Cleveland-Cliffs Inc. aims to increase spot prices for carbon steel sheet by at least $60 per ton ($3 per cwt). The move is effective immediately and applies equally to all new orders of hot-rolled, cold-rolled and coated products in North America, the company said in a press release on Monday, Nov. 28. The Cleveland-based company […]
At the end of October, Friedman Industries began shipping material from its new coil processing facility on the campus of Steel Dynamics Inc.’s newest sheet mill in Sinton, Texas. The Longview, Texas-based processor’s new 70,000-square-foot facility includes a new stretcher leveler cut-to-length line that’s able to process coils up to one-inch thick and in widths […]
SMU’s sheet prices slipped again this week. But some market participants predicted that sheet was at or near a bottom. The anticipation of that bottom appeared to pull some big buyers off the sidelines. Large purchases from some pulled the low end of our hot-rolled coil range below $600 per ton ($30 per cwt) and […]
Steel mill lead times were mixed this week compared to our previous market check, with production times slightly shrinking for three products and marginally extending for two. Hot rolled, cold rolled, and galvanized lead times are now at or near multi-year lows. Lead times are down by an average of 0.2 weeks compared to one […]
The potential for a rail strike still remains after the results of union votes were announced on Nov. 21. While members of the SMART yardmasters and Brotherhood of Locomotive Engineers and Trainmen (BLET) voted to accept their proposed labor deals, members of the International Association of Sheet Metal, Air, Rail, and Transportation Workers – Transportation […]
A very high percentage of sheet buyers continue to report that mills are willing to talk price to secure an order, as they have since May, with more than nine out of ten reporting that this week. Negotiations on plate products are not as common, with slightly more than half of buyers reporting they are […]
Hot-rolled coil lead times have been bouncing around four weeks on average since July. HRC prices over that time have fallen from $955 per ton ($47.75 per cwt) to $630 per ton as of last week, a 34% decline. The question now is whether we bottom out around $600 per ton. Will sheet prices and lead […]
As this year winds down, many have 2023 business on their minds. Reports of waning demand have contributed to pessimism among buyers. But the domestic steel industry has reason for optimism heading into the New Year, according to the top executives at steel’s two leading trade associations. Steel Market Update spoke with Phil Bell, president of […]
The number of active drilling rigs increased this week in both the US and Canada, according to data from oilfield services company Baker Hughes. Counts have been trending in different directions in recent weeks. Drilling activity in the US continues to improve, although it is still not back to pre-Covid levels. Canadian rig counts have been […]
Producer prices came in below expectations in October, adding to hopes that inflationary pressures are beginning to ease, the US Labor Department reported. Last month’s Producer Price Index (PPI), a measure of the prices received for final-demand products, advanced just 0.2% month-on-month (MoM) and 8% from a year ago, the smallest annual gain in more […]
The Tampa Steel Conference – which SMU does every February together with the Port of Tampa Bay – offers the tantalizing prospect for those of us in the Midwest of getting out of the cold to network outdoors in Florida. We’ll again hold the conference at the Tampa Marriot Water Street hotel. We’ve got a solid agenda […]
Steel market conditions might be tough for the balance of the year, but Stelco sees the early signs of better times in the first quarter. The Hamilton, Ontario-based integrated sheet producer is also keeping a keen eye out for potential distressed acquisitions, company executives suggested during an earnings conference call with analysts on Wednesday, Nov. […]
Metal products service center Gerber Metal Supply Co. has been purchased by All Metals Industries Inc. (AMI). Gerber is a New Jersey-based distributor of carbon sheet steel, strip, blanks, and edge processed material. Belmont, New Hampshire-based AMI is a finisher and distributor of carbon, aluminum, stainless, and coated sheet and coil products serving the Northeastern […]
Canadian steelmaker Stelco posted sharply lower earnings in the third quarter on falling steel prices and higher raw material tags. The Hamilton, Ontario-based integrated sheet producer expects lower prices and short lead times to characterize the market through the end of 2022. “Despite market headwinds driven by cost inflation and a further deterioration in steel […]
Monthly Key Market Indicators (KMI) have steadily improved since reaching their most recent low in July, though steel buyer sentiment recently tumbled to a 26-month low, according to the latest analysis by Steel Market Update. Positive and neutral indicators have increased, while negatives have eased. Despite some recent improvements, present headwinds are still notable. The […]
Is this the week that prices bottomed, or do we still have room to fall? If you think ~$600 per ton ($30 cwt) is the bottom, you might point to some positive big-picture developments: strong energy prices, moves by China to prop up its property sector, or the weakening of the US dollar. You might […]
Steel sheet prices fell across the board again this week, with hot-rolled coil prices dropping to their lowest point since late September 2020 – more than two years ago. But industry opinion about the direction of prices has diverged. That’s a significant shift from prior weeks, when sentiment was almost uniformly bearish. Some market participants […]
Most flat-rolled steel imports rose from September to October but were lower compared to year-ago levels. This is according to October import license application data released by the US Department of Commerce’s International Trade Administration. All steel imports into the US require an import license in order to enter through Customs. The license count provides […]
Flat Rolled = 52.5 Shipping Days of Supply Plate = 47.3 Shipping Days of Supply Flat Rolled US service center flat rolled supply in October was steady month on month, according to Steel Market Update data. At the end of October, service centers had 52.5 shipping days of flat-rolled steel on hand on an adjusted […]
The potential for a rail strike in the US has been pushed back to early December. But concerns remain for the steel industry, which relies heavily on rail transportation. After rejecting a proposed national labor contract in October and reigniting the possibility of a rail strike, the Brotherhood of Maintenance of Way Employees (BMWE) Division […]
Imported sheet and plate products arrived at US ports at a slower clip in September, accounting for a lower share of the domestic market for the third straight month. That’s according to a Steel Market Update analysis of import data from the US Commerce Department and domestic shipment figures from the American Iron and Steel […]
Total US mill shipments of steel products were down in September, falling to their lowest total year-to-date (YTD). Mill shipments have been fluctuating up and down all year with little consistency. September’s shipments totaled 7.58 million tons, a 7.2% decline from August’s 8.18 million tons, and the lowest total since February 2021. Apparent supply also saw a […]
Steel prices continue to slide, and apparently so does sentiment. Based on SMU’s latest check of the market, sheet prices once again fell across the board, grinding lower and nearing levels some never expected to see again. Speculation that hot-rolled coil (HRC) prices will be at or near the $600-per-ton mark takes center stage with […]
Equipment from the 2023 “complete” closure of a carbon steel, tin, and sheet material cold-rolling mill in Pittsburg, Calif., is up for sale. It is believed to be the assets of the USS-UPI finishing plant owned by US Steel. The mill equipment — including a pickle line tandem cold reduction mill, a No. 1 continuous […]
Steel buyers continue to hold the upper hand in price negotiations with mills — a position they have enjoyed for nearly six months. A very high percentage of sheet buyers continue to report that mills are willing to talk price to secure an order. Negotiations on plate products are not as common, with slightly more […]
Steel mill lead times were steady to down this week compared to our previous market check. Production times shrunk for four products tracked by SMU and slightly extended for one. Lead times retracted by an average of 0.2 weeks compared to two weeks ago and are half a week shorter than levels one month ago. […]
Sheet prices fell across the board again this week as the slow grind lower that we’ve seen since last spring continued to gain speed. Hot-rolled coil prices fell $30 per ton ($1.50 per cwt) week-over-week. Declines in coated products were more pronounced, with cold rolled down $55 per ton, galvanized down $35 per ton, and […]
The United Steelworkers (USW) union and US Steel said on Tuesday that they had reached a tentative four-year labor agreement. The USW also said that its bargaining committee had unanimously recommended that union members ratify the deal with the Pittsburgh-based steelmaker. The tentative pact covers approximately 11,000 union-represented workers at US Steel. It does not […]
Canadian sheet and plate producer Algoma Steel Inc. posted sharply lower profits for the second quarter of its 2023 fiscal year. The Sault Ste. Marie, Ontario-based steelmaker said the drop resulted from falling steel prices, operational problems, and higher costs. The company had warned in September that its fiscal Q2 earnings would be substantially below […]
Nucor on Thursday confirmed its plate prices would remain unchanged with the opening of its December order book. Though the market was anxiously awaiting the Charlotte, N.C.-based steelmaker’s announcement, few were surprised by it. Why? It’s not clear that a price decrease at this stage in the fourth quarter would generate buying. And it would devalue […]