We saw more erosion in hot rolled steel prices this week based on the responses we received from our data providers throughout the day today. Benchmark hot rolled dropped to an average of $835 per ton, while other flat rolled products saw mixed results. Cold rolled rose as the low-end numbers disappeared from last week. […]
Spot plate prices have not budged this week, according to the numerous data points received from both large and small plate buyers today. Our range is $980 to $1,030 per ton delivered with an average of $1,005 per ton. The domestic plate mills continue to be on “controlled order entry” (they don’t like the word […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA 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 […]
Demand for steel products has been strong and improving for much of the year, but the findings of Steel Market Update’s latest flat rolled and plate steels market trends questionnaire show that more companies see demand for their products declining than increasing under the current market conditions. However, when you view the graph below, you […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Lead times for most flat rolled steel products continue to shrink, according to returns from Steel Market Update’s latest market trends questionnaire. Lead times for steel delivery are a measure of demand at the mill level—the shorter the lead time, the less busy the mill, and theoretically the more flexible the price. Lead times for […]
Hot rolled prices slipped this week while the other flat rolled products pretty much held their own. Plate prices in December are running essentially unchanged to November with limited spot tons available. Here is how we see prices this week: Hot Rolled Coil: SMU price range is $820-$860 per ton ($41.00/cwt-$43.00/cwt) with an average of […]
Manufacturing expanded in September, according to the latest Manufacturing ISM Report on Business. The headline PMI posted at 59.8 percent, well over the neutral point of 50.0, but fell 1.3 percent from August. “Export orders expanded, but four major industries are no longer contributing. Price pressure continues, but the index softened for the fourth straight […]
The slowdown for global manufacturing continued in September, according to the latest J.P. Morgan Global Manufacturing PMI. The headline PMI fell to a 22-month low at 52.2, down from 52.6 in August. The PMI has been above the 50.0 neutral mark since March 2016, but has declined in each of the past five months. Output […]
CSN continues to export slabs and coated steels to the United States, but tariffs and quotas make the market a challenge for the Brazilian steelmaker, reports a Steel Market Update source. Earlier this year, Steel Dynamics bought the CSN conversion mill in Terre Haute, Ind. At the time of the purchase, the company had two […]
Members of the Precision Metalforming Association are expecting business conditions to remain steady for the rest of the year. A survey of 110 metalforming companies in the U.S. and Canada showed 28 percent of participants believe economic activity will improve, 62 percent expect no change (same as last month) and 10 percent expect a decline […]
The slippage in spot pricing has slowed as flat rolled and plate prices continue to remain firm. We saw a tightening of the spread on hot rolled as both the upper and lower ends of the range moved closer. The other flat rolled products saw strength at the lower end of the range with adjustments […]
The percentage of manufacturing companies and service centers reporting distributor spot prices as weakening is nearing the SMU level of capitulation. Capitulation is the point at which steel distributors are panicking and dumping what is perceived as high-priced steel into the spot market at ever lower prices. The process feeds on itself and the distributors […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA 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 […]
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 The HR spot market has continued to decline, however we have a bit of a divergence as the HR futures curve prices […]
Lead times for most flat rolled steel products are about a week shorter than they were two months ago. Shorter lead times suggest that steel demand is easing. Lead times for steel delivery are a measure of demand at the mill level—the shorter the lead time, the less busy the mill. Lead times for hot […]
First, I must warn steel buyers that the USW may be losing patience with U.S. Steel and ArcelorMittal USA. We are monitoring the individual locals and we will report when we think something is going to break. The question right now is how long a leash is the union offering? As I said the other […]
Steel Market Update saw slippage in the lower end of the ranges on hot rolled, cold rolled and Galvalume steel prices this week. Galvanized remained the same, as did plate. Here is how we see prices this week: Hot Rolled Coil: SMU price range is $810-$890 per ton ($40.50/cwt-$44.50/cwt) with an average of $850 per […]
Distributors of products for the HVAC sector are keeping a tight rein on inventories as pricing for galvanized steel continues to weaken. The wholesalers are seeing pressure from customers postponing orders in anticipation of better prices down the road. “It appears customers are living hand to mouth, waiting to place any large orders until they […]
The Empire State Manufacturing Index slid seven points in September from its 10-month high in August. The general business conditions index showed a slower pace of growth with a reading of 19.0 for the month, below economists’ expectations of 23. New orders and shipments continued to expand but at a softer rate, falling 0.6 points […]
Flat rolled spot base prices continued to drop over the past week. There are mixed emotions from steel buyers with some believing the weakness being seen is an “overreaction” to a “perceived” weakness in the steel mill order books. Comments were made to Steel Market Update during the data gathering process that weakness is mill […]
Written by John Packard, President & CEO, Steel Market Update When I was selling steel for a domestic mill (Winner Steel, now called NLMK Sharon), there was always cause for concern when steel buyers would contact me and reference a price from a trade publication that I knew to be “out of date” with the […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA 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 […]
Future Sentiment, measured as both a single data point and as a three-month moving average (3MMA), is near its low point of the year as conflict on the trade front keeps buyers guessing. Future Sentiment registered +55 in Steel Market Update’s latest Steel Buyers Sentiment Index, down from +67 in mid-August. Current Sentiment registered +63, […]
Lead times on most flat rolled steel products continue to shorten, according to Steel Market Update’s latest market trends data. Lead times for steel delivery are a measure of demand at the mill level—the longer the lead time the busier the mill. Shortening lead times suggest steel demand is easing. Lead times for hot rolled […]
Once again flat rolled steel prices fell as steel buyers held back orders sensing blood in the water (lower prices). As one service center owner put it to Steel Market Update this afternoon, “The question is how weak can it get?” We were told the market had been acting like it had a “slow leak” […]
Global manufacturing was subdued in August said J.P. Morgan and IHS Markit. The J.P. Morgan Global Manufacturing PMI was at a 21 month low of 52.5 in August, down 0.3 points from July. “August PMI data signaled a slight firming in global manufacturing output growth to a solid pace at near three percent annualized,” said […]
Flat rolled steel prices declined over the past week. We saw prices drop by $15 per ton on all products except hot rolled, which was down $5 per ton. Plate prices remained the same with prices essentially rolling over for many customers from October to November. However, plate buyers are warning SMU of maintenance issues […]
Sixty-two percent of those responding to Steel Market Update’s latest market trends questionnaire believe steel prices on the spot market are on the decline. Another 35 percent expect prices to remain the same. Only 3 percent feel steel prices could still move higher. SMU has adjusted its Price Momentum Indicator to Lower, meaning prices are […]
Lead times for steel delivery are a measure of demand at the mill level—the longer the lead time the busier the mill. Lead times on hot rolled and cold rolled steel products have remained flat over the past couple of weeks, while coated products saw some shortening of delivery times, according to Steel Market Update’s […]