is Steel Market Update always spreading so much gloom and doom about falling steel prices?” That’s not an actual quote, but we hear comments to that effect nearly every week. As if folks believe it will be a self-fulfilling prophecy. Of course, if prices decline, it won’t be because of some […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
Even as domestic hot rolled steel prices fall below $1,900 per ton, cheaper foreign steel imports continue to tempt U.S. buyers with potential discounts of 25-43%, according to Steel Market Update’s latest foreign versus domestic hot rolled steel price comparison. Foreign hot rolled steel prices are now theoretically $478-803 per ton cheaper than domestic steel, […]
Lead times for orders of flat rolled and plate steel from the mills have shortened again compared to this time last month. About 60% of the buyers responding to Steel Market Update’s survey this week describe lead times as just “slightly longer than normal.” Only 15% still consider them “highly extended.” SMU’s check of the […]
Hot rolled steel prices have declined for the fifth time in the last seven weeks to an average of $1,885 per ton, according to Steel Market Update’s check of the market on Monday and Tuesday. That’s down $70 per ton from the high reached in the first week of September. Price momentum for HR is […]
Distributors who sell galvanized steel products to the construction and HVAC sectors report a slight softening in demand at the same time that competition is firming up and prices are looking down. Market conditions overall are still favorable, reported members of the Heating, Air-Conditioning & Refrigeration Distributors International during HARDI’s monthly conference call today, but […]
Mexican flat-rolled steelmaker Altos Hornos de México (AHMSA) has restarted its hot strip mill after a planned two-week outage, a company spokesman said. The mill has been up and running since last week, he said. The company confirmed the outage at the beginning of October. AHMSA’s hot strip mill has annual capacity of 2.8 million […]
Do you sense the steel market is changing? “There is definitely a different tone to the market over the past few weeks,” said one of the many buyers responding to Steel Market Update’s questionnaire this week expressing similar views: “There are many more sellers than buyers now. Domestic pricing will slide soon.” “The market has […]
I have received a few messages wishing me well on my retirement. I don’t want to disappoint anyone, but word of my retirement from Steel Market Update and the steel industry is a bit premature. I have transitioned from a full-time employee to that of a consultant to SMU. I will continue to speak to […]
Steel Market Update has adjusted our steel pricing momentum indicator for hot-rolled coil lower. That’s not something we’ve done since July 21, 2020 – and it’s not a decision we took lightly. But the evidence is hard to ignore. Our hot rolled coil price now stands at $1,910 per ton ($95.50 per cwt), down $10 per ton […]
Steel Market Update’s check of the market this week shows another small decrease for hot rolled steel prices. The hot rolled price has dipped three of the last four weeks by a total of $45 from the high of $1,955 per ton in the first week of September. SMU is changing its Hot Rolled Price […]
Steel Dynamics’ President and CEO Mark Millett expects “transformational change” from SDI’s new electric arc furnace mill nearing completion in Sinton, Texas. “We are not simply adding flat rolled steel production capacity. We have a differentiated product offering, a unique regional supply chain solution, a significant geographic lead time advantage and offer a sustainable alternative […]
It’s hard for most service center executives to feel any urgent concern about declining steel prices as long as demand seems so strong. But there are signs in Steel Market Update’s survey data this week that suggest demand is moderating. With prices likely to follow. SMU asked: How are you seeing demand for your products? […]
By Stephen Williamson, CRU Research Manager, Aluminum Last week’s aluminum price below $3,000 per metric ton on the LME seemed like a bargain until it ran above $3,300 earlier this week. Yet, at week’s end, trading fell back to $3,050. Further confounding the market is magnesium supply and the prices raging on the hardener front. […]
SMU has updated the survey data we collect to better detect shifts in buying patterns between domestic and foreign steel. We know from Commerce Department figures that flat-rolled steel imports have been running at or above one million short tons a month since May – well above a monthly average of approximately 800,000 short tons […]
SMU has updated the survey data we collect to better detect shifts in buying patterns between domestic and foreign steel. We know from Commerce Department figures that flat-rolled steel imports have been running at or above one million short tons a month since May – well above a monthly average of approximately 800,000 short tons […]
Flat Rolled = 54.5 Shipping Days of Supply Plate = 54.9 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories grew in September to the highest level seen since August 2020, according to Steel Market Update data. At the end of September, service centers carried 54.5 shipping days of supply on an […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor Steel sheet price declines continue in the USA and Europe as lead times shorten further and inventories build. In the former market, small transactions are occurring at levels above $1,900 /s.ton, but there are many more deals occurring at well below this level. As […]
When the books are written on a historic year for steel prices, we will probably look back at August and September as the months when things started falling apart. Why? Because that’s when the extraordinay gaps – between U.S. steel prices and those abroad, between steel prices and scrap prices, and between market senitment and […]
Cheaper foreign hot rolled steel imports continue to tempt U.S. buyers over steel produced domestically, holding potential discounts of 25-43%, according to Steel Market Update’s latest foreign versus domestic hot rolled steel price comparison. Foreign hot rolled steel prices are now theoretically $483-832 per ton cheaper than domestic steel, after taking freight costs, trader margins […]
Construction employment totaled 7,447,000 jobs on a seasonally adjusted basis in September, an increase of 22,000 month on month, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. September’s total was 201,000 or 2.6% below the pre-pandemic peak from February 2020. Residential construction employment expanded by 3,400 in September, […]
Mill lead times for orders of flat rolled and plate products have shortened significantly over the past month. Steel Market Update’s latest check of the market shows the average lead times for hot rolled, cold rolled and galvanized steel have come in by roughly three-fourths of a week. The typical hot rolled lead time is […]
Since this time last year, mills have been in the driver’s seat when it comes to steel price negotiations. With demand exceeding supplies – and with buyers more concerned about finding steel than what they had to pay for it – mills have basically been able to steer prices wherever they wanted. That appears to be changing, […]
Flat rolled and plate steel prices were flat to down slightly this week with the exception of a small increase in cold rolled, according to Steel Market Update’s check of the market on Monday and Tuesday. The small ups and downs in steel prices over the past month are in line with most buyers’ expectations […]
As I bounce around the market this week talking to steel buyers, I am trying to get a better feel for potential changes, how contract negotiations are going, how receptive end-user customers are toward the higher prices being offered (compared to one year ago), and what kind of foreign steel offers are out there. The […]
Mill shipments of steel products jumped 11.2% in August to 9.69 million tons, following an increase of 2.0% the month prior. Apparent supply was up 7.8% in August after a 3.6% increase in July. August’s expansion is the sixth straight month of growth in the steel supply since February’s double-digit contraction. This analysis is based on […]