Industry analyst Paul Lowrey is “bullish on the short-term outlook for steel,” but his goal as a presenter during the Tampa Steel Conference this week was “to get some of you to think differently about what is going on.” Lowrey, founder of Pittsburgh-based Steel Research Associates, is a contrarian when it comes to the common […]
Service centers are the Dangerfields of steel—they just don’t get no respect. Sure, nobody likes to pay the middleman, especially when prices are plunging and margins are getting squeezed. But let’s face it, the supply chain wouldn’t work without them, especially today. Nine out of 10 service centers report they are lowering prices to their customers, […]
Steel prices may be nearing the end of the current correction, predicted Majestic Steel USA President and CEO Todd Leebow during Wednesday’s Steel Market Update Community Chat. In the great debate over where declining hot rolled prices will finally settle – back to historical averages in the $400-600 per ton range or closer to $1,000 […]
By Greg Wittbecker, Advisor, CRU Group Nucor and Steel Dynamics Inc. (SDI) chose to acquire major metal recycling companies just before the Global Financial Crisis. SDI purchased Omnisource for slightly more than $1 billion in November 2007. Nucor followed suit with its $1.4 billion takeover of The David J. Joseph Co. in March 2008. The […]
Nucor has closed its $400 million deal for a majority stake in California Steel Industries (CSI). “We are excited to officially welcome our CSI teammates to the broader Nucor family,” said Rex Query, Nucor’s Executive Vice President of Sheet and Tubular Products. “This joint venture gives us a strong presence in the Western region and grows our ability to produce […]
Majestic Steel USA Inc. has hired Sean Madigan as Vice President of Sales, Manufacturing. Madigan joins Majestic from Nucor, where he served as the Sales and Marketing Manager for Nucor Steel Arkansas. Madigan’s experience with Nucor was integral to the startup of the company’s new coating line, and he will continue to be a critical part of the […]
Nucor Corp. today announced plans to invest $290 million to upgrade its Crawfordsville, Ind., steel sheet mill. The Charlotte, N.C.-based steelmaker will expand the mill’s product capabilities by adding a 300,000 tons per year (tpy) construction-grade continuous galvanizing line and a 250,000 tpy prepaint line, the company said. The project, which company executives alluded to during […]
When I was a kid, watching the Olympics was a big feel-good event. The family would all gather round the TV eating popcorn and rooting for the Americans as they competed against the world’s best athletes for a medal and their photo on a Wheaties box. There was something pure and uplifting about the whole […]
U.S. Steel joined competitors Nucor Corp. and Steel Dynamics Inc. (SDI) in posting record annual profits. But the Pittsburgh-based steelmaker’s fourth-quarter net earnings were significantly lower than those in the third quarter. U.S. Steel recorded net earnings of $1.07 billion in the final quarter of 2021, down 46.5% from $2.00 billion in the third quarter […]
I don’t want to lead prices down, but I don’t think it’s any secret at this point that sheet prices are falling fast. “The prophecies have been borne out,” is how one mill executive put it. What does that look like in practical terms? Some mills are offering hot-rolled coil at about $1,200 per ton […]
Nucor Corp. crushed annual profit records in 2021 and posted yet another quarterly profit record in the fourth quarter. The trend continues a 2021 pattern among domestic steelmakers of each quarter setting a record compared to that set in the prior quarter. All told, the Charlotte, N.C.-based steelmaker posted an annual profit of $6.83 billion […]
Calling 2021 “the safest and most profitable year in the company’s history,” Nucor executives sounded “a consistent drumbeat on demand” in their outlook for 2022 during their fourth-quarter conference call with analysts and investors today. The Charlotte, N.C.-based steelmaker posted record earnings of $6.83 billion in 2021 on sales of $36.5 billion. Sixteen of its […]
Nucor Corp. crushed annual profit records in 2021 and posted yet another quarterly profit record in the fourth quarter. The trend continues a 2021 pattern among domestic steelmakers of each quarter setting a record compared to that set in the prior quarter. All told, the Charlotte, N.C.-based steelmaker posted an annual profit of $6.83 billion […]
Nucor Corp. has announced that plate prices are unchanged for the second month in a row. The Charlotte, N.C.-based steelmaker announced the “$0/per ton change” with the opening of its March order book for plate. The result: Nucor’s base price for cut-to-length A36 plate remains at $1,815 per ton ($90.75/cwt) ex works. The company’s price […]
Steel Dynamics Inc. (SDI) expects that its new electric-arc furnace sheet mill in Sinton, Texas, will reach a run rate close to its rated capacity in the second half of the year, the company’s top executive said. “We are anticipating the final piece of the jigsaw to be put in place here in the next […]
NLMK USA sales slipped in the fourth quarter on expectations of lower steel prices driving buyers to the sidelines. It was not only lower consumer activity that pushed NLMK USA sales volumes and prices lower, so too did the tariff-rate quota (TRQ) agreement with the European Union – which is expected to result in additional […]
Steel Dynamics Inc. (SDI) has commissioned the hot strip mill at its $1.9 billion steelmaking complex in Sinton, Texas, the company’s top executive said. “Both coating lines are running well. The hot strip mill has been commissioned using purchased slabs. The last component is the caster, which is in the home stretch,” SDI President and […]
Flat Rolled = 63.9 Shipping Days of Supply Plate = 67.1 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories jumped in December, in line with seasonal trends. At the end of December, service centers carried 63.9 shipping days of supply on an adjusted basis, up from 57.1 in November, according to […]
Nucor Corp. has confirmed that its greenfield, $2.7 billion electric arc furnace (EAF) sheet mill will be built in West Virginia. The Charlotte, N.C.-based steelmaker said the mill, expected to have capacity of three million tons per year, would be located in Mason County along the Ohio River. Additional sites in northern West Virginia are […]
West Virginia is on the cusp of announcing that it has been chosen for the site of Nucor Corp.’s new, $2.7 billion electric arc furnace (EAF) sheet mill, according to local media reports. The Charlotte, N.C.-based steelmaker said when it announced the project last September that it was considering locations in three states: Ohio, Pennsylvania […]
Flat-rolled steel prices continue to fall, but the market participants I spoke to today were taking the news in stride. SMU’s average hot-rolled coil price now stands at $1,480 per ton ($74 per cwt), down $55 per ton from $1,535 per ton a week ago and down $475 per ton from a 2021 high – […]
SMU’s Community Chat webinar with Wolfe Research metals and mining managing director Timna Tanners last week was our second-best attended ever. With more than 800 registered attendees, Tanners topped her own previous record. Barry Zekelman, executive chairman and CEO of Zekelman Industries, still holds the title. But not by quite as wide a margin. We […]
Commercial Metals Co. (CMC) plans to build a “micro mill” to better serve markets in the Northeast, Mid-Atlantic and Midwest. “The new micro mill will fortify our position in the large construction markets within the region and optimize CMC’s existing Eastern U.S. operational footprint,” CMC Chairman, President and CEO Barbara Smith said. The new mill […]
Nucor has decided to keep plate prices unchanged with the opening of its February order book. The current plate pricing levels – announced on Monday, Jan. 3, and effective immediately – are the same as those rolled out in late November for January orders. The Charlotte, N.C.-based steelmaker’s letter to customers also marks the first […]
Welcome back to those who took an extra day or two off after the New Year. This is my first article of the year as Michael and Tim continue to absorb more of my workload. For those of you who did not view or listen in on the SMU Community Chat we hosted yesterday with […]
For those of you who did not view or listen in on the SMU Community Chat we hosted on Wednesday, January 5th with Timna Tanners of Wolfe Research (she used to be with Bank of America), you missed an interesting webinar. You can find it on our website under the SMU Community Chat tab or […]
First the takeaway: Don’t overthink it on the way down. Prices are falling, like it or not. The good thing, demand is still good – so don’t let falling prices ruin your holidays. Now, let’s overthink it a little. We’ve seen some chunky declines in recent weeks: SMU’s hot-rolled coil price fell $70 per ton […]
California Steel Industries (CSI) has opened its February order book for flat-rolled steel and decreased prices significantly, according to market participants. That’s a big change from 2021, when the Fontana, Calif.-based slab converter often increased prices substantially from one month to the next. “Customers are reminded that prices are subject to change at any time […]
By Philip Bell, President, Steel Manufacturers Association As we approach the holidays, there are some who believe that a swift Section 232 deal with Japan is essential. Some also believe a Japanese deal should be equivalent to the deal reached with the European Union this October. The notion of a Jan. 1, 2022, deal deadline […]
We are quickly coming up to the Christmas and New Year’s Holidays. I hope everyone has been able to complete whatever shopping you need to do, sent out your cards and notes to your family and friends, and have ample snacks to get you through New Year’s Eve gatherings, football games, board or card games, […]