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    Apparent Steel Supply at 6+ Year High

    Written by Brett Linton


    Apparent steel supply for October 2014 was 10,954,832 net tons, the highest monthly figure we have seen since the beginning of the Great Recession. Apparent steel supply is calculated by adding domestic shipments and finished US imports and subtracting total US exports.

    October supply represents a 1,509,671 ton or 16.0 percent increase compared to the same month one year ago. This is primarily due to the massive spike in 2014 imports, with total October imports up 43.2 percent or 1,340,208 tons over October 2013 tonnage. Domestic shipments and finished imports also increased over levels one year prior, up 2.7 and 50.9 percent respectively, while exports were down 10.9 percent. The net trade balance between imports and exports was a surplus of 3,431,182 tons in October, an increase of 74.4 percent from the same month last year.

    Brett Linton

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    Mills seek more scrap after lower prices fail to attract tons

    Several mills that bought October scrap early last week are still asking for additional supplies, scrap market participants said. The reason: the mills' initial prices did not attract enough of the raw material, they said. A trading source based in northern Ohio said three mills have contacted his firm seeking offers for additional tons. He said the mills asked for offers even if prices were higher than their original buys last week.

    Nucor increases spot HR to $1,240/ton

    Nucor said on Monday, Oct. 12, that its consumer spot price (CSP) for hot-rolled (HR) coil will be $1,240 per short ton (st) this week, a $10/st increase from a week earlier. The CSP for HR coil from California Steel Industries (CSI) on the West Coast will be $1,305/st, up $15/st from the prior week. Nucor is still offering lead times of three to five weeks, according to the letter to customers. You can track mill price announcements on our website. Steel Market Update (SMU) published a weekly price assessment on Tuesday, Oct. 6, showing HR coil prices averaging $1,270/st, up $10/st from the previous week. We will update our prices on the evening of Tuesday, Oct. 13.