Market Segment
November 8, 2024
Written by Ethan Bernard
Canada’ Algoma Steel has announced a change in its fiscal year end from March 31 to Dec. 31.
The Sault Ste. Marie-based steelmaker said its current fiscal year will end on Dec. 31, 2024. This will result in a nine-month reporting period from April 1, 2024, to Dec. 31, 2024.
During the first three quarters of 2026, finished steel imports from South Korea increased 50.8% compared with the same period in 2025. Imports from Vietnam increased 23.4%, imports from Turkey increased 49.5%, and imports from India increased 29.5%. Those are not marginal increases. They are substantial import surges, especially in a US market where apparent domestic consumption has bounced around but has not grown since 2017. More importantly, these import surges are arriving at lower average unit values (AUVs).
Mesabi Metallics, part of the Essar Group, has picked Midrex Technologies to supply the direct-reduced iron (DRI) component of its planned $15 billion steelmaking complex in Iowa. Recall the company announced plans to build a 10-million-ton-per-year mill, which would make it by far the largest steel plant in the US. The first phase is planned for 7.5 million tons of steel per year, with first production planned for 2030. Midrex’s Flex technology will be used for the DRI portion of the project, producing hot DRI for direct feed to the adjacent electric-arc furnaces (EAFs), as well as hot briquetted iron (HBI).
Manufacturing activity improved in several Federal Reserve districts, but conditions remained mixed nationwide, according to the Fed’s Oct. 14 Beige Book report. Demand was strongest in steel, machinery, defense-related products, and data center infrastructure. Steel producers in the Cleveland District reported firm spot market demand. Data center, power-generation, defense, and aerospace projects supported orders. Long mill lead times kept customer inventories lean and prices high. Producers also reported higher orders from truck-trailer and light-vehicle manufacturers. International demand for hydrogen vehicle parts increased.
Nucor Plate Group said it will increase its fuel surcharge to $40 per short ton (st) next month, effective for all shipments beginning Nov. 1. The Charlotte, N.C.-based steelmaker first said in April that the fuel surcharge was necessary to address rising costs, initially setting the surcharge at $10/st on April 16. The company had previously maintained the $10/st surcharge rate for four straight months through Aug. 17. But it has since doubled its rate in back-to-back months—increasing its surcharge to $20/st in September, followed by its Oct. 15 notice to $40/st. “We remain committed to providing reliable service and transparency as we adapt to changing market dynamics,” Nucor said in a letter to customers on Thursday evening. Nucor announces the surcharge amount on or about the 15th of each month for shipments beginning the following month.
Sheet buyers found mills slightly more negotiable on price this week, while plate buyers thought mills were less flexible on spot price tags, according to our latest survey data. Every two weeks, SMU surveys service center and manufacturer buyers to see whether mills will negotiate on new spot sheet and plate orders. In this week’s survey, 14% of respondents said mills were willing to talk price to secure an order, up three percentage points from two weeks earlier (Figure 1). This is the highest reading since July 8, when the rate stood at 18%.