U.S. Steel, AK Steel (Cleveland-Cliffs), Nucor, NLMK, ArcelorMittal and UPI all announced price increases today on flat rolled. With the exception of AMUSA, all were +$40/ton. AMUSA provided specific minimum base price guidance of $540 ($27.00.cwt) on hot rolled and $740 ($37.00/cwt) on cold rolled and coated products. Some early comments from various steel service […]
With the expectation of higher scrap prices coming for the month of June, on top of the steep rise in ferrous scrap this month, the mills’ margins may well be squeezed, which will impact negotiations and pricing over the next few weeks. Most steel buyers anticipate a new round of price increases by late May […]
The United States is beginning to go back to work. Automotive plants are scheduled to begin opening this week. The U.S. is working with Mexico to ensure automotive suppliers in Mexico are deemed “essential businesses” and return to work. From my perch here in Florida, traffic has returned to normal, restaurants are open (50 percent […]
We had an exceptional SMU Community Chat Webinar with Dr. Chris Kuehl of Armada Corporate Intelligence on Wednesday morning. I am getting nothing but rave reviews of our free webinars, and I encourage you to inform your management and other teammates to register and then tune in at 11 AM ET every Wednesday. Next week […]
Pandemic is a public health issue, not a political issue. I watched just a few minutes of the Senate testimony today with Dr. Fauci, Dr. Redfield of the CDC, Dr. Hahn, commissioner of the Food and Drug Administration, and Admiral Giroir, the Assistant Secretary for Health. I thought one question and answer was interesting in […]
The “new normal” is to reinvent oneself or the way you will do business going forward. As many of you are aware, I am no spring chicken. Yet I refuse to live in the past. I learned (the hard way – through unexpected career changes) that I needed to constantly keep myself relevant to my […]
When I started Steel Market Update back in 2008, I knew I wanted to build something that would become a community centered on providing quality market information and a platform from which I could help educate and motivate those within the industry. On the Steel Market Update website, we describe our mission as follows: To […]
I am back from my “stay-cation.” Is it just me or is time standing still? I don’t know about your neighborhood, but the landscaping in mine has improved over the past 45 days. I understand there are a lot of home projects ongoing. From a steel executive email to me earlier today, “I told a […]
“Vacation: An extended period of recreating, especially one spent away from home or traveling.” Last week I took “vacation” time off, and unlike the definition above I did little recreating, rarely strayed from home, and did no traveling. How restful is that? The big news from last week was an apparent “firming” of steel prices. […]
It was one of those days. Publishing a newsletter is like giving birth three times a week anyway, but the labor pains for the SMU staff were particularly acute today. John Packard was ostensibly taking the day off, but that did not stop him from writing a big story and sending untold emails. Keeping abreast […]
John Packard is taking some time off. May could be a pivotal month for the U.S. economy and the steel industry. No reasonable person believes we will have the virus crisis behind us, but we should at least have more clarity on what lies ahead. States, to one degree or another, are loosening their restrictions […]
John Packard is taking some time off… We hope you are benefiting from our series of SMU Community Chats. The idea is to help us all feel connected by getting together once a week for a short visit with an industry expert—and in a way with each other. It’s a chance to learn something valuable […]
The following are my opinions. You’ve got to be an optimist to be in the steel industry. I have made that statement often over the course of my steel career. When I first started in the steel business with Rolled Steel Corporation in Skokie, Ill., in 1977 I used to joke, “the only people who […]
“You don’t want to waste a good crisis” (also seen as, “Never waste a serious crisis”). “In the rush to return to normal, use this time to consider which parts of normal are worth rushing back to.” Dave Hollis Just about every business in North America, if not around the world, is dealing with the […]
The coronavirus is already changing my daily habits. I walk around with a small bottle of Purell (or similar) hand sanitizer in my pocket. I have a face mask in my car and I am no longer self-conscious about wearing it into a grocery store. Probably because everyone else is wearing a mask as well. […]
2020 is NOT 2008 all over again… I vividly remember 2008 and what happened to the steel industry beginning in September of that year. Why? Because Steel Market Update began as a company in August 2008 and I was scrambling to get members, while at the same time reporting on the destruction of demand and […]
It’s hard to see the forest through the trees…. SMU hosted our first SMU Community Chat Webinar yesterday (Wednesday). There were a couple of glitches – all my fault. I turned off the video recording and was not able to get it back, so no recording of yesterday’s webinar. Josh Spoores (guest speaker from CRU) […]
What is accurate today will not be tomorrow. Just last week I was writing about the cancellation rumors at the domestic mills as perhaps being a bit overblown. As we collected pricing data for tonight’s flat rolled and plate index, we also asked our data providers to comment on whether they were pushing out and/or […]
There is going to be a rush of bad news flooding televised and online media. Here at Steel Market Update, we and our parent company The CRU Group will do everything we can to keep readers advised with the most accurate and timely information possible. This is one of the reasons we are beginning our […]
Waiting for the rainbow. Don’t get me wrong, the weather here in Florida is absolutely perfect today (and has been all winter). Sky is blue. Birds are singing. Flowers are blooming. Inside it feels like it is raining. Actually, it feels like the thunderstorms are gathering. You can see the high tops of the clouds […]
Zooming – sounds like a new drug, doesn’t it? We will be hosting another SMU Community Chat Webinar on Wednesday, April 22, at 11:00 a.m. ET (and I promise to hit the “start” button on time this week). Speaking with me will be Bernard Swiecki of the Center for Automotive Research (CAR). We will discuss […]
John Packard is taking some time off… By most readings of the government guidelines, steel is considered an “essential” industry during this virus crisis. Mills that produce steel products, and by extension service centers that distribute them, are critical to getting the economy back on track. For some steel-consuming sectors, however, their “essentialness” may be […]
John Packard is taking some time off… Among the many effects of the coronavirus on the steel market, no one is talking about Steelmageddon much these days. Announcements of new mills and capacity additions have been replaced by news of facility closures and furnace idlings. Concern has shifted from fears of overcapacity in the next […]
There is no way to plan for this… The stock market was up 2,100+ points today. I don’t know anyone personally who has contracted the COVID-19 virus. My kids are safe, albeit without incomes for the time being. Gas prices are below $2.00 and headed lower. The weather in Florida is perfect, and technically I […]
John Packard is taking some time off… As we all hunker down (wondering if that’s the hint of a sore throat when we swallow), it’s easy to feel the walls closing in. The intellectual part of us knows the economy will return to normal eventually (indeed, there’s money to be made when the market comes […]
The new normal for me is talking to an industry executive on the phone and listening to the kids playing in the background…. We had a 45-point drop in both the Current and Future SMU Steel Buyers Sentiment Index this week (article is at top of tonight’s issue). This is the largest one-week change in […]
The world is changing, it is not ending. I expect the steel industry will go through some changes as well. In Europe, the car makers are closing manufacturing facilities. Europe seems to be a couple weeks ahead of us here in the United States. Will we see the same plant closures in a couple of […]
Well, isn’t this special… Being Americans, I have seen my share of videos and cartoons where people are selling toilet paper and hand sanitizer like a drug deal. I must say I normally don’t have much food in the house. My freezer is now full. My son is a professional musician and last week he […]
Is it me, or has the world become much more complicated recently? The NBA has suspended games indefinitely. The NCAA “March Madness” basketball tournament will be played in empty stadiums. Princess Cruises just announced they are cancelling cruises for the next 60 days. Europeans will not be allowed to fly to the United States for […]
The world is changing in nanoseconds before our eyes. Did anyone think the whole country of Italy would be restricted/quarantined a few weeks back? Yesterday, Saudi Arabia decided to go to war with Russia over the price of oil, and voila the price drops 30 percent in one day. The U.S. has hardly begun testing […]