Seventy percent of the steel buyers polled by SMU last week said they believe prices are near the bottom of the current market. SMU pegs the current benchmark price for hot rolled at around $440 per ton, slightly lower than the consensus view of $460 per ton because SMU learned of some low-$400’s deals late […]
Steel Market Update’s check of the market this week shows hot rolled offers typically in the $460-$480 range. But sources tell us actual transactions are occurring anywhere from $480 down to $400, depending on volumes and other considerations. Thus, SMU puts the current benchmark price for hot rolled at $440 per ton, down $10 from […]
Steel Market Update’s check of the market this week shows flat rolled steel prices firming up a bit as demand slowly recovers from the coronavirus disruptions. SMU puts the current benchmark price for hot rolled at $465 per ton, up from $440 last week. SMU’s Price Momentum Indicators remain at Neutral, though the market may […]
As I look at today’s hot rolled average of $440 per ton (-$10 from last week) I feel it’s my duty to provide some context to our number. SMU captured transactions placed late last week at, or slightly below, $400 per ton for spot hot rolled. Since Monday of this week we were capturing higher […]
Lead times for spot orders of flat rolled steel from the mills were at their shortest in the week of April 30 as orders dried up due to the coronavirus. Since then lead times have extended by about half a week, but saw only minor fluctuations in June and July. Currently, lead times for hot […]
Lead times for spot orders of flat rolled steel are stretching out as demand improves and the mills get busier. Lead times for hot rolled and plate steels have extended past four weeks, while lead times for cold rolled and coated are now longer than six weeks. Lead times are an indicator of steel demand—longer […]
Steel Market Update’s check of the market over the past two days shows that nearly 70 percent of steel buyers believe prices are near a bottom, and the numbers support that view, showing little variation from last week. SMU puts the benchmark average price for hot rolled steel at $450 per ton, unchanged from last […]
Hot rolled steel prices have declined nearly every week since early June when the benchmark price was at $515 to the current average of $450 per ton–a 13 percent decline in just seven weeks. Two out of three respondents to SMU’s poll of the market a week ago said they believe flat rolled steel prices are […]
SMU contributor Tim Stevenson 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 Tim’s previous role, he was a Director at Cargill Risk Management, and […]
Steel Market Update’s check of the market this week shows flat rolled and plate steel prices falling by a further $10, taking the benchmark hot rolled price down to $450 per ton. Most respondents expressed doubts that the price increase announced last week by the integrated mills will gain any traction, especially since the minimills […]
Watch the market closely. I am hearing rumors that at least one EAF mill is trying to get flat rolled numbers up. Right now, most (not all) data providers were not supportive of higher numbers. I am hearing integrated mills are not booking a lot of spot business, and thus are able to get slightly […]
Lead times for spot orders of flat rolled and plate steel have seen relatively little change over the past month, but remain about a half week shorter than this time last year as the market tries to come to grips with doing business in a pandemic. Lead times are an indicator of steel demand—shorter lead […]
This week’s SMU comparison of foreign and domestic hot rolled prices shows that U.S prices have gained an even greater advantage over foreign imports, according to SMU and CRU indices. After shrinking in May, the price gap between domestic HRC compared to German, Italian, and East/Southeast Asian imports has widened over the last few weeks. The […]
Reliance Steel & Aluminum, the industry’s largest service center organization, is expecting a slight increase in demand during the third quarter of 2020 after sales dropped 21.5 percent from the first to the second quarter to $2.02 billion. Shipments for the second quarter declined 17.5 percent to 1.2 million tons with an average selling price […]
NOTE: Steel Market Update will be moving to a new Azure server tomorrow. Most of the day our website will be down as we make the transition. The website should be back up on Saturday and we intend to publish on Sunday as usual, barring any technical difficulties. We are in an interesting time for […]
We are in an interesting time for the steel industry. The pandemic is just one factor behind the stress in the market. The price increase announcements by the integrated steel mills, U.S. Steel, AK Steel and ArcelorMittal, have created another issue for steel buyers. An executive with U.S. Steel saw the slides associated with yesterday’s […]
Hot roll steel held its own this week, remaining at an average price of $460 per ton. Cold rolled, galvanized and Galvalume prices slipped by a further $5-10 per ton, however, based on Steel Market Update’s latest check of the market. SMU will leave its price momentum indicators unchanged—pointing lower for HR, CR and galv—until […]
Wholesalers who sell galvanized steel products to the HVAC sector remain surprisingly upbeat, despite weak steel prices and uncertain demand due to the coronavirus. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International said they are benefiting from some pent-up demand, especially in the Northeast where state and […]
Wholesalers who sell HVAC and galvanized steel products to the construction sector report a market that is sharply split. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) said demand from residential building is surprisingly healthy despite the coronavirus pandemic, while nonresidential/commercial construction is weakening. “I have […]
Now is a good time to consider the futures market, said Andre Marshall, president and founder of Crunch Risk, LLC, during Wednesday’s SMU Community Chat Webinar. Hedging price risk can help bring some certainty to the unpredictability brought on by the COVID-19 pandemic. “Right now, the market is very bearish based on what we are […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Sheet Products Monitor The U.S. Midwest market has continued to record lower weekly sheet prices. Our assessment of HR coil is now down $23 /s.ton since the July 1 assessment and market participants expect further price declines to emerge for all sheet products over the near […]
Flat rolled and plate steel prices continued to slide this week, down by $5 to $15 per ton depending on the product, reflecting the lower scrap prices and uneven demand in July. Steel Market Update’s Price Momentum Index continues to point toward lower prices for hot rolled, cold rolled and galvanized in the next 30 […]
Lead times for spot orders of flat rolled steel saw minor and inconsistent changes in the past two weeks, revealing no clear trend. Hot rolled lead times extended slightly, while lead times for cold rolled and galvanized were flat and plate lead times declined, according to Steel Market Update’s check of the market this week. Lead times […]
This week’s SMU comparison of foreign and domestic hot rolled prices shows that U.S prices continue gain a greater advantage over foreign imports, according to SMU and CRU indices. After shrinking in May, the price gap between domestic HRC compared to German, Italian, and East/Southeast Asian imports has widened over the last month. The following calculation […]
Flat rolled steel prices weakened further this past week with hot rolled averaging $475 per ton, according to Steel Market Update’s latest check of the market. With scrap prices for July poised to settle lower this week, and steel demand still very much in question due to the coronavirus, SMU’s Price Momentum Indicator continues to […]
Global manufacturing contraction eased in June as indices rose steeply, marking the second month of upward trajectory. The J.P. Morgan Global Manufacturing PMI rose to 47.8 but remained below the 50.0 neutral mark. Milder rates of decline for new orders and production were cited as the world recovers from a recession exacerbated by the global […]
After canvassing the market this week, Steel Market Update has moved its price momentum indicator on hot rolled, cold rolled and galvanized steel products to Lower. All three products saw further declines since last week as the market stuggles to gain some traction. With anxiety high over a possible surge in coronavirus cases, and scrap […]
Lead times for spot orders of hot rolled steel have shortened a bit in the past month, which is somewhat unexpected, while delivery times for other flat rolled products have seen small ups and downs as the market searches for a stable footing. Hot rolled lead times now average 3.59 weeks, down from 3.73 two […]
Ferrous scrap prices most likely will move lower in July as scrap supplies are increasing at a greater pace than steel demand. Finished steel prices have shown some weakness lately as the market struggles to get back on track and are unlikely to get any help from scrap next month. Ferrous scrap prices rose $30-40 […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor Steel sheet prices in the U.S. Midwest market were mixed this week with slight declines for both HR and HDG coil, while CR coil was slightly higher. Market contacts have noted that markets are weakening as demand has not come about as previously expected. Lead […]