As of Friday of this past week, SMU, CRU and Platts had hot rolled price averages as $655, $656 and $655 per ton. SteelBenchmarker did not report prices last week and remains stuck at $668 per ton. Our average dropped to $659 per ton as all three of the reporting indexes saw HRC down $5 […]
Our Price Momentum Indicator has been stuck in “Neutral” since the last day of June 2014. We are now entering our 4th month and hot rolled steel prices have barely budged from the center line (OK, there have been some mild gyrations but no clear cut path up or down during the past three months). […]
SSAB, following its successful merger with Finnish steelmaker Rautaruukki, expects to reduce its annual cost base by SEK 1.4 billion ($194.7 million) over a three year period. In addition to cost synergies, SSAB expects to free up cash flow in the amount of SEK 500 million ($69.5 million)—half of it during 2015. The savings may […]
Steel Market Update spent the last two days canvassing end users and service centers to see where flat rolled steel prices are at the moment and where they might be heading from here. We heard from many service centers and end users that business conditions and demand for their products are doing quite well. We […]
Raw steel production is reported on a weekly basis and then on a monthly basis by the American Iron and Steel Institute (AISI). The weekly report, like the one we have published in today’s newsletter, is based on a response rate of approximately 50 percent of the producing steel mills. The weekly report is then […]
Ferrous scrap prices for October, which a couple of weeks ago were being forecast to move sideways (no change), are now looking as though they will drop $10 to $30 per gross ton. The Midwest and Southeast are expected to see the least price movement while those areas associated with exports (such as the East […]
Hot rolled dropped $4 per ton based on the averages of the four indexes followed by Steel Market Update. Three of the indexes had hot rolled at $660 per ton (SMU, Platts) or $661 per ton (CRU) with SteelBenchmarker the highest at $668 per ton. For cold rolled, SteelBenchmarker was the lowest index at $774 […]
Evraz North America LLC has filed for an initial public offering (IPO) with the US Securities Exchange Commission. Evraz North America said it intends to use the proceeds from the share offering to complete acquisition of North American assets and repay debt to its Russian parent company Evraz. The number and price of shares to […]
Essar Steel Algoma announced a “turnaround performance” in their second quarter FY 2015 guidance for the period ending September 30, 2014. The company expects second quarter steel shipments to equal 680,000-690,000 tons with EBITDA of CDN $75-85 million, compared to 530,000 tons and CDN $12.4 million EBITDA in Q1. Second quarter EBITDA projections far exceed […]
Through the 23rd of September foreign steel import licenses continue to suggest that September imports could exceed the 4.0 million net tons reported in the final census numbers for May 2014. The license data suggests that the biggest surge in imports will move through the domestic steel mills as semi-finished import licenses are trending toward […]
Total service center carbon steel shipments in August decreased by 61,400 tons to 3.477 million tons. Shipping days also decreased from 22 to 21. On a tons per day basis (t/d) shipments increased from 160,900 tons in July to 165,600 in August. All three months June, July and August had the best t/d shipments of […]
Buyers and sellers of flat rolled steel are becoming more optimistic about their company’s ability to be successful based on current market conditions according to Steel Market Update and their Steel Buyers Sentiment Index. SMU Steel Buyers Sentiment Index rose to +64 or +11 points higher than where it was measured during the beginning of […]
The Metals Service Center Institute (MSCI) released shipment and inventory data on the U.S. service centers this week. Total steel shipments of all steel products rose on a daily basis in August compared to July. The daily shipment rate was 173,000 net tons and shipments totaled 3,634,000 tons. The number of tons shipped was essentially […]
Canadian shipments for all steel products in the month of August were 456,600 net tons, a decrease of 5.3 percent from the month before and a decrease of 4.6 percent from August 2013. Inventories at the end of the month stood at 1,499,500 tons, up 2.2 percent from last month and up 8.0 percent from […]
Nucor is expecting higher profitability for its sheet steel, structural, bar and plate operations for third quarter. In their quarterly guidance, Nucor noted that manufactured goods, including energy and automotive, are their strongest markets. The high level of imports continues to pressure prices downward. Growth in the residential market has benefited the fabricated construction products […]
On Monday, Nucor announced their intention to acquire Gallatin Steel and its approximately 1.8 million tons of hot rolling capacity. Today, AK Steel and Steel Dynamics (SDI) completed the purchase of the Severstal North America assets. The biggest pieces of the Severstal deal are the Dearborn steel mill, which went to AK Steel, and the Columbus […]
On Monday, Nucor announced their intention to acquire Gallatin Steel and its approximately 1.8 million tons of hot rolling capacity. On Tuesday, AK Steel and Steel Dynamics (SDI) completed the purchase of the Severstal North America assets. The biggest pieces of the Severstal deal are the Dearborn steel mill, which went to AK Steel, and the […]
Flat rolled steel prices moved lower this past week according to the various steel price indexes followed by Steel Market Update. The largest movement was seen in cold rolled prices but hot rolled prices and Galvalume prices also fell during the past week. The one item which did not see erosion was galvanized prices which […]
On Monday Steel Market Update received information from one of our trading sources in Asia regarding the iron ore situation and price offers for export on rebars (debars), hot rolled (Europe) and plate (Europe). Ore Port Stocks at 110.95 Million MTS on Friday and an increase of 320,000mts week on week. Many large State Owned […]
Flat rolled steel prices continue to slip lower as the various indexes watched by Steel Market Update begin to come to a consensus as the spreads between the indexes shrink. Platts dropped their benchmark hot rolled price by $5 per ton and CRU by $2 per ton. SteelBenchmarker did not report prices this week as […]
Are foreign steel prices too low or are US steel prices too high? That is a question faced by trade litigation attorneys Robert Schagrin and Lewis Leibowitz at the recent SMU Steel Summit conference in Atlanta. There is a $300 delta between China and US prices and a $200 delta between Europe and the US […]
The U.S. Department of Commerce released final census data for July steel imports this past week. Total imports were 3,858,692 net tons which was 247,387 tons greater than what we saw during the month of June. License data is pointing toward a slightly lower total volume for total steel imports during the month of August. […]
Flat rolled steel prices continued to slip this past week according to our analysis of the various flat rolled price indexes we follow on a regular basis. The benchmark hot rolled average dropped $6 per ton to $671 per ton with SMU being the lowest at $665 and SteelBenchmarker the highest at $677 per ton. […]
The spreads between the various steel price indexes watched on a weekly basis by Steel Market Update have been shrinking. With the exception of plate (which had price increase announcements during the week) and SMU cold rolled, all of the other flat rolled steel price indices either moved sideways or moved lower this past week. […]
Late last week both ArcelorMittal and SSAB advised their customers of their intention to raise plate prices. Both companies followed the Nucor lead which was made on Monday of this past week, to raise carbon as rolled plate by $30 per ton ($1.50/cwt) and alloy, heat-treated, normalized and quenched and tempered plate prices by $40 […]
According to data just released by the Metal Service Center Institute (MSCI) total steel shipments were 168,300 tons per day during the month of July 2014. This represents a 6.9 percent improvement over the July 2013 shipment rate. The total number of tons shipped during the month of July by U.S. steel distributors was 3,702,100 […]
Canadian shipments for all steel products in the month of July were 482,400 net tons, an increase of 0.3 percent from the month before and an increase of 5.0 percent from July 2013. Inventories at the end of the month stood at 1,467,800 tons, up 5.5 percent from last month and up 0.4 percent from […]
On Friday, August 15th, Nucor Plate Mill Group announced an increase on transaction prices for all new spot orders of carbon, alloy and heat-treated plate. Carbon and alloy plate prices were increased by $30 per ton ($1.50/cwt). Heat-treated plate prices were increased by $40 per ton ($2.00/cwt). Late last week our SMU plate indices average […]
Total service center carbon steel shipments in July increased by 11,600 tons to 3.539 million tons. Shipping days also increased, from 21 to 22. On a tons per day basis, (t/d) shipments decreased from 168,000 tons in June to 160,900 in July but the latest data has the best shipments of any July since 2008. […]
Spreads between the indexes are beginning to narrow as the market has been trending sideways (with a slight upward bias) for a number of weeks. Benchmark hot rolled numbers were up $2 per ton due to SteelBenchmarker reporting new numbers this past week (SteelBenchmarker only reports prices twice per month). The average of all the […]