US plate prices edged down again this week after seeing their largest decline in nearly five years the week prior. The latest declines are not exactly a surprise given plate prices had been holding an unsustainable premium over coil and buying has been largely hand-to-mouth. But the straw that broke the camel’s back might just […]
Eariler this week, SMU polled steel buyers on a variety of subjects including current and future steel prices, price increase announcements, supply, demand, and new mill capacity. Rather than summarizing the comments we received, we are sharing them in each buyer’s own words. We want to hear your thoughts, too! Contact Brett@SteelMarketUpdate.com to be included […]
SMU’s benchmark hot-rolled coil price inched upward for the first time since mid-April, nearly four months ago. The modest gain came even as cold-rolled and coated prices continued to see significant declines. Plate prices were roughly flat. By the numbers: Our average hot-rolled coil price now stands at $820 per ton ($41 per cwt), up […]
Nucor Corp. aims to increase base prices for steel sheet by at least $50 per ton ($2.50 per cwt). The price hike is effectively immediately and applies to all new orders, the Charlotte, N.C.-based steelmaker said in letters to customers dated Monday, Aug. 8. “We reserve the right to review and re-quote any offers that […]
I mentioned in my last Final Thoughts that I’d been surprised to see hot-rolled coil lead times inch up, even if only modestly so. I cautioned at the time not to make too much of just one data point or to call a trend based on just one survey. That big caveat aside, as we […]
Ball Corp. earnings alert market to slowing can demand Ball issued its second quarter earnings results on Aug. 4, and they have unsettled the market. The company reported a loss of $174 million while taking a non-cash asset impairment for its Russian operations, which it had previously stated it would suspend future investment in and […]
We’ve got a full issue tonight, so I’ll keep my final thoughts brief. If you’re looking for reasons to be bearish, there are still plenty out there. When it comes to sheet prices, nearly all respondents to our survey report that mills are willing to negotiate lower. When it comes to geopolitics, the war in […]
Another Russian steelmaker has been sanctioned by the US government in response to Russia’s ongoing war in Ukraine. The US Department of Treasury officially sanctioned Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) and its majority owner Viktor Filippovich Rashnikov. MMK’s subsidiaries MMK-FINANS and MMK Metalurji were added to the list as well. The companies […]
Flat-rolled steel prices fell again this week as they have just about every week since late April. But there were a couple of new trends of note this time, even if they don’t change the overall narrative of a continued correction in flat-rolled steel prices. For starters, plate prices took a big tumble – down […]
Sheet prices continued to move lower this week, and plate joined the downward trend following a price decrease announced last week by Nucor Corp. Hot-rolled coil prices now have a tenuous grasp on $800 per ton ($40 per cwt). SMU’s average HRC price stands at $805 per ton, down $35 per ton from last week […]
Algoma Steel and United Steelworkers (USW) Local 2251 have agreed to extend labor contract talks for another 15 days, narrowly averting a strike. The Sault Ste. Marie, Ontario-based steelmaker confirmed that in a press release on Saturday. And USW Local 2251 president Mike Da Prat confirmed it as well in an exclusive interview with Steel […]
US plate prices were largely unchanged this week, but probably not for long now that Nucor has significantly lowered plate prices with the opening of its September plate order book. The move came after Nucor in early July kept prices flat with the opening of its August order book. Discrete plate prices, as well as prices […]
Monthly Key Market Indicators (KMI) fell through June and into July, while steel buyer sentiment tumbled to a two-year low, according to the latest analysis by Steel Market Update. Negative and neutral indicators have increased, while positive indicators have collapsed. Present headwinds are notable. Consumers and businesses have pulled back on spending, and rising inflation […]
A local USW chapter representing Stelco Inc.’s Lake Erie Works in Nanticoke, Ontario, has rejected a tentative labor agreement with the Canadian flat-rolled steelmaker. USW Local 8782 said 52% of its members voted to reject a proposed new labor contract. USW Local 8782-08, responsible for Stelco’s pickling operations, narrowly approved a new deal. One member […]
Reliance Steel & Aluminum Co. “delivered an exceptional second quarter with record-setting financial performance and outstanding operational execution,” CEO Jim Hoffman said in the service center’s second quarter results release. Reliance reported record second quarter net income of $572.8 million on sales of $4.68 billion. The company’s top results were driven by “ongoing healthy demand” […]
The United Steelworkers Local 1005—representing workers at Canadian flat-rolled steelmaker Stelco’s processing and finishing operations in Hamilton, Ontario—will soon be in a legal position to strike. The most recent bargaining update from Local 1005 said their negotiating committee has asked its government conciliation officer to file a “no board report,” putting the Local in a […]
Although pricing continues to fall, there is a sense of cautious optimism within the HVAC realm. During this month’s call with HARDI’s Sheet Metal/Air Handling Council, many members shared the same sentiment: prices and demand are dropping. But there are open orders that still need to be satisfied. An HVAC company in the West said […]
Prices for hot-rolled, cold-rolled and galvanized flat-rolled steel fell again this week with little signs of a near-term bottom. Hot-rolled prices fells into the low $800s per ton ($40s per cwt). Cold-rolled and galvanized base prices, meanwhile, fell into the $1,200s per ton ($60s per cwt) for the first time since mid-March. Spreads between highs […]
Nucor made downward revisions to most of its galvanized coating extras on Friday, with new extras going into effect Sept. 3, 2022. “Consistent with our practice to monitor the cost of zinc, we have revised our galvanized coating weight extras effective with orders acknowledged for week ending September 3, 2022,” a Nucor press release reads. “Price […]
Stelco Holdings Inc. expects its second quarter earnings results to be notably higher sequentially and year-on-year but is warning that a weakening steel market will mean lower results for the second half of the year. In a preliminary earnings report, the Canadian flatrolled steelmaker said it expects its Q2 adjusted EBITDA to be Candian $460-470 […]
Backward physical integration comes to the aluminum rolling industry SDI’s decision to “jump the fence” and enter the aluminum rolling sector was, in and of itself, blockbuster news. However, the repercussions on the aluminum scrap market may be even more profound. CRU has argued for some time that the big aluminum rolling mills would eventually […]
Producer prices rose moderately in June, maintaining a sustained 27-month growth run. Last month the headline index grew by just 3.3%, seasonally adjusted, but was up 23.4% compared to the same year-ago period, the US Labor Department reported. The wholesale level was hit hard by inflation as well in June. The producer price index (PPI), […]
New sheet and plate capacity from Nucor will be entering the market in force by the end of this year, just in time for an anticipated increase in infrastructure demand, company executives said. Whether those facilities ramp up to their nameplate capacity will ultimately depend on demand, they added. “While we recognize there is considerable […]
Steel mill lead times through this week were relatively flat for sheet products and down slightly for plate, according to SMU’s latest market check. On average this week, lead times declined by 0.1 weeks across the board compared to early July and are down an average of 0.4 weeks compared to one month ago. Having […]
Steel Dynamics Inc.’s (SDI) newest sheet mill in Sinton, Texas, is experiencing some issues as it continues ramping up, but this is not atypical for the start-up of a new plant, company executives said during the second quarter earnings call on Thursday, July 21. Commissioning continues on the hot side and tandem cold mill, but […]
US Steel plans to take an approximately one-month outage in September on the No. 3 blast furnace at is Mon Valley Works near Pittsburgh, a company spokeswoman said. The steelmaker plans to apply shotcrete – sprayed concrete – to the furnace, she added. Shotcrete is a significantly shorter and less expensive process than a full […]
Nucor Corp. experienced another record quarter on strong shipments and steel prices. The Charlotte, N.C.-based steel company saw robust demand from the nonresidential construction markets, with notable profitability at its bar and plate mills as well as within its raw materials segment. Although a decrease is expected in the current quarter’s earnings, profitability should remain […]
Leaders of the American steel industry gathered with members of the Congressional Steel Caucus on Wednesday in Washington, to discuss the state of the industry and how Congress can continue to support this critically important sector of the economy. Topics of discussion at the Caucus hearing included building and supporting critical supply chains and domestic manufacturing, […]
Steel Dynamics Inc. (SDI) posted record second quarter profits despite a modest margin squeeze stemming from lower steel prices and higher scrap costs. The Fort Wayne, Ind.-based steelmaker also remains bullish about the second half of the year despite concerns about demand in some corners of the market. “Customer order entry activity continues to be […]
US plate prices have been holding steady and bucking the downtrend presently seen across sheet and coated products. Plate demand has remained largely steady, while buyers have maintained lean inventories, only taking volumes to fill gaps. The price dynamic has led to historically high premiums over hot-rolled coil (HRC) prices. Presently, plate prices are more […]