The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained positive this week for the 2nd week in a row after 4 consecutive weeks of being in negative territory. MoMo, a trailing indicator, is based upon the current hot rolled coil price weighed against the previous 12-week average spot price […]
The early forecast is for scrap prices to increase by $20 per gross ton in early November. If this happens it could help keep domestic mill prices at current levels (or slightly higher). It could also prompt the domestic mills to ask for another price increase. Longer term the analysts believe domestic scrap prices will […]
On August 23rd Steel Market Update adjusted our Price Momentum Indicator from Higher to Neutral. Since that time benchmark hot rolled prices have been within $5 per ton (+/-) of $640 per ton until this past week when prices rose by $15 per ton. Essentially, we began capturing transactions and offers related to the price […]
For the past four plus months, Steel Market Update has been producing our newsletter(s) on two websites at the same time. Considering our company has a relatively small number of full time employees this has not been an easy task. Besides me – Brett Linton, Sandy Williams, Peter Wright, John Temples as well as Ryan […]
In our recent steel market survey which we conducted this past week, 56.4 percent of those responding to our questions (all respondents) told us the current contract negotiations on their 2014 flat rolled steel needs represented a “game changer” for the U.S. steel industry. Manufacturers We asked manufacturing companies if their contract negotiations included reduction […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. turned positive this week after 4 consecutive weeks in negative territory. MoMo, a trailing indicator, is based upon the current hot rolled coil price weighed against the previous 12-week average spot price as recorded by Steel Market Update. MoMo was measured […]
We are in the “final” testing of our new website. Unless we have another setback in the coming days we should be able to bring the site up within the next week to 10 days. Give us a few more days to make sure the subscription system is working properly and then we will need […]
Domestic mill lead times, which had been relatively flat since the beginning of September according to past SMU steel market surveys, are beginning to indicate a modest strengthening. Our survey respondents put hot rolled lead times at 4.07 weeks (last year in mid-October they were 2.93 weeks) which is up slightly from the 3.94 weeks […]
Based on responses from the Steel Market Update (SMU) mid-October steel market survey, SMU Steel Buyers Sentiment Index is +38 and is considered to represent an optimistic view of the industry by those buying and selling flat rolled steel products. The latest reading is up one point over our early October measurement but is one […]
Steel Market Update saw a letter from Majestic Steel to their customers publically announcing a price increase. Majestic, which is well known as a supplier of coated products to the HVAC and construction industries, told their customers that the price increase is due to cold rolled base prices reaching as high as $39.50/cwt and $40.50/cwt […]
A note from one of my long-time readers, “You need to get more controversial in your final thoughts. Tell us what you think.” I have taken a relatively low profile (although some might disagree) regarding my opinions on mill price negotiations – both contract and spot. So the way I will respond to my long-time […]
We are back in our offices, life is back to normal after traveling over the past four days to Arkansas and our website due date keeps on getting pushed back… Frustration is running high at SMU these days. The developers haven’t given us a firm promise date but it is beginning to look like November […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained negative this week for the 4th week after 15 consecutive weeks in positive territory. MoMo, a trailing indicator, is based upon the current hot rolled coil price weighed against the previous 12-week average spot price as recorded by Steel Market […]
The weather in Arkansas couldn’t have been more perfect. We had temperatures in the low 70’s with a cool breeze and sunny. A perfect day to go on a mill tour. I want to take a moment to thank all of the employees at Nucor Steel Arkansas for hosting Steel Market Update and our Steel […]
I am in Blytheville, Arkansas making final preparations for our Steel 101: Introduction to Steelmaking & Market Fundamentals workshop. We have a full class which will tour the Nucor Hickman facility on Tuesday afternoon. We will send out a complimentary issue of our latest Monthly Newsletter on Monday. Once our new website comes online we […]
A quick note about ferrous scrap. From the early deals being done – and there are still a number yet which need to be completed. Our sources are advising us that scrap prices have been trading lower by $5 to $10 per gross ton in the east. However, in the Midwest there have been trades […]
Based on our survey results, hot rolled and cold rolled lead times barely moved compared to two weeks ago. Galvanized lead times shrunk slightly from 6.00 weeks to 5.84 and Galvalume lead times dropped from 6.80 weeks to 6.33 weeks. The current lead times are longer than they were one year ago on all products […]
In spite of the federal government’s decision to shut down, those involved in the flat rolled steel industry continue to remain optimistic about their company’s ability to be successful in both the current environment as well as 3-6 months into the future. Steel Market Update (SMU) just completed our beginning of October flat rolled steel […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained negative this week for the 3rd week after 15 consecutive weeks in positive territory. MoMo, a trailing indicator, is based upon the current hot rolled coil price weighed against the previous 12-week average spot price as recorded by Steel Market […]
I made a decision many years ago that when the domestic steel industry (multiple mills) announced price increases that I would automatically move the SMU Price Momentum Indicator to Neutral. Since we are already at Neutral it is important to understand that at this point prices could move up, down or absolutely nowhere from where […]
Our next SMU steel market survey will begin on Monday, September 30th and will run through Thursday, October 3rd. If you receive an invitation please take a few minutes to participate by clicking on the link contained in the invitation. I will be in my office first thing on Monday before traveling down to Atlanta […]
Our last newsletter was interesting enough that I fielded quite a number of phone calls and emails (I take them all and respond to them all). The main point of discussion was regarding the IHS Global Insight article from the presentation given by their steel analyst, John Anton. The essential premise of the presentation being […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained negative this week for the 2nd week after 15 consecutive weeks in positive territory. MoMo, a trailing indicator, is based upon the current hot rolled coil price weighed against the previous 12-week average spot price as recorded by Steel Market […]
I want to thank IHS Global Insight for allowing SMU and our readers to attend their Pricing & Purchasing Summit which was held in Chicago over the past two days. SMU is interested in conducting a similar conference dedicated to the steel industry and identifying risks next year as we strive to bring new value […]
We are finding a concerted effort on behalf of the domestic steel mills to hold the line on spot pricing from last week to this week. Stability in pricing appears, for the moment, to be the new normal and some of the service centers are questioning if the next price move might actually be for […]
I will be in Chicago on Monday and Tuesday of this week attending the IHS Global Insight forecasting conference. If you would like to meet with me during the conference send me an email: John@SteelMarketUpdate.com and we will arrange a convenient time. I will be in Chicago on Monday and Tuesday of this week attending […]
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 at present is thirty six. The present situation of eleven of the indicators based on historical standards was positive on September 22nd and thirteen were negative; […]
A majority of the manufacturing companies (57 percent) responding to our most recent steel market survey told us that the spread between foreign and domestic steel is wide enough to justify buying foreign steel. The percentage of manufacturing companies answering this way has increased by 3 percent compared to our results from 30 days ago. […]
We heard it earlier this month when during our HARDI steel conference call the wholesalers complained of reduced margins due to competitive pressures and mentioned that there were a growing number of non-traditional galvanized suppliers competing for the mechanical contractors business. During last week’s steel market review conducted by Steel Market Update (SMU), manufacturing companies […]
SMU received a note from a Severstal spokesperson that both their Columbus, MS and Dearborn, MI facilities have planned maintenance in each facility during the month of November. The Dearborn facility will have work performed on their hot strip mill (HSM) while the Columbus facility is having work done on one of their two EAF’s […]