Week in Review: Sept. 29 -Oct. 3

Despite stagnant market conditions reported by sources, domestic hot-rolled coil (HR) prices gained modestly. SMU assessed pricing average at $795 per short ton (st), up $10/st week-on-week.  

The increase contrasted with marginal declines overseas, narrowing the spread between US and landed import prices. Still, with 50% Section 232 tariffs factored in, imports remain expensive.  

SMU’s buyer survey revealed that mills are still highly likely to negotiate prices. Eighty-four percent of respondents reported that mills were discussing spot deals, especially for sheet products like hot-rolled and galvanized. Overall, the spot market was described as quiet, with buyers saying mills would negotiate if order volumes were large enough. 

Plate price hikes met by soft demand 

Plate mills, led by Nucor, SSAB Americas, and Oregon Steel Mills, announced $60/st price increases, lifting SMU’s plate average to $975/st. The moves came as Algoma said it was examining its US market strategy, which would theoretically reduce supply. However, soft demand likely muted the impact of the price increases.  

Algoma Steel responds to tariff strains 

Algoma Steel admits to suffering from Trump’s 50% tariffs on its imports to the US. The Canadian producer stated that it is shifting its focus to plate and select coils for Canadian infrastructure and defense projects. It also noted that it accelerated its shift from blast furnaces to electric-arc furnaces. To see the transition through, Algoma sought CA$500 million in government financing. 

The United Steelworkers (USW) labor union applauded the Canadian government’s funding for Algoma, stating that the support preserved jobs with the steelmaker. Fearing the funding may only provide short-term job protections, the USW pressed for transparency around Algoma’s diversification into structural and rail plans. The union warned that Algoma’s transition could mean significant long-term job losses in Sault Ste. Marie. 

Domestic steel production remains steady, but broader outlook appears weak 

AISI reported raw steel output rising 0.9% week on week to 1.77 million st, keeping utilization above 78%. Year-to-date output remains ahead of 2024. Still, sentiment indicators turned sharply negative.

The PMA’s September survey showed only 14% of metalformers expect stronger activity in the next three months, down from 27% in August. Nearly one-third expect declines in orders, shipping levels, and employment. The Chicago Business Barometer also slipped further into contraction, with employment at its lowest reading since 2009. 

Notable news in consolidation and labor relations  

Russel Metals agreed to acquire seven US Kloeckner service centers, expanding its footprint and value-add services. The US government shutdown has key industry groups preparing for delays and more ups and downs in an uncertain market. On the labor front, Metallus and the USW extended their contract deadline to Oct. 15, signaling constructive but unresolved bargaining for 1,200 employees.