There is a considerable amount of information/debate happening in Washington, D.C., Canada, Mexico, China and Europe regarding tariffs either in place or being threatened by the Trump administration. We included a press release in tonight’s issue that was sent out by Wilbur Ross of the U.S. Department of Commerce earlier this week. U.S. Trade Representative […]
We gathered mixed results regarding flat rolled and plate steel pricing over the past two days. When we say mixed, we don’t mean some prices falling while other prices were rising. What we found was pricing stable to rising. We heard from a number of buyers that there were mills still actively pursuing prices at, […]
Steel Market Update data and comments from industry executives suggest that steel prices may be near a firm bottom. Prices are trying to move higher following the mills’ $40 per ton increase announcement last month. SMU’s Steel Price Momentum Indicators remains at Neutral, but we will be reviewing the situation over the next few days. […]
The new year has gotten off to a positive start for members of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI), who supply steel products to the HVAC market. Most are optimistic about business, at least in the coming quarter, but comments during their monthly conference call today reflected some disagreement over steel prices. “We […]
Global manufacturing is approaching the stagnation point, says a new survey by J.P. Morgan and IHS Markit. The J.P. Morgan Global Manufacturing PMI fell for the ninth month in January to register 50.7, its lowest reading since August 2016. Trade tension originating with the U.S. was a common theme throughout the IHS Markit PMI reports […]
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 Chicago Business Barometer plummeted in January, falling 7.1 points to 56.7 from December’s downwardly adjusted reading of 63.8. New orders and production contributed heavily to the decline as new orders dropped to a two-year low and production to a 10-month low. Order backlogs eased to a three-month low and delivery of raw materials improved […]
We have seen Nucor, U.S. Steel, NLMK USA and ArcelorMittal move spot flat rolled base prices up $40 per ton effective immediately. That is what was announced this week. The reality is not yet clear, and the prices referenced in tonight’s pricing assessment only marginally take the increases into account as negotiations are very early […]
Major domestic steelmakers have announced a $40 per ton ($2/cwt) hike in the price of hot rolled, cold rolled and galvanized steel products, fueling the debate over whether current market conditions can support an increase or if the latest announcement is bound to flop like the last one in October. West Coast mills California Steel […]
Nucor Corp. surpassed expectations for 2018, reporting net earnings of $2.36 billion for the full year compared to $1.32 billion in 2017. Net sales jumped 24 percent to $25.07 billion due to a 5 percent increase in tons shipped and an 18 percent jump in the average sales price per ton. Nucor shipped 27.9 million […]
What an interesting week it has been, and it’s only Tuesday. As previous articles have already stated, Nucor, U.S. Steel, NLMK USA and ArcelorMittal (verbally) have joined California Steel and USS/POSCO by announcing $40 per ton price increases on flat rolled. For those of you who are new to the industry or to our newsletter, […]
Mill lead times for spot orders of flat rolled steel continued to shrink this month. Even plate, which has been in short supply, is showing signs of loosening with its average lead time dipping to less than six weeks from more than seven weeks at the beginning of January. Lead times for steel delivery are […]
Halfway through the first month of the year, buyers report that most mills are willing to talk price to secure the order. Even price negotiations with plate mills are beginning to loosen up. Nearly half (47 percent) of plate buyers responding to Steel Market Update’s market trends questionnaire this week said suppliers are now open […]
The plate markets have been acting quite differently than the hot rolled markets for some time. As hot rolled prices have eroded, plate prices have stabilized, with discrete plate trading around $1,000 per ton, delivered to the mill’s customer. We are seeing the dynamics of the plate markets changing, and SMU wants to be careful […]
Steel Market Update asked: When do you expect flat rolled steel prices to reverse course and begin rising? Judging by the widely varied responses to this week’s market trends questionnaire, there is no clear consensus among steel buyers on when prices will turn around. A small group, about 6 percent, said they believe prices will […]
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 Metal and […]
All is quiet on the eastern front (the western front announced increases yesterday – so, not so quiet there). Steel buyers have been telling Steel Market Update over the past few days that their inventories are stable to high, they are not comfortable with all of the uncertainty and concerned with the lack of transparency […]
California Steel Industries (CSI) and USS-POSCO Industries (UPI) announced price increases of $40 per ton ($2.00/cwt) on Monday, hoping to stem the slide in flat-rolled steel prices that began last summer. The announcements do not include plate. In its Jan. 21 letter to customers, CSI stated that it is opening its order book for flat-rolled […]
On Monday, California Steel Industries (CSI) and USS/POSCO (UPI) advised customers of their intention to take spot prices on flat rolled products produced by the two mills up by $40 per ton ($2.00/cwt). This is the first price announcement out of either mill since October 2018. So far, there have not been any announcements out […]
On Monday, California Steel Industries (CSI) and USS/POSCO (UPI) advised customers of their intention to take spot prices on flat rolled products produced by the two mills up by $40 per ton ($2.00/cwt). This is the first price announcement out of either mill since October 2018. So far, there have not been any announcements out […]
Steel Dynamics is excited about its recently announced plans for a new steel mill in the Southwest. After an outstanding year, breaking records for shipments, sales, net income and cash flow, CEO Mark Millett is looking forward to filling a steel void in the southwestern U.S. and Mexico. Steel Dynamics hopes to announce a site […]
California Steel Industries (CSI) and USS-POSCO Industries (UPI) announced price increases of $40 per ton on Monday, hoping to stem the slide in flat-rolled steel prices that began last summer. The announcements do not include plate. In its Jan. 21 letter to customers, CSI stated that it is opening its order book for flat-rolled orders […]
By CRU Principal Analyst Josh Spoores Scrap prices in the U.S. fell $30 /lt m/m in January, the first time since 2006 that prices have declined in the month. The fall was also the largest December to January decrease in at least two decades for obsolete grades. The unusual decline occurred because supply outpaced demand […]
Steel Market Update spoke with a number of foreign steel trading companies who service the North American market today. There was one very clear theme no matter who I spoke with – steel buyers are not willing to take any risk on foreign steel with spreads less than $60 per ton. A second common theme: […]
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 […]
When we looked at the hot rolled coil market this week, it became apparent there were a number of pressures on that particular product. Pressures from short lead times, for one. Some of our sources reported HRC lead times around 2-3 weeks. We also have at least one mill looking for market share with numbers […]
When we go out for flat rolled and plate steel spot pricing, we do so in a number of ways in order to maximize the number of responses. This week SMU sent out an email inquiry requesting information on pricing, but also on lead times, inventories and foreign steel offers, and we solicited general open […]
If the prevailing view in the market proves correct, steel mills will announce a price increase soon—but it won’t stick. Two out of three steel executives responding to Steel Market Update’s market trends questionnaire this past week believe the mills will announce an increase in flat rolled prices by the end of January. But given […]
Mill lead times turned the corner on the new year little changed from mid-December. At less than four weeks for hot rolled and around six weeks for cold rolled and coated products, lead times for spot orders of most products are as short as they have been in over a year. While still in high […]
Steel Market Update’s first canvass of the new year shows a subtle shift in the price dynamic between mills and steel buyers. No doubt, buyers still have a lot of leverage and most mills are usually willing to talk price to secure the order. But SMU’s findings show a slight tightening in negotiations. In the […]