Olympic Steel reported a net loss of $600,000 for third quarter but managed to expand gross margin 21.2 percent, compared to Q3 2104, despite pressure on pricing and volume. Olympic lowered operating expenses by almost $20 million so far in 2015 as well as lowering debt by a total of $60 million. Sales volume decreased […]
According to Baker Hughes data from November 6, 2015, the U.S rig count for the week was 771 rigs exploring for or developing oil or natural gas. This is a decrease of 4 rigs compared to last week, with oil rigs down 6 to 572 rigs, gas rigs up 2 to 199 rigs, and miscellaneous […]
Twice per month, Steel Market Update (SMU) conducts an analysis of the flat rolled steel market from the perspective of active buyers and sellers of sheet and coil products. We invite approximately 560 companies to participate through the use of a questionnaire that we have been using since 2008. One of the areas probed is […]
Our flat rolled steel survey respondents reported the domestic steel mills as willing to negotiate flat rolled steel prices on virtually every product. The results of our flat rolled steel market analysis conducted throughout this week saw 93 percent of our respondents reporting benchmark hot rolled pricing as being negotiable. This is just about the […]
We found flat rolled prices so far this week at about the same levels seen one week ago. Our hot rolled average remained at $390 per ton ($19.50/cwt) with both the upper and lower parts of our range at the same levels seen one week ago. The lower end of the cold rolled price range […]
Steel Market Update (SMU) asked a manufacturing company when they thought prices will stop dropping? Their response was both classic and profound, “Prices will stop going down, when they go up. Prices can’t go below absolute zero. Question then becomes as to what defines absolute zero…?” Flat rolled steel prices continued their march lower this […]
The Texas manufacturing Outlook Survey released by the Federal Reserve Bank of Dallas showed manufacturing increasing in October after nine months of flat or declining output. The production index rose to 4.8 for the first growth in output for the region in 2015. New orders continued a third month of negative reading, falling 3 points […]
According to Baker Hughes data from October 23, 2015, the U.S rig count for the week was 787 rigs exploring for or developing oil or natural gas. This is unchanged overall compared to last week, with oil rigs down 1 to 594 rigs, gas rigs up 1 to 193 rigs, and miscellaneous rigs unchanged at […]
Buyers and sellers of flat rolled steel are reporting average lead times on hot rolled, cold rolled, galvanized and Galvalume steels as being essentially unchanged from what we reported at the beginning of the month. However, when looking at the graphic below you can clearly see lead times have been in decline since the early […]
SMU spoke with a service center executive earlier today. During our conversion this Midwest based service center expressed his opinion regarding the ability to negotiate domestic steel prices in the current market environment when he told us, “I am beginning to think that with a firm bid you could get a better deal domestically than […]
Boxes are piled high around me as we begin to pack up our office for the move south to our new headquarters in Florida. Excuse our mess as we are trying our best. We had a good response to our latest flat rolled steel market analysis which was conducted via an online questionnaire over the […]
Flat rolled prices dropped $5 to $10 per ton this week as the psychology of the market works against the sellers of steel. Hot rolled continues to be the weakest of the flat rolled products due to the energy, mining and agricultural markets. Other products are faring better (regarding demand) but not to the point […]
According to Baker Hughes data from October 16, 2015, the U.S rig count for the week was 787 rigs exploring for or developing oil or natural gas. This is a decrease of 8 rigs when compared to last week, with oil rigs down 10 to 595 rigs, gas rigs up 3 to 192 rigs, and […]
Flat rolled steel buyers and industry executives reported steel mills in both Canada and the United States as “aggressively looking for business” to run across their lines. Steel Market Update spoke with a manufacturing company on Monday who told us their company had been approached by a domestic mill not usually associated with cheap hot […]
According to Baker Hughes data from October 9, 2015, the U.S rig count for the week was 795 rigs exploring for or developing oil or natural gas. This is a decrease of 14 rigs when compared to last week, with oil rigs down 9 to 605 rigs, gas rigs down 6 to 189 rigs, and […]
Flat rolled steel mill lead times remain historically short as the domestic mills struggle to keep their mills full. Based on the results from this week’s flat rolled steel market analysis (survey) we are seeing lead times at least one week shorter than this time last year on all products with the exception of Galvalume. […]
With the short lead times (referenced in another article in tonight’s issue) the mills have little choice but to negotiate pricing with their customers as every order counts. Each of the flat rolled products followed by Steel Market Update are being reported, almost unanimously, that the mills are working with their customers. The graphic below […]
Flat rolled steel prices were mixed over this past week based on data reported in our survey as well as the channel checks we were able to make during these past two hectic days. We are aware of offers on hot rolled under $400 per ton but we have not reported the numbers as readily […]
According to Baker Hughes data from October 2, 2015, the U.S rig count for the week was 809 rigs exploring for or developing oil or natural gas. This is a decrease of 29 rigs when compared to last week, with oil rigs down 26 to 614 rigs, gas rigs down 2 to 195 rigs, and […]
I spent part of my day today speaking to buyers who are known to buy foreign steel either due to logistics reasons (too far away from a producing mill) or who prefer to have options for pricing reasons. What I found out is a number of countries involved in the trade suits continue to quote […]
Flat rolled steel prices remained “flexible” over the past week. During our conversations with steel buyers (and steel mills) we learned that the best prices were being offered on tonnage tied to an actual order. One of the big issues we face as we try to develop fair and reasonable price ranges is how do […]
Over the course of this past week Steel Market Update (SMU) conducted our flat rolled steel market analysis. Part of that analysis was focused on the domestic steel mill lead times for new orders placed last week for future delivery. We follow lead times as they are one of the early key indicators as to […]
According to the respondents to our recent flat rolled steel questionnaire concluded this past week, U.S. and Canadian steel mills continue to entertain adjusting (or negotiating) prices on hot rolled, cold rolled, galvanized and Galvalume steels. The percentage of respondents who reported hot rolled pricing as negotiable dropped from 97 percent to 78 percent. Cold […]
According to Baker Hughes data from September 25, 2015, the U.S rig count for the week was 838 rigs exploring for or developing oil or natural gas. This is a decrease of 4 rigs when compared to last week, with oil rigs down 4 to 640 rigs, gas rigs down 1 to 197 rigs, and […]
Flat rolled steel prices have been dropping lately and Steel Market Update (SMU) can no longer ignore the direction of market prices at this time. We are, therefore, adjusting our Price Momentum Indicator to Lower from Neutral, meaning that our expectation is for prices to move lower over the next 30 days. There are a […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Here is how Andre saw trading over the past week: Financial Markets: Basis last reporting of improving markets […]
Flat rolled steel buyers reported a weakening flat rolled steel market this week. Large buyers are now able to buy spot hot rolled at $410-$420 per ton with medium sized buyers seeing prices closer to $420-$440 per ton. We are seeing cold rolled and coated products as doing a little better as they have been […]
According to Baker Hughes data from September 18, 2015, the U.S rig count for the week was 842 rigs exploring for or developing oil or natural gas. This is a decrease of 6 rigs when compared to last week, with oil rigs down 8 to 644 rigs, gas rigs up 2 to 198 rigs, and […]
It appears that very slowly steel buyers are slowly starting to come to a realization that there may be a lockout at US Steel and possibly ArcelorMittal as well. As many of you know, these two mills are not huge players in the spot markets so the immediate impact may be slightly muted should one […]
The key word that we are hearing from steel buyers and mills alike is the market is QUIET, very, very quiet. Lead times referenced continue to be short. Inventories continue to be high. We did not collect any huge changes in our key product averages. We are hearing that extras on many products are being […]