One of the most over used and misunderstood terms in the steel industry is “value added.” What exactly does “value” and “value added” mean when discussing steel distribution in particular? When asking the question, the first response I tend to get is about the “value proposition” or how perceived value relates to price, service and […]
Good evening (or Good Morning depending on when you read our newsletter) from Chicago. The mood is upbeat by most attending the Boy Scout Dinner due to the rising steel prices which have helped service centers and steel mills get healthier. A couple of secondary steel service centers told me that their business has also […]
Last week SMU asked those responding to our flat rolled steel market trends questionnaire about when they expected a break in the current flat rolled steel pricing cycle and for prices to begin heading lower. There was no consensus as 50 percent of those responding felt the change would occur prior to the 4th Quarter […]
My final thoughts are going to be short this evening. The word that keep going through my head today as I spoke with buyers and sellers of steel was “worry.” The number of people who worry about what is going to happen next seems to be growing by leap years on a daily basis. I […]
A quick note to those who will be attending the Chicago Metals Industry Boy Scout Dinner on Thursday of this week. I will be there as well. If you want to get a moment to chat send me an email or text. My email is John@SteelMarketUpdate.com. While communicating with a service center executive late on […]
SMU canvasses buyers and sellers of steel to see how they feel about their company’s ability to be successful in both the existing (Current) market conditions as well as what they perceive those conditions will be three to six months into the future (Future). All of our participants are involved in the flat rolled steel […]
Domestic mill lead times: the amount of time it takes to receive flat rolled steel on an order placed this week, continue to be extended and are averaging at least one week longer than one year ago according to those participating in this week’s SMU flat rolled market trends analysis. Earlier this week we began […]
Steel Market Update asks our flat rolled steel market trends analysis participants to comment on the status of negotiations between their company and their steel mill suppliers. We want to know how stringent are the mills being when it comes to collecting the announced or original quoted steel price and are they able to collect […]
The Steel Market Update (SMU) Price Momentum Index (MoMo) for hot rolled steel in the United States remained positive this week for the 18th consecutive week, following a 21 week negative streak. MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current U.S. hot rolled coil price movements against the […]
I had a long conversation with a service center this afternoon regarding the steepness of the rise in flat rolled prices out of the domestic mills. This buyer was frustrated with the pace of the increases and the unnecessary (in his opinion) tension the increases have caused between their company and their customers. During the […]
The move by ArcelorMittal USA today was anticipated and the price levels noted in their increase email to their customers are in line with expectations. I expect the rest of the mills will follow along within $10-$20 per ton of the levels suggested by AMUSA. Some of the mills may wait for scrap prices to […]
On April 29, 2016, the Department of Commerce initiated an antidumping duty (AD) investigation of imports of certain carbon and alloy steel cut-to-length plate (CTL plate) from Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, Korea, South Africa, Taiwan, and Turkey, and countervailing duty (CVD) investigations of imports of CTL plate from Brazil, China, and […]
Last year in conjunction with Steel Success Strategies I had a lunch with a number of steel buyers, executives and two derivatives traders (one being Andre Marshall of Crunch Risk, LLC). We all gave our opinions as to where we thought benchmark hot rolled coil would be by early June 2016 when we will return […]
Last week Steel Market Update reported our Steel Buyers Sentiment Index as being at record highs. Buyers and sellers of flat rolled steel are very optimistic about their company’s ability to be successful not only in the current market but three to six months out into the future as well. When looking at Sentiment from […]
US Steel claims trade secrets involved in creating Advanced High Strength Steel (AHSS) were stolen in a Chinese cyber-attack in January 2011. Information acquired included the particular chemistry for Dual Phase steel (grades 590, 780 and 980) and its coating; critical temperatures and holding times for heating, cooling, and coating the steel; and the capabilities […]
The Steel Market Update (SMU) Price Momentum Index (MoMo) for hot rolled steel in the United States remained positive this week for the 17th consecutive week, following a 21 week negative streak. MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current U.S. hot rolled coil price movements against the […]
US Steel maintains that Chinese manufacturers and distributors use false documents and transship products through other countries to disguise the country of origin. Numerous antidumping and countervailing duty orders have been placed on Chinese steel products over the years. US Steel maintains that China continues to circumvent these orders by using such methods in violation […]
I am going to start my Final Thoughts today with a question. I am working on an article as part of my The Truth About Selling Steel series and I want to learn more from buyers and sellers of steel as to what the term “Value-Added” means? We hear this term used a lot in […]
WASHINGTON, April 26, 2016 /PRNewswire/ — Today United States Steel Corporation (NYSE:X) filed a complaint with the U.S. International Trade Commission (ITC) to initiate an investigation under Section 337 of the Tariff Act of 1930, against the largest Chinese steel producers and their distributors. The 337 complaint alleges illegal unfair methods of competition and seeks […]
This evening I was talking with a large steel buyer about the fundamentals of the steel market and how long can prices continue to go higher. I told him that I had spoken with another large steel buyer earlier today who told me they could not understand how the fundamentals have changed in China. They […]
According to our latest flat rolled steel market survey which was conducted last week, steel mill lead times have continued to move out on every single one of the flat rolled products. The extended mill lead times are one of the primary reasons behind the increases in flat rolled steel prices, pressure on deliveries, allocations […]
The graphic used in this article visually tells the story. Flat rolled steel prices have become much less negotiable according to those taking our flat rolled steel market trends survey this past week. Lead times are extended and steel mills are using the words “allocation” and “controlled order entry” to their advantage. The net result […]
The United Steelworkers have retracted their petition to bring Section 201 action on imports of primary unwrought aluminum. The USW filed the petition on April 18 but is suspending it due to lack of industry support. The April 22 statement from the USW follows: “We have decided to suspend our petition seeking action to restore […]
My focus over the next few days is going to be on demand and how demand will impact the flat rolled steel markets over the next couple of months. I began the process by looking at the Steel Dynamics earnings conference call transcript for hints as to how SDI sees the market progressing through 2nd […]
Buyers and sellers of flat rolled steel continue to feel very good about their company’s prospects both in the existing market as well as looking out three to six months into the future. Steel Market Update (SMU) is of the opinion buyer optimism is connected to rising steel prices around the world which improves the […]
Steel buyers need to be aware that there has been a jump in iron ore spot pricing in China over the past 48 hours. The Steel Index (TSI) reported 62% Fe fines into the port of Tianjin, China at $64.3/dmt (dry metric ton) up 4 percent from the previous day. This same item is up […]
The United Steelworkers filed a petition this week under Section 201 of U.S. trade law to attempt stem imports of primary unwrought aluminum. We are reporting on this because a number of companies/organizations having begun calling for the use of Section 201 to help stem unwanted steel imports (see article in tonight’s newsletter written by […]
The following is a quick update on the status of the flat rolled trade cases (hot rolled, cold rolled and corrosion resistant) and what are the next important dates to remember. The corrosion resistant, which covers galvanized, Galvalume and related products such as galvanneal and aluminized, are scheduled to have the Final Determination by the […]
Last week hearings were held in Washington, D.C. regarding the plight of the domestic steel industry, world over-capacity of steel production (with a special emphasis on China). During the hearings a number of trade remedies were mentioned such as Section 201 and Section 232 along with the antidumping and countervailing duty flat rolled steel trade […]
We should see the pace of the price increases slow down as most mills are getting the announced minimum price levels from their spot buyers ($25.00-$26.00/cwt HR, $35.00/cwt cold rolled and coated). The market needs a couple of weeks to absorb the increases and push them down to the end users and resale spot customers. […]