Nucor’s Plate Group notified customers on Friday that it is raising the price of carbon and alloy plate and heat-treated plate by a minimum of $40 per ton ($2/cwt), effective immediately on all new spot orders. “In recent weeks, plate pricing has fallen to unsustainable levels. While end-use demand and project business remains stable, the […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
Lead times for steel delivery have continued moving out over the past two weeks as the three price increases announced by the mills have drawn more buyers off the sidelines. The average lead time for hot rolled has moved up to more than four weeks, cold rolled to about six weeks, and coated steels to […]
Flat rolled steel prices continued their march higher – even prior to the ArcelorMittal USA price increase announcement. The domestic mills are determined to move prices higher. As one mill executive put it to Steel Market Update today, “I think the fall from $940 to $505 was too much, too fast. Way overshot a fair […]
This week we solicited input from steel buyers (and steel mills) regarding their reaction to the third round of price increases, which was kicked off by ArcelorMittal USA yesterday. On June 24, Nucor announced the first of the latest round of mill price increases on spot flat rolled steel. Nucor advised that hot rolled, cold […]
This week we solicited input from steel buyers (and steel mills) regarding their reaction to the third round of price increases, which was kicked off by ArcelorMittal USA yesterday. On June 24, Nucor announced the first of the latest round of mill price increases on spot flat rolled steel. Nucor advised that hot rolled, cold […]
Nucor’s Sheet Mill Group informed customers today that it is increasing base prices on new orders of flat rolled steel by an additional $40 per ton ($2/cwt), effective immediately. The announcement marks the third $40 increase by the market-leading steelmaker in the past month. The $40 price hike applies to all unconfirmed orders of hot […]
By Fouad Egbaria, MetalMiner Editor’s note: The following article, Chatting with CRU’s Josh Spoores Ahead of the 2019 SMU Steel Summit, originally appeared in MetalMiner’s July 18 edition. Those in the steel sector will have a chance to learn about all of the trends impacting the steel industry during the upcoming SMU Steel Summit, scheduled […]
Tomorrow we will begin our mid-July flat rolled and plate steel market trends analysis. This means we will have more information regarding pricing (Tuesday), lead times and negotiations (Thursday) and Sentiment and service center spot (Thursday or Sunday) along with other information developed through our questionnaire. If you would like to be included as a […]
Nucor reported a decline in earnings for the second quarter of 2019 due to lower shipments and pricing. A build-up of inventory before the Section 232 tariffs resulted in aggressive destocking at the end of 2018 and into 2019, which impacted order rates, along with an increase in domestic steel supply and a declining scrap […]
SMU contributor 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 […]
We saw upward price movement in flat rolled steel prices this week. Benchmark hot rolled prices now average $550 per ton, up $15 per ton over the past week. All of the other products indexed by Steel Market Update also moved higher. Here is how we see prices this week: Hot Rolled Coil: SMU price […]
Most of my day today was spent communicating with steel buyers and a few steel mills to see where prices are being offered on the spot market by the mills, and where transactions were occurring. As I went through this process, I also collect comments about whether increases are “sticking’ and if the industry believes […]
Steel Market Update has moved our Price Momentum Indicator on flat rolled products from Neutral to Higher. We continue to reference plate Price Momentum at Lower. This move is being made after the domestic steel mills, led by Nucor, announced two rounds of $40 per ton price increases over the past two weeks. SMU is […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
Lead times for steel delivery have moved out a bit in the past two weeks, lending support to recent mill price increases. The average lead time for hot rolled has moved up to nearly four weeks, cold rolled to nearly six weeks, and coated steels to more than six weeks. Plate lead times are bucking […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations made by […]
I am carefully watching flat rolled and plate lead times, the ongoing negotiations and tone of the discussions between buyers and sellers of steel, as well as industry sentiment and how service centers are handling their spot pricing into their customers. We are seeing some signs of momentum shifting on some products (especially coated), but […]
Our pricing data was collected on Monday and Tuesday of this week prior to the new Nucor price increase announcement on flat rolled steel. We are seeing the market as stable to slightly higher. This week, especially in light of the second price announcement (combined totaling $80 per ton), we will be able to see […]
Last week, the domestic steel mills raised prices on hot rolled, cold rolled and coated products (galvanized, Galvalume, etc.) by approximately $40 per ton ($2.00/cwt). Since then, we have seen lead times move on hot rolled by about 1 to 1.5 weeks, according to the steel buyers canvassed yesterday and today. Cold rolled and coated […]
Steel Market Update asked steel buyers this week to respond to the following question: Do you believe a floor has been put on prices and they will rise from here? Here are some of the responses received: “A floor is possible, but I fear that if we see the expected downward move for scrap prices […]
Global manufacturing contracted in June with manufacturing indices falling as trade tensions and tariffs impacted business conditions. At 49.4, the J.P. Morgan Global Manufacturing PMI contracted to its lowest rate in six-and-a-half years. International trade continued to weaken with export orders falling for the tenth consecutive month. The majority of countries in the June survey […]
A note this morning from one of my scrap friends: “Btw, we are not getting too excited just yet, the scrap market is clearly beginning to bottom a bit. Should strengthen a little in August.” I am getting mixed messages on lead times, but I think the consensus is lead times have moved out […]
This week I will be working with steel buyers (and steel mills) to see how the price increase on flat rolled is being received. As is normal when lead times are short and price announcements are made, many mills held pricing through the end of last week for those who had outstanding quotes or needed […]
There seem to be more questions than answers regarding the move by the domestic flat rolled steel mills to increase spot base pricing on hot rolled, cold rolled, galvanized and Galvalume steels. The move was taken as the low end of the benchmark hot rolled steel base pricing was dipping below $500 per ton. The […]
Flat rolled and plate steel prices tumbled again this week. The question now: Is this the last drop we will see as the domestic steel mills have stepped forward and announced price increases to the tune of $40 per ton? Base prices for benchmark hot rolled were beginning to pass through the psychological $500 per […]
As I expected, Nucor came out with a $40 per ton ($2.00/cwt) price increase on flat rolled this afternoon. This is the first Nucor price increase since Feb. 20, 2019. Shortly after the Nucor announcement, USS/POSCO followed with an increase letter of their own and then NLMK USA put out a letter identifying the minimum […]
One thing is certain in this crazy steel market, service centers are taking their spot prices lower and lower as each week passes. Manufacturing companies are almost unanimous in their view that flat rolled steel distributors are decreasing their spot offers. We saw 93 percent of the manufacturing companies responding to last week’s SMU flat […]
With steel prices at such surprisingly low levels, it’s only a matter of time before the domestic mills announce a price increase. The only point of debate is when. There’s clearly some disagreement over whether the market has found a bottom yet. Slightly more than half of the service center and OEM executives responding to […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]