Prior to the ArcelorMittal USA price increase announcement, Steel Market Update analysis of steel prices found flat rolled steel prices continuing their slow slog south (prices are moving lower). The pace has not accelerated, but there are questions as to whether some of the steel mills are cutting “quiet” deals in order to fill their […]
Zinc prices continue their rally that began in early 2016, taking the metal’s price to a 10-year high and raising the cost of producing galvanized steel and other products. Zinc prices have managed to breach the psychological ceiling of $3,000 per metric ton, which stalled rallies in November 2016 and February 2017. Breaking this ceiling […]
Some key price levels have been left in the dust when it comes to flat rolled and plate prices. On Friday of this past week, Steel Market Update (SMU) reduced the lower end of the range on hot rolled and our average dropped below $600 per ton. This week our HRC took a hit on […]
Flat rolled steel prices continue to “drift,” with some items drifting lower, some staying the same and cold rolled actually increasing by $5 per ton. One commercial officer at a steel mill told SMU that in his view the range has shrunk for the products they produce. Even so, “We are finding business, and it […]
When asked to comment on spot flat rolled steel prices this week, the president of a medium-sized service center told SMU, “Drifting. Demand seems down.” He went on to report that even with AK Steel and ArcelorMittal reporting extending lead times, the market “feels soft.” Other steel buyers reported that their perception of the market […]
On Friday, Steel Market Update (SMU) adjusted our Price Momentum Indicator to Lower from Neutral. It is our opinion that flat rolled steel prices will move lower over the next 30 days for the following 10 reasons: First, when the head of commercial of a domestic steel mill tells SMU that “transaction pricing cannot go […]
Earlier this month, foreign steel imports for September were trending toward a 2.6-million-ton month based on import licenses through the first 12 days of the month. Over the past week, the pace for import license requests has picked up. This is most likely due to the impact of the two hurricanes: Harvey in Texas and […]
Zinc is once again trading above $1.40 per pound ($1.42 as of 3:30 PM ET) and the smaller steel mills and converters are wondering why U.S. Steel, ArcelorMittal USA and Nucor haven’t made the move to higher zinc coating extras on galvanized steel? We have seen four mills make changes on their “spot” new orders: […]
We will begin our mid-September flat rolled steel market trends analysis first thing on Monday morning. Invitations to participate will go out at 8 AM ET tomorrow morning. We currently send out approximately 650 invitations. Note: We are correcting the galvanized comparison of coating extras as Nucor has not yet made a change to the […]
Last Friday, NLMK USA advised customers of their intention of increasing their zinc coating extras by approximately 10 percent. The higher extras are due to a surge in zinc spot costs on the LME. Zinc spot prices reached $1.42 per pound as of the end of trading today (Thursday). We have put together a quick […]
Good evening from Atlanta, site of our 7th SMU Steel Summit Conference. We announced this morning that attendance for this conference is a new record. We are pleased to announce we registered 661 manufacturing, steel and industry executives for this year’s conference, breaking last year’s 434 record. Our “Pre-Summit” Conference program on Monday attracted approximately […]
The number of U.S.-based flat rolled steel mills announcing price increases on hot rolled, cold rolled, galvanized and Galvalume has reached six. On Tuesday of this week, Nucor Sheet Mill Group became the first flat rolled steel mill to raise transaction pricing on spot flat rolled steel. The Nucor increase was for a “minimum” of […]
Four flat rolled steel mills, Nucor, NLMK USA, California Steel Industries (CSI) and ArcelorMittal USA, announced spot price increases today on all flat rolled steels produced at each mill. The Nucor Sheet Mill Group, which handles flat rolled steel products, announced a minimum of $30 per ton ($1.50/cwt) price increase on hot rolled, cold rolled […]
The following steel mills are registered to attend this year’s SMU Steel Summit Conference at the end of this month: ArcelorMittal Mexico, ArcelorMittal Dofasco, ArcelorMittal/Nippon Sumitomo Calvert, Ternium USA, Ternium Mexico, NLMK USA, Nucor, Nucor Mexico, Nucor Canada, Kandil Steel (Egypt), California Steel Industries, AK Steel, CSN USA, North Star BlueScope, Steel Dynamics Inc., The […]
As was mentioned earlier in tonight’s newsletter, our 2017 SMU Steel Summit Conference will be a sell-out this year and the question really is what day this week will we close registrations? I am both surprised and humbled by the response we have gotten to this year’s event. Our team works very hard to put […]
I was advised late on Friday afternoon that we should expect a Nucor price increase early next week. With scrap prices firming $10 to $30 per ton our expectation is for the increase to be $25-$30 per ton. Then the question will be will the industry support another increase after tepid (at best) support for […]
Despite getting pressure to adjust our SMU Price Momentum Indicator due to uncertainty associated with the Section 232 investigation and the lack of a recommendation to date, along with small signs of a need by one or two steel mills for orders on galvanized, SMU is continuing to reference flat rolled steel prices as moving […]
After the market closed on Friday, July 21, 2017, AK Steel became the fourth eastern flat rolled steel mill to raise prices on hot rolled, cold rolled and galvanized steels. In a very short statement, which can be found in the “news” section of the mill’s website, AK told customers, “AK Steel (NYSE: AKS) said […]
On Wednesday, Nucor became the first flat rolled mill east of the Rockies to increase spot prices on hot rolled, HRP&O, cold rolled and galvanized steels. Nucor Sheet Mill Group sent out a letter to their customers advising that effective immediately they were taking pricing up by a minimum of $25 per ton ($1.25/cwt). On […]
All of the major flat rolled steel producers have approached their customers and advised them of their intention to increase hot rolled, cold rolled, galvanized and Galvalume prices by a minimum of $30 per ton. As of this evening (Tuesday, June 6, 2017) we have seen price announcements out of California Steel Industries, USS Posco […]
Over the course of the day today (Tuesday, June 6, 2017) Steel Market Update (SMU) spent time communicating with top executives at some of the largest flat rolled steel service centers in the United States about the steel price increase announcements and about the market as it exists right now. Four service center presidents responded […]
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 […]
I have received a number of comments on the LinkedIn posts that I have put out there over the weekend. I shared our “Black Swan” article on my personal LinkedIn account as well as our Steel Market Update LinkedIn group account. I also received a question about the “average margin for a service center” that […]
NLMK USA sales jumped 33 percent from fourth to first quarter on stronger demand from construction and pipe manufacturers. Sales volume totaled 562,000 tonnes. Sales revenue was $399 million, which included $186 million for HRC, $109 million for CRC, $96 million for HDG, and $1 million for slabs. Profit for first quarter was $54 million […]
The U.S. Department of Commerce released import license data for April as well as Preliminary Census Data for the month of March. The Preliminary Census Data will be finalized in about a week’s time and usually there are only minimal revisions. March foreign steel imports are being reported as being 3.4 million net tons. This […]
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 […]
NLMK USA steel output increased by 53 percent quarter-over-quarter in Q1 2017 to 180,000 tonnes and by 15 percent year-over year. Flat steel output rose 27 percent q/q to 530,000 tonnes (up 16 percent y/y) due to strong demand in the United States. Sales were up 33 percent from last quarter to 560,000 tonnes driven […]
On Wednesday, Nucor Sheet Group announced a $30 per ton ($1.50/cwt) price increase on hot rolled, cold rolled and galvanized steels. The base price increase was to take effect immediately and was the second $30 per ton increase announced since the beginning of the New Year. Since October 21, 2016 Nucor has made six price […]
Scrap prices moved higher as scrap dealers and the domestic steel mills finished their March negotiations. With prime grades of scrap settling at about twice the $30 per gross ton originally thought a couple weeks ago, the sheet mills have got a decision to make. Do they take prices up or have they raised prices […]
Three mills have made price increase announcements of $30 per ton on all flat rolled products produced by those mills. The three mills are Nucor, NLMK USA and USS/POSCO (UPI) on the West Coast. On Monday morning Nucor made it official and was the first mill to announced a $30 per ton ($1.50/cwt) price increase […]