Steel Market Update sources expect ferrous scrap prices to fall again in July, the third consecutive month of declines since March and April’s record high prices. Both prime and obsolete grades are expected to decrease $50 per gross ton or more, with some saying prime could fall as much as $100 per ton. “The swiftness […]
The appeal of foreign hot rolled coil (HRC) over domestic steel is slowly diminishing, according to SMU’s latest foreign versus domestic HRC price comparison. Between mid-April and late May, foreign steel prices generally declined at a faster rate than domestic prices, resulting in greater potential discounts on imported products. Now, domestic prices are declining at a faster […]
Schnitzer Steel Industries Inc. posted its best third-quarter earnings on record thanks to high prices and strong demand for both ferrous and nonferrous scrap. The Portland, Ore.-based scrap recycler and long steel producer recorded net income of $76 million in the third quarter of its fiscal 2022 ended May 31, 2022, doubling earnings of $38 […]
Preliminary Census data shows that steel imports in May currently total 2.74 million net tons, 6,000 tons higher than April, but down 11% from March’s 26-month high of 3.09 million tons. June import licenses are now at 2.29 million tons, 16% less than April and May levels, and potentially the lowest level seen since Feb. […]
Steel Market Update’s average hot-rolled coil price has fallen below $1,000 per ton ($50 per cwt) for the first time since December 2020 – or 18 months ago. The move comes as some market participants said that a floor might be near while others said such talk was mostly wishful thinking. Our benchmark hot-rolled coil […]
Raw steel production by US mills edged down marginally last week, slipping for the second straight week. Domestic capacity utilization dipped to 80.2% while mill production totaled 1,750,000 net tons in the week ending June 25, the American Iron and Steel Institute (AISI) reported. US output was down 0.5% versus the week prior and 5.1% […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor Prices for sheet products continued to fall rapidly around the globe this week. Mills in the US have become increasingly aggressive with their offers and are shifting their focus towards value-added products in order to obtain higher margins over costs. As a result, […]
Prices for six of the seven steelmaking raw materials tracked in this SMU analysis declined over the last 30 days, again receding from record-high levels seen 2-3 months prior. Through the latest data available as of June 23, coking coal prices decreased 28% compared to one month prior, aluminum prices fell 15%, iron ore and […]
By Greg Wittbecker, Advisor, CRU Group Century Aluminum Falls Prey to the Pitfalls of Day-Ahead Electricity Pricing When we wrote our column last week about INTALCO and the shortcomings of US energy policy, little did we know that we would see another example of this within a week. On Wednesday, June 22, Century Aluminum (CENX) […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
The temptation to purchase foreign hot rolled coil (HRC) over domestic steel is beginning to ease, according to SMU’s latest foreign versus domestic HRC price comparison. Foreign products now hold potential discounts of 9-15% over domestic steel, versus savings of 12-26% one month ago. Between mid-April and late May, foreign steel prices generally declined at […]
The word ‘risk’ often has a negative connotation and gets a bad rap. But there are two sides to risk – the dark side and the light side, the bad and the good, the downside and the upside. When it comes to price risk in the steel market, you can either just accept it or […]
Sheet prices continued to fall this week on lower raw material costs, a buyers’ strike and concerns in some corners about a potential recession. But that gloomy sentiment was not universally shared, with some sources pointing to strong or at least steady demand despite the lower prices. SMU’s average hot-rolled coil price now stands at […]
Raw steel production by US mills continued its seesaw trend last week, edging down after inching up the week prior. Domestic capacity utilization slipped to 80.5% while mill production totaled 1,758,000 net tons in the week ending June 18, the American Iron and Steel Institute reported. US output was down 1.5% versus the week prior […]
The spread between hot-rolled coil (HRC) and prime scrap prices is resuming the downward trend seen prior to the Russia-Ukraine war, according to the latest Steel Market Update data. The HRC-scrap spread reached an 18-month low in early March. The latest spread, calculated through June 14, is less than half what it was this time last year […]
By Greg Wittbecker, Advisor, CRU Group The Saga of the Alcoa INTALCO Aluminum Smelter In April 2020, Alcoa announced its decision to close its Ferndale, Wash., primary aluminum smelter known as INTALCO. This smelter was built in 1966 by the French aluminum giant, Pechiney, and at its peak produced 284,000 metric tons per year. In […]
The following article on the hot-rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled HR futures are coming back to life after a quiet spell in May. Month to date in June more than 225,000 […]
Steel Market Update sources report ferrous scrap prices declined from May to June, dropping further from the record high prices seen in March and April. Prime grades declined between $55-75 per gross ton, with obsolete grades down $50-70 per ton. This puts the SMU price indices for scrap as follows: Busheling scrap at $600-670 per […]
The temptation to purchase foreign hot rolled coil (HRC) over domestic steel remains high, but imports are not as competitive as they had been, according to SMU’s latest foreign versus domestic HRC price comparison. Between mid-April and late May, foreign steel prices generally declined at a faster rate than domestic prices, resulting in greater potential discounts on imported […]
Imports of less expensive sheet and plate products continue to arrive at US ports, though at a much slower pace in April. Following a boost in volumes in March, imports of flat products decelerated in April and saw their share of the domestic steel market fall, according to Commerce Department data. Imports’ share of US sheet […]
Hot-rolled coil prices have suffered their biggest week-over-week decline since before the war in Ukraine sent tags sharply higher. Steel Market Update’s average hot-rolled coil price stands at $1,100 per ton ($55.50 per cwt), down $90 per ton from $1,190 per ton last week and down $265 per ton from $1,365 per ton in mid-May. […]
US apparent steel supply eased from March to April, declining 4% to 9.09 million net tons, according to the latest US Department of Commerce and American Iron and Steel Institute (AISI) data. Recall that supply reached a six-year high last September at 9.92 million tons, declining each month through February. Supply rebounded 14% in March […]
Charlotte, N.C.-based steelmaker Nucor is lowering prices on cut-to-length plate while keeping discrete plate prices mostly flat, effective with new orders received as of June 13. Cut-to-length plate prices are being lowered by $85-125/ton. Plates less than 72 inches wide will see prices drop by $125/ton, while plates 73-84 inches wide will see an $85/ton […]
Raw steel production by US mills edged up last week, rebounding from a slight dip the week prior. Domestic capacity utilization rose to 81.7% while mill production totaled 1,784,000 net tons in the week ending June 11, the American Iron and Steel Institute reported. US output was up 0.2% versus the week prior but 3.3% […]
Ukraine has implemented an export ban on energy-related materials, but pig iron has been excluded from that ban. As of June 10, natural gas exports are prohibited by Ukraine’s Cabinet of Ministers, as are exports of anthracite coal including briquettes, pellets, and similar solid fuels derived from coal. Coking coal, however, has been excluded from […]
US steel exports declined 2% in April to 830,000 net tons, falling from the 45-month high seen in March, according to the latest US Commerce Department data. On a 12-month moving average, April exports have now risen to a 39-month record high. Total April exports are 9% higher than levels seen one year ago. As shown in the graph […]
By Greg Wittbecker, Advisor, CRU Group Global Deficit Reduced Again The headline on aluminum fundamentals is that the deficit is shrinking again. We now believe that the global deficit will be about 700,000 metric tons compared to 1,000,000 metric tons in April. This deficit is exclusively held in the World ex-China, as we believe China […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Prior to Metal Edge Partners, Bryan held a variety of commercial […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor, June 8 The CRUspi plummeted again month-on-month in June by over 12.3%, which is a larger drop than in May. This makes it the third-largest percentage point drop on record and the second largest in terms of total points. The supply shock caused by […]
The temptation to purchase foreign hot rolled over domestic steel remains high, according to SMU’s latest foreign versus domestic hot-rolled coil (HRC) price comparison. Since mid-April, foreign steel prices have declined at a faster rate compared to domestic prices, resulting in greater potential discounts on imported products. Select foreign prices now range between $119-238 per […]