Category: Distributors/Service Centers

Participants in the plate market doubt prices, lead times, and demand forces will cool down any time soon.

Worthington Steel has completed its takeover offer for Germany-based service center group Kloeckner & Co. following the fulfillment of all closing conditions.

US steel buyers report firmer domestic demand, but long lead times, rising freight costs, and geopolitical uncertainty continue to cause caution on imports.

Stronger for longer sentiment remains in the house when it comes to flat-rolled steel prices, according to SMU’s latest steel market survey.

Participants in the hot-rolled coil spot market revealed that growing discomfort with current market dynamics hasn't deterred them from conducting spot transactions.

Market participants report frustration with extending lead times for domestically produced plate products.  

All regulatory conditions for Worthington Steel's acquisition of Germany-based service group Kloeckner have been met, a spokeswoman told SMU on Wednesday.

Volume, which is usually a big positive for buyers in price negotiations, has arguably become a net negative.

SMU’s Mill Order Index (MOI) eased marginally in April, losing some momentum after moving higher in March.

Worthington Steel said on Tuesday its subsidiary plans to raise $900 million through a senior secured notes offering to raise funds for the company’s proposed Kloeckner acquisition.

Domestic plate market participants named extended lead times, increased freight costs, escalating fuel surcharges, and spotty demand as their most recent challenges.  

Galvanized steel buyers and distributors expect tightening supply and rising price pressure to last into summer.

Trading-company sentiment in the May 15 SMU flat-rolled steel buyers survey shows a market split between anecdotal optimism and numerical decline.

Sources told SMU they’ve begun considering whether US imports of sheet might benefit the overall market.

US service centers’ flat-rolled steel supply fell for a fourth straight month in April, with shipping days of supply slipping to 45.7 on an adjusted basis, according to SMU data.

Plate market participants wonder how plate supply will hold up in coming weeks and months, sources told SMU.   Some sources called out dwindling availability of heavier grades and said certain domestic producers have “a huge backlog.” of all grades.

Sheet market participants found modest spot price increases this past week, but conceded that overall market conditions remained stable.  

Plate market participants expect additional base price hikes from domestic mills, something that has some eyeing imports.

The current rally in sheet prices has lasted more than seven months, something without recent precedent. Unless your definition of recent includes the snapback in demand following the pandemic.

Ryerson swung to a profit in the first quarter as it began the integration of Cleveland-based service center chain Olympic Steel.

CFO Martin Jurasek described the first quarter as a “positive inflection point” as strategic initiatives, including the recent Kloeckner acquisition, began to materially lift results.

Russel Metals’ earnings jumped in the first quarter as it reported record quarterly shipments and revenue.

SMU’s Mill Order Index (MOI) recovered in March, gaining some momentum after a marginal decline in February.

I haven’t done a deep dive into our sentiment data for a little while. And it’s timely to do so now. Why? Because we’re seeing what I’ll call the inverted yield curve of steel buyers’ sentiment.

Ferrosource LLC, a distributor of ferrous metals, is nearing completion of its steel processing facility on the campus of Big River Steel Works (BRSW) in Osceola, Ark. Operations are set to begin in August.

Last week, Steel Market Update and CRU hosted our inaugural VIP Briefing in Chicago ahead of the Scouting America Metals Industry Dinner.

Sheet market participants reported steady to elevated demand over the past week. But while spot prices continued to edge up, some sources said lead times were becoming more closely aligned to industry norms.

Marubeni-Itochu Steel Americas Inc. (MISA) plans to build a $37 million flat-rolled steel processing plant in Osceola, Ark., adjacent to Big River Steel.

Reliance Inc.’s earnings jumped in the first quarter on strong pricing and demand.

In a Final Thoughts las week, I asked “Got Steel?” And if you’re looking for spot tons in June, the answer still isn’t obvious.