Has the US steel market reached another downward inflection point? I ask because our survey data has turned a little bearish following an upsurge in sentiment that, in retrospect, might have crested not long after Steel Summit. It wouldn’t be the first time that we saw post-conference euphoria in late August fizzle out in September. Last […]
Underlying price function stops sliding and may have found basis for strengthening The London Metal Exchange (LME) may have found a floor to stop the slide it has experienced since April. Topping out near $3,400 metric tons earlier this year, the price of aluminum drifted lower steadily in the second quarter and into the third […]
Despite falling prices and declining lead times for galvanized sheet, overall demand is still generally strong and a good reason for optimism, according to members of the Heating, Air-Conditioning & Refrigeration Distributors International on this month’s call of HARDI’s Sheet Metal/Air Handling Council. One HARDI member in the Rocky Mountain region noted that his company […]
The steel market has adapted to the shock of the war in Ukraine – and it’s become clearer with each passing week that a steeper price decline than we have seen to date might be in store. I wrote on Thursday that the headline data from our latest survey indicated the market had peaked. I […]
The ongoing correction in steel prices is not a reflection of demand, which is strong now and is expected to remain so for the balance of 2022, Steel Dynamics Inc. (SDI) executives said. Hot-rolled coil prices are roughly in line with published price ranges of $1,300-1,400 per ton ($65-70 per cwt), although a limited number […]
There’s surprisingly little consensus among market participants about where steel prices will be next year, even though 2022 is just around the corner. That’s a big departure from the last 12 months, when respondents to Steel Market Update surveys were roughly in agreement on where prices would be in the future – or at the very least […]
Flat Rolled = 56.7 Shipping Days of Supply Plate = 62.0 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories increased in October, as shipments slowed, according to Steel Market Update data. At the end of October, service centers carried 56.7 shipping days of supply on an adjusted basis, compared to 54.5 […]
By CRU Senior Analyst Ryan McKinley and Analyst Dave Thewlis, from CRU’s Steel Long Products Monitor Long product prices in the U.S. remained elevated and moved higher again m/m in some cases for October. Wire rod mills pushed through another round of price increases in mid-September and there was little to no resistance from buyers […]
If you feel a chill in the air, it’s not just the first day of fall and cooler weather coming. We’ve noticed a cooling in market conditions – and it’s backed up by our survey results (which are colorful like fall leaves). Let’s not talk about prices, at least not directly. Let’s talk about lead times, […]
Steel Market Update’s check of the market this week shows HRC setting a new record at $1,955 per ton, just a stone’s throw from a $2,000 mark that was once unimaginable but now seems inevitable. As one observer opined: “I don’t expect to see any actual easing until we get to $2,000 a ton.” Very […]
Olympic Steel kept the momentum going at the start of 2021, achieving its most profitable first quarter ever and third best quarter overall in the company’s history. Despite supply/demand challenges, Olympic recorded record net sales of $463 million due to higher metals pricing. Net income was $22 million, a big improvement from $600,000 in Q1 […]
The deep freeze last month across a large swath of the U.S. showed how fragile the U.S. freight system is, said DAT Freight and Analytics. “In 2020, things bent but they didn’t break,” Ken Adamo, chief of analytics at DAT told Logistics Management. “In the last two weeks of February, things very much broke. Shipments […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Monitor Reflecting a basket of finished steel prices, CRU’s global finished steel CRUspi reached 162.9, its highest level since May 2019. This indicator, which covers Asia, Europe, and North America, increased 5.2% m/m and is now up 9.9% y/y, the first y/y increase since November 2018. […]
Wholesalers who sell galvanized steel products to the HVAC sector remain surprisingly upbeat, despite weak steel prices and uncertain demand due to the coronavirus. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International said they are benefiting from some pent-up demand, especially in the Northeast where state and […]
Steel demand is on the upswing three months after being decimated by government orders to shut down nonessential businesses and stop the spread of COVID-19. The majority of steel buyers (53 percent) responding to Steel Market update’s market trends questionnaire this past week said they are seeing improvement in demand for their products. Another 38 […]
There was positive net job creation in May following April’s disastrous report. The May jobs report was released by the Bureau of Labor Statistics on Friday, after which the N.Y. Times reported: “Employers added 2.5 million jobs in May, defying economists’ expectations of further losses and offering hope that the rebound from the pandemic-induced economic […]
Steel demand is showing early signs of strengthening, said manufacturing and service center executives during Steel Market Update’s canvass of the market May 11-14, as officials in various states begin to ease coronavirus restrictions allowing businesses to slowly reopen. Half said demand for their products is stable or even improving, while the other half said […]
Last week, Steel Market Update conducted an analysis of the flat rolled and plate steel markets as we reached out to more than 500 individuals uniquely qualified to provide insights into these markets. What we found is an almost universal picture of a steel economy in a tailspin. Through our steel survey, SMU has seen […]
Last week, Steel Market Update conducted an analysis of the flat rolled and plate steel markets as we reached out to more than 500 individuals uniquely qualified to provide insights into these markets. What we found is an almost universal picture of a steel economy in a tailspin. Through our steel survey, SMU has seen […]
Zooming – sounds like a new drug, doesn’t it? We will be hosting another SMU Community Chat Webinar on Wednesday, April 22, at 11:00 a.m. ET (and I promise to hit the “start” button on time this week). Speaking with me will be Bernard Swiecki of the Center for Automotive Research (CAR). We will discuss […]
Earlier today I moved our Price Momentum Indicator to Lower from Neutral. I explained my reasoning in an article in tonight’s issue. What happens should one of the steel mills announce a price increase within the next couple of weeks? With scrap poised to move higher, and lead times being decent at most of the […]
Russel Metals, Inc., Canada’s second largest metals distributor, reported revenues of $937 million in the second quarter. Net income totaled $31 million, about half the $66 million the company earned in the same quarter last year (figures are in Canadian dollars). The company’s gross margins in this year’s second quarter averaged 18.8 percent, well below […]
Buyers of flat rolled and plate steels with whom Steel Market Update spoke today are concerned about the direction of steel prices, believing prices will continue to fall from here. Many buyers were debating how low prices would go over the next few months. A number have become believers that hot rolled coil will breach […]
SSAB Americas was a strong contributor for SSAB’s global steel business in the first quarter of 2019. The Americas segment turned in a solid performance with an EBITDA margin of 23 percent and record profit of $129 million due to higher steel prices. Sales increased 45 percent from the first quarter of 2018 to $3.363 […]
Data in Steel Market Update’s Steel Buyers Sentiment Index were slightly more optimistic this week, though comments from respondents reflect concerns in the market about trade issues, steel demand and the economy. We also continue to see Current Sentiment as being less optimistic than at this time one year ago. However, our Future Sentiment Index […]
Flat rolled steel service centers are beginning to support the concept of higher steel prices. Distributors are raising spot pricing to their end-user customers, and in the process, they are supporting the domestic steel mill flat rolled price increase announcements. Steel Market Update canvasses the flat rolled and plate steel markets twice a month through […]
We live in a time when nothing is as it seems and uncertainty rules the roost. This can make for a daunting task when considering when, what and how much steel you need to purchase at any point in time. It appears the second price increase announcement out of Nucor moved some of the end […]
We live in a time when nothing is as it seems and uncertainty rules the roost. This can make for a daunting task when considering when, what and how much steel you need to purchase at any point in time. It appears the second price increase announcement out of Nucor moved some of the end […]
By CRU North America Analyst Ryan McKinley Long product prices in the U.S. are coming under downward pressure after a build-up in late-2018 inventory levels lingered into the new year and import prices became more attractive for domestic buyers. Price drops so far—where they have occurred—have been minimal but import deals with arrival dates 60-90 […]
Editor’s note: CRU Senior Analyst Erik Hedborg contributed the following snapshot of the iron ore market, and steel demand, in China and India. Chinese Production Cuts Cause Market Volatility China’s winter heating season production cuts officially started in mid-November and it quickly became clear that this round of production cuts was not as strict as […]