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    Final Thoughts

    Written by John Packard


    I appreciate all the kind comments we have been receiving over the past few weeks. It appears the addition of Sandy Williams and Peter Wright are net positives for Steel Market Update and I am pleased with the work both of them are doing for SMU.

    I received the following email from a large Midwest service center: I just want you to know that I feel SMU has “stepped it up” a notch in 2013. I am by no means saying the previous years have been weak but I have sensed a change, especially the last 3 – 4 weeks. I personally find value in the combination of market facts, your personal experience/opinion in the steel industry, business fundamentals, and education into the steel making process (today’s DRI article being the latest in something I knew little about but now see a clearer picture since reading your article). Thanks for the insight. I will continue to both read and contribute.

    Latest in Product

    US heating and cooling shipments fall for third straight month

    US shipments of heating and cooling equipment slipped in September for a third consecutive month, according to the latest data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Shipments declined 2.6% month on month (m/m) in September, after having fallen 10% m/m in August. The monthly pace marks the third-slowest shipment rate year to date. Historically, shipments are strongest in early summer and weakest around the turn of the year, driven by seasonal air conditioner and heat pump volumes. AHRI's data shows September shipments totaled 1,687,240 units, down 2.6% m/m but up 7.7% year over year (y/y) (Figure 1, left). From August to September, shipments of warm air furnaces, A/C, and heat pumps declined, while water heater shipments rose. Compared with a year earlier, only air conditioners and heat pump shipments were higher.

    Nucor aims to raise plate prices by $70/ton, opens December orderbook

    Nucor said on Friday morning it plans to increase plate prices by $70 per short ton (st) as it opens its December order book. The Charlotte, N.C.-based steelmaker said in a letter to customers that orders must be submitted by Nov. 27 to be considered. You can check out SMU’s Steel Mill Price Announcement Calendar to follow announced pricing moves. SMU’s price assessment for plate currently stands at $1,550/st on average, as of Tuesday, Nov. 10, up $55/st vs. the prior week.

    SMU’s ferrous scrap prices rise in November

    Ferrous scrap prices rose in November across all grades SMU tracks, though prices varied widely by region. “Marketwise, we saw disparate market movements between regions in the November trade, which wrapped up earlier this week,” one source told SMU. “It was a mixed bag, depending on the region and grade.” The source added that export pricing also rose over the course of last week, “but much less than the domestic market.”  Demand from US mills is strong and “there is probably more lift to be expected in the market between now and the January trade," he continued.