Market Segment
April 4, 2023
Written by Michael Cowden
Sheet prices moved slightly higher as domestic steelmakers held to previously announced price increases and as Cleveland-Cliffs rolled out another round of price hikes.
Cliffs had been inching prices above $1,200 per ton ($60 per cwt) before the price hike was announced, some sources noted. It’s not clear whether other producers will follow Cliffs’ move.
Gerdau announced on Nov. 2 that it will raise special bar quality (SBQ) prices by $60 per short ton ($3/cwt). The increase is effective for all new orders and shipments starting Jan. 1, 2027, according to a letter sent to customers. It applies to all hot-rolled carbon and alloy SBQ products, including rounds, squares, flats, special sections, and thermally processed products.
Metallus reported improved year-over-year profitability in the third quarter, but expects seasonal softness and planned maintenance to weigh on fourth-quarter results. The specialty metals producer pointed to continued demand and a new defense contract as supports for growth.
Mexican longs producer Deacero has cast the first billet at its new minimill in Ramos Arizpe, Mexico, moving the Danieli-supplied caster into commissioning. It's a key milestone for Deacero's $600-million Ramos II mini-mill, said Italian plant engineering and equipment provider. "The achievement further strengthens the long-standing collaboration between Deacero and Danieli, and further confirms Danieli’s already-established presence in the Mexican long-products market," the company said in a statement on Nov. 2.
The US Department of Commerce has determined sizable dumping rates against Austria, Taiwan, and the United Arab Emirates in the trade case investigating imports of oil country tubular goods (OCTG). Recall the dumping investigations and a companion subsidy investigation were launched in April at the request of the US OCTG Manufacturers Association (USOMA), U.S. Steel, and the United Steelworkers.
US manufacturing activity expanded for the 10th consecutive month in October, according to supply executives in the Institute for Supply Management's latest report. The October ISM Manufacturing Purchasing Managers’ Index registered 55.5%, up one percentage point from the prior month. An index reading above 50% indicates the manufacturing economy is growing, while a reading below that indicates contraction. ISM noted that the overall economy continued to expand in October for the 24th consecutive month, emphasizing that a PMI reading above 47.5% over a period of time generally indicates that the overall economy is growing.