Earlier today, Steel Market Update (SMU) adjusted our Price Momentum Indicator from Neutral to Lower. Flat rolled prices have been slowly dropping for more than a month and it does not appear there is anything that is going to stop the leak from continuing, at least not over the next 30 days. Flat rolled steel […]
In a move that has been building over the past few weeks, today Steel Market Update (SMU) is moving our Price Momentum Indicator to Lower from Neutral. Our belief at this point is flat rolled steel prices will continue their drift lower over the next 30-60 days as we approach what many in the steel […]
HVAC wholesalers reported despite “good” demand they are seeing ultra-competitive conditions on the sales of galvanized steel they are attempting to sell into the HVAC (heating, ventilation, air-conditioning) markets. Steel Market Update participates in a monthly steel conference call hosted by HARDI (Heating, Air-conditioning, and Refrigeration Distributors International) for their member companies. The HARDI conference […]
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 We have seen some evidence late this week of participants “buying the dips” in what has been a rather thin and […]
We saw mixed results this week with two products moving lower (hot rolled and galvanized), two remained the same (cold rolled and Galvalume), and plate prices rose a modest $5 per ton. Here is how we see prices this week: Hot Rolled Coil: SMU price range is $580-$640 per ton ($29.00/cwt-$32.00/cwt) with an average of […]
Lately, Steel Market Update (SMU) has been hearing the word “risk” bantered about by many within the steel industry. In Steel Market Update’s opinion, how one perceives the risks associated with buy and sell decisions is one of the factors determining the direction of flat rolled steel prices. which at this time are moving lower. […]
Steel Market Update (SMU) has been struggling to make sense of the most recent carbon flat rolled inventory numbers for service centers. What we learned from the MSCI did not match the conversations we were having with service center steel buyers across the country. SMU has been working on ways to provide a separate and […]
Flat rolled steel lead times are running essentially flat (same as what we have been reporting over the past few weeks) based on the responses we received from manufacturing companies and service centers this week. Lead time is the amount of time it takes a domestic steel mill to produce a new order if placed […]
Steel Market Update (SMU) has been conducting one of our flat rolled steel market trends surveys this week. According to those responding to our questionnaire, steel mill resistance to holding firm on flat rolled steel spot prices is in free fall. A very large portion of our respondents reported mills as willing to negotiate on […]
Ryerson Holding Corporation, a distributor and value-added processor of industrial metals, reported net income of $14.8 million in first quarter 2017 on revenue of $814.5 million. Increased shipment volume combined with higher selling prices led to strong results for the quarter. Total tons shipped were 497,000 compared to 440,000 tons in first quarter and 478,000 […]
From Steel Market Update perspective the past week was fairly quiet and we did not find any huge changes in prices from what we had reported one week ago. We have a flat rolled steel market trends survey in process right now and a portion of our indices are based on the approximately 100 companies […]
For a number of weeks now (?) Steel Market Update has had our Price Momentum Indicator pointing toward Neutral as opposed to Higher or Lower. Over the past couple of weeks flat rolled prices have been coming off their highs and yet SMU continues to keep our Price Momentum Indicator at Neutral. What gives? Why […]
US Steel stunned analysts and the financial community on Tuesday/Wednesday when the company announced a large loss when the street was expecting the company to make money. During the conference call the mill advised that they essentially need to upgrade their facilities in order for the company to remain competitive. The stock price dropped 25 […]
We have an unusual market. What Steel Market Update is seeing is confidence by most of the steel mills. They feel there may be some minor adjustments in spot pricing as a few mills jockey to maintain their order books. At the same time, most steel buyers are being supportive of the price levels we […]
Over the course of the last four days Steel Market Update (SMU) has been conducting our mid-April flat rolled steel market trends analysis. We finished earlier this afternoon and we are providing the results of some of our findings to our readers this evening. Lead times, which is the length of time it takes to […]
Buyers and sellers of flat rolled steel associated with manufacturing companies and service centers are reporting the steel mills as being more willing to negotiate flat rolled steel spot prices. Based on the responses from those taking our survey, 59 percent reported the domestic steel mills as willing to negotiate hot rolled prices, 76 percent […]
The debate these days seems to be centered around how much inventory is really out there, how much is incoming (especially from foreign sources) and how much flat rolled will buyers need to buy come this summer? Earlier today I asked a small steel mill if they believed the low coated inventories (1.65 months) according […]
Steel Market Update is asked many times where we think flat rolled steel prices are heading. Our current SMU Price Momentum Indicator is at “Neutral” which means we believe the market to be in transition and, prices could move in either direction from this point. We adjusted our indicator just recently from Higher to Neutral […]
Flat rolled prices were essentially unchanged this week with the exception of hot rolled coil which seems to have a few more “legs” in the product due to an improving energy market and limited foreign steel imports. The pressure on HRC right now is coming from the two new players: Big River Steel and Acero […]
On Friday Steel Market Update (SMU) adjusted our flat rolled steel Price Momentum Indicator to Neutral from Higher. The key reason behind our decision to move our indicator is “indecision” in the marketplace. More about that in a moment. The current market cycle began on October 21, 2016 when the domestic mills were able to […]
Steel Market Update (SMU) just concluded our early April flat rolled steel market trends analysis. A portion of that study is focused on steel mill lead times as we look to see if there are any changes in the trend which could affect flat rolled steel price negotiations. Lead times remained constant compared to what […]
As with steel mill lead times discussed earlier in this newsletter, those responding to our flat rolled market trends questionnaire reported the steel mills as modestly willing to negotiate all but Galvalume flat rolled steel pricing. Thirty-eight percent of our respondents reported the domestic mills as willing to negotiate hot rolled pricing. This is 9 […]
Flat rolled steel prices are showing themselves as being in a “mature” market having been on the rise for most of the 24 weeks since prices began their climb at the end of October 2016. We peaked out on hot rolled at $655 per ton over the last two weeks. This week we moved off […]
At the end of March the domestic steel mills cancelled any open portion of their ferrous scrap orders for March delivery with their scrap suppliers. This is always the first sign of an expectation of a drop in ferrous scrap prices once the negotiations begin in earnest for April delivery. Even with the tight supplies […]
As we moved around the industry trying to gauge where flat rolled steel prices are this week, we found most buyers as being optimistic but perhaps not as many as two weeks ago. There seems to be a growing question about whether the market has “peaked” or not. Everyone wants to know where prices will […]
We are getting mixed messages regarding “real” lead times coming out of the domestic steel mills. The information we are sharing below comes from actual mill lead times coming directly from the producing mills to their customers. This is different than the lead time averages collected by Steel Market Update and shared with our readers […]
I had a couple of conversations earlier today regarding the status of trade and, in particular, whether or not there could be further trade cases filed by the domestic steel mills or by the U.S. Department of Commerce. At least one mill is hearing that there could be new trade cases. This could become an […]
Last week, Steel Market Update (SMU) conducted our mid-March flat rolled steel market trends survey. We invited 670 people to participate in the gathering of data and opinions which resulted in our flat rolled steel market trends analysis presented to our Premium level members last Friday in the form of a Power Point presentation. It […]
Buyers and sellers of flat rolled steel having been bouncing like the proverbial rubber ball over the past six weeks as they try to make sense of where steel prices are heading over the near term. Steel Market Update (SMU) asked those responding to our flat rolled steel market trends survey last week where they […]
Flat rolled lead times, which had been stuck in a rut over the past couple of months, have started to move out according to those responding to our flat rolled market trends survey. We are now seeing average lead times on hot rolled close to five weeks (4.81 weeks). We also saw movement in cold […]