Note: this article was corrected on 5/3/2019; scrap will be down by $20-$30 per ton-in May, not falling to $230 per ton as previously stated. Ryerson Holding Corp. is expecting a better second half for the steel industry despite some weakening economic data and inventory issues. “Last year was a very unusual time for our […]
This comment from a large national service center says it all: “Prices are all over the place. It’s as if the discipline is lost. Different mills all seem to have some sort of hole or gap they’re trying to fill causing pricing heartburn.” Steel Market Update saw further erosion in spot prices on flat rolled […]
Business activity unexpectedly declined in the Chicago area, according to the latest MNI Chicago Business Barometer survey. The Barometer, a survey of purchasing and supply management professionals in the Chicago area, lost 6.1 points, falling to 52.6 in April and to its lowest level since January 2017. “This was a disappointing start to the second […]
When I was in Atlanta, the questions on the minds of the members of the Association of Specialty Cold Rolled Steel Producers were connected to trying to get a better handle on this market. The questions were less about the direction of flat rolled prices, but rather why are steel prices tumbling with Section 232 […]
When I was in Atlanta, the questions on the minds of the members of the Association of Specialty Cold Rolled Steel Producers were connected to trying to get a better handle on this market. The questions were less about the direction of flat rolled prices, but rather why are steel prices tumbling with Section 232 […]
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 […]
The vast majority of flat rolled and plate steel buyers are reporting to Steel Market Update that prices on all products will be moving at best sideways, with most believing prices will move lower from here. We are seeing pressure on hot rolled, cold rolled and plate prices right now as indexes on these products […]
Steel buyers continue to express concerns about hot rolled, cold rolled and plate steels. We have seen weakness in those products over the past week to two weeks. Galvanized and Galvalume have had more staying power, however buyers are not rushing to fill their inventories at today’s pricing. There is a wait-and-see attitude regarding future […]
Steel Dynamics has narrowed the choice for its new flat rolled steel mill to either Texas or Louisiana. The planned $1.8 billion EAF mill will have an annual production capacity of 3 million tons and include a 450,000-ton galvanizing line and 250,000-ton paint line with Galvalume capability. The mill will differentiate itself by producing higher […]
“A somewhat challenging flat-rolled price environment” is how Steel Dynamics CEO Mark Millett described the first quarter of 2019. SDI posted net income of $204 million in the first quarter and sales of $2.8 billion. Lower steel prices impacted sales resulting in 3.0 percent decline sequentially. Operating income for the company’s steel operations fell 22 […]
Non-coated flat rolled and plate prices are under pressure and there is worry coming from steel buyers about the second half of this calendar year. I am hearing mixed results regarding actual demand. The weather has finally broken in the north and products such as the metal building industry are seeing significant gains. We also […]
Average lead times for spot orders of steel, including all types of products, have shortened slightly in the past two weeks. Hot rolled lead times now average around four weeks, cold rolled and Galvalume around six weeks, and galvanized down to nearly six and a half weeks. Lead times for plate are now less than […]
Flat rolled steel prices saw a little more weakening this week, and steel buyers are concerned that more erosion in prices could be coming in the next few months. Here is how we see prices this week: Hot Rolled Coil: SMU price range is $640-$700 per ton ($32.00/cwt-$35.00/cwt) with an average of $670 per ton […]
I am making the following comments in my Final Thoughts section for a reason. My Final Thoughts is the area where I will sometimes provide my opinion or make comments regarding conversations that I am having about the market that I haven’t been able to totally put my finger on yet. I know that may […]
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 […]
We saw weakness in a number of the products we index this week. We are not seeing a collapse of the market, and as we discuss in another article in tonight’s issue, there are regional and product differences. The various products are not working in concert right now. We moved our Price Momentum Indicators on […]
SMU was speaking to a coated sheet steel buyer this afternoon about flat rolled steel prices. He made an interesting observation about how the markets have become quite complicated. When looking at galvanized, for example, there are different starting points for light gauge, medium gauge and heavy gauge steels. There are also regional differences (southern […]
We saw weakness in a number of the products we index this week. We are not seeing a collapse of the market, and as we discuss in another article in tonight’s issue, there are regional and product differences. The various products are not working in concert right now. We moved our Price Momentum Indicators on […]
SMU was speaking to a coated sheet steel buyer this afternoon about flat rolled steel prices. He made an interesting observation about how the markets have become quite complicated. When looking at galvanized, for example, there are different starting points for light gauge, medium gauge and heavy gauge steels. There are also regional differences (southern […]
Sales of HVAC products remain fairly strong in most parts of the country, but prices don’t fully reflect that demand, reported members of the Heating, Air-conditioning and Refrigeration Distributors International in their monthly conference call. “I still think the market is fragile,” commented one HARDI member. “The mills have a lot of fundamentals in their […]
By CRU North America Analyst Ryan McKinley U.S. long product prices have come under downward pressure, driven primarily by persistently high inventory levels. This inventory build-up has been compounded by an increase in import levels in March relative to the prior month, and consistently wet weather in many regions of the U.S. has delayed any […]
I’m going to give you more than advertisements in tonight’s Final Thoughts. I have been struggling with our SMU Price Momentum Indicator. It appears that each product has a life of its own, and I need to do a deeper analysis of each to determine where my Momentum Indicator needs to be. Right now, I […]
Lead times for spot orders of hot rolled, cold rolled and galvanized steels are now about a week longer than they were in January, but have seen only small upticks in the past month. Lead times for plate and Galvalume have actually shortened slightly. Hot rolled lead times now average a bit more than four […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel In the last month, the CME U.S. Midwest HR future front month price has declined over $40/ST. Latest indexes indicate spot […]
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 […]
On Tuesday of this week, Steel Market Update published a hot rolled price range of $650-$720 per ton, with an average of $685 per ton. The lower end of our range dropped $40 per ton ($2.00/cwt) while the upper end of our range remained the same. Our Price Momentum Indicator on hot rolled remained unchanged […]
On Tuesday of this week, Steel Market Update published a hot rolled price range of $650-$720 per ton, with an average of $685 per ton. The lower end of our range dropped $40 per ton ($2.00/cwt) while the upper end of our range remained the same. Our Price Momentum Indicator on hot rolled remained unchanged […]
Ferrous scrap prices for June have settled down another $30/GT, surprising a market that was expecting little or no decline this month and adding further pressure to already weak finished steel prices. Scrap prices have been on a downward trajectory since January. The drop in scrap prices this month was caused by low mill demand […]
Ferrous scrap prices for June have settled down another $30/GT, surprising a market that was expecting little or no decline this month and adding further pressure to already weak finished steel prices. Scrap prices have been on a downward trajectory since January. The drop in scrap prices this month was caused by low mill demand […]
Hot rolled is the weakest product and our HRC average priced dropped due to lower prices collected out of two minimills. We understand one mill is offering even lower numbers for large tonnage, but we did not include that in our numbers for this evening as we want to speak directly with the mill to […]