During Nucor’s earnings conference call the company’s CEO, John Ferriola told the analysts that scrap prices would drop “dramatically” during the 1st Quarter 2015. He told the analysts that steel prices have already gone down and scrap prices “have to” follow. Our scrap sources are telling us that lackluster demand at the steel mills, weak […]
Nucor Corp. reported net earnings of $210.4 million for the fourth quarter of 2014, compared to $245.4 million in the third quarter of 2014 and $170.5 million in the fourth quarter of 2013. The drop was expected due to typical seasonality in the fourth quarter and downward pressure on the industry from steel imports. Net […]
I was conversing with a consulting friend who reported to me that steel prices are taking a beating in Europe. He referenced hot rolled prices being offered out of Russia into Europe for 365 to 375 euros. He also reported that the sales of the Italian steel mill, ILVA would not succeed and the mill […]
I am in Charleston, South Carolina for our Steel 101 workshop. We have a great group here with representatives from manufacturing, service centers, steel mills and the financial community. The employees at Nucor Berkeley were very receptive to our visit. The mill provided a number of metallurgists so we were able to tour the mill […]
Nucor and Big River Steel met in federal court on Friday in a continuation of Nucor’s bid to stop construction of the rival steel mill. Nucor claims the air permit granted to Big River Steel was issued incorrectly and that emissions from the future plant will raise pollution levels in the county, violating the Clean […]
I am looking forward to traveling to South Carolina for our next Steel 101 workshop which is at the beginning of next week. I would like to recognize and thank Nucor and their Berkeley facility for allowing us to tour their flat rolled (sheet) and beam mills. This is the first time I personally will […]
.One of the subjects of conversation I had with a number of buyers is what do the domestic steel mills need to do to break the foreign import cycle? There are some who believe that the steel mills will be best served by letting the prices drift down to the point where the spread between […]
This is the first Steel Market Update Executive newsletter of the year (we produced our first Premium newsletter on Friday of last week). I can’t even imagine the number of articles I have written about the industry since I began keeping my steel customers up to date on industry events in 2004 (and explaining why […]
As we approach the end of the year we begin to think about what is ahead of us for 2015. Will we see the massive amounts of foreign steel continue to flood the domestic (USA) market or will buyers back off as domestic prices slide closer to foreign offers? The expectation is for demand to […]
Shredded scrap prices are up approximately $20 per ton compared to where they were the first week of December. According to Mike Marley of MetalPrices.com, shred is in tight supply in several Midwest cities due to the decline in the flows of shredded feedstock due to the lower selling prices in October and November and […]
Nucor Corporation expects a “moderate” decrease in earnings in the fourth quarter along with a seasonal drop in operating performance. In the company’s fourth quarter earnings guidance, Nucor noted that exceptionally high import levels have put pressure on steel production and margins. A larger than expected decrease in outside shipments is expected in the fourth […]
There has been a lot of information floating about the marketplace regarding the Chinese steel rebates and especially those represented as special alloy through the addition of boron to the steel. We wrote about this subject in early November and we remind our readers to go back and review the article entitled: Chinese Boron Added […]
I was advis ed today that Nucor had reduced their pricing on beams by $40 per ton in order to compete with foreign beam offers. The question then became what are the mills doing to blunt the impact of foreign steel offers of flat rolled products into the United States? As we reported on Tuesday, […]
Part of my talk at the 2014 HARDI conference was regarding galvanized imports which reached 325,000 net tons in October and appear will be approximately 300,000 tons when the November Census Data numbers are released later this month. To put this into perspective, at this point last year the U.S. received 150,000 net tons and […]
There has been a fair amount of interest being generated regarding our next Steel 101: Introduction to Steel Making & Market Fundamentals workshop which will be held in Mount Pleasant, South Carolina on January 20 & 21, 2015. If you go to our website: www.SteelMarketUpdate.com and click on the Steel 101 link in the Events […]
It has now been five weeks (October 28th) since AK Steel became the first domestic steel mill to announce a price increase on flat rolled steel. The relatively modest $20 per ton move was, in many steel buyers’ opinions, meant to stem the decline in steel prices. At that point in time benchmark hot rolled […]
Big River Steel has asked a federal court to block the Clean Air Act challenge mounted by Nucor last August. In a court filing on Friday, Big River Steel said the challenge is a “collateral attack” by Nucor. Big River Steel received the necessary permits from the Arkansas Department of Environmental Quality (AEDQ) to build […]
Monday is December 1st. This means we will begin our early December flat rolled steel market survey first thing Monday morning. Look for your invitation around 8 AM ET on Monday. If you receive an invitation please take a few minutes to click on the link and respond to our questionnaire which is housed on […]
First, I want to wish everyone in the United States a wonderful Thanksgiving Holiday with family and friends. Steel Market Update will not publish on Thursday but will return to our normal schedule on Sunday evening. Our offices will be open both on Wednesday and Friday of this week but will be closed on Thanksgiving […]
Today’s hot rolled, ferrous scrap and iron ore futures article comes to us from Andre Marshall, CEO of Crunch Risk LLC and the instructor for Steel Market Update’s Managing Price Risk I and Managing Price Risk II workshops. Along with HRC, iron ore and BUS trading Andre also discusses the S&P 500, copper and crude […]
On October 28, 2014 AK Steel announced a $20 per ton ($1.00/cwt) price increase on hot rolled, cold rolled and galvanized steels. Shortly after, ArcelorMittal and then Nucor advised their customers of specific base price levels on new spot flat rolled orders. Hot rolled was to be offered at $33.00/cwt ($660 per ton or higher) […]
The way our market surveys work is we invite approximately 600 companies to participate. Each individual receives and email invitation with a link to the survey which is hosted on SurveyMonkey.com. The first few questions are posed to the entire group. We asked questions related to our SMU Steel Buyers Sentiment Index, general demand and […]
Earlier today Steel Market Update participated in the HARDI steel group conference call which resulted in more questions than answers being raised due to the uncertainty in the galvanized steel markets. The call began with a recap of the price announcements which were made by the domestic mills when AK Steel began the process on […]
This past week I participated in the Cowen & Company conference in New York City and then traveled to Savannah, Georgia to attend the Association of Women in the Metals Industries international conference. Both conferences were well done. I spoke about the Cowen & Company conference in our last edition of SMU. Tonight I wanted […]
One of the topic of conversations during the Cowen & Company Global Metals, Mining & Materials Conference was the issue of scrap prices versus iron ore and the value of iron “units.” On the first day of the conference, Dan DiMicco former CEO of Nucor, told the audience that iron ore and scrap would come […]
Steel Market Update is speaking at the Cowen & Company conference in New York City this week. On the agenda today were three former “captains of the industry” – Dan DiMicco, John Surma and Keith Busse – each a former CEO of a major steel producer, DiMicco with Nucor, Surma with US Steel and Busse […]
Production has been suspended at the Nucor Louisiana DRI plant due to an major failure of the process gas heater on November 2. The company is assessing the damage from the incident but is not yet able to estimate how long repairs will take. The incident caused no injuries or environmental impact and no damage […]
I have been in New York City since Sunday. I am participating in a panel on Wednesday at the Cowen & Company conference. Steel people don’t get to attend most of the financial related conferences. The attendees tend to be hedge fund managers and investors. Their perspectives of the steel industry can be quite different […]
One thing that we learned from the earnings conference calls which were conducted over the past two weeks: the domestic steel mills will be entering 2015 with all of their blast furnaces online, maintenance completed and (hopefully) running well. Barring any unforeseen circumstances we should have plenty of domestic supply going into the traditionally strong […]
Steel Market Update (SMU) conducted our early November flat rolled steel market survey this week. We invited approximately 600 companies to participate in the process. Of those participating 44 percent were manufacturing companies and 44 percent were steel service centers. The balance of the respondents was comprised of 6 percent trading companies, 5 percent steel […]