• Skip to main content

    Product

    January 22, 2019

    West Coast Mills Announce; Inventories Key in the East

    Written by John Packard

    On Monday, California Steel Industries (CSI) and USS/POSCO (UPI) advised customers of their intention to take spot prices on flat rolled products produced by the two mills up by $40 per ton ($2.00/cwt). This is the first price announcement out of either mill since October 2018. So far, there have not been any announcements out of the domestic mills located east of the Rocky Mountains.

    Many steel buyers told Steel Market Update Publisher John Packard, during his channel checks over the past two days, of limited buying activity. A large hot rolled buyer told SMU on Monday, “We are not buying a whole lot. Apparent demand is lacking, and the next phase will be to watch import.” This buyer went on to say that lead times have been deteriorating and are the shortest they have seen on the products they buy going back to October 2017. It was then that momentum changed and prices started to run up (aided a little later by Section 232 tariffs).

    John Packard

    Read more from John Packard

    Latest in Product

    November scrap prices rise as market nears settle

    November scrap procurement has commenced in the US with buyers divided on the price increases from the previous month. Several mills reportedly sought a rise of $20 per gross ton (gt) while others saw $30/gt as the number. The $30/gt price tag mainly applies to the obsolete grades, like shredded, P&S and #1 HMS, with prime grades pulling up the rear at $20. SMU spoke to a Chicago-based source who said that market was up $30/gt and 20/gt on shredded and busheling, respectively. He also mentioned the integrated mills in this district are after heavier grades like P&S and railroad grades, like wheels. These grades have been in short supply since last summer. Our source believes they commanded prices up $30/gt while busheling was at plus $20.

    Drilling activity ticks up in the US, eases in Canada

    The latest tally of active drilling rigs moved marginally higher in the US, up for the first time in five weeks. Activity eased in Canada this week, according to oil and gas rig count data published by Baker Hughes. The US rig count increased to 604 rigs this week, setting an 18-month high watermark. Compared with this time last year, 56 more rigs are in operation today. Canada’s count declined by three to 223 rigs this week, easing for the first time in three weeks. Activity is up from the same week of 2025, with 32 more rigs operating today.

    Nucor temporarily halts secondary offers, sending shock waves through a tight market

    Nucor opened its secondary and excess product bid list across all its flat-rolled mills on Monday, as it typically does, market participants told SMU. But by Wednesday, when bidding was scheduled to close, Nucor notified buyers it would not be awarding any bids this week. The abrupt close sent a shock through the secondary market, they said. "Nucor pulled their excess and secondary lists this week and is not selling anything," a Midwest buyer said.

    SMU scrap market survey results now available

    SMU’s November ferrous scrap market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the Pricing and Analysis tab and look under the “survey results” section for Ferrous Scrap Survey results. Past scrap survey results are also available under that selection. If you need help accessing the survey results or if your company would like to have your voice heard in our future surveys, contact smu@crugroup.com.

    Scrap export market activity perks up

    There has been an upsurge in Turkish deep-sea scrap buying over the last week for December shipment. Prices paid increased but not as much as the trade expected.cDuring the last week, Turkey-based steelmakers bought at least seven cargoes, largely from the UK and Northern European suppliers, while virtually shunning higher priced US scrap. The initial wave of sales of HMS 80/20 ranged from $395-$398.50 per metric ton (mt) on a CFR basis. This equated to an average increase of less than $5/mt. The was one cargo bought later at $401/mt from this region.