I have to admit I am very impressed with the quality of the speakers and the program that has been put on by the FMA Toll Processors Conference. One of the reasons why I am attending this particular conference was due to the agenda which included a couple of programs about Advanced High Strength Steels […]
Steel Market Update has been in constant contact with one of our Asian trading sources who is a trader of iron ore to Chinese steel mills and exporter of finished steel out of China around the world. We have been discussing the iron ore “bubble” which continues to inflate and our source believes it will […]
Galvanized steel buyers need to be aware that zinc prices have been rising since the beginning of February. The metal is close to its one year high but still has a ways to go before reaching the level at which the domestic mills last raised coating extras on galvanized steels. Zinc has been trading around […]
For the last couple of weeks we have been discussing various kinds of ethical issues that come up in the steel business. This week we will deal with the issue of when flat rolled steel is rejectable. Buyers and sellers often find that they disagree about the quality of the steel. Generally this problem is […]
During the month of January we saw scrap prices rise $5 to $16 per gross ton compared to December 2013 pricing. Iron ore prices dropped on both 62% Fe and 58% Fe (spot prices are based on Chinese spot sales). Zinc and aluminum prices used to coat galvanized, Galvalume, Galfan, aluminized, ZAM both dropped by […]
During the month of January Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. Benchmark hot rolled prices averaged $673 per ton ($33.65/cwt) according to the Steel Market Update index. CRU posted their monthly average at $676 per ton ($33.80/cwt). You can find the balance of our weekly and monthly averages […]
SMU Price Momentum Indicator ended the month of December where it began, indicating higher flat rolled steel prices over the next 30 days. The domestic steel mills did not disappoint as they raised base price levels to $35.00/cwt on hot rolled and $40.50/cwt on cold rolled and coated (plus extras, FOB mill) for the mills […]
We communicated with one of our main Asian contacts over the past few days. We wanted to know what they have been seeing regarding new carbon sheet price offers out of China for their European customers (this source does not ship steel to the USA). We also wanted to learn more about iron ore prices […]
Last week I discussed how Steel Mills calculate thickness and width extras. This week we will look at Mill coating extras for Galvanized and Galvalume coated steel coil. I am going to refer again to US Steel’s published list of price extras which you can find on their website. Other mills tend to have similar […]
The inputs which affect steel prices increased slightly during the month of September with the exception of shredded scrap and 58% Fe Iron Ore prices. Busheling and HMS scrap prices increased by $3 to $5 per ton in the Midwest. Iron ore spot pricing – which is measured out of China – showed one product […]
The Certified Steel Stud Association (CSSA) recently squared off against the Steel Framing Industry Association (SFIA) over galvanized coatings for steel stud. CSSA released a warning that G40e or G40EQ coated steel products are not a substitute for G40 coated steel studs. G40 is a hot-dipped galvanized coating (99 percent zinc) that is used to […]
September ended with the SMU Price Momentum Indicator pointing toward Neutral. In light of the price increase announcements beginning to come out of the domestic steel mills we will continue our Neutral position allowing all the mills to announce (or not) and buyers to react before making a change toward one direction or another. SMU […]
By the end of August SMU had adjusted our Price Momentum Indicator from Higher to Neutral, SMU Steel Buyers Sentiment Index averaged +40 which is higher than the average from June and July and well within the optimistic range of our Index. Benchmark hot rolled prices moved essentially sideways as the numbers show below. […]
The main issue driving steel prices during the month of July was supply and the constraints in supply related to production issues at the North American steel producers. U.S. Steel Lake Erie Works continued to be on lockout throughout July. The 2.5 million ton a year slab and hot rolled mill was first locked out […]
The domestic steel mills paid more for their scrap during the month of July than the month prior. The higher scrap inputs were one reason behind the domestic mills announcing more price increases as the month progressed. Spot iron ore (China) pricing rose during the month of July and ended the month with 62% Fe […]
From Steel Market Update perspective there are a number of keys to watch during the month of August: • Scrap prices: Shredded scrap prices are forecast to be down $10-$20 per gross ton due to oversupply. Other scrap grades such as cut grades and prime are forecast to be sideways to down $5 per […]
The following article is from one of our close trading sources located in Asia. This person is actively trading iron ore and ferrous scrap into China and is also trading steel out of China into Europe. He is able to provide us a view of the Asian market not normally seen by outsiders. Here is […]
Written by: Sandy Williams Billowing flames, sparks careening upward like thousands of fireflies, the brilliant blue-white glow of the arc, and heat—intense heat. It is hard to adequately describe the power emanating from the electric arc furnace as one stares at it enthralled. Our Steel 101 class felt that power up close and it was […]
Combination of higher zinc spot prices, competitive extras and higher zinc premiums are squeezing coating lines Galvanized converters are struggling to compete against mills with lower coating extras as LME Zinc spot prices have climbed from the low $.80’s per pound to recent high’s close to $1.00 per pound. Over the past few trading days […]
Written by: Sandy Williams SMU has noticed a rise in zinc prices on in the spot market over the past six months. Zinc is used as the anti-corrosion coating for galvanized steel. Over the past six months, Zinc spot pricing on the LME hit a low around $0.82 per pound at the end of October […]
The month of December was best illustrated by the SMU Price Momentum Indicator which spent the entire month stuck in Neutral as flat rolled spot prices essentially moved sideways through the month. Whether using our index or the CRU price assessments, the monthly average on hot rolled was very close to where prices were measured […]