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 […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. turned negative this 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 Update. MoMo was measured […]
SMU found lead times essentially remaining the same on hot rolled (negligible change from 4.0 weeks to 3.97 weeks) and galvanized (6.0 weeks vs. prior 6.07 weeks). Cold rolled lead times dropped from 6.2 weeks to 6.06 weeks while Galvalume lead times moved out slightly from 6.55 weeks to 6.80 weeks. Lead times are […]
Steel Market Update conducted our mid-September flat rolled steel market survey this week. The survey began on Monday with an invitation to approximately 600 companies who are active participants in the flat rolled steel industry. Part of the survey includes questions regarding attitudes within the industry regarding how successful the respondents see their company both […]
Our steel market survey began on Monday and will continue until late Thursday afternoon. If you have received an invitation to participate please click on the link and respond to the questions you can answer. We are doing triple duty so my apologies if we are missing an article here or there. We are literally […]
While attending the ASD meeting in Cleveland last week, SMU reporter, Sandy Williams heard a steel service center discussing the impact of Obamacare on their company which is located in Ohio, “Because Obamacare healthcare and some of the laws, quite frankly, in the State of Ohio, we are now forced to go to temporary employees […]
Steel Market Update (SMU) has received many emails from our readers as well as interested parties regarding our SMU Price Momentum Indicator which we have had at Neutral since Friday, August 23, 2013. Since that time we have seen hot rolled pricing remain in the $630-$660 per ton level (see Comparison Price Indices article below) […]
We are tired, we have been working almost around the clock in an effort to at least be close to our forecasted Friday, September 13th launch date. When we go out and teach new steel people about the business one of the stories I like to repeat was about what I would tell virtually every […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained in positive territory this week for the 15th consecutive week. 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 […]
The process of populating, testing, editing, fixing, testing, editing, adding content, editing, testing – well, you get the idea…. The website work continues and we continue to strive to meet the Friday the 13th deadline. My gut is telling me a week late may be a better target – but, we are going to try […]
A reminder that our “thumbnail” or smaller graphics are “clickable” so you can view them in a larger format. So, don’t squint and try to figure out some of these smaller graphics – just click on them… We still have a target date of this Friday to launch our new website. I am beginning to […]
This past week, Steel Market Update (SMU) conducted our beginning of September steel market survey. Of those responding to last week’s survey 52 percent were manufacturing companies, 35 percent steel service centers and the balance were composed of steel mills (4 percent), trading companies (4 percent), toll processors (3 percent) and suppliers to the industry […]
I read two articles recently regarding the impact of the devaluation of the India rupee against the U.S. dollar. One article (IHS Global Insight) discussed the metallurgical coal markets as the Indian steel mills have pulled back from the market as their costs spiral out of control. According to IHS Global the Indian currency lost […]
Mill lead times, as reported through our proprietary steel market survey, are shrinking on three of the four flat rolled product categories followed by Steel Market Update. Hot rolled lead times which were referenced on a weighted average basis at 4.5 weeks at the beginning of August are now at 4.0 weeks. However, the 4.0 […]
Sentiment Continues to Trend Higher (more optimistic) Steel Market Update (SMU) Steel Buyers Sentiment Index was measured earlier today at +40, down 3 points from the middle of August and well within the optimistic range for the index. Compared to one year ago buyers and sellers of flat rolled steel are feeling much better about […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained in positive territory this week for the 14th consecutive week. 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 […]
When is Sunday really Monday and Tuesday suppose to be Wednesday…? One of the changes SMU is making is to date our newsletters on the day they are actually produced and sent. So, you will note that tonight’s newsletter is dated, Tuesday, September 3rd as opposed to Wednesday, September 4th. SMU will produce three Executive […]
The Association of Steel Distributors (ASD) will host a Regional Meeting at the Ritz-Carlton Hotel in Cleveland, Ohio on Thursday, September 12th. The keynote speaker for the evening is Ohio Governor, John Kasich. Go to the ASD website for more information and registration: www.SteelDistributors.org. The ASD will also host their Annual Fall Conference at the […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained in positive territory this week for the 13th consecutive week. 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 […]
We had one of our members ask about the accuracy of the Steel Market Update (SMU) Price Momentum Indicator as we move between Higher, Neutral and Lower Momentum forecasts. Here is a graph of SMU hot rolled pricing (average) and our Momentum forecasts:
Our apologies to those who waited to register for our Steel 101 workshop which is being held in Blytheville, Arkansas. We have sold out the workshop and have a fairly significant waiting list. We are working on our schedule for next year when we anticipate holding four workshops around the country. We are also taking […]
The percentage of service centers raising spot flat rolled steel prices dropped according to our most recent analysis of the flat rolled steel market. With flat rolled price ranges and averages stagnating at relatively high levels (compared to the lows for the year) distributors’ pricing appears to be leveling off as well. The service center […]
On Friday, August 23rd, Steel Market Update adjusted our SMU Price Momentum Indicator from “Higher” to “Neutral.” This change is meant to be an indicator of the direction we expect flat rolled steel prices to move over the next 30 days. Prior to Friday our Indicator was set at Higher for 10.5 weeks going back […]
Buyers and sellers of flat rolled steel expressed their growing optimism through our Steel Market Update (SMU) steel survey. The SMU Steel Buyers Sentiment Index registered +42 which is the highest level so far this year exceeding the previous high of +38 posted at the beginning of the month. Our index is now at the […]