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    Market Segment

    February 16, 2020

    CRU: Steel Prices Stall as China Starts to Return

    Written by CRU Americas

    China has begun a mass return to work following the Chinese New Year holiday that was extended due to the outbreak of the novel coronavirus (recently given the official name Covid-19). Labor and logistical constraints have hit the steel industry across the whole value chain from the supply of raw materials through to steel demand at end users. The restricted movement of people and trucks have severely curtailed activity in steel consuming sectors, lowering steel consumption.

    Market insight picked up by CRU’s team of analysts in Beijing and Shanghai shows that so far, production has been affected less. This has resulted in a large buildup of inventory that is beginning to paralyze the steel industry value chain.

    CRU Americas

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    Price on trade: Steel industry trick-or-treat

    It’s the scariest time of year in Washington, D.C. … election season. The city is a veritable haunted house of prognostication and speculation as everyone tries to discern which way the howling wind will blow. We’ll let the fortune tellers and prediction markets guess the outcomes of the midterms. What we do know is this: the steel industry has experienced its share of tricks and treats over the past few months. Below are a few notable steel tricks and treats this Halloween season.

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    The latest tally of active drilling rigs held steady in the US for a fourth straight week, while activity rose further in Canada this week, according to oil and gas rig count data published by Baker Hughes. The US rig count remained unchanged at 603 rigs this week, maintaining a 17-month high. Compared with this time last year, 57 more rigs are in operation today. Canada’s count rose by six to 226 rigs this week, gaining ground for a second consecutive week. Activity is up from the same week of 2025, with 39 more rigs operating today.

    galvalume steel coil

    SMU Survey: Mill willingness to negotiate price at lowest levels since 2021

    The majority of steel buyers responding to our latest market survey reported that mills continue to hold a firm grip on prices. The share of buyers reporting that mills were negotiable fell this week to the lowest rate seen in over five years. Every two weeks, SMU surveys service center and manufacturer buyers asking if mills are negotiable on new spot sheet and plate orders. In this week’s survey, just 3% of respondents said mills were willing to talk price to secure an order (Figure 1). This is down 11 percentage points from our mid-October survey.

    Algoma’s losses narrow in Q3, but tariffs and EAF transition challenges remain

    Algoma’s net loss narrowed in the third quarter, but the company continues to be affected by US tariffs and the transition to electric-arc furnace (EAF) steelmaking. The Sault Ste. Marie, Ontario-based steelmaker reported a net loss of Canadian $129.6 million (USD$92.6 million) in the third quarter ended Sept. 30, narrowing 73% from CAD$485.1 million a year earlier. Net sales dropped 52% to CAD$249.4 million in the same comparison.