Global manufacturing activity showed steady improvement during February. The JP Morgan Global Manufacturing PMI rose to 53.3 in February, inching up from 53.0 in January. Manufacturing output remained steady in February while new orders grew at a faster rate. Employment levels were higher in much of the world with staffing cuts reported in China, Russia and […]
This article was originally published on Thursday, February 27th and was written by Andre Marshall, CEO of Crunch Risk, LLC. Andre is an expert in the futures/derivatives markets. Financial Markets: Two weeks back on the 13th the S+P 500 was approx 1825, and, as I mentioned, headed to test 1846 again. We bounced of that […]
The early sentiment has scrap prices dropping during the month of March but not as strong or as wide-spread as forecast a couple of weeks ago. Flows into the scrap yards have been impacted by the severe weather in the North and this is tempering the drop which, according to at least one SMU scrap […]
In order to keep their operations running smoothly, steel buyers have to manage the difference between their company’s predicted use of steel and the actual demand. Since flat rolled steel lead times from Steel Mills can be many weeks, buyers have to maintain large safety stock inventories to handle this discrepancy. That does not mean, […]
Financial Markets: Two weeks back on the 13th the S+P 500 was approx 1825, and, as I mentioned, headed to test 1846 again. We bounced of that 1846 on the 19th only to retest it again on the 24th with better results, reaching our 1858 all time high. Since then, we are essentially sideways in […]
Hot rolled prices continue to be the weakest of the flat rolled products with most buyers reporting $640 as readily available and we heard of only one mill (with limited to no spot tons available) holding firm at $660 (and we expect collecting few to no spot orders at that price level). Cold rolled continues […]
Domestic mill lead times hardly budged according to our most recent SMU steel market survey of the flat rolled steel market. Those participating in our survey put the average hot rolled lead time at 3.70 weeks. This is down slightly from the 3.89 weeks measured at the beginning of the month. The three month moving […]
Flat rolled steel prices were mixed compared to this time last week. The combination of our survey coupled with direct channel checks found hot rolled and galvanized prices slightly weaker while cold rolled and Galvalume prices remained the same as last week. The SMU Price Momentum Indicator continues to reference prices as moving lower over […]
There are always two sides of a coin. When looking at AK Steel, buyers are seeing a mill aggressively offering hot rolled at the lower end of the SMU HR pricing range while, at the same time, fully annealed cold rolled and galvanized are on an inquire only basis. Steel Market Update has received mixed […]
One of the questions Steel Market Update is asked, is can we compare domestic hot rolled pricing vs. world export price? The spread, which we have seen referenced as high as $150 per ton in other publications, can be somewhat deceiving if not evaluated properly. The world export prices on hot rolled coil (HRC) as […]
Perhaps one of my steel sources described the current environment surrounding the flat rolled steel industry best when they said, “Welcome to the Charles Dickens version of the steel industry – ‘It was the best of times, it was the worst of times. It was the season of hope, it was the winter of despair…’ […]
Based on the results of our steel market survey which we just completed this afternoon, lead times out of the domestic mills remained relatively constant compared to what we reported during the middle of January. Hot rolled lead times slipped to 3.89 weeks (average) down from 4.09 weeks. Cold rolled remained over 6 weeks at […]
Our market survey captured lower prices in hot rolled and cold rolled this week compared to last. Galvanized and Galvalume prices were unchanged. Here is how we are seeing prices this week: Hot Rolled Coil: SMU Range is $640-$680 per ton ($32.00/cwt- $34.00/cwt) with an average of $660 per ton ($33.00/cwt) FOB mill, east of […]
On January 14, Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. This means we see steel market pricing at this moment as either in transition or moving sideways over the next 30 days. With ferrous scrap prices now weakening, lead times shortening and all of the available capacity back in […]
Earnings reports are accompanied by conference calls which allow us to get some insight on what the steel leaders are thinking about in the industry. SMU decided to look at the comments by AK Steel, Nucor, Steel Dynamics, and US Steel for ideas on where the steel industry is headed for 2014. All four of […]
Late last week Steel Market Update concluded our mid-January market survey of the flat rolled steel market in Canada and the United States. The survey is conducted by invitation only and is sent to slightly less than 600 companies. The breakout of the respondents was: 48 percent manufacturing companies, 42 percent service centers/wholesalers, 5 percent […]
Steel buyers reported a mixed bag this week with some mills quoting extremely long lead times (hot rolled at 6-8 weeks) while others were still willing to discuss pricing in early February if a reasonable order was connected to the competitive quotation. One service center executive told us about mill lead times, “USS is in […]
Steel buyers are confiding in Steel Market Update and have been telling us that the tightness in cold rolled spot prices, which this past week SMU had as being $760-$820 per ton ($38.00/cwt-$41.00/cwt), is partially due to the extended lead times at AK Steel. According to steel buyers, AK Steel had to deal with “the […]
Mill lead times, according to those taking our SMU steel market survey this week, continue to be extended compared to where they were one year ago. However, we found (based on our survey results) that the mills have become more willing to negotiate on hot rolled, galvanized and Galvalume but not on cold rolled. Hot […]
Flat rolled steel prices (hot rolled, cold rolled, galvanized & Galvalume steels) were mixed this week according to our ongoing flat rolled market survey as well as direct contacts with steel buyers. Prices were mixed as we saw slight improvement in hot rolled prices with an extension of the range. However, most of the price […]
The Metal Service Center Institute (MSCI) produced their analysis of service center shipments and inventories as of the end of December 2013. According to the MSCI flat rolled inventories stood at 4,981,400 tons which represented a 2.6 month’s supply on a non-seasonally adjusted basis and 2.1 months supply based on seasonally adjusted data. Steel Market […]
Financial Markets: The equities markets have stabilized after their reaction to the poor jobs number in December last week. The S+P closed at 1836 today, exactly 3 points higher than where I reported it last week. We are likely headed higher as it will take a lot more than a poor jobs report to scare […]
Steel Market Update (SMU) has adjusted our Price Momentum Indicator from Higher to Neutral. This means we see steel market pricing at this moment as either in transition or moving sideways over the next 30 days. With ferrous scrap prices now weakening, lead times shortening and all of the available capacity back in the market […]
Flat rolled steel prices began to slip this week as some short term weakness was seen in domestic mill order books and lead times. Benchmark hot rolled is perhaps the weakest product based on our discussions with buyers around the eastern half of the United States and into Canada. The biggest reason behind the slippage […]
Andre Marshall, CEO of Crunchrisk, LLC has the duties of outlining the hot rolled futures and busheling scrap futures markets for our readers (as well as taking a look at the financial markets, iron ore and commodities in general): On the March S+P future we closed at 1833, this is up from the 1806 level […]
Based on the results of our first steel market survey of the New Year, lead times at the domestic steel mills remained at moderately higher than normal. Benchmark hot rolled lead times remained above 4.0 weeks (average). Based on the average of the responses received during the survey process HRC lead times were measured at […]
This is the first “official” week of the New Year and all eyes are on the domestic mills to see if they can continue to hold the line – take that back – if they can break the stalemate we saw during the month of December and push flat rolled steel prices higher from here. […]
One of our readers asked us last week if we had ever done an analysis of steel prices and lead times. The answer (now) is yes, we have… So the question we posed to ourselves – is there are relationship between mill lead times (as captured in our SMU steel market survey) and flat rolled […]
We are finally back to a full “normal” week and we should be able to gather much better market intelligence as we begin our next flat rolled market analysis with our survey invitations going out at 8 AM ET on Monday morning. Most buyers should be back in their offices on Monday so we anticipate […]
Based on our channel checks over the Holidays we found little to no movement in flat rolled steel prices as buyers sat on the sidelines (or were on vacation) waiting for the New Year to begin. Steel Market Update published our latest prices on Tuesday afternoon in our website. Here is how we are seeing […]