Russel Metals reported its best quarterly results since 2008 for the second quarter ending June 30. “All of our businesses performed extremely well in the second quarter by adapting to the changing business environment. The continued uncertainty around steel tariffs and trade disruptions has resulted in the realignment of North American supply channels, which our […]
ArcelorMittal USA probably surprised some customers with their announcement of a $30 per ton price increase on cold rolled and coated products. My opinion is ArcelorMittal is trying to increase the spread between the hot rolled base price and that of cold rolled and coated products. I also think they are trying to boost base […]
Flat rolled and plate steel distributors, as well as the manufacturers who purchase spot material from the distributors and wholesalers, are reporting a softening of spot pricing. That is the spot pricing service centers are offering their manufacturing customers. Last week, Steel Market Update conducted our early August flat rolled and plate steel market analysis. […]
Steel pricing is the product of a complex interplay between supply and demand, along with other factors such as ferrous scrap prices, imports and government trade actions. Steel Market Update canvasses steel executives twice each month with its market trends questionnaire to take the pulse of the industry. The current prevailing view shows supplies tightening, […]
Data from Steel Market Update’s latest market trends questionnaire shows industry sentiment—while still high by historical standards—wobbling a bit, mostly likely over concerns about the uncertain trade situation in the U.S. SMU’s Current Steel Buyers Sentiment Index measures how buyers and sellers of flat rolled and plate steel feel about their company’s ability to be […]
Steel Market Update offers this early look at July’s import volume based on license data (see explanation below). The analysis evaluates the pressure that imports are having on individual products at the national level, but gives no indication of regional differences. SMU has developed a new series of regional reports for the six main flat […]
The following report is normally provided to data providers and Premium level members of Steel Market Update: Steel Market Update began collecting flat rolled and plate inventories information from our participating service centers beginning on Monday of this week. The following is our “Flash” report, which is derived from at least 50 percent of the […]
Most steel buyers are keeping inventory levels steady or even lower believing that, with steel prices so high, the risk is to the downside for the rest of this year. As one steel executive commented: “We are running inventories lean based on the elevated cost and our opinion that there is a greater chance for […]
Olympic Steel Inc. announced significantly improved financial results for the three- and six-month periods ended June 30. Net sales for the service center increased 27 percent in 2018’s second quarter, to $453 million, the highest quarterly sales in the company’s history. This compared with $356 million in net sales during the same quarter of 2017. […]
Steel Market Update has a NEW steel training workshop that is meant for both those new to the industry as well as those who have been in the industry for some time and would like a deeper pool of knowledge about the industry. The workshop is called Steel 201: Introduction to Advanced High Strength & […]
Steel Market Update celebrates its 10-year anniversary this month. In August 2008, John Packard incorporated the Steel Market Update newsletter and began selling subscriptions to those interested in learning more about what was happening in the flat rolled steel industry. As a steel veteran with more than 30 years of sales experience, Packard believed he […]
Steel Market Update celebrates its 10-year anniversary this month. In August 2008, John Packard incorporated the Steel Market Update newsletter and began selling subscriptions to those interested in learning more about what was happening in the flat rolled steel industry. As a steel veteran with more than 30 years of sales experience, Packard believed he […]
Nucor suffered a fire Monday that knocked out one of the two electric arc furnaces at its Longview, Texas, plate mill. The company is repairing the damage and expects little impact on customers. In an email to Steel Market Update, a company spokesperson said the incident caused no injuries or environmental impact. “Operations have resumed […]
A pretty quiet week as buyers and sellers sneak away for their summer vacations. Not much has changed. We saw a few of the flat rolled items as down $5 to $10 per ton and one as unchanged compared to one week ago. Plate prices were up as mills start to take October orders. Here […]
Reports of demand easing a bit in some markets and declining scrap prices in August hint at a steel market that may be in transition. But steel prices remained largely unchanged from last week based on Steel Market Update’s latest data. Here is how we see prices this week: Hot Rolled Coil: SMU price range […]
Registrations continue for the 2018 SMU Steel Summit Conference. We have broken through 800 and are nearing 825 registered steel and manufacturing executives as of Tuesday, July 31, 2018. To put that into perspective, we had 534 people registered as of July 31, 2017, and we ended up with 650 total attendees, which was a […]
Some quick comments I received as I moved around the market today talking about steel prices: JSW Ohio (Acero Junction mill) just got in 50,000 tons of slabs and is in the market. Credit issues are becoming an issue for companies as their customers are reaching their limits sooner due to the high cost of […]
Imports of foreign steel remain surprisingly resilient despite the 25 percent tariff imposed by the Trump administration. Imports saw a decline in June, but appear to be rebounding in July. Imports of foreign steel declined by about 450,000 tons in June or 15.3 percent from the previous month, according to preliminary Census data released by […]
Many steel buyers, and investors in steel futures, are betting that steel prices will follow the typical seasonal pattern and decline in the last few months of the year, even with the Trump tariffs boosting the market. While that may prove true for flat roll, it will most likely not be the case for steel […]
Scrap is trading lower in August. Steel Market Update sources in the ferrous scrap market report that the price of obsolete grades has declined by about $20 per ton and prime by $10 per ton. Weakness in foreign markets has reduced scrap exports, increasing the domestic supply. “Looking forward, I don’t expect prices to really […]
As of the first week of September, with the market still unsettled, ferrous scrap was expected to trend down for the month by another $20 per ton for obsolete grades and perhaps that much for prime, report Steel Market Update sources. On Friday afternoon, we did hear that prices settled in some of the markets […]
Following on declines in August and September, ferrous scrap prices in October are settling at an increase of $20 per ton for prime grades and $10 per ton for obsolete grades, according to Steel Market Update sources. A dealer in the Northeast reports that the Detroit market has bought Busheling at $390/GT, up $20; Shredded […]
Have China and other nations taken advantage of the United States on the trade front? Nearly three of four respondents to last week’s Steel Market Update market trends questionnaire believe that is true and they support President Trump renegotiating the “bad trade deals” of the past. However, at the same time, only 20 percent of […]
Data from Steel Market Update’s latest market trends questionnaire shows current industry sentiment stablizing after a bit of a swoon seen earlier this year due to the uncertainty related to the Section 232 tariffs and surprises regarding exclusions (or lack thereof). From a historical perspective, current sentiment remains at highly optimistic levels, however. SMU’s Steel […]
Nucor’s consolidated net earnings in the second quarter of 2018 jumped to $683.2 million, the second highest quarterly earnings in the company’s history. In comparison, earnings were $354.2 million in the first quarter and $323 million in Q2 2017. Nucor’s Chairman and CEO John Ferriola attributed the successful quarter to an upturn in the steel […]
My life these days is consumed by our upcoming SMU Steel Summit Conference, our brand-new Steel 201: Introduction to Advanced High Strength & Other New Steels workshop and the next SMU Steel 101: Introduction to Steel Making & Market Fundamentals workshop, as well as writing articles and trying to stay on top of the flat […]
We saw either sideways or modest gains in flat rolled steel pricing this week. Lead times continue to be extended by historical standards and, of course, the 25 percent tariff on most of the foreign steel coming into the United States continues and it does not appear it will be withdrawn at any time soon. […]
The market has been relatively quiet this past week with only minor adjustments to the flat rolled indices. Steel Market Update is hearing steel buyers’ concerns about possible price declines. At the same time, there are others who are positive that prices will remain within $50 per ton of today’s levels through the end of […]
How sustainable are the high steel prices in the United States? Steel Market Update sources point to a number of risk factors that buyers should consider. One service center general manager told us flat rolled and plate prices could only be threatened by an increase in imports. “Sharp price declines are caused by sharp increases […]
Is buying foreign steel today a big opportunity, in light of the wide spread between foreign and domestic pricing, or a big risk, in light of the tenuous trade situation in Washington? Steel Market Update canvassed the market and received widely varying views. For some, placing foreign orders is “a no-brainer.” For others, concerned about […]