Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from Princeton […]
Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from Princeton […]
Marubeni-Itochu Steel America Inc. (MISA) has acquired Worthington Specialty Processing (WSP), a joint venture between Worthington Industries and United States Steel Corp. The New York-based value-added steel and aluminum processor and North American subsidiary of Japan’s Marubeni-Itochu Steel Inc. acquired WSP’s only remaining facility in Jackson, Mich. in an all-cash deal for an undisclosed sum. […]
Steel Dynamics Inc. (SDI) appears poised to announce that its new aluminum flat-rolled mill will be located in Mississippi, according to state records and recent comments by the state’s governor. Governor Tate Reeves said he would convene a special session of the state legislature on Wednesday, Nov. 2, to finalize “the largest economic development deal […]
Arkansas has become a hub for steel production in the southern US, and it will soon be home to another steel mill. Hybar, a newly formed company led by steel industry veteran David Stickler, announced it will build a $500 million greenfield minimill to produce rebar in northeast Arkansas just outside of Osceola. The new […]
SMU has released its latest full survey results, and I want to highlight some big changes that we’ve seen in the data compared to just two weeks ago. Chief among them is what appears to be a big shift in service center pricing and buying patterns. We had seen most service centers trying to hold […]
US Steel does not currently have any plans to bring back recently idled blast furnaces as it awaits an improvement in market conditions. The Pittsburgh-based steelmaker in September indefinitely idled the No. 3 Edgar Thomson blast furnace at its Mon Valley Works in western Pennsylvania and also the No. 8 BF at its Gary Works […]
US Steel Corp. recorded sharply lower profits in the third quarter of 2022 both sequentially and versus the same quarter last year, driven by lower steel prices and higher input costs. Despite the lower earnings, the Pittsburgh-based steelmaker remains on pace for its second-best financial year in the company’s history thanks to stronger margins in the […]
Oil country tubular goods (OCTG) imports from four countries will now be subject to fresh antidumping and countervailing duties. The news comes after the US International Trade Commission’s (ITC) final ruling that the US industry is being harmed by OCTG imports from Argentina, Mexico, Russia, and South Korea that are being sold at less than […]
Engineered shapes producer McDonald Steel Corp. is adding plate processing capabilities to its portfolio via the acquisition of General Steel Corp. Mac Steel GSC Inc., a wholly-owned subsidiary of McDonald Steel, recently acquired the assets of General Steel, a Cleveland-based plate service center and processor, for an undisclosed sum. The addition of plate processing capabilities naturally […]
Don’t look now but sheet price erosion continues, with tags across all flat-rolled products inching lower this week, according to SMU’s latest check of the market. For some time now we’ve been trying to gauge SMU survey respondents’ sentiment and their sense of market direction by asking when they think HRC prices will bottom out […]
Galvanized prices continue to drop, as discussed during this month’s call of the Sheet Metal/Air Handling Council of the Heating, Air-conditioning & Refrigeration Distributors International (HARDI). Prices have been steadily dropping for the past six months despite stable demand. A few highlights from the call include the differential between hot-rollled and cold-rolled coil being in […]
The news about AD/CVD orders being removed from Brazil on Friday was notable in that it bucked, in a small way, the trend toward regionalism and protectionism that we’ve seen growing since at least 2014. I noted in my initial writeup – as did Lewis Leibowitz in his deeper dive – that the market impact […]
Well, earnings season is now well underway. We’ve seen the early reporters like steel processor Worthington Steel (who announced it will be splitting off its steel segment and creating two separate, publicly traded businesses), as well as tube producer Webco, and steel and metal manufacturer Commercial Metals Co. all report strong results in their latest earnings. […]
This week, foreign hot-rolled coil (HRC) offers little to no cost advantage over domestic steel, according to Steel Market Update’s latest analysis. Foreign prices now hold a theoretical discount of 0–1% over domestic steel, after adjusting foreign prices for estimated freight costs, trader margins, and tariffs. This relationship has teetered back and forth lately, with […]
I made a contrarian case for optimism in my last Final Thoughts. Our latest survey results indicate I was more contrarian than I realized. For starters, there has been speculation in both the physical and futures markets that a strike or lockout at US Steel could catch buyers off guard and send prices spiraling upward. […]
Time for a contrarian, optimistic thought experiment. First the bad news: Sentiment is increasingly bearish on months of falling steel and scrap prices, nearly all respondents to our latest survey report that mills are willing to negotiate lower still, and flattish lead times provide paltry evidence for a rebound. A quick check of the headlines […]
Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex who has been active in the metals markets for two years. In his role, Mike performs fundamental and quantitative analysis which directly leads to actionable trading/risk management strategies across the base, precious and ferrous metals derivative spaces. Prior to joining Marex, Mike received […]
Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex who has been active in the metals markets for two years. In his role, Mike performs fundamental and quantitative analysis which directly leads to actionable trading/risk management strategies across the base, precious and ferrous metals derivative spaces. Prior to joining Marex, Mike received […]
A new labor pact between US Steel Corp. and the United Steelworkers (USW) union remains elusive, though some progress seems to have been made during the latest round of bargaining last week. The two sides, however, remain miles apart when it comes to major sticking points like wages, health care, retirement, and pensions, a USW […]
The price advantaged once offered by foreign hot-rolled coil (HRC) over domestic steel is gone, according to Steel Market Update’s latest foreign versus domestic price analysis. Foreign prices are now higher than domestic prices after adjusting for freight costs, trader margins, and tariffs. Domestic HRC is priced as much as 2% below current foreign prices. The gap between US and foreign […]
US apparent steel supply declined 3% in August to 8.98 million net tons, according to the latest US Department of Commerce and American Iron and Steel Institute data. This is the lowest figure since February 2022 and the second lowest figure in the past 16 months. August supply levels are 4% below the average monthly […]
US Steel has indefinitely idled the tin mill at its Gary Works in northwest Indiana, a company spokeswoman confirmed in an email to Steel Market Update on Thursday, Oct. 13. The move could be a prolonged one, upwards of six months, according to an unconfirmed report. The Pittsburgh-based steelmaker had temporarily idled Gary’s No. 5 tin […]
Cleveland-Cliffs Inc. and the United Steelworkers (USW) union announced they have agreed to a new labor deal after USW members ratified the terms of a new, four-year collective agreement. The USW-represented employees — roughly 12,0000 across 13 Cliffs steelmaking facilities in Ohio, Pennsylvania, Indiana, Illinois, West Virginia, and Minnesota — voted “overwhelmingly” in favor of […]
Rock Trading Advisors President David Feldstein will be the featured speaker on the next SMU Community Chat webinar on Wednesday, Oct. 12, at 11 a.m. ET. The live webinar is free for anyone to attend. A recording will be available for SMU members. You can register for the webinar here. We’ll discuss the last three years in the […]
US steel exports rebounded 8% from July to August, according to the latest US Commerce Department data. Just over 800,000 net tons entered the country during the month, now the third-highest monthly export rate seen in the last four years (behind March and April 2022). Exports on a rolling annual basis are now at a […]
We’ve spilled a lot of ink over labor contract talks between US Steel and the United Steelworkers (USW) union. That issue is no doubt important. But here are two more that are just as important, if not more so. And you should have both on your radar as you start this week. First is the […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
Sheet pricing continues to grind lower and contract negotiations drag on. Let’s first look at why prices have been slipping and think about a few theories as to who or what the culprit might be. Spot Market Dynamics I’ve heard from buyers in the Midwest that discounts for large-volume orders negotiated by an integrated producer […]
US Steel Corp. began construction on its $150 million direct-reduced-grade iron pellet plant in Keewatin, Minn., on Thursday, Oct. 5. Minnesota Governor Tim Walz joined US Steel’s President and CEO David Burritt, and other leadership members to celebrate the company’s project and tout its “commitment to produce products that are mined, melted and made in […]