Twice per month Steel Market Update conducts our flat rolled steel market analysis. We invite slightly more than 600 qualified companies to participate in our questionnaire which consist of questions about demand, inventories, foreign imports, pricing, sentiment, service center pricing and more. We have been compiling information since late 2008 (SMU began as an official […]
Have I mentioned lately that our next Steel 101 workshop will be held in the Chicago area and will include a tour of the NLMK Indiana mini-mill? Details are on our website or you are welcome to contact our offices at: 800-432-3475 or info@SteelMarketUpdate.com. We believe this will be another excellent program as we bring […]
Steel Market Update last Apparent Excess/Deficit forecast for flat rolled steel shipments and inventories called for shipments in January to exceed 2014 levels by 2 percent. Total flat rolled shipments for the month of January 2015 were projected by us to be 2,415,000 tons. In actuality, shipment levels were 1.6 percent higher than January 2014 […]
Steel Market Update (SMU) Steel Buyers Sentiment Index was measured at +53 earlier today based on the results of our most recent flat rolled steel analysis conducted this week. The +53 is 7 points higher than what we reported at the beginning of the month. Our Steel Buyers Sentiment Index measures how buyers and sellers […]
This week the Steel Market Update Price MoMo Index for flat rolled steel in the U.S. is showing hot rolled coil price momentum continuing its downward trend for the 26th week in a row (6 months!). MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current hot rolled coil […]
I was relieved to see the Sentiment 3MMA trend break after dropping for almost five straight months (since mid-September). I am not quite yet ready to say we have vanquished any growing pessimism within the flat rolled steel industry. But, breaking the streak was the first step. I have a number of concerns. The continuation […]
OK, I have been asked for my opinion as to what I think will happen to steel prices from this point. I have a sense that we may be entering a period of transition. A point where the price spreads between foreign and domestic are “reasonable” and the domestic steel industry can re-capture some of […]
On Monday we will begin our mid-February flat rolled steel market analysis. The market has seen prices dropping over the past few weeks at a rate not seen for a number of years. Our survey will help us not only understand where price offers/orders are today but when we think the bottom will be reached. […]
This week the Steel Market Update Price MoMo Index for flat rolled steel in the U.S. is showing hot rolled coil price momentum continuing its downward trend for the 25th week in a row. MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current hot rolled coil (HRC) price […]
Traders at the Port of Tampa Steel Conference told me hot rolled offers at in the $460 to $480 per ton range with little to no activity. It is not clear yet if the import offers will move lower from the $460 to $480 level. One trader told me that they were not taking any […]
I have been speaking with a number of service centers involved in the secondary side of the steel industry. Although early in my investigation, I am learning that no one really knows how the huge drop in scrap prices will ultimately affect the secondary markets. Usually there is a relationship between secondary steel prices and […]
In Thursday evening’s issue of Steel Market Update we advised that our SMU Pricing Momentum Indicator continues to point to lower steel pricing over the next 30 days. One of our service center readers pointed out two reasons why he believes pricing will move lower when he wrote us, “Prices here are falling due to […]
I remember one time I became so irate with a customer that I literally was standing on my desk and screaming at him on the phone. It may have made me feel better for a couple of minutes but it didn’t do much to enhance the customer’s experience with the company I represented. Nor did […]
Just a quick note to let everyone know I will be in Tampa later this week for the Port of Tampa Steel Conference. I will be reporting on what I learned in Thursday evening’s edition of Steel Market Update. I want to take a moment to welcome our newest members and to remind them that […]
Buyers and sellers of flat rolled steel are less optimistic about their company’s ability to be successful in the current market conditions than what we saw just two weeks ago. The buyers and sellers who participated in this week’s flat rolled steel market analysis reported concerns regarding falling steel prices, bloated inventories and shrinking margins. […]
Flat rolled steel mills saw their lead times shorten according to the buyers and sellers of steel responding to this week’s market analysis. Weakening lead times are one of the keys which is impacting flat rolled and scrap prices – both down big over the past few weeks. Hot rolled lead times average 2.79 weeks, […]
It doesn’t get any clearer than this. Based on the results of the respondents to this week’s flat rolled market questionnaire, the domestic steel mills are willing to negotiate pricing on all flat rolled products: hot rolled, cold rolled, galvanized and Galvalume (zinc-aluminum). Hot rolled came in with 95 percent of our respondents reporting the […]
Earlier this week Steel Market Update suggested that perhaps we are getting close to that time when it is necessary to have a dialogue/debate as to when and at what level will flat rolled steel prices bottom. As of Tuesday of this week, Steel Market Update range for benchmark hot rolled coil was $520 to […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. indicates hot rolled coil price momentum continued its downward trend for the 24th week in a row. MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current hot rolled coil (HRC) price movements against the […]
For some reason, we made an error when setting up this newsletter yesterday evening that stopped it from being published. We apologize for the delay in getting it to you. Earlier this week ferrous scrap pricing in Detroit settled at down $100 per gross ton on prime grades of scrap such as #1 busheling and […]
Steel Market Update (SMU) ferrous scrap sources are advising us that the scrap market pricing have not settled yet. It seems that every periodical wants to fan the flames of scrap price collapsing (and we do our share as well I suppose) before the final numbers are locked in. Keep that in mind when evaluating […]
SMU Price Momentum Indicator has been stuck pointing lower for a number of months, ended the month of January as it did at the end of November and December. We saw SMU Steel Buyers Sentiment Index improve by +1 point in January over the month of December. However, when looking at Sentiment based on a […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
It is Super Bowl Sunday in America and not many eyes will be focused on our newsletter until sometime on Monday morning. Like you, we at Steel Market Update are watching the game, and perhaps more importantly the commercials (and the halftime show…). Congratulations to the New England Patriots for winning the game and to […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. indicates hot rolled coil price momentum continued its downward trend for the 23rd week in a row and is at the lowest level recorded since May 2011. MoMo, a trailing indicator, is measured as a percentage and shows the relation of […]
From time to time you might find that our emailed newsletter gets put into your SPAM folder or even blocked within your system. Many SPAM programs look for key words such as the word used when you borrow funds to acquire a home (starts with an “m”). Another word that can fire up the SPAM […]
In another article in tonight’s newsletter we report on the production statistics based on AISI data. Essentially, production is up a couple of percent while at the same time, in another article, we report on foreign steel imports which are up 38 percent. I don’t know if the domestic steel mills will file dumping suits […]
One of the questions asked during last week’s Steel Market Update (SMU) flat rolled steel market survey was, where do you think benchmark hot rolled prices will bottom in the current cycle? Last week HRC average was $570 per ton (survey began before our index average adjusted to $560 per ton). The responses ranged from […]
The following article is part of our “Truth About Selling Steel” series and was written by John Packard, Founder and Publisher of Steel Market Update. Prior to founding SMU Packard sold flat rolled steel for 31 years: When I look back at my 31 year career selling flat rolled steel around North and South America, […]
First, a correction or clarification from an article done last week about US Steel idling one of their tin plate mills. We understand that USS has tin mill operations in Gary as part of the Gary Works, they also have a plant in Portage, IN which is part of the old National Steel facility and […]