According to the latest Steel Market Update data, the spread between hot rolled coil prices and prime scrap prices has changed course after reaching an 18-month low in March. The latest spread is in line with levels seen this time last year, and two times higher than pre-pandemic spreads. The SMU hot rolled coil price average […]
The competitive advantage import prices hold over domestic steel has increased this week, according to SMU’s latest foreign versus domestic hot-rolled coil (HRC) price comparison. Select foreign HRC prices range from $47-335 per ton cheaper than domestic prices, after taking freight costs, trader margins and tariffs into consideration. Recall that the price differentials between domestic […]
Sheet prices rose modestly across this board this week, following slight declines seen last week. Steel Market Update’s check of the market puts benchmark hot-rolled coil prices at $1,480 per ton, up $30 per ton from one week prior. Coated and plate products saw increases as well, moving upwards between $10 and $40 per ton […]
Raw steel production by US mills grew last week, expanding for the second straight week. Utilization rates exceeded the 80% mark for the first time in four weeks. Domestic output totaled 1,766,000 net tons in the week ending April 16, while mill capacity utilization was 80.9%, reported the American Iron and Steel Institute. US output […]
On Monday, April 18, Nucor and USS-UPI both notified customers of an upward revision to their galvanized steel coating extras. New Nucor extras are effective June 4, 2022, while USS-UPI extras are effective immediately (April 19, 2022). “Consistent with our practice to monitor the cost of zinc, we have revised our galvanized coating weight extras […]
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 As the Russia/Ukraine conflict continues to smolder the upward trend in spot HR prices appears to have stalled this week […]
The competitive advantage foreign import prices hold over domestic steel is relatively unchanged from our previous update, with most prices moving just $10-$20 from last week, according to SMU’s latest foreign versus domestic hot-rolled coil (HRC) price comparison. Select foreign HRC prices range from $305 per ton cheaper than domestic prices to $27 per ton more expensive, […]
Ferrous scrap prices were mixed in April, with busheling up $75 per gross ton (GT), shredded scrap flat, and HMS down $20/GT. These were not the movements scrap experts had expected, with late March forecasts calling for obsolete grades up $50-$100/GT over March and busheling up $120-$200/GT. “April ferrous markets have settled and suffice it […]
By Greg Wittbecker, Advisor, CRU Group It is natural to speculate about how well demand for aluminum can hold up given the effects of dramatically higher prices, both on aluminum itself and the broader economy. Conversations with many of our clients’ center on concerns about demand destruction. The logic is simple: With gasoline, food and interest […]
ArcelorMittal has agreed to acquire a controlling stake in Voestalpine’s hot-briquetted iron (HBI) plant in southern Texas, in a deal that values the operations at $1 billion. The Luxembourg-based steelmaker will take an 80% stake in the plant located in Portland, Texas – just outside of Corpus Christi. Opened in October 2016, it’s one of […]
SSAB Americas plans to increase prices on as-rolled, normalized and wide cut-to-length plate by at least $60 per ton ($3 per cwt). The Mobile, Ala.-based steelmaker said the price hike would be $70 CAD per ton for customers in Canada. “SSAB Americas reserves the right to re-quote any open offers not confirmed by an SSAB […]
Sheet prices were flat or fell modestly across this board this week for the first time since late February. Case in point: SMU’s average hot-rolled coil price slipped to $1,450 per ton, down $10 per ton from last week. The decline, while negligible in absolute terms, marks the first time HRC prices have not risen […]
US apparent steel supply levels slipped 11% from January to February, down 997,000 net tons to 8.37 million tons, according to the latest US Department of Commerce and American Iron and Steel Institute (AISI) data. Recall that just last September, the market saw the highest monthly supply level in over six years (9.92 million tons). […]
US steel mills shipped 7.233 million net tons in February, a 7.4% increase from the same month last year when shipments totaled 6.753 million net tons, the American Iron & Steel Institute (AISI) said. But while shipments were up year over year, they were down 6.8% from January. Shipments by US steelmakers year-to-date through February […]
Raw steel production by US mills rebounded last week, following repeated declines the prior two weeks. Despite the gain, utilization rates remain below the 80% mark for the third straight week. Domestic output totaled 1,739,000 net tons in the week ending April 9, while mill capacity utilization was 79.7%, the American Iron and Steel Institute […]
Voestalpine is in advanced talks to sell a majority stake in its hot-briquetted iron (HBI) plant in southern Texas, the company said. “In recent months, Voestalpine has been conducting an open-ended market sounding to stabilize the business model of its direct reduction plant in Corpus Christi, Texas.” The Austrian specialty steelmaker didn’t disclose a potential […]
Plate prices have remained relatively steady while sheet prices declined and then surged over the past six months. Plate prices typically carry a premium over hot rolled prices because plate is a value-added product and requires more time on the mill. SMU’s hot rolled coil price averaged $1,460 per ton ($73 per cwt) last week and has risen each of the past […]
SSAB Americas aims to increase prices on all quenched-and-tempered (Q&T) products by at least $100 per ton ($5 per cwt). The price hike is $125 CAD per ton for customers in Canada, the company noted. The move is effectively immediately on all non-contract orders confirmed to ship on May 1 or later, SSAB said in […]
Matthew Abrams, Analyst, CRU Group The US Midwest premium on aluminum P1020 has seen consistent upward movement since the recovery from the pandemic started. Last week, it touched $0.40 per pound, a level once heavily fought. The fundamentals of the market indicated room for further upward moves, yet it is pausing here. Markets are getting […]
By CRU Senior Coal Analyst Dmitry Popov, and Senior Analyst Banmeet Khurmi, from CRU’s Steel Sheet Products Monitor, April 7 Among the latest sanctions against Russia, the EU is planning to introduce a full import ban of Russian coal from August 2022. In this Insight, we look at the EU’s reliance on Russia for thermal […]
Foreign import prices are slowly gaining back their competitive advantage over domestic steel, according to SMU’s latest foreign versus domestic hot rolled steel price comparison. Select foreign HRC prices range between $327 per ton cheaper than domestic prices to $46 per ton more expensive, after taking freight costs, trader margins and tariffs into consideration. Recall that the price differentials between […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
US steel exports increased 5% in February to 727,000 net tons, following a 6% rise in January, according to the latest US Department of Commerce data. The 12-month moving average through February has now reached a 3-year high. February exports are 7% higher than levels seen one year ago. As shown in the graph below, […]
Schnitzer Steel Industries Inc. posted its best first half results in company history following a strong second quarter earnings. The result comes 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 $38 million in the second quarter of […]
Steel prices rose again this week on continued strong demand (outside of automotive). But hot-rolled coil price gains moderated for the second week in a row. SMU’s benchmark hot-rolled coil price rose to $1,460 per ton this week, up $25 per ton from $1,435 per ton last week and marking the smallest week-over-week gain since […]
Final Census data confirms that February steel imports declined 23% month-over-month to 2.35 million net tons, now at an 11-month low compared to January’s two-year high. March import licenses through April 4 are up to 3.08 million tons, a 31% increase over February and 1% higher than January. Current April licenses are already at 449,000 […]
By CRU Principal Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor, April 5. Iron ore has risen again in the past week as lockdowns in China have fuelled hopes of new stimulus measures, resulting in an overall bullish sentiment last week, ahead of the Chinese Qingming holiday (Sunday–Tuesday). Iron ore has now returned to […]
Raw steel production by US mills slipped further last week, with utilization rates below the 80% mark for the second straight week. Domestic output totaled 1,724,000 net tons in the week ending April 2, while mill capacity utilization was 79.3%, the American Iron and Steel Institute (AIS) reported. US output was virtually unchanged, down just […]
By Greg Wittbecker, Advisor, CRU Group Since the onslaught of the war in Ukraine last month, the aluminum market has been fixated on the timing and severity of economic sanctions on the Russian aluminum sector. This attention is warranted given the importance of Russian primary aluminum in global trade. As discussed in prior columns, Russia […]
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 […]