The domestic steel mills continue to be united in their approach to negotiating flat rolled steel pricing. Based on data collected this week from our flat rolled steel market survey, we found that only 30 percent of the respondents were reporting the domestic mills as willing to negotiate hot rolled steel pricing. This is up […]
Pressure continues on flat rolled steel prices as we saw gains on hot rolled and cold rolled while galvanized and Galvalume remained the same as one week ago. The issue on the coated products and cold rolled to a lesser degree, has been imported steel which is impacting the southern states in two ways. First, […]
Steel Market Update continuously is in conversation with flat rolled steel buyers from around the country. We have noticed a growing nervousness within the steel community as the buyers grapple with ever higher steel prices and extended lead times. In some cases the lead times on foreign material are not much more than what the […]
Prices moved sideways this week as buyers digest the $30 per ton of movement made in benchmark hot rolled pricing going back to the beginning of the month of April. Steel Market Update is aware there are a number of domestic mills who have made “internal” spot price adjustments, taking price offers from $34.25/cwt ($685 […]
Reliance Steel & Aluminum, the largest metals service center in the United States, announced earnings earlier today. The company reported net income of $87.2 on sales totaling $2.09 billion. Sales included the recent acquisitions of Metals USA and Haskins Steel. The company reported an 8.4 percent improvement in same store sales over the same quarter […]
Flat rolled steel prices continue to be firm as supply issues haunt the northern steel mills and lead times remain extended at most mills throughout the eastern United States and Canada. US Steel has issues with receiving raw materials into their Gary Works facility which has slowed steelmaking operations to approximately 50 to 75 percent […]
Earlier today, Steel Market Update (SMU) participated in the monthly galvanized steel with members of HARDI. The last conference call was held the day after ArcelorMittal has announced the first of two price increases during the month of March (Galvanized base of $39.50/cwt). The purpose of today’s call was to discuss what has been happening […]
Business conditions will remain steady for the next three months said metalforming companies in the April 2014 Precision Metalforming Association (PMA) Business Conditions Report. Of those surveyed, 36 percent predict economic activity will improve while 56 percent say it will remain unchanged. Almost no change was expected for incoming orders in the April survey, with […]
All of the steel indices followed by Steel Market Update saw flat rolled steel prices increase this past week. Benchmark hot rolled coil saw the spread between the indices shrink while the average HR price increased by $17 per ton. Cold rolled was one item where the price spread increased across the various steel indexes […]
According to Steel Market Update most recent flat rolled steel market survey results, lead times at the U.S. and Canadian steel mills continue to extend on hot rolled, cold rolld and coated products with the exception of Galvalume. Hot rolled lead times are now averaging 5.49 weeks, up from 4.87 weeks just two weeks ago […]
All of the current production issues are relegated to the northern fully integrated steel mills. One of our service center contacts laid out the production scenario and how it is impacting the other northern steel producers: “The Great Lakes outage, and then accident during repair, and the Gary reduction in output is the important factor […]
Steel Market Update found flat rolled steel prices to be higher this week. As mentioned in our first article, pricing is not even across the country and we are seeing some flexibility in the numbers in the south compared to those in the Midwest. The Midwest is where all of the mill production disruptions are […]
To our Premium Level members – just a quick note to let you know that we publish Premium articles to the front of the website prior to sending them out in a supplemental newsletter. We have been waiting for imports by product, port and country to become available before we send out a supplemental issue. […]
“Mills are stubborn this week. We’ll see what happens when US gets caught back up,” is how one steel executive pegged the market for Steel Market Update earlier today. Many of the steel service centers we spoke to over the past few days are indicating there is strengthening demand in portions of their business. What […]
This week was a tough one to figure out where transaction prices actually are at this moment in time. What makes it challenging is mill offers appear to be firm from mill to mill with very little wiggle room at this moment. The second issue making things tough to evaluate pricing is we had a […]
For Thursday night’s issue my goal is to attempt to produce as accurate lead times for each mill as possible. This is easy for some mills who publish lead times on a weekly or, in at least one case, daily basis. Other mills hold the information a little closer to the vest. If you have […]
Steel Market Update began this week with an article on Sunday evening titled, “This Could Be a Tumultuous Week.” Looking back over the past five days that title was an understatement. This week has been tumultuous times ten. Why? U.S. Steel can’t seem to catch a break. They now have steelmaking operations temporarily suspended at […]
The following article is a continuation of our Steel Buyers Basics series and is written by Mario Briccetti. Mario is Principal of Briccetti & Associates, a Supply Chain consulting firm, and can be reached at Mario@mbriccetti.com In an earlier article I noted that the steel business is often subject to interruptions in supply and described […]
Mill lead times moved out over the past two weeks. We are seeing lead times extending by as much as one week on hot rolled and cold rolled and three quarters of a week on galvanized. We did some quick checking and HRC, CRC and GI lead times are the furthest we have recorded since […]
Buyers and sellers of flat rolled steel are reporting the domestic steel mills as much less willing to negotiate prices this week as compared to two weeks ago. Our market analysis saw major contraction in each of the products with hot rolled moving from 85 percent down to 48 percent. Cold rolled halved their previous […]
The recent upturn in the physical market has continued to fuel the upswing in steel futures prices as nearby periods have surged this past week. The May and June HRC contracts have traded to highs of $660/ton while second half periods have traded up to $643. The nearby prices have improved over $40 during the […]
We have been hearing of a very strong booking week at many of the domestic steel mills this past week. With the hot end of USS Great Lakes down and other flat rolled steel production issues within the domestic steel mill ranks, we have seen a tightening of flat rolled steel pricing. We have heard […]
The word out of U.S. Steel has been silence since they reported a collection pipe (collector main) falling onto and collapsing part of the roof over their #2 BOP Shop at Great Lakes Works on Thursday evening. Our understanding continues to be that all three blast furnaces are in hot idle (not producing pig iron) […]
The JP Morgan Global Manufacturing PMI was at a five month low in March registering 52.4, down from 53.2 in February. The index has indicated expansion for sixteen months with March’s reading above its average for the period. All components of the Global Manufacturing PMI remained in growth territory for the month with expansion slowing […]
Even as other companies were issuing lower guidance due to weather and its impact on negatively impacting their earnings during the first three months 2014, Worthington Industries reported their fiscal year 2014 3rd Quarter results which ended on February 28, 2014 as being the best in the company’s history. The company reported earnings of $40.6 […]
We are beginning to see a new push away from a fragmented steel mill supply base as closures of capacity coupled with the recent acquisition of ThyssenKrupp Steel USA by ArcelorMittal/Nippon Steel Sumitomo Metals Corporation (AM/NS Calvert) are reducing the number of players and the tons in the game. Over the past two years we […]
With the expected steel price hikes finally coming to fruition the futures market has reacted strongly as offers were lifted and bids take a step up. After months of a down trending physical market sentiment has taken a clear turn to bullishness. The nearby months (March and April) traded to lows around $615 last week […]
Reasons: The first reason being the limited number of buyers who admitted they had actually placed any tonnage since the flat rolled price increases were announced. Second, was the vast difference between northern fully integrated mills, mini-mills and conversion mill spot pricing. We need to remember all three groups are part of our index and […]
Steel Market Update began our latest analysis of the flat rolled steel market on Monday of this week. We found mill lead times remained very similar to those reported at the beginning of March. The ArcelorMittal flat rolled steel price announcement was not made until late Monday afternoon and by then 50 percent of the […]
As mentioned in the Lead Times article, SMU began the process of analyzing the flat rolled steel market early on Monday morning – prior to any flat rolled price increase announcements being made. More than likely the survey results regarding mill negotiations represented by the graphic below are going to have about half the respondents […]