(Editor’s note: The following commentary was submitted by Flack Global Metals Founder and CEO Jeremy Flack.) Looking to improve vendor relations during contract negotiations? Look no further than the forward curve. Contract season is underway, and we hear things are choppy out there. The mills are serving up a mixture of higher extras and lower […]
Domestic raw steel production edged down slightly after matching its pandemic-era high the week prior. Production by U.S. mills was estimated at 1,870,000 net tons in the week ending Oct. 23, while the average utilization rate was 84.7%, according to the American Iron and Steel Institute (AISI). Output was down 0.6% compared to the week […]
SSAB Americas has followed competitor Nucor in raising prices for steel plate by $50 per ton ($2.50 per cwt). The price hike is effective immediately for all new spot orders, the Mobile, Ala.-based steelmaker said in letters to customers on Monday, Oct. 25 The increase is $60 per ton CAD for customers in Canada. It applies […]
By CRU Analyst Helen O’Cleary, from CRU’s Zinc Monitor Zinc’s price started LME Week looking mildly bullish on short covering, with the 3-month official price settling at $3,246 /t on Oct. 12. By Oct. 15, it had reached $3,944 /t, turbocharged by news of smelter cutbacks in Europe due to soaring energy prices and the […]
By CRU Research Manager Eoin Dinsmore, from CRU’s January Zinc Monitor Buyers who are unfortunate enough to find themselves in the spot market are paying 18-23¢ /lb for SGH zinc. The most recent deals have all been at 20¢ /lb or higher. Buyers are fearful of being left short metal, while suppliers are either sold […]
Nucor Corp. in a leading move has increased plate prices by $50 per ton ($2.50 per cwt) with the opening of its December orderbook. The increase – announced on Friday, Oct. 22 and effective immediately – is equal across all plate products. The Charlotte, N.C.-based steelmaker had in prior months increase prices for quenched-and-tempered plate […]
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 Three minutes of weightlessness before gravity takes hold! This month has been a mixed bag in HR futures. Lack of a […]
Prices for four of the seven steelmaking raw materials tracked in this SMU analysis increased over the last 30 days. Through Oct. 20, zinc prices shot up 24% over one month prior, iron ore prices rebounded 18% in one month’s time, aluminum prices rose 9%, and coking coal prices increased 8%. In that same time […]
Steel Market Update’s check of the market this week shows another small decrease for hot rolled steel prices. The hot rolled price has dipped three of the last four weeks by a total of $45 from the high of $1,955 per ton in the first week of September. SMU is changing its Hot Rolled Price […]
U.S. raw steel production has recovered after slipping for two straight weeks. Production by U.S. mills was estimated at 1,882,000 net tons in the week ending Oct. 16, while the average utilization rate equaled its highest reading all year at 85.3%, according to the American Iron and Steel Institute (AISI). Output rose by 1.3% compared to […]
By Stephen Williamson, CRU Research Manager, Aluminum Aluminum prices went through the $3,000 per metric ton mark on the LME this week. Fueled by energy constraints in China and tightening supply of alloy hardeners, the price broke through the $2,950 ceiling and ran up another $200. The price leveled at $3,150 as of this writing […]
By Stephen Williamson, CRU Research Manager, Aluminum Last week’s aluminum price below $3,000 per metric ton on the LME seemed like a bargain until it ran above $3,300 earlier this week. Yet, at week’s end, trading fell back to $3,050. Further confounding the market is magnesium supply and the prices raging on the hardener front. […]
By CRU Advisor Greg Wittbecker LME cash aluminum prices have retreated hard from new 13-year highs, falling from $3,300 last week to reach $2,682 as we completed the week. Supply-side Price Concerns Get a Reality Check but Remain Dangerous Market euphoria over supply-side constraints ran into the effect of China’s “command economy” at work. Power […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor Over the past five weeks since we last reviewed the CME Group’s HR coil futures market, there has been a renewed surge in volatility. Spot prices of physical HR coil have clearly plateaued, yet more likely started a new downtrend, and futures prices […]
By CRU Senior Analyst Ryan McKinley from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) changed little in October, declining slightly by 0.4% to 374.1. Price directions were mixed but fell by the most for European scrap and DRI while scrap prices in Asia had the largest increases. We expect to see similar […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor After 14 consecutive months of rising global sheet prices, CRU’s Global Flat Products Steel Price Indicator (CRUspi flats) has fallen m/m. This indicator fell 3.5% as sheet prices continue to fall across most regional markets. The U.S. Midwest market remains the last holdout […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor Steel sheet price declines continue in the USA and Europe as lead times shorten further and inventories build. In the former market, small transactions are occurring at levels above $1,900 /s.ton, but there are many more deals occurring at well below this level. As […]
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. Before joining Metal Edge Partners, Bryan held a variety of commercial […]
Cheaper foreign hot rolled steel imports continue to tempt U.S. buyers over steel produced domestically, holding potential discounts of 25-43%, according to Steel Market Update’s latest foreign versus domestic hot rolled steel price comparison. Foreign hot rolled steel prices are now theoretically $483-832 per ton cheaper than domestic steel, after taking freight costs, trader margins […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor North American sheet prices are lower m/m as prices in the U.S. have finally started to fall, at least for HR coil. Over the past several weeks, the amount and overall volume of spot transactions between mills and buyers have slowed, yet we […]
Flat rolled and plate steel prices were flat to down slightly this week with the exception of a small increase in cold rolled, according to Steel Market Update’s check of the market on Monday and Tuesday. The small ups and downs in steel prices over the past month are in line with most buyers’ expectations […]
U.S. raw steel production edged down for the second straight week. Production by U.S. mills was estimated at 1,858,000 net tons in the week ending Oct. 9, while the average utilization rate was still a very strong 84.2%, according to the American Iron and Steel Institute (AISI). Output was down by 0.7% compared to the week […]
August apparent steel supply increased by 130,000 tons over July to 9.83 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. This is the highest supply level seen since January 2019, a 31-month record. August supply is up 2.69 million tons compared to the same month […]
In the face of strong demand, limited availability and record-high prices in the U.S., steel buyers have looked overseas for relief. August Commerce Department data shows steel imports have been on the rise for the past three months, with imports’ share of total sheet product shipments reaching 17.5%, up from 16.7% the month prior, and the […]
Cleveland-Cliffs Inc. isn’t feeling the heat of soaring metallurgical coal prices, at least not yet. And the Cleveland-based miner and steelmaker plans to turn to its own mines if the market overheats. “We are benefiting from our existing multi-year contracts with suppliers and also the supply from our own coal production operations,” a company spokeswoman […]
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 The hot rolled futures market was interesting this week as a strong reported decline in spot HR prices surprised many. The […]
By CRU Senior Analyst Ryan McKinley and Analyst Dave Thewlis, from CRU’s Steel Long Products Monitor Long product prices in the U.S. remained elevated and moved higher again m/m in some cases for October. Wire rod mills pushed through another round of price increases in mid-September and there was little to no resistance from buyers […]
By CRU Principal Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices have increased in the past week on post-holiday optimism that a real estate collapse can be avoided and the fact that steel production is increasing after the Chinese holiday. CRU has assessed the iron ore price at $132.0 /dmt, up […]
U.S. steel exports increased 1% from July to August at 764,000 tons, according to the latest U.S. Department of Commerce data. August levels remain in line with exports over the last few months. Recall that July saw the second highest monthly export level in the last three years (778,000 tons), just behind the April 2021 […]
Flat rolled steel prices are in transition, which tends to lead toward more volatility and wider price ranges in Steel Market Update data. One of the issues we face when we reach an inflection point in the spot market is the lack of daily transactions. With service center inventories nearing a state of balance, combined […]