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    Market Segment

    May 2, 2023

    Aramco, Baosteel Ink Deal to Build Saudi Plate Plant

    Saudi Arabian energy company Aramco, the Public Investment Fund (PIF), and China’s Baoshan Iron & Steel (Baosteel) signed an agreement on May 1 to build a steel plate manufacturing facility in Saudi Arabia.

    The operation is expected to have a plate production capacity of up to 1.5 million tons per year, Aramco said. It will be equipped with a natural gas-based, direct-reduced iron (DRI) furnace and an electric-arc furnace, aiming to reduce CO2 emissions by up to 60% vs. a traditional blast furnace, the company added.

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    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.

    SMU flat-rolled market survey results now available

    The results of the latest Steel Market Update (SMU) flat-rolled market survey are now available on our website to all premium members. After logging in, look under the Data tab for Market Reports, and there you will find the Flat-Rolled Survey Results section. Previous survey results are also available on that page. If you need help accessing these results, or if your company would like to have your voice heard in our future surveys, contact smu@crugroup.com.

    Mill lead times climb to new highs, buyers expect little relief

    Lead times for sheet and plate products continued to lengthen amid historically tight supply, according to the latest SMU steel market survey data. Average lead times now extend into January 2027, with some mills quoting availability well into February. Lead times for all sheet products except Galvalume stand at their highest point since the post-Covid demand snapback in 2021. Plate lead times exceed their 2021 peak, setting a record in our data series, which dates to 2018. (We started collecting sheet lead times earlier, in 2011.)

    USW, USS, and Cliffs resume in-person labor contract talks

    In-person labor contract negotiations resumed this week between the United Steelworkers (USW) union, U.S. Steel, and Cleveland-Cliffs, the union said. The USW said it presented its latest counterproposal to U.S. Steel on Wednesday. “All of our big issues remain on the table, including wages, health care, retirement, safety, capital investments, successorship, and greater transparency around profit sharing,” the USW said in a text to members on Wednesday.