Metalforming companies are struggling with higher steel prices and longer lead times as a result of Section 232 tariffs, but are still expecting business conditions to improve during the next three months. The Precision Metalforming Association’s August Business Conditions Report showed 29 percent of participants expect an increase in economic activity, 62 percent expect no […]
Flat rolled steel prices moved lower over the past week. Benchmark hot rolled coil dropped to $885 per ton and momentum continues to point toward lower prices on all but plate products. Here is how we see prices this week: Hot Rolled Coil: SMU price range is $860-$910 per ton ($43.00/cwt-$45.50/cwt) with an average of […]
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 […]
A couple of months ago, Steel Market Update was speaking in front of a group from the financial community. We were asked, “What do you look for as a sign when prices are about to change direction?” Our answer was a mill price increase announcement. Earlier this week, ArcelorMittal USA announced a $30 per ton […]
We saw flat rolled steel prices as being lower this week compared to one week ago. As we reported last week, we are seeing lead times shortening and the mills more active and willing to discuss price during their negotiations. The ArcelorMittal USA price announcement on cold rolled and coated products is not a sign […]
Steel pricing is the product of a complex interplay between supply and demand, along with other factors such as ferrous scrap prices, imports and government trade actions. Steel Market Update canvasses steel executives twice each month with its market trends questionnaire to take the pulse of the industry. The current prevailing view shows supplies tightening, […]
Lead times for steel delivery are a measure of demand at the mill level. Lead times on most flat rolled steel products continue to shorten, according to Steel Market Update’s latest market trends data, suggesting that the mills are not as busy as they were earlier in the year and may be more open to […]
Negotiations between steel mills and buyers have loosened considerably as the mills appear significantly more willing to negotiate spot prices than at any other point this year. Every two weeks, in a proprietary poll, SMU tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. According to respondents to this week’s […]
Most steel buyers are keeping inventory levels steady or even lower believing that, with steel prices so high, the risk is to the downside for the rest of this year. As one steel executive commented: “We are running inventories lean based on the elevated cost and our opinion that there is a greater chance for […]
As many of you are aware, I receive numerous questions on the steel, steelmaking and commodity markets on an almost daily basis. I endeavor to answer the questions that I am able as quickly as I can. Those questions asked that fall outside of my wheelhouse, I will try to locate someone who can help. […]
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 […]
Strong pricing and demand conditions boosted Ryerson’s second-quarter revenues by 20.8 percent from a year ago to $1.1 billion. Revenue increased 12.3 percent from the first quarter of 2018. Adjusted EBITDA, excluding LIFO, more than doubled from a year ago to $106.6 million and was more than 70 percent higher than first-quarter results. Ryerson CEO […]
A pretty quiet week as buyers and sellers sneak away for their summer vacations. Not much has changed. We saw a few of the flat rolled items as down $5 to $10 per ton and one as unchanged compared to one week ago. Plate prices were up as mills start to take October orders. Here […]
Reports of demand easing a bit in some markets and declining scrap prices in August hint at a steel market that may be in transition. But steel prices remained largely unchanged from last week based on Steel Market Update’s latest data. Here is how we see prices this week: Hot Rolled Coil: SMU price range […]
The Chicago Business Barometer hit a six-month high in June, gaining 1.4 points to post at 65.5. New orders and production also reached six-month highs, increasing 8.0 percent and 10.6 percent, respectively. Increasing demand led to a third month of growth for order backlogs. The indicator posted a nine-month high with firms reporting unfinished work […]
Many steel buyers, and investors in steel futures, are betting that steel prices will follow the typical seasonal pattern and decline in the last few months of the year, even with the Trump tariffs boosting the market. While that may prove true for flat roll, it will most likely not be the case for steel […]
Trading in steel futures shows many companies betting that prices will decline as the year-end approaches, following the normal seasonal pattern. But current market conditions, under the influence of unprecedented government trade action, are anything but normal, leaving steel executives deeply divided over what to expect. Steel Market Update canvassed the market this week, asking […]
Steel Dynamics reported net sales of $3.1 billion and net income of $362 million for the second quarter of 2018, more than doubling its year-over-year income. First-quarter 2018 net sales totaled $2.6 billion with net income of $228 million. “Our second-quarter 2018 income from operations increased 55 percent sequentially to a record $502 million, and […]
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 […]
Lead times, especially on hot rolled steel, have continued to gradually shorten over the past couple of months, according to Steel Market Update’s latest market trends data. Lead times for hot rolled now average just above five weeks, for cold rolled a bit less than seven and a half weeks, for galvanized a bit more […]
Imports of foreign steel continue at a brisk pace, despite the Section 232 tariffs placed on steel imports from every country in the world except Australia (no quota), South Korea (with quota), Brazil (with quota) and Argentina (with quota). Since the Section 232 tariffs began at the beginning of May, and most foreign mill lead […]
Zinc prices were trading at $1.18 per pound this afternoon. Earlier this week, the metal traded as low as $1.13 per pound, but has since rallied off those one-year lows. Even so, the $1.18 per pound level is lower than at any point over the past 12 months (see graphic below). Does SMU expect galvanized […]
My life these days is consumed by our upcoming SMU Steel Summit Conference, our brand-new Steel 201: Introduction to Advanced High Strength & Other New Steels workshop and the next SMU Steel 101: Introduction to Steel Making & Market Fundamentals workshop, as well as writing articles and trying to stay on top of the flat […]
We saw either sideways or modest gains in flat rolled steel pricing this week. Lead times continue to be extended by historical standards and, of course, the 25 percent tariff on most of the foreign steel coming into the United States continues and it does not appear it will be withdrawn at any time soon. […]
The market has been relatively quiet this past week with only minor adjustments to the flat rolled indices. Steel Market Update is hearing steel buyers’ concerns about possible price declines. At the same time, there are others who are positive that prices will remain within $50 per ton of today’s levels through the end of […]
How sustainable are the high steel prices in the United States? Steel Market Update sources point to a number of risk factors that buyers should consider. One service center general manager told us flat rolled and plate prices could only be threatened by an increase in imports. “Sharp price declines are caused by sharp increases […]
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 […]
Flat rolled steel prices were stable to moderately lower this week. Benchmark hot rolled coil was unchanged and, along with plate, is the strongest of the products followed by Steel Market Update. Cold rolled and galvanized index averages were lower compared to one week ago, while Galvalume was unchanged. September orders for plate delivered to […]
Steel Market Update has adjusted our SMU Price Momentum to Neutral from Higher on all products except plate, which remains at Higher for the moment. We chose to move at this time due to weakness we are seeing in the cold rolled and coated steel markets, with mild price erosion already evident in certain markets. […]
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 […]