We often talk a lot about hot-rolled coil prices in Final Thoughts. I’d like to take a deeper dive into coated prices today. It’s been an almost straight line up for an entire year for flat-rolled steel prices. And galvanized is no exception. Galvanized base prices are at $2,070 per ton ($103.50 per cwt). That’s […]
Steel mills were supposed to see increased demand this summer as automakers ramped up production after putting the chip shortage in the rear-view mirror. That might no longer be the case. And now the COVID-19 pandemic is complicating matters further. Case in point: Dearborn, Mich.-based Ford Motor Co. is scaling back production of the F-150 […]
Earlier this month Steel Market Update celebrated our 13th anniversary of officially being in business. I say “officially” because I was publishing the newsletter for a few years prior to starting SMU as a legal entity. It has been a while since I last related the history of Steel Market Update. Where did the idea […]
Steel Dynamics’ top executive said he remains very optimistic about the market’s outlook, especially for the balance of 2021, but expects the trend to carry well into 2022. “I’m really bullish,” said Mark Millett, SDI’s president and CEO, during a fireside chat at SMU’s 2021 Steel Summit on Tuesday in Atlanta. “We’re booking for December […]
It’s not wise to call an inflection point based on one week of data. But I’m going to do it anyway. Because while SMU might have just one week of somewhat bearish survey data, there are plenty of other data points out there to say with some confidence that we’re at or near a peak […]
If steel buyers are concerned about lead times that are beginning to shorten and price increases that are beginning to slow, there is no sign of it in this week’s Steel Buyers Sentiment readings. The Current and Future Sentiment indexes remain at or near record highs as steel producers and distributors continue to enjoy record […]
Steel Buyers Sentiment, as measured by Steel Market Update, has never been higher despite concerns over the latest COVID variant and signs that the rate of rise in steel prices is beginning to slow. SMU’s Current Sentiment Index registered a new all-time high of +84 this week – the first time the index has broken […]
Construction firms are struggling to find enough qualified workers to hire even as they continue to be impacted by pandemic-induced project delays and supply chain disruptions, according to the results of a workforce survey conducted by the Associated General Contractors of America and Autodesk. The survey results underscore how the coronavirus pandemic has created constraints […]
With the exception of coated products, lead times for delivery of flat rolled and plate steel have shortened by a week or more – the first significant decline this year and a possible sign that rising steel prices are losing momentum. Lead times for spot orders of steel have extended continuously since the market bottomed last […]
Lead times have shortened noticeably based on Steel Market Update’s check of the market this week. But don’t read too much into that one data point. Other factors point to more of the same for steel prices, at least for a while. As reported elsewhere in this issue, lead times appear to have shortened by a […]
Settling on the direction of SMU’s Price Momentum Indicators has been an easy task for the past year. Prices on all products were clearly moving upward week after week as demand continued to outstrip supplies. Today, the market is changing, and the trend is less clear. Determining price momentum is considerably trickier. SMU does not […]
Steel Market Update’s check of the market this week shows HRC setting a new record at $1,955 per ton, just a stone’s throw from a $2,000 mark that was once unimaginable but now seems inevitable. As one observer opined: “I don’t expect to see any actual easing until we get to $2,000 a ton.” Very […]
Flat rolled and plate steel prices were flat to up modestly this week as the year-long uptrend appears to be flattening somewhat. Hot rolled hit yet another historical high mark at $1,915 per ton, according to Steel Market Update’s check of the market this week, up another $15. It’s too soon to tell if prices […]
Flat Rolled = 51.3 Shipping Days of Supply Plate = 49.6 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories spiked in July with better on-time delivery from domestic mills, the arrival of imports and a slowdown in shipments. At the end of July, service centers carried 51.3 shipping days of supply, […]
Steel demand remains strong, outpacing supplies in the U.S. and causing prices to continue escalating. The trend is attracting more imports as customers look overseas for price and supply relief. June data shows imports of most steel products have risen over the past two months as imports’ share of total sheet product shipments rose to 16.2%, […]
Memorize these words, “carbon border adjustment tax,” as they are being mentioned in the Senate Budget Committee, which is working on the $3.5 trillion reconciliation package the Senate advanced on Wednesday. The idea proposed would “account for the cost incurred by U.S. businesses to comply with laws and regulations limiting greenhouse gas emissions,” based on […]
The steep rise in prices for construction materials and services continued in July, as contractors grapple with supply challenges, reported the Associated General Contractors of America in its latest analysis of government data. AGC officials have urged the Biden administration to immediately end tariffs and quotas on steel, aluminum, lumber and other essential construction items […]
As domestic hot rolled steel prices climb upwards of $1,900 per ton, foreign steel imports continue to tempt U.S. buyers, according to Steel Market Update’s latest foreign versus domestic hot rolled steel price comparison. While domestic prices have risen week after week, foreign prices have remained steady to down, holding potential discounts of 13% to 40% after taking […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor Sheet prices in the U.S. Midwest market have continued to rise, though the rate of increase has slowed since the end of May. The price of HR coil has increased $21 /s.ton w/w and is now $126 /s.ton higher than our assessment on […]
The average spot market price for hot rolled coil reached a notable new benchmark this week at $1,900 per ton, according to Steel Market Update’s check of the market on Monday and Tuesday. That’s an astounding 78% higher than the previous record of $1,070 per ton seen in the summer of 2008. Prices for flat […]
It’s time to wish a happy birthday to the flat rolled steel price rally that was born one year ago. It’s official. The rally in flat rolled steel prices has lasted one year and may have more room to grow. On Aug. 11, 2020, Steel Market Update reported benchmark spot hot rolled coil prices averaging […]
The U.S. Senate passed the $1 trillion infrastructure bill. The bill includes $550 billion in new spending. The bill calls for $110 billion for roads, bridges and major infrastructure projects. It also includes $40 billion for bridge repair and replacement, $39 billion to modernize public transit, $66 billion for passenger and freight rail, $65 billion to […]
We are seeing the early signs of a market where flat rolled steel prices are either peaking or about to top out. Last week, I spoke about service center spot prices into their end customers. I mentioned that both the manufacturing companies, and the service centers themselves, were beginning to report spot prices as being […]
Just because all major U.S.-based steel mills have reported quarterly results doesn’t mean that earnings season is over. Results from mills based abroad are coming in. And those of you still paying attention to earnings might have noticed a change in tone between when Steel Dynamics kicked things off on July 19 and when Evraz […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor Prices fell w/w in southern Europe and China but were stable in Asia and up somewhat in India. Prices in the U.S. again were the outlier this week, rising by three times as much as anywhere else. In fact, the differential between U.S. […]
Toronto-based Russel Metals, Canada’s second largest metals distributor, posted its best second-quarter earnings ever off strong market conditions, the company said. Driven by rising demand and constrained supply chains, pre-tax earnings totaled $178 million, up 38% from Q1 on sales of $1.07 billion. That compares to EBITDA of $32 million on sales of $588 million in […]
Olympic Steel reported record sales and the most profitable quarter in company history. The achievement in the service center’s second quarter was bolstered by exceptional market conditions and historically high metal prices, the company said. Driven by higher pricing, Olympic set a sales record for the second consecutive quarter, posting net sales of $556 million […]
Ryerson recorded its best quarterly profits since 2008 in the second quarter and expects the good times to continue into the third. “We’re not declaring an end to cyclicality in our industry, but noting strong secular growth underpinnings that have been supressed for a long time,” Ryerson President and CEO Eddie Lehner said during a […]
Steel Market Update’s check of the market this week shows no significant change in lead times for deliveries of spot orders from the mills. Average lead times for hot rolled orders remain above 10 weeks, while those for cold rolled and coated products are still above 12 weeks – at least twice as long as […]
Steel prices have moved steadily and predictably upward week after week for the past year. But Steel Market Update’s check of the market on Monday and Tuesday delivered some mixed signals for the first time since August of 2020. Hot rolled coil prices moved up again by another $30 per ton, falling just short of […]