We are including this article because it puts the Fed’s post-recession activities into perspective. Our recollection is that the European central bankers scoffed at the Federal Reserve quantitative easing and TARP programs when they were initiated in 2008. The European Central bank, (ECB) has taken the single currency block into uncharted waters by sending the […]
Earlier this week SteelBenchmarker reported their latest world export price for hot rolled steel at $501 per net ton ($552 per metric ton), unchanged from their price two weeks ago. With an estimated $70 per ton in freight, handling and trader margin added, that puts the world price at approximately $571 per ton CIF USA […]
In late May SteelBenchmarker reported their world export price for hot rolled steel at $501 per net ton ($552 per metric ton), unchanged from their price earlier in the month. With an estimated $70 per ton in freight, handling and trader margin added, that puts the world HRC price at approximately $571 per ton CIF […]
SteelBenchmarker released regional pricing earlier this week, putting the world export hot rolled price at $501 per net ton ($552 per metric ton). The spread between the SMU HR price and the world HR price went from $173 per ton two weeks ago to $184 as of Monday. With an estimated $70 per ton in […]
The spread (variance) between World export prices for hot rolled coil compared to the average for hot rolled coil prices east of the Mississippi based on the Steel Market Update HRC index is shrinking. World export hot rolled coil (HRC) price is currently $505 per net ton FOB the port of export. When freight, loading […]
Steel Market Update (SMU) received an email from one of our readers regarding his concerns as the iron ore spot prices drop in China and ore inventories rise. The writer’s belief is that United States flat rolled steel prices will be impacted eventually. This service center executive wondered what our Asian iron ore and steel […]
Steel Market Update has been in constant contact with one of our Asian trading sources who is a trader of iron ore to Chinese steel mills and exporter of finished steel out of China around the world. We have been discussing the iron ore “bubble” which continues to inflate and our source believes it will […]
Steel Market Update (SMU) received an email from one of our readers regarding his concerns as the iron ore spot prices drop in China and ore inventories rise. The writers belief is that United States flat rolled steel prices will be impacted eventually. This service center executive wondered what our Asian iron ore and steel […]
The European Union was formed in 1992 with the signing of the Maastricht Treaty on European Union (TEU). In an effort to instill fiscal discipline and encourage trade and free flow of labor and capital without giving up sovereignty, member countries would participate in a monetary union while remaining fiscally independent. The caveat was countries […]
Market sentiment in Asia is contrary to the United States. Finished steel sales have been very lackluster and slow. Main causes: • Exchange rates: US$ has been stronger recently, approximately 1.3-1.5% against most Asian currencies. This affect on exchange rates also is affecting Turkish buyers. On a currency exchange difference from 3 weeks ago, it […]
We communicated with one of our main Asian contacts over the past few days. We wanted to know what they have been seeing regarding new carbon sheet price offers out of China for their European customers (this source does not ship steel to the USA). We also wanted to learn more about iron ore prices […]
One of the questions we hear on a continuous basis is, how much foreign flat rolled steel import is really coming and what impact will it have on domestic steel prices (and when)? Steel Market Update conducted our most recent analysis of the flat rolled steel market over this past week. Based on the responses […]
Global steel prices may have finally bottomed out, said Severstal CFO Alexey Kulichenko. Severstal sees a slow recovery in store for 2014 with steel prices similar to those in 2013. “We don’t really believe there is more room for going down, so we think on average maybe we have reached the bottom,” said Kulichenko said […]
In the last issue of SMU, the Final Thoughts article had information from the financial community with a Bloomberg graphic pointing out the difference between U.S. benchmark hot rolled coil prices and those from the rest of the world. The premise being the $190 spread recognized by the financial community was unsustainable. The net result […]
Steel Market Update (SMU) has been doing some quick channel checks to see what offers are available out there for foreign steel. Our steel market survey, which we began on Monday morning of this week, has been suggesting a higher level of interest in foreign steel due to the higher domestic prices and the spread […]
The European economy finally seems to be on the road to recovery. In figures released by the European Commission, GDP in the second quarter rose by 0.3 percent in the Eurozone—a small but positive indicator of growth. The growth was led by Germany and France where GDP improved by 0.7 percent and 0.5 percent, respectively. […]
Written by Sandy Williams The Steel Manufacturers Association (SMA) has asked U.S. Trade Representative Michael Froman to protect domestic steel plate from an onslaught of imports from Europe. “We urge USTR to undertake a diplomatic initiative targeted at the European countries that are rapidly increasing their shipments of CTL plate and other products to the […]
Written by: Sandy Williams The JP Morgan Global Manufacturing PMI slipped to 50.8 from 51.4 in January indicating a slowing in manufacturing. Global manufacturing output rose for the fourth month in a row with the U.S. leading the upward momentum. India, Mexico and Brazil also saw acceleration in production. China showed slowing in February while […]
Written by: Sandy Williams General Motors nearly doubled its fourth quarter earnings while posting big losses in Europe. GM reported fourth quarter earnings of $898 million, up from $468 million in the same period in 2012 due in part to a variety of gains from special items. A number of one-time accounting gains and losses […]
Written by: Sandy Williams ThyssenKrupp announced it will reduce its European workforce by 2000 employees with a possible 1800 dismissals to follow. The reduction is part of its “Best in Class—reloaded” (BiC) optimization program aimed at saving $670 million by the next fiscal year and improving competitiveness in the European market. The program includes restructuring […]