As Steel Market Update analyzed the inventory data received from flat rolled steel distributors, we found the number of months of supply that steel service centers are carrying was lower at the end of March than what we reported at the end of February. With 96 percent of our data providers reporting, the number of […]
“Compared to one month ago, demand is declining, but to a more normal level,” commented one respondent to Steel Market Update’s market trends questionnaire last week, expressing a common view. There has been a surge in demand in recent weeks due to the Section 232 tariff decision by President Trump. Many buyers have been buying […]
Nucor offered fourth-quarter guidance on Wednesday, forecasting a decrease in earnings compared to the third quarter. Fourth-quarter results are expected to be in the range of $0.50 to $0.55 per diluted share compared to third-quarter consolidated net earnings of $0.79 per diluted share and comparable to year-ago earnings. Imports continue to negatively impact the U.S. […]
The ferrous scrap market is heading higher. In a surprise to scrap experts (and probably the mills), prices are rising with some early deals done at +$20 per gross ton on prime grades and +$30 per gross ton on everything else. That is where Detroit settled earlier this week. Steel buyers need to be aware […]
Twice per month, Steel Market Update conducts an analysis on the flat rolled steel market. Our focus is on pricing and price direction, demand, inventory management, international steel, buyers’ sentiment, service center spot price direction, mill lead times and negotiations, and more. We have been conducting our market analysis going back to late 2008. The […]
How can domestic mills expect to increase prices when their lead times are so short and foreign steel is still so plentiful? In the monthly steel conference call hosted today by the Heating, Air-conditioning, and Refrigeration Distributors International, HARDI members commented on the contradictions in mill behavior that have left them confused and concerned about […]
U.S. Steel turned around a series of losses to achieve net earnings of $261 million in second-quarter 2017. The company is focused on revitalizing operations and said it will invest an estimated $1.3 billion in its flat rolled assets in 2017. By 2020, U.S. Steel expects the revitalization program to increase hot rolled band production […]
ArcelorMittal’s NAFTA segment posted sales of $4.6 billion, a 3.3 percent decline from first quarter. Operating income decreased to $378 million from $396 million and EBITDA fell 3.3 percent to $506 million. Although average steel prices were higher in second quarter, they were offset by lower shipment volumes and higher costs, including planned maintenance at […]
Twice per month, Steel Market Update (SMU) conducts a review of how buyers and sellers of flat rolled steel feel about their company’s ability to be successful in the existing market (Current Sentiment) as well as three to six months out (Future Sentiment). Earlier today we crunched the data and found the flat rolled steel […]
The JP Morgan Global Manufacturing PMI dipped slightly to 52.8 in April from 53.0 in March. The PMI has shown expansion (above the 50 no-change mark) for 14 months. Manufacturing conditions slowed in the U.S. but was offset by acceleration in Europe, Japan and the United Kingdom. China expanded at its weakest rate in seven […]
It has been four weeks since the last HARDI galvanized steel conference call. The call provides a forum for the HARDI HVAC wholesalers and other associated HARDI members to discuss trends affecting galvanized steel prices. Over the past four weeks market prices have eased a bit but many of the factors that drive prices are […]
Steel Market Update participates in a monthly steel conference call hosted by HARDI (Heating, Air-conditioning, Refrigeration Distributors International). The call is dedicated to a better understanding of the galvanized steel market. The HARDI wholesalers are responsible for the supply of sheet steel and coil as well as other products to the mechanical contractors involved with […]
Steel Market Update scrap sources are advising us to expect ferrous scrap prices have bottomed and will increase once the November negotiations get underway next week with the domestic steel mills. We are hearing scrap prices should increase by a minimum of $10 per gross ton and some items could go up by as much […]
I got a note from Eddie Lehner, the CEO of Ryerson who attended our Steel Summit Conference for the first time this year. He dropped me a note today about our conference, “The SMU Conference is flat out worth attending. An unusual combination of candor, depth and subject matter relevance throughout the steel value chain […]
The uncertainty in the market (called the “blahs” by a number of our steel sources) is affecting both buyers and sellers of steel. Steel mills have been doing all that they can in an attempt to keep flat rolled steel prices from slipping too far. One of our mill sources had a sense of humor […]
Last week Steel Market Update conducted our early June flat rolled steel market trends analysis. Besides gathering data regarding how buyers and sellers of flat rolled steel feel about their company’s ability to be successful (SMU Steel Buyers Sentiment Index) we also asked questions about pricing, demand, buying patterns, foreign steel, lead times and negotiations. […]
Both these data points are reported in the Federal Reserve G17 data base. This month the historical data has been revised and we have updated our files back to January 2000. The index had an all-time high of 106.40 in January 2015 but on a month over month basis has declined for 13 of the […]
Existing home sales took a surprising 7.1 percent plunge in February to an annualized rate of 5.08 million according to data from the National Association of Realtors. Higher prices and tightening supply were blamed for the apparent cooling of the housing market. Supply was at 4.4 months in February, well below the “normal market” of […]
On Friday, SMU was speaking with the CEO of a Midwest-based service center who was advising us that, in his opinion, based on the conversations he was having with his mill suppliers, we should expect more flat rolled steel price increases to come. The mills were already asking his company for more and the mills’ […]
The states compile their employment numbers independently of the Feds then both are reported by the Bureau of Labor Statistics. The results are very close. In the last six quarters since Q1 2014, the Feds reported total job creation of 4,849,000 and the states reported 4,475,000. Figure 1 and Figure 2 show the history of […]
Ferrous scrap prices continue to weaken due to sluggish demand at the domestic steel mills coupled with a lack of exports off the East Coast USA to Turkey. Turkish scrap prices have tumbled over the past thirty days, down $46 per ton or nearly 20 percent compared to last month. An 80/20 HMS mix is […]
Last week Steel Market Update (SMU) conducted our mid-November flat rolled steel market survey. We invited approximately 600 companies to participate representing manufacturing, steel service centers, trading companies, steel mills, toll processors and suppliers to the steel industry. Last week’s participation mix was very similar to what we see on a regular basis with 46 […]
Commercial Metals Company (CMC) reported net earnings of $34.9 million for its fourth quarter ending August 31, 2014. Net sales increased 12 percent year over year to $1.9 billion. For the full fiscal year 2014, net earnings were 115.6 million on net sales of 7 billion. In comparison, FY 2013 net earnings were 77.3 million […]
Ferrous scrap price negotiations are beginning with at least one deal getting done in Detroit within the past few days at down $22 per gross ton. However, as one scrap dealer explained to us earlier today, scrap prices are all over the board. There are steel mills who are bringing furnaces back online and others […]
For the first time since Steel Market Update began surveying the flat rolled steel industry, a majority of our respondents are reporting demand as “improving.” As you can see by the timeline shown in the graphic below, the optimistic trend for demand growth began to pick up steam during late 1st Quarter 2014 and momentum […]
Steel Market Update received the following steel market analysis from one of our member companies based on the Academy Awards. Sometimes it is better to look at the flat rolled steel market with a sense of humor so here goes: Current Market Perspective (inspired by the Academy Awards): The US Steel market continues to be […]
Reliance Steel & Aluminum Company reports fourth quarter 2013 sales for all products were $2.31 billion, up 22.1 percent from $1.89 billion in the fourth quarter of 2012 and down 5.6 percent from $2.44 billion in the third quarter of 2013. Net income for the quarter was $61.8 million, compared to $95.1 million in third […]
Steel Market Update (SMU) participates in a monthly galvanized steel conference call with the HARDI wholesalers, manufacturing companies and service centers associated with the HVAC related organization. The wholesalers in the Upper Midwest, East Coast and as far west as Wichita, Kansas reported having lost 5-6 days of shipments due to inclement weather in their […]
Reliance Steel & Aluminum increased sales 18.9 percent to $2.44 billion in the third quarter 2013 from $2.06 billion in third quarter 2012. Tons sold were up 31.3 percent year-over-year to 1.45 billion tons. Net income was $95.1 million, down 3.1 percent from $98.1 million in the third quarter of 2012 and up 17.4 percent from […]
Optimism waned this week as steel buyers and sellers toiled over price announcements, demand questions and a heightened sense of insecurity regarding their company’s ability to be successful in the current market environment. Based on the results from our just completed steel market survey, SMU Steel Buyers Sentiment Index dropped 6 points to +15 from […]