Spot prices might be wobbling. But mill balance sheets are as strong as they’ve ever been – and the cash will continue to pour in as 2022 contracts reset at substantially higher numbers. Here are two opposing trends I’m keeping an eye on: (1) whether mills will use their cash hoards to expand outside of steel […]
Prices for four of the seven steelmaking raw materials tracked in this SMU analysis declined over the last 30 days. Through Nov. 18, iron ore prices fell 27% from one month prior, aluminum prices are down 17%, zinc prices declined 15%, and coking coal prices decreased 4%. In that same time frame, shredded scrap prices […]
Earnings season is (mostly) done and dusted, so I’d like to turn your attention to another season: M&A announcement season. Bankers like to get deals done before Christmas. And I think there is a decent chance that any deals in the pipeline now are announced in the next month or so. Also, while spot prices […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled Spot HR has declined each of the last three Wednesday’s for a total loss of $86/ST. Spot HR has lost […]
Canadian flat-rolled steelmaker Stelco posted the highest quarterly profits in its history in the third quarter on strong demand, high prices and increased shipment volumes. And the Hamilton, Ontario-based company predicted that the momentum would roll into the fourth quarter too. “Once again, our business has demonstrated our ability to take full advantage of strong market conditions […]
Ferrous scrap prices saw an unexpectedly big jump in November, with shredded scrap selling as high as $75/GT above October levels. Prime scrap rose $20/GT, sources tell Steel Market Update. Observers were expecting higher prices in November on strong export demand and some seasonal tightening of supplies, but were surprised by the size of the […]
The tariff-rate quota, or TRQ, replacing Section 232 tariffs on steel and aluminum imported from the European Union will go into effect on Jan. 1, 2022, per details of the agreement released by the Office of the United States Trade Representative (USTR). A 25% tariff will be still applied after the quota limit – 3.3 million […]
Algoma Steel Group Inc. and Triple M Metal LP have formed a joint venture – ATM Metals Inc. – to source prime scrap and other iron units for the Canadian flat-rolled steelmaker. The tie up between Triple M, one of North America’s largest private scrap recyclers, and Sault Ste. Marie, Ontario-based Algoma comes as the latter is […]
With record third-quarter earnings of $2 billion in the bank, U.S. Steel President and CEO David Burritt offered a bullish outlook for the steel industry and his company in 2022. Highlights of the company’s earnings call on Friday included an update on the steelmaker’s progress in finding a site for its new electric arc furnace […]
Cleveland-Cliffs Inc.’s earnings skyrocketed higher in the third quarter, and the steelmaker predicted that higher priced contract deals would protect it from any slip in spot prices in future quarters. The Cleveland-based steelmaker recorded net income of $1.28 billion in the third quarter of 2021, up from a mere $2 million in the same quarter […]
Prices for four of the seven steelmaking raw materials tracked in this SMU analysis increased over the last 30 days. Through Oct. 20, zinc prices shot up 24% over one month prior, iron ore prices rebounded 18% in one month’s time, aluminum prices rose 9%, and coking coal prices increased 8%. In that same time […]
By CRU Senior Analyst Ryan McKinley from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) changed little in October, declining slightly by 0.4% to 374.1. Price directions were mixed but fell by the most for European scrap and DRI while scrap prices in Asia had the largest increases. We expect to see similar […]
As “the next precious metal,” prime scrap is a growth opportunity and a logical fit for Cleveland-Cliffs, which announced Monday that it plans to acquire Detroit-based Ferrous Processing and Trading Co. (FPT). The $775-million deal, Cliffs’ first foray into scrap, comes as no big surprise to most market observers. Cleveland-Cliffs is the largest producer of […]
Usinas Siderúrgicas de Minas Gerais S.A. (USIMINAS) will take a lengthy, unplanned outage – 90-150 days – at the No. 2 blast furnace at its Ipatinga Plant in Brazil’s Minas Gerais state. The Brazilian steelmaker said it would minimize the impact on customers in part by buying slabs on the open market to make up […]
Following a big drop in scrap prices in September, sources tell Steel Market Update they expect an increase in the price of obsolete grades in October, with prime grades seeing some downward pressure. “I think we will see an increase specifically for shred in October. The consensus is building that prices in October for these grades […]
With trading still winding down today, it appears ferrous scrap prices for October will settle down $20/GT on prime grades and sideways for obsoletes. Most Steel Market Update sources expect scrap prices to start moving higher in the months ahead. “After Cleveland-Cliffs bought busheling last week basically sideways, the U.S. mills stubbornly waited a week […]
After a small decline in October, ferrous scrap prices are expected to strengthen in November and beyond on strong export demand and tightening seasonal supplies, sources tell Steel Market Update. CRU Senior Analyst Ryan McKinley sees upward momentum for scrap prices in the weeks and months ahead. Export demand is increasing, he said, pointing to […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
Prices for four of the seven steelmaking raw materials tracked in this SMU analysis decreased over the last 30 days. Through Sept. 17, iron ore prices stumbled 21% in one month’s time, busheling scrap prices declined 12%, pig iron prices fell 11%, and shredded scrap prices declined 3%. Coking coal prices jumped 49% in that […]
Nucor has enough raw material to supply its planned $2.7 billion, 3-million tpy sheet mill, but is exploring new technologies that might help it further reduce carbon emissions. The Charlotte, N.C.-based steelmaker is eyeing a range of options – including increased use of shredded scrap in its sheet mills’ electric-arc furnaces (EAFs), “green” pig iron […]
Steel Dynamics Inc. (SDI) forecasts a new quarterly record in the third quarter of 2021 when it comes to steel operations’ profitability, according to guidance issued Wednesday. The gains versus second-quarter results come thanks to strong steel demand and significant metal spread expansion, the electric-arc furnace (EAF) steelmaker said. “Third-quarter 2021 steel shipments are expected to be […]
Prime scrap prices saw a big drop in September, down $40-50 per gross ton (GT), report Steel Market Update sources. Obsolete grades also declined, though not as much, at down $20-25/GT in most parts of the country. Declining scrap prices may contribute to downward pressure on finished steel prices in the fourth quarter. Prices for […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) fell by 4.6% in September to 375.5, marking a second straight month of decline. Scrap prices were down in nearly every market we cover, although pig iron and HBI prices again fell by more than scrap. Lower demand […]
Prices for four of the seven steelmaking raw materials tracked in this SMU analysis decreased over the last 30 days. Through Sept. 1st, iron ore prices stumbled 18% in one month’s time, pig iron prices fell 11%, shredded scrap prices declined 4%, and zinc prices decreased 2%. Busheling scrap prices remained flat month over month, while aluminum prices rose […]
In the near term, ferrous scrap prices are heading down. But in the long term – with the proliferation of electric arc furnace (EAF) steelmaking around the globe putting added pressure on scrap supplies – the price trend for scrap is definitely pointing upward. The cost of scrap and other metallics is of high interest […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled While the hot rolled index continues to grind higher, coming in at just under $1,900/ST, HR futures prices also moved […]
Latin American steelmaker Ternium and Brazilian iron ore miner Vale have signed an agreement to work together to lower carbon emissions. Potential joint investments include an iron ore briquetting plant near Ternium Brasil, the company’s steel mill in Rio de Janeiro, and pig iron made from alternate raw materials such as biomass. “Vale is a […]
Settling on the direction of SMU’s Price Momentum Indicators has been an easy task for the past year. Prices on all products were clearly moving upward week after week as demand continued to outstrip supplies. Today, the market is changing, and the trend is less clear. Determining price momentum is considerably trickier. SMU does not […]
By CRU Senior Editor Ryan McKinley, from CRU’s Steelmaking Raw Materials Monitor The CRU metallics price indicator (CRUmpi) fell by 4.8% in August to 393.8, making it the first reading below the 400 level since May. Price falls for scrap and HBI were similar in scale, but pig iron prices have moved notably lower. Demand […]
As scrap prices for August were settling today, obsolete grades generally traded down $20/GT, while prime grades traded sideways, sources tell Steel Market Update. Late reports indicated busheling may be down $10 in the South. Ferrous scrap prices factor into the mills’ costs and how much they charge for finished steel products. The drop in […]