Steel Blog: "Steel Prices, News and Analysis" > Official Blog of STEEL MARKET UPDATE

Steel Market Update Newsletter Reports on RG Steel, Survey Results, Sentiment & Much More

Thu, 17 May 2012 17:27:37 -0400

In tonight’s Steel Market Update (SMU) newsletter we will cover items of interest to the flat rolled steel industry in North America and across the world. Steel Market Update just completed a steel market survey as of this afternoon. For the past four days we have been collecting information on a wide variety of topics from those actively involved in the flat rolled steel industry in the U.S. and Canada.

Some of the topics which will be covered this evening include Read more ...

RG Steel Executive "Our Customers Continue to Support Us"

Wed, 16 May 2012 12:30:27 -0400

As soon as Steel Market Update saw the Baltimore Brew article regarding RG Steel we requested comments through both the RG Steel spokesperson (who is on vacation) as well as through Mr. Jerry Nelson who is the General Manager of Commercial for RG Steel. Mr. Nelson was kind enough to respond to our request and allow us to publish his comments which we have done in their entirety:

ThyssenKrupp Considers Sale or Other Options for their Steel Americas Steel Mills

Tue, 15 May 2012 14:26:19 -0400

ThyssenKrupp corporate headquarters in Germany has put out a press release regarding their plan to look at "strategic options" regarding the potential sale or new partnership regarding their two Steel Americas plants. ThyssenKrupp Steel USA is a conversion mill capable of rolling 4.0+ million tons of carbon flat rolled (hot rolled, cold rolled, galvanized, Galvalume, Aluminized. In Brazil their CSA plant produces slabs to service the Mobile, Alabama TKS USA mill Read more ...

Baltimore Brew Reports RG Steel Suffering a "Liquidity Crisis"

Tue, 15 May 2012 04:35:49 -0400

The Baltimore Brew has published an article this evening that RG Steel is suffering from a “liquidity crisis” based on reports coming from USW Local 9477 which is responsible for the union workers at the Sparrows Point mill. Reports coming from the union expect layoffs in the coming weeks Read more ...

Unveiling Of ArcelorMittal Orbit

Mon, 14 May 2012 19:59:29 -0400

ArcelorMittal is a sponsor for the London 2012 Olympic and Paralympic Games. The company has given the city of London a new landmark which will remain long after the games have come and gone. Read more ...

Construction Employment Up 3.5% In Canada

Fri, 11 May 2012 19:34:52 -0400

Canada’s employment levels increased by 58,000 jobs in April, which is 1.2% more than in last April. April was the second month of increases, even as the unemployment rate increased by 0.1% to 7.3%. Read more ...

RG Steel Sparrows Point has not been Idled as reported by analyst(s)

Fri, 11 May 2012 13:15:52 -0400

Based on Steel Market Update (SMU) sources, RG Steel Sparrows Point blast furnace was taken down on Wednesday for maintenance. The furnace was originally scheduled to come back up by this morning but was extended for an extra day or two. The rest of the mill is running as normal and SMU is not aware of any interruptions in source materials or any other issues with the mill Read more ...

Hot Rolled Futures Continue the Slide

Fri, 11 May 2012 12:09:34 -0400

Written by: Andre Marshall, CEO Crunch Risk, LLC

Hot Rolled NYMEX:

It was a quiet week with almost nothing trading until yesterday when 829 lots (16,580 ST) traded on the back of the CRU price drop of $13/ST that morning. The CRU Wednesday price, which was $669/ST, had dropped considerably after having gone up $4/ST Read more ...

ArcelorMittal Reports Positive North American Steel Shipments & Sales

Thu, 10 May 2012 13:02:20 -0400

ArcelorMittal reports first quarter 2012 results with net income of $11 million, up from a net loss of $1.0 billion for 4Q 2011. However, annually the company was below the $1.1 billion net income reported in 1Q11. Read more ...

AK Steel Raises Flat Rolled Steel Prices

Wed, 09 May 2012 17:51:06 -0400

AK Steel has just made a price increase. According to the company, "AK Steel Read more ...

North American Flat Rolled Steel Prices Either Have to Go Up or Capacity Has to Shut Down

Wed, 09 May 2012 14:12:14 -0400

In last evening’s Steel Market Update newsletter we published an article about the precipitous decline in flat rolled steel prices since the end of January. We are hearing in the marketplace from both buyers and sellers of hot rolled, cold rolled and coated products that something has to give – either prices reverse course or the domestic mills must take capacity out of the market Read more ...

Building Permits Up 4.7% In Canada

Tue, 08 May 2012 15:57:49 -0400

In March, contractors in Canada reported building permits worth $6.8 billion, up 4.7% from the previous month. Statistics Canada attributes the gain to higher construction intentions for both institutional and commercial Read more ...

Olympic Steel “2012 Has Started as a Non-Traditional Year”

Mon, 07 May 2012 12:58:53 -0400

Service center Olympic Steel reported earnings of $6.2 million for the 1st Quarter 2012 on $382.1 million in sales. The company advised analysts during their earnings conference call the $382.1 million sales mark is a record for the company. Read more ...

Construction Industry Gains 63,000 Jobs

Fri, 04 May 2012 18:41:08 -0400

The construction industry lost 2,000 jobs in April, slightly lower than the 3,000 lost jobs in March. However, April showed a 1.1% or 63,000 job gain over Read more ...

SMU Steel Buyers Sentiment Index Drifts to +36

Fri, 04 May 2012 11:19:54 -0400

The Steel Market Update (SMU) Steel Buyers Sentiment Index remained in optimistic territory this week as our index was measured at +36. This is two points lower than the +38 measured during the middle of April and is thirteen points higher than one year ago when our Sentiment Index was reported at +23. Our latest reading is two points higher than the lowest reading of the year (+34) achieved at the beginning of April.

Read more ...

Letter to the Editor: Thank God for Foreign Fighters – Really?

Fri, 04 May 2012 11:16:31 -0400

Dear Editor,

As reported by Steel Market Update (SMU 4/29), “Thank God for Foreign Fighters” was a statement made by a well-known steel analyst during Reliance Steel & Aluminum's recent quarterly earnings conference call. I have some thoughts about that comment (and about some of the other comments that were made). To add insult to injury, Reliance's no. 2 man Gregg Mollins responded with an "Amen" to the analysts comment. Read more ...

GM Announces First Quarter Earnings

Thu, 03 May 2012 14:30:05 -0400

General Motors Co. announced first quarter 2012 earnings with net income of 1.0 billion, down from $3.2 billion in 1Q11. Net revenue was $37.8 billion, up $1.6 billion compared to 1Q11. Read more ...

Manufacturing Conditions Improve In Canada

Thu, 03 May 2012 13:28:37 -0400

Canadian manufacturing business conditions in April improved to the greatest extent in 2012 so far, according to the RBC Canadian Manufacturing Purchasing Managers Index. Read more ...

Construction Employment Increases In 155 Metro Areas

Thu, 03 May 2012 13:05:01 -0400

Construction employment increased in 155 out of 337 metro areas in the past year, from March 2011 and March 2012. However, employment also decreased in Read more ...

April Auto Sales Exceed Expectations

Wed, 02 May 2012 12:10:57 -0400

U.S. industry light vehicle auto sales figures for April were released today and are projected at an estimated 14.6 million units Seasonally Adjusted Annual Rate (SAAR). Actual sales were higher than the 14.4 SAAR forecast Read more ...

Construction Spending Inches Up In March

Tue, 01 May 2012 18:56:40 -0400

According to the Association of General Contractors, the latest update on construction spending is below:

Construction spending inched up in March 2012 to an annualized rate of $808 billion, up 0.1 percent compared to the previous month and is now 6 percent above year ago Read more ...

Coiled Plate Imports Surging in April

Mon, 30 Apr 2012 11:43:12 -0400

Since Reliance was speaking about plate during their conference call with analysts this past week SMU decided to take a quick look at the U.S. Department of Commerce import data for the months of March and April 2012 Read more ...

SMU Price Momentum Indicator Moved to Lower from Neutral

Fri, 27 Apr 2012 12:36:56 -0400

Written by: John Packard

Earlier today Steel Market Update adjusted our SMU Price Momentum Indicator from “Neutral” to “Lower.” Based on information regarding lead times, pricing and negotiations between steel mills and their customers is leading us to believe the Read more ...

Worthington Industries Names New President & CEO

Fri, 27 Apr 2012 12:25:15 -0400

Worthington Industries posted this press release on its new management appointments:

Columbus, OH, April 26, 2012 – Worthington Industries, Inc. (WOR: NYSE) announced today that Read more ...

Shipments For Durable Goods Reach Record-Level Highs

Thu, 26 Apr 2012 12:53:16 -0400

New orders for manufactured durable goods in March dropped 4.2% from February to $202.6 billion. New orders have been up and Read more ...

PPI For Construction Inputs Rising Again

Thu, 26 Apr 2012 12:10:57 -0400

According to The Bureau of Labor Statistics, the Producer Price Index (PPI) for materials and components used in construction were up 0.2% in March from February and up 3.1% from March 2011. Raw materials prices used in construction or to produce products used in construction gained 0.4% in March after a previous 0.7% monthly increase and increased 3% y-o-y.

The index for nonresidential construction input costs rose 1.6% in March following a 0.8% increase in February driven by high energy cost.

Reed Construction Data forecast that construction activity will rise, resulting in “modest upward pressure on construction materials prices. As the economy advances at a moderate pace, prices will move roughly in line with general inflation. Faster than projected sustained economic growth (3% or higher at an annual rate) will accelerate commercial construction activity and push materials price inflation higher than general inflation. This seems unlikely to happen before the second half of 2012.” RCD stresses the risk of rising energy and oil prices as the biggest risk to materials price inflation and the economy.

Sources: The Bureau of Labor Statistics & Reed Construction Data

SMU Steel Buyers Sentiment Index Improves to +38

Fri, 20 Apr 2012 13:18:21 -0400

Steel Market Update (SMU) Steel Buyers Sentiment Index improved by 4 points was measured at +38 during our most recent steel market survey which concluded on Wednesday of this week. This means our Sentiment Index continues within the optimistic Read more ...

Hot Rolled Coil Futures Tumble – Q4 below $680

Fri, 20 Apr 2012 13:16:46 -0400

Written by: Joseph Reinmann, CEO Kataman Metals

If the futures market was a voting machine, then the results are official – the mill price increases have failed.

Hot Rolled Coil (HRC) futures prices on the CME declined this Read more ...

Existing Home Sales Down 2.6% In March

Thu, 19 Apr 2012 17:50:59 -0400

Existing-home sales for March were down 2.6% from February to an annual pace of 4.48 million. Sales are 5.2% higher than year-ago levels, as Lawrence Yun, Read more ...

ThyssenKrupp Steel USA Receives ISO 9001:2008 Certification

Tue, 17 Apr 2012 17:05:27 -0400

CALVERT, ALABAMA [April 17, 2012] ThyssenKrupp Steel USA announced today that its team has achieved a key operational milestone by receiving the International Organization for Standardization’s Read more ...

Reliance Steel & Aluminum Updates First Quarter Guidance

Tue, 17 Apr 2012 12:14:41 -0400

Reliance Steel & Aluminum just posted the following release on its first quarter earnings:

LOS ANGELES, Apr 16, 2012 (BUSINESS WIRE) -- Reliance Steel & Aluminum Co. RS +4.53% announced today that it is updating its Read more ...

February Domestic Mill Shipments Rose by 21% Compared to February 2011

Mon, 16 Apr 2012 14:38:44 -0400

According to a recently released AISI report, domestic mill shipments of carbon steel products declined by Read more ...

Building Permits Up 7.5% In Canada, Non-Res Sector Leads

Thu, 12 Apr 2012 17:24:04 -0400

Building permits provide an early indication of building activity. Total building permits for Canada rose 7.5% to $6.5 billion in February, Read more ...

SMU/Steel Reality Fair Value HRC Model Falls Below Par

Wed, 11 Apr 2012 12:06:59 -0400

The SMU/Steel Reality Fair Value HRC model recognized spot HRC and scrap prices falling again last week moving fair value back into Read more ...

Construction Employment Reports Gains From Private Sector Demand

Tue, 10 Apr 2012 20:06:19 -0400

Construction employment increased in 171 out of 337 metro from February 2011 and February 2012 while declining in 119. Read more ...

SMU Steel Buyers Sentiment Index Trending Lower but Still Optimistic

Fri, 06 Apr 2012 19:22:57 -0400

Are Questions about Demand, Pricing & Supply Negatively Impacting Sentiment? Read more ...

Hot Rolled Futures Stable on Weak Volume

Fri, 06 Apr 2012 19:22:04 -0400

Written by: Joseph Reinmann, Kataman Metals

Hot Rolled Coil (HRC) futures prices on the CME were mixed this week as March rolled off. Q2 2012 prices decreased $3 per ton to $690 while Q3 increased by $1 per ton to $676 and Q4 was essentially unchanged at $675 Read more ...

Two More Domestic Steel Mills Announce Price Increases on Flat Rolled Steel

Thu, 05 Apr 2012 15:46:37 -0400

Two more domestic steel mills announced price increases over the past 24 hours. RG Steel and Severstal NA have both made announcements to their customers.

In a letter to their customers dated April 4th RG Steel advised they were taking prices up $25 per ton on all hot rolled, cold rolled, galvanized and Galvalume products sold into the spot market Read more ...

JMC Steel Completes Acquisition of Lakeside Steel

Wed, 04 Apr 2012 12:55:10 -0400

CHICAGO, Apr 3, 2012 (GlobeNewswire via COMTEX) -- JMC Steel Group Inc. ("JMC") announced today that it has completed its acquisition of Lakeside Steel Inc. /quotes/zigman/529739 CA:LS 0.00% ("Lakeside"). Pursuant to the arrangement under the Business Corporations Act (Ontario) (the "Arrangement"), JMC, through a wholly owned subsidiary, acquired all of the issued and outstanding common shares of Lakeside at a price of CAD $0.2983 per share in cash Read more ...

ArcelorMittal USA and Nucor Announce Flat Rolled Steel Price Increases

Tue, 03 Apr 2012 19:55:21 -0400

Since late last week two domestic steel mills – ArcelorMittal raised prices on their “spot” business by approximately $20 per ton. The new “minimum” base price for hot rolled out of ArcelorMittal USA is reported to be $720 per ton according to emails seen by Steel Market Update Read more ...

Canada Announces New System for Steel Imports

Tue, 03 Apr 2012 13:04:42 -0400

April 1, 2012 - The Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, today announced the implementation of a new import system for steel and steel products. This measure, taking effect today, will reduce congestion at the Canada-U.S. border and remove the financial and administrative burden facing Canadian businesses Read more ...

Steel Market Update to Conduct Two Steel Training Workshops in April

Mon, 02 Apr 2012 15:30:39 -0400

Steel Market Update (SMU) has two steel-related workshops which will be held later this month. For those concerned about fluctuating steel prices and its impact on your or your customer’s business we have our Hedging Price Risk workshop which is held in Chicago on April 11th. Our second workshop which will be held this month is our Steel 101: Introduction to Steelmaking & Market Fundamentals workshop. This workshop will be held in Dearborn, Michigan on April 24-25, 2012 and will include a tour of the Severstal Dearborn steel mill Read more ...

Flat Rolled Steel Recap for the month of March

Mon, 02 Apr 2012 14:12:56 -0400

March was perhaps the month where there were more questions than answers. The first week of the month began with hot rolled prices averaging $695 they then dropped to $670 per ton and ended the month almost back to the level where they began. Other flat rolled products indexed by Steel Market Update (SMU) had similar paths during the month and ended either at, or within $10 per ton ($.50/cwt) of where they began at the beginning of the month Read more ...

SMU Price Momentum Indicator Moved to “Neutral” from "Higher"

Fri, 30 Mar 2012 11:07:27 -0400

Steel Market Update (SMU) has moved our SMU Price Momentum Indicator to “Neutral” from “Higher.” We have made this move based on a review of the market over the past two weeks and have determined based on our perspective steel prices will be range Read more ...

April Early Read on Scrap: Flat to Down $10

Wed, 28 Mar 2012 14:45:01 -0400

Last week a Western New York dealer sold shred into the Ohio and Western Pennsylvania markets down $10 per gross ton compared to prices at the beginning of the month. Many involved in the scrap business do not see these sales as a leading indicator of where prices will be set for April mill shipments. Read more ...

Lakeside Steel Shareholders Approve Acquisition

Tue, 27 Mar 2012 17:47:55 -0400

Lakeside Steel’s shareholders have announced their approval of JMC Steel Group’s subsidiary acquiring the company. Read more ...

Steel Buyer’s Perspective – Choosing the Right Supplier(s)

Mon, 26 Mar 2012 14:37:44 -0400

Written by: Tony Bonavita

Modern purchasing professionals are tasked to not only buy at the cheapest price, but to identify and mitigate risks in the supply chain. A low price is fantastic, but if the material arrives late, has quality issues, or was poorly run, than that low price is no longer… well, low. Additional “cost” is added to the bottom line (not to mention all your extra time). Read more ...

Steel Market Update Steel Training & Educational Programs for Management & "A" Players

Sat, 24 Mar 2012 16:34:24 -0400

Steel Market Update (SMU) is dedicated to educating those involved in the steel industry be they buyers or sellers of flat rolled or long products. We conduct various workshops and conferences with the expressed purpose of educating management and those determined to be "up and coming" or "A" players within an organization Read more ...

Steel 101 - What’s in it for Me – What’s in it for My Company?

Fri, 23 Mar 2012 11:30:36 -0400

Written by: John Packard

I was speaking with the Director of Strategic Sourcing for a multi-billion dollar company this morning. The individual (in this case it is a woman) had just been promoted to the position and as she reviewed various companies around the world and their steel coil needs she found gaps in her product knowledge. Read more ...

SMU Steel Buyers Sentiment Index +39

Fri, 23 Mar 2012 11:25:32 -0400

Steel Market Update (SMU) Steel Buyers Sentiment Index remained firmly in optimistic territory registering +39 according to our survey conducted this week. Our index is down 6 points from the beginning of the month of March Read more ...

Steel Market Update Newsletter Reviews Steel Pricing & Our Proprietary Survey Results

Fri, 23 Mar 2012 02:40:29 -0400

Steel Market Update (SMU) conducted a flat rolled steel market survey during the first three days of this week. This was our second survey for the month of March and it produced some interesting results. We discussed the survey and what we are discovering in our newsletter - Steel Market Update – which was published on Thursday evening Read more ...

The Architecture Billings Index Increases For Fourth Consecutive Month

Wed, 21 Mar 2012 18:22:59 -0400

A leading economic indicator of construction activity, the Architecture Billings Index (ABI) reflects the approximate nine to twelve month lag time between architecture billings and construction spending. Read more ...

Steel Market Update Moves Flat Rolled Steel Price Momentum Indicator to “Higher”

Wed, 21 Mar 2012 16:27:34 -0400

Short Term Momentum has Changed- Longer Term is a Question Mark

We struggle with transitional markets. Are the newest price increases just a “head fake” and being ignored by steel buyers or is there demand out there which has gotten some of the buyers sitting on the sidelines off and into the market. Read more ...

North American Steel Service Centers Have High Shipment Rates for February

Wed, 21 Mar 2012 16:26:30 -0400

According to just released data from the Metal Service Center Institute (MSCI) total steel shipments (all products) out of U.S. service centers was 3,665,300 tons during the month of February 2012. This represents an increase of Read more ...

Construction Employment Increases In 169 Metro Areas

Tue, 20 Mar 2012 18:13:47 -0400

Recent construction employment figures shows mixed results for January 2012 compared to last January, according to the Associated General Contractors of America. Read more ...

Wind Energy Tax Break Debate Continues

Tue, 20 Mar 2012 17:54:33 -0400

A wind tower used to generate electricity consists of between 120-200 tons of steel plate per tower. So, when the U.S. Senate dismissed an extension of the wind energy tax break the impact could well impact plate production for years to come. Read more ...

Housing Starts Up 35% From Last Year

Tue, 20 Mar 2012 13:18:19 -0400

Housing starts for February were slightly lower than the previous month, down 1.1% to an annual rate of 698,000. However, starts were a steep 34.7% above Read more ...

Buyer Confidence In Housing Market Highest Since 2007

Mon, 19 Mar 2012 15:49:48 -0400

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months. The Housing Market Index results for March indicated steady builder confidence in the new homes market. According to the National Association of Home Builders/Wells Fargo, the HMI is remaining at its highest level Read more ...

Steel Buyer’s Perspective: SMU Price Momentum Indicator “Neutral” Rating

Mon, 19 Mar 2012 12:31:04 -0400

Written by: Tony Bonavita

Last Thursday, Steel Market Update (SMU) moved its Momentum Meter to “Neutral” on the back of the AK Steel (and subsequently other mills) price increase announcement. The “Neutral” rating has been a point of discussion by SMU readers as many seek to understand its significance. Having served on the buy side, I can offer a unique perspective and attest that the “Neutral” rating is Read more ...

Steel Market Update Explains Steel Price Increases, Momentum & other related topics

Sat, 17 Mar 2012 18:12:47 -0400

For those who might have missed it – the domestic steel mills began the process of reversing price momentum as they announced flat rolled price increases ranging from AK Steel $50 per ton down to $30 per ton coming out of Nucor, NLMK USA, California Steel and USS/Posco. One mill did apply a base prices on hot rolled, cold rolled and coated products (galvanized & Galvalume) Read more ...

Consumer Sentiment Below Forecasts

Fri, 16 Mar 2012 17:10:38 -0400

Consumer sentiment slipped from 75.3 in February to 74.3, according to the Thomson Reuters/University of Michigan's preliminary reading. Read more ...

NLMK USA Announces Price Increase

Fri, 16 Mar 2012 17:08:22 -0400

NLMK has joined the bandwagon and announced a price increase. See the letter NLMK USA has sent its customers: Read more ...

AK Steel Anticipates Lower Shipments & Higher Selling Prices For First Quarter

Fri, 16 Mar 2012 12:42:10 -0400

AK Steel provided guidance for its first quarter 2012 financial results, expecting lower shipments and higher selling prices. AK expects a net loss of Read more ...

SMU Price Momentum Indicator Adjusted to Neutral from Lower

Fri, 16 Mar 2012 12:40:30 -0400

Steel Market Update (SMU) made a decision over a year ago to move our SMU Price Momentum Indicator to “Neutral” when a domestic steel mill announces a price increase. A Neutral indicator means the market is potentially in transition although the actual Read more ...

California Steel Industries Announces A Price Increase On Flat Rolled Products

Thu, 15 Mar 2012 18:19:41 -0400

Soon after AK Steel announced a $50 price increase on their products, another company follows suite with their own announcement. Steel Market Update obtained a copy of the letter Read more ...

Nucor Announces $30/Ton Price Increase

Thu, 15 Mar 2012 15:09:31 -0400

Below is a copy of the flat rolled price increase announcement released by Nucor this morning. Read more ...

Nucor Releases Guidance For First Quarter 2012

Thu, 15 Mar 2012 14:57:14 -0400

Nucor Corporation announced its guidance for first quarter results ending March 31, 2012 in the range of $0.30 to $0.35 per diluted share. These results are right in Read more ...

SMU Price Momentum Indicator Adjusted to Neutral from Lower

Thu, 15 Mar 2012 12:28:08 -0400

AK Steel Announces $50/Ton Price Increase

Wed, 14 Mar 2012 20:44:56 -0400

In what we see as an attempt to stop flat rolled prices from eroding further, AK Steel announced Read more ...

Construction Employment Gains Year-Over-Year

Tue, 13 Mar 2012 19:28:49 -0400

Construction employment increased from January 2011 to January 2012, rising in 28 states and D.C. while 20 states lost Read more ...

Metals USA Acquires Gregor Technologies

Tue, 13 Mar 2012 11:07:09 -0400

Metals USA makes an acquisition, extending its reach in the OEM market. Below is the company press release:

FORT LAUDERDALE, Fla., March 12, 2012 /PRNewswire via COMTEX/ -- Metals USA Holdings Corp. ("Metals USA") MUSA -0.01% , a leading provider of processed carbon steel, stainless steel, aluminum and other metals, Read more ...

Steel Buyer's Perspecive: Who Takes the Lead - Sales or Purchasing?

Mon, 12 Mar 2012 13:15:23 -0400

Written by: Tony Bonavita, General Manager, Steel Market Update

The issue of “control” within an organization and the building of private empires constructed around either the sales and/or purchasing organization is an issue many companies deal with on a daily basis. As a former manager of metals purchasing for a large wholesale/distribution company I got to interact on a daily basis with the sales department at all levels. Through the process I managed to learn some techniques which improved our communication skills and led to a positive work environment Read more ...

Steel 101: Who Needs to Attend Our Steel Training Workshop?

Mon, 12 Mar 2012 11:29:44 -0400

Written by: John Packard, Publisher

Steel Market Update (SMU) has been conducting our Steel 101 workshop for a couple of years now. With the addition of Tony Bonavita and Peter Wright we decided to utilize their experience and expand our program to include market fundamentals as well as the steelmaking and rolling processes for both flat rolled and long products

Last Day for Hedging Price Risk Workshop Early Bird Discount

Sun, 11 Mar 2012 15:56:35 -0400

Today is the last day to receive the “early bird” discount for our Hedging Price Risk workshop which will be held on Wednesday, April 11, 2012 at the Chicago Board of Trade building in downtown Chicago. The program will include a floor tour of the CME trading floor which is located in the CBOT building Read more ...

Construction Industry Hits A Setback For February Employment Levels

Fri, 09 Mar 2012 17:59:15 -0400

Nonfarm payroll employment rose by 227,000 in February while the unemployment rate remained at 8.3%, the U.S. Bureau of Labor Statistics reported. The number of unemployed persons was at 12.8 million for February while Read more ...

Steel Service Centers: Failure to Understand Hot Rolled Futures Markets Creates New Challenges

Fri, 09 Mar 2012 15:08:59 -0400

It has been Steel Market Update’s “opinion” for a couple of years that it would be necessary for service centers involved in the flat rolled steel business to learn about and understand how Hot Rolled Futures, Options and OTC Swaps can be used to Read more ...

Building Permits For Canada Drop For January

Thu, 08 Mar 2012 20:53:36 -0400

Building permits for Canada fell 12.3% to $6.0 billion in January following a strong increase in December. While both the residential and non-residential sectors reported declines, the non-residential Read more ...

Hot Rolled Steel Distributor Ratner Steel to Build New Indiana Service Center

Thu, 08 Mar 2012 15:37:10 -0400

Hot rolled processor and distributor, Ratner Steel Supply, has been given the go-ahead by the Portage, Indiana city council to build a 100,000 square foot facility at the Port of Indiana – Burns Harbor. Read more ...

Standard Steel Trading to Offer Fixed Price Steel Contracts Based on Financial Derivatives

Thu, 08 Mar 2012 00:35:15 -0400

Steel Market Update has been advising service centers and other steel companies that they need to understand hedging strategies and how to use HR Futures to their advantage. At the very least they need to understand how the competition is going to make a run at your customers. We received the following announcement this evening from one company which is marrying the two - financial derivatives to actual steel delivery and pricing Read more ...

SMU Acquires Assets of Steel Reality

Wed, 07 Mar 2012 13:08:24 -0400

Steel Market Update continues to build toward the future as we expand our products and services later this year. We are pleased to inform our members of an acquisition SMU made over the weekend: Read more ...

SMU Steel Buyers Sentiment Index Rises to +45

Mon, 05 Mar 2012 16:39:02 -0400

Steel Market Update (SMU) completed our early March survey of flat rolled steel market. During the process we measured how buyers and sellers feel regarding their company’s ability to be success in the current market environment. Our Steel Market Update Steel Buyers Sentiment Index was measured at +45 Read more ...

A Steel Buyer’s Perspective – Building Trust

Mon, 05 Mar 2012 13:40:24 -0400

Written by: Tony Bonavita

Last Monday, we published an article discussing the value or circumstances in which a steel buyer would willingly pay more for their steel. That topic moved over to Steel Market Update’s LinkedIn group (conveniently called: Steel Market Update) and the dialogue continued all week long with our group being composed of participants actively involved in the buying and selling of steel. What began as a discussion on value and price led the group to the topic of trust. Value Read more ...

RG Steel Sparrows Point Tin Mill Operations to be Idled Due to Loss of Contracts

Mon, 05 Mar 2012 00:48:26 -0400

According to our sources RG Steel will be idling their tin mill operations at Sparrows Point. RG Steel will begin the process of taking down tin mill operations towards the end of March. The mill will continue finishing operations (plating) at Sparrows Point but expects those to be idled by the end of April. The annealing section of the mill will continue to run past April. Existing customers will have their orders transferred to their Yorkville, Ohio tin mill operation which is part of what was once Wheeling Pittsburgh Steel Read more ...

The Recently Merged Macsteel & Namasco are Now Kloeckner Metals

Fri, 02 Mar 2012 19:09:57 -0400

In case you missed it, on March 1, 2012 there will be a new third largest metals distributor in North America. This new distribution center will be known as Kloeckner Metals, which represent the two service centers Read more ...

Auto Sales For February At 15 Million Sales Rate (SAAR)

Fri, 02 Mar 2012 13:08:07 -0400

The U.S. auto industry released February 2012 sales figures for light vehicles yesterday. Total sales were up 11.1% YoY. The seasonally adjusted annual rate (SAAR) was Read more ...

Construction Spending Forecast to Increase by 6.5% in 2012

Thu, 01 Mar 2012 13:56:41 -0400

Construction has been the one segment of the U.S. economy which has negatively impacted the steel industry. In order for the domestic steel mills to take capacity utilization rates above the 80% threshold Read more ...

Chicago PMI Beats All Expectations, Soars To 64

Wed, 29 Feb 2012 16:29:48 -0400

The Institute for Supply Management (ISM) for the Chicago region released their Purchasing Manager Index (PMI) earlier today. The Chicago barometer provides an early look at what the Read more ...

Steel Scrap Prices for March Forecast to be Sideways to Up Slightly

Wed, 29 Feb 2012 16:22:24 -0400

Strong Scrap Buying by Turkish Mills Could Move East Coast Prices Slightly Higher

Early indications from our scrap sources are pointing to a sideways market for the month of March in the Midwest. On the east coast obsolete grades (HMS, etc.) are finding a bottom as Turkish mills are Read more ...

SMU Newsletter Provides Flat Rolled Steel Prices Ranges & Indexes For North America

Wed, 29 Feb 2012 12:36:51 -0400

Flat rolled steel prices seem to be changing in North America as Steel Market Update has been talking to domestic mills, service centers and manufacturers about their offers and order books. Many factors are contributing to the trend in steel prices, Read more ...

There is Liquidity in the HR Futures Market

Mon, 27 Feb 2012 15:46:39 -0400

Steel Market Update hosts a Linkedin group called: Steel Market Update. Our group discussions have been very active since we started the group a couple of weeks ago. Discussions include topics such as the Hot Rolled Futures market – is it necessary and is there liquidity? Under what circumstances is it OK for a flat rolled steel buyer to pay more from one supplier than another? We have also discussed the Chinese inventory situation.

The question of liquidity in the hot rolled futures market came up late last week and Andre Marshall, CEO of Crunch Risk, LLC and the instructor for our Hedging Price Risk workshop told SMU in an email this morning Read more ...

Steel Market Update Discusses Steel Purchasing, Steel Pricing, Chinese Steel Market & More

Mon, 27 Feb 2012 14:27:59 -0400

Steel Market Update recently added a former purchasing manager to our team. The addition of Tony Bonavita is allowing us to expand our coverage of the flat rolled steel market from a different perspective and to provide new content regarding steel purchasing and sales in the coming months Read more ...

Steel Market Update: A Note About Our Progress within the Steel Industry

Sat, 25 Feb 2012 18:22:15 -0400

Our Steel Market Update basic members are beginning to get a taste of what will eventually become part of SMU premium product. The addition of Tony Bonavita and other moves we are making are being done in order to position us to provide multiple products to our members. Many of you are only interested in getting basic information and articles and rarely visit our website or work with our educational materials. Others are interested in SMU providing a deeper pool of information and materials which can be of greater value to you and your company Read more ...

SMU Value: Perspective from the steel buy side

Sat, 25 Feb 2012 14:55:38 -0400

Steel Market Update (SMU) recently added Tony Bonavita, an experienced flat rolled steel buyer and product manager to our team. Our SMU newsletter, which is published three times per week, will become even stronger and more meaningful to those within the steel community as Tony shares his steel purchasing insights with our subscribers. Here is an example:

Written by: Tony Bonavita

Having lived the life of a flat rolled steel buyer, I understand the challenges that these professionals face daily. I have experienced the thrill of negotiating a great buy as well as the stomach ache of a bad decision. I understand the delicate balance between strategic long term thinking and tactical short term solutions, balancing the relational with the transactional, and maintaining constant vigilance over the entire supply chain Read more ...

New Home Sales Drop Their Pace

Fri, 24 Feb 2012 18:02:08 -0400

New home sales dropped a slight 0.9% from December to January, reaching an annual rate of 321,000. January’s pace is 3.5% higher than the previous year. Read more ...

Sheet Metal Manufacturer Standex Purchased by Blue Wolf

Fri, 24 Feb 2012 17:34:42 -0400

Steel Market Update was sent this press release on a recent acquisition:

New York, NY, February 23, 2012 — Blue Wolf Capital Partners LLC, the New York-based private equity firm, today announced that Blue Wolf Capital Fund II, L.P. (“Blue Wolf”), through an affiliate, has entered into an agreement with Read more ...

SMU Takes Steel 101 from Good to Great

Fri, 24 Feb 2012 17:03:35 -0400

Written by: Tony Bonavita

Sometimes great products just get better. Steel Market Update’s Steel 101 program, already recognized as a premier industry tool, is expanding its content to better prepare active market participants in their respective roles. What has been an in-depth look at the steelmaking process is increasing its content breadth by incorporating training on basic steel market fundamentals. SMU’s unique approach utilizes our instructors 160+ years of actual steel buying and selling experience Read more ...

Manufacturing Conditions Look Positive For Canada & The U.S.

Thu, 23 Feb 2012 13:25:21 -0400

According to the February 2012 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies in the U.S. and Canada predict an increase in business conditions during Read more ...

Prime Buying Conditions Push Existing Home Sales Upwards

Thu, 23 Feb 2012 13:22:28 -0400

Existing-home sales rose 4.3% in January and have been up three of the past four months. January’s annual rate was 4.57 million, up from December’s 4.38 million-unit pace and 0.7% above January 2011’s pace. Inventories continued to improve as inventory at the end of January fell 0.4% to 2.31 million homes available for sale. Read more ...

Steel Market Update is Building for the Future

Wed, 22 Feb 2012 18:00:28 -0400

Written by: John Packard, Publisher/Owner Steel Market Update

As a company grows it is important to review what has made the company successful to date. Then, after a few moments of taking comfort in the fact the company is alive and well after living through the worst economic meltdown in our lifetime, as the owner I took a deep breath and started making decisions which will help keep SMU relevant for years to come Read more ...

AIA Billings Index Results Good News for Steel Industry

Wed, 22 Feb 2012 14:09:17 -0400

The American Institute of Architects reported there all important Billings Index this morning which remained above 50.0 at 50.9. This continues to be good news for the steel industry as the weakest steel-using sector is construction. According to the AIA Billings Index their member companies are doing more work preparing for new residential and commercial construction jobs which should hit the market 9-12 months in the future Read more ...