We saw some “minor” slippage in flat rolled steel pricing this past week. When reviewing Platts (SteelBenchmarker did not report prices this past week) and our own steel indices we saw movement in hot rolled, cold rolled as stable, movement in galvanized and Galvalume and plate were stable. Hot rolled prices were down $10 per […]
According to the latest data released from the U.S. Department of Commerce and the American Iron and Steel Institute, apparent steel supply for the month of December 2016 was 8,622,171 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports, then subtracting total US steel exports. December apparent […]
Even though the U.S. Department of Commerce is reporting foreign steel imports at high levels, imported steel is getting more expensive and, in some cases, getting harder to find. SMU sources, both steel trading companies and buyers of foreign steel here in the United States, are expressing reservations about the future of foreign steel imports. […]
“Sanity is back in the seabourne iron ore market,” said Cliffs Natural Resources CEO Lourenco Goncalves in comments during the Cliffs earnings call on Thursday. After the departure of three key executives in the Australian ore market, iron ore prices doubled and Rio Tinto, Vale and BHP are exhibiting disciplined behavior which will support strong […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel HR futures consolidate in quiet trading week as the market absorbs the anticipated first decline in the HR index since the […]
The U.S. Department of Commerce released the Final Census Data for foreign steel imports for the month of December 2016. We now have the 12-month moving average (12MMA) for calendar year 2016 as well as the 3-month moving average for the last 3 months (4Q) 2016. The January numbers are based on license data which […]
Licensed data for January was reported by the Steel Import Monitoring System of the US Commerce Department on January 7th. An explanation of the methodology that we at SMU use to analyze the trade data is given at the end of this piece. All volumes in this analysis are reported in short tons. Total rolled […]
December steel exports totaled 726,847 net tons (659,385 metric tons), down 0.3 percent over November but up 0.2 percent from December 2015. This is the lowest export level seen since December 2015 when 658,362 tons were exported. Total December figures are below the thee month moving average (average of October, November, and December 2016 figures) […]
Steel buyers are telling Steel Market Update that there are a few steel mills “looking for orders” and that flat rolled steel prices are “somewhat negotiable with tons” but, otherwise, the steel mills are doing a good job of holding the line on prices. We have seen a couple of drops in pricing due to […]
The following article is the opinion of Steel Market Update (SMU) founder and publisher, John Packard. There is a new kid in town, his/her name is Big River Steel. No other steel mills like BRS because they are taking market share and, well, everyone wants to keep all of their toys. Big River Steel Arkansas […]
The ferrous scrap markets have been all about doom and gloom up until the past couple of days. Obsolete grade and shredded scrap were reported trading down $25 per ton in Brazil. Prime grades were down $10 per ton. Our sources were telling us export prices were down and the exporters off the east coast […]
For the week ending February 4, 2017, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,723,000 net tons of raw steel, a 0.7 percent decrease over the previous week but a 3.5 percent increase over the revised rate from the same week one year ago. The estimated capacity utilization rate […]
Over the weekend, we were able to discuss the status of ferrous steel scrap negotiations for February with a couple of scrap dealers as well as one individual associated with the pig iron markets. The Detroit areas mills were the first to settle and the decline in shred and obsolete grades was not as dramatic […]
The U.S. Department of Commerce provided updated license and census data which indicates foreign steel imports are trending lower. December imports of foreign steel are totaling 2,685,641 tons while January is trending toward 2.7 million tons based on license data through the end of the month. Items that are trending lower are: Semi-finished steels of […]
The American Iron & Steel Institute (AISI) recently reported final U.S. raw steel production estimates for the month of December 2016. The monthly estimates are different than the weekly estimates we report in our Tuesday issues; the AISI bases the monthly estimates on over 75 percent of the domestic mills reporting vs. only 50 percent […]
Flat rolled steel prices may have peaked based on the results of the two steel indexes followed by Steel Market Update who reported flat rolled steel prices this past week. Platts reported prices as remaining the same on all flat rolled products but up $40 per ton on plate. Steel Market Update (SMU) collected data […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel Finally getting some traction in HR futures here this past week as prices declined along the curve and especially in the […]
Steel Market Update (SMU) collected data from the flat rolled steel markets which indicated some changes in the index averages. Whether this is a signal of a break in prices is not yet known and something we will be working on over the next few days. We have seen data this week whereby the strength […]
For the week ending January 28, 2017, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,736,000 net tons of raw steel, a 1.9 percent increase over the previous week and a 8.0 percent increase over the revised rate from the same week one year ago. The estimated capacity utilization rate […]
Global steel production in 2016 was up by 0.9 percent after declining by 3.4 percent in 2015. On a rolling 12 month basis, December was the first month to have positive growth since May 2015. Production in the month of December was 134,059,000 metric tons with a capacity utilization of 68.6 percent. The three month […]
U.S. steel manufacturers were successful in using trade cases to reduce steel imports into the United States, said AIIS. The report on steel imports from AIIS follows: Falls Church, VA. January 27, 2017. Steel imports dipped 4.2 percent from November, coming in at 2.68 million net tons in December. Despite the month-to-month decline, the total […]
The Keystone XL Pipeline was given approval by the new administration through executive order last Tuesday. Since that time there has been a flurry of speculation on what kind of benefit building the pipeline will provide to the U.S. steel Industry. “We are — and I am — very insistent that if we’re going to […]
Flat rolled steel prices were essentially unchanged on the Platts and SMU indexes while SteelBenchmarker, which only produces their indices twice per month, played catch up. The three steel indexes agreed that benchmark hot rolled coil was averaging $630 per ton ($629 was the average of the three indexes) or $31.50/cwt. Cold rolled was unchanged […]
SMU scrap sources are all telling us that the recent transactions with Turkey have “surprised” dealers, the net result may well be a much weaker domestic scrap market than anticipated as we move into February negotiations next week. A weaker scrap market, especially if it were to drop $35-$40 per gross ton would dampen price […]
Are steel prices poised to give back some of the gains collected over the past few months? Steel Market Update and our readers have been debating this subject as word of mills being more receptive to negotiate steel pricing has been leaking out into the market. On Tuesday of this week, SMU published an article […]
Steel Market Update (SMU) received the following question from one of our readers: “We are a galvanized sheet metal fabricator. We purchase around 5 million pounds a year (mostly 26ga-14ga). I was hoping you could help us out. We have not had to raise prices in years but galvanized pricing has steady risen over the […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel export prices and domestic (USA) hot rolled coil prices. We want our readers to note that we have made a decision to replace SteelBenchmarker as the primary data provider of foreign hot rolled coil prices. We […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing Futures […]
January foreign steel import license data released by the U.S. Department of Commerce earlier this week is suggesting total steel imports will be in line with November and December at approximately 2.8 million net tons. We continue to see a drop in the level of hot-rolled tons coming into the U.S. market as fewer countries […]
The market did not collapse after our article about potential cracks in hot rolled. In fact, the hot rolled prices actual increased by $5 per ton while the other items remained intact at last week’s levels. Although SMU did collect data on hot rolled that was lower than the week prior, the lower offers were […]