Steel Market Update closely follows the hot rolled futures market as a leading indicator of where “the money” is predicting HR steel prices to go in the future. We have added a new writer to our futures articles and he is very experienced in the trading of HRC futures, options and SWAPS. However, he has […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
Latin America is China’s second largest market for steel exports, receiving 8.3 million tons of steel in 2014. Alacero, the Latin American Steel Association, was one of eight steel organizations representing steel interests in North America, Latin America and Europe to express concern over China’s “Steel Adjustment Policy 2015.” SMU asked Alacero to comment on […]
Global manufacturing continues to expand at a slow and steady pace. The JP Morgan Global Manufacturing PMI registered 51.8 from 51.9 in February. Manufacturing growth has been sustained for twenty-eight consecutive months. “The March PMI surveys suggest that the global manufacturing sector continued to make steady progress, with rates of expansion in output and new […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
Twenty-seven months of consecutive global manufacturing growth was marked by the JP Morgan Global PMI in February. The headline index rose to 52.0 from 51.7 in January. The United States continued to be the prime driver of global growth with the Markit U.S. PMI increasing to 55.1 from 53.9 in January. Mexico showed strong growth […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
Steel Market Update thought it might be worthwhile to pick out some of the comments made by Steel Dynamics CEO Mark Millett during his earnings conference call with analysts late last week. We have focused on comments made about foreign steel, scrap, energy markets and the new Columbus facility. Each of the comments made are […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
The fall in hot rolled futures prices seems to have slowed with the CRU down only $6/ton this week compared to an $18/ton drop the week prior. The second half of the year seems to have stabilized with trades being done at $570-575/ton for Q3 and Q4. The near term remains softer with bids retreating […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers […]
The following article on the hot rolled futures market comes to SMU from contributing writer Bradley Clark, Director of Steel Trading for Kataman Metals. Hot rolled coil futures have been quite inactive the past week due to the Thanksgiving holiday. As activity picks back up, it appears the next move will be lower. The forward […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. The Chicago Fed Mid-West Manufacturing Index which was suspended earlier this year was expected to be re-instituted this month but […]
On October 28, 2014 AK Steel announced a $20 per ton ($1.00/cwt) price increase on hot rolled, cold rolled and galvanized steels. Shortly after, ArcelorMittal and then Nucor advised their customers of specific base price levels on new spot flat rolled orders. Hot rolled was to be offered at $33.00/cwt ($660 per ton or higher) […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered has been increased by one this month to thirty six. We have added the price of coking coal FOB the Australian East Coast to the raw […]
Below is an article on the Asian scrap markets from one of our contributing writers, Damon Sun of Daido International. The last few weeks were chaotic in the markets. Most Asian countries look to Taiwan for indications on market directions and a base for pricing. With the rapid decrease in prices in iron ore (abt […]
Manufacturing activity continued to improve in the Fifth District in August, according to the survey of manufacturing activity conducted by the Federal Reserve Bank of Richmond. The composite index rose to 12 for its highest reading since March 2011. Shipments gained 7 points advancing to 10 while new orders gained 8 points registering 13. Employment […]
Chuck Bradford of the Metals Industry Advisory Group is a well known steel analyst. Mr. Bradford will be participating in our 2014 Steel Summit Conference in Atlanta. Mr. Bradford will be part of a panel discussing commodity prices and the influence of China on the world steel industry – especially here in the United States. […]
Steel Market Update has a close contact who is an active iron ore and steel trader in Asia. He sells iron ore to the Chinese steel mills and then he buys steel from the Chinese (and other Asian) steel mills and ships it around the world. Over the past couple of days we got deeply […]
After a weak start to 2014 business activity is going strong in May said participants on the HARDI monthly galvanized steel call. Steel Market Update (SMU) joined HARDI wholesalers who supply galvanized steel to the construction trades to talk about concerns in the industry including domestic mill price trends as well as the impact of […]
The past couple of weeks have been a bit brutal for the US hot rolled coil (HRC) forward curve. While the spot market is appearing to run out of steam the HRC forward curve has broken down particularly the second half 2014 periods and calendar 2015 periods. May and June have withstood this recent selling […]
The finished steel stockists have been buying finished products the last two weeks. However, the stockists are still keeping very little inventory on a wait and see mode due to the iron ore price collapse (currently abt $102/dmt). The current finished product orders should keep the production smooth for the next 3 weeks in China. […]
The JP Morgan Global PMI was at a six-month low in April but indicated manufacturing remains in the expansion range. At 51.9 the score reflected weaker production and new orders. The PMI was negatively affected by the downturn in production and new business that followed an increase in sales tax in Japan. The US and […]
The recent upturn in the physical market has continued to fuel the upswing in steel futures prices as nearby periods have surged this past week. The May and June HRC contracts have traded to highs of $660/ton while second half periods have traded up to $643. The nearby prices have improved over $40 during the […]
Global manufacturing activity showed steady improvement during February. The JP Morgan Global Manufacturing PMI rose to 53.3 in February, inching up from 53.0 in January. Manufacturing output remained steady in February while new orders grew at a faster rate. Employment levels were higher in much of the world with staffing cuts reported in China, Russia and […]
A stronger performance is expected in all end-markets for 2014 said Reliance Steel & Aluminum in the company’s recent conference call. The following are some comments by Chief Executive Officer and Chairman of the Board David Hannah and Gregg Mollins, President and Chief Operating Officer on the steel market and industry. Regarding pricing Gregg Mollins […]
The JPMorgan Global Manufacturing PMI registered 52.9 in January, almost unchanged from December’s high of 53.0 and signaling the fourteenth straight month of expansion. Production and new orders continued upward which helped increase employment levels. New export business slowed in January. Sharp discrepancies in growth were seen between developed and emerging markets. The UK, Japan […]
On Monday, December 23, 2013 Nucor Sheet Mill Group advised their flat rolled customers that “due to higher raw material prices, the Nucor Sheet Mill Group will increase base pricing to the following levels, effective immediately:” Hot Rolled = $35.00/cwt ($700 net ton) Cold Rolled = $40.50/cwt ($810 per ton) Galvanized = $40.50/cwt ($810 per […]
Manufacturing activity slowed in the Second and Third Districts in December and fell in the Tenth. The Federal Reserve Bank of New York reported the general manufacturing index for the region at 1.0, up three points from November but indicating flat conditions for the month. Likewise, the Federal Reserve Bank of Philadelphia (Third District) reported […]
The JP Morgan Global Manufacturing PMI rose to 53.2 in November from 52.1 in October, indicating a faster improvement in overall operating conditions. Manufacturing output and new orders rose at the quickest pace since February 2011. A moderate rise in employment was reported the US, Japan, the UK, India, Taiwan, South Korea, Turkey, Vietnam, Canada […]