Steel production worldwide plunged by 13 percent in April, compared with April 2019, as the coronavirus pandemic took its toll on economies all over the globe. The World Steel Association estimates that crude steel production totaled just 137.1 million metric tons last month, though it advised that the April figures are estimates due to the […]
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 There’s been more muted trading as the market reflects lower volumes and takes a more cautious wait-and-see approach. Lately the focus […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor In the U.S. Midwest, sheet prices have continued to strengthen while plate prices have weakened further. HR coil prices increased for the third consecutive week, albeit by just $5 /s.ton to $487 /s.ton. The volume-weighted average of transactions remains below recent mill targets of $500 […]
Recently updated license data shows preliminary April steel imports were 2.77 million net tons, according to the U.S. Department of Commerce. This is a downward adjustment of 200,000 tons compared to the license data reported last week. Finished imports in April are at 1.32 million tons, down 13 percent over the previous month. Nearly 230,000 […]
Steel prices gained some strength across the board following the mills’ price increase announcements on flat rolled and plate products last week. The benchmark price for hot rolled has managed to get back to the $500 per ton mark, even as the market continues to struggle with shaky demand due to the coronavirus. The increases, […]
Mill utilization by domestic steelmakers improved slightly in the week ending May 23 as steel production totaled 1,191,000 net tons with the mills operating at an average rate of 53.2 percent. Production was up 0.8 percent from the prior week when the utilization rate was 52.7 percent, reported the American Iron and Steel Institute. While […]
Ferrous scrap remains in limited supply, prompting predictions that scrap prices will settle still higher in June, on top of the big increase in May. Steel Market Update sources forecast an increase of $10-20 per ton for obsolete grades and $20-30 per ton for prime grades in June from May levels. Higher scrap prices may […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices contracted in the past week as China’s “Two Sessions” concluded with a disappointing outlook while Brazilian exports registered their strongest week of the year. On Tuesday, May 26, CRU assessed the 62% Fe fines price at $97.0, a $1.3 /t […]
By CRU Economists Jumana Saleheen and Economist Yingrui Wang, from CRU’s Steel Metallics Monitor Special Feature: China will set out its major economic objectives and policy goals for 2020 at the National People’s Congress. We expect fiscal stimulus of 5-8 percent of nominal GDP to be announced, half the size of the stimulus that followed […]
The COVID-19 pandemic has resulted in weaker global demand for steelmaking raw materials. However, the cost of producing and delivering many of these commodities has also fallen. Strong demand in China is helping to buoy prices for iron ore and other materials. Table 1 summarizes the price changes through May 21 of the five materials […]
While it seems counterintuitive given the difficult market conditions and weak demand due to the coronavirus, domestic steelmakers have raised flat rolled prices for the second time this month. Nucor, U.S. Steel, USS-POSCO Industries (UPI), AK Steel and NLMK USA informed customers today that prices for spot orders of hot rolled, cold rolled and coated […]
Following on Monday’s announcement by ArcelorMittal USA and SSAB Americas, Nucor informed customers on Wednesday that it has raised the price of its plate products. Nucor is seeking an additional $50 per ton ($2.50/cwt) on all orders for carbon, alloy and heat-treated plate. The other mills raised their plate price by just $40 per ton ($2.00/cwt). […]
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 […]
Flat rolled steel prices were mixed this week as benchmark hot rolled rose $10 per ton and is now up $20 per ton from the cycle low. Cold rolled remained within the range we reported last week and our average on CR is unchanged. Galvanized pricing data was mixed with a couple of mills cutting […]
Domestic steelmakers raised the spot price of plate products by $40 per ton yesterday, hoping to stem the slide and capitalize on improving demand as coronavirus restrictions ease and businesses are allowed to gradually reopen. The plate price has been trending downward this year since peaking in January at $710 per ton ($35.50/cwt). Steel Market […]
In the week ending May 16, steel production totaled 1,181,000 net tons with the mills operating at an average capability utilization rate of 52.7 percent. Production was down 1.9 percent from the prior week when output totaled 1,204,000 tons at a utilization rate of 53.7 percent, reported the American Iron and Steel Institute. Mill utilization […]
By CRU Senior Analyst Manjot Singh, from CRU’s Metallurgical Coal Market Outlook Seaborne coking coal prices were steady last week as market participants adopted a “wait-and-see” approach due to the ongoing uncertainty in the coal market. There are upside risks to seaborne prices in the form of relatively strong demand in China, and ease of […]
This week’s SMU comparison of foreign and domestic hot rolled prices shows that U.S prices remain advantageous over foreign imports, albeit slightly less so than late-April figures, according to SMU and CRU indices. The price gap between domestic HRC compared to German and Italian imports remains over $100 per ton, as has been the case […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) moved higher by 11.5 percent m/m to 202.4 in May. Supply constraints caused by the Covid-19 pandemic combined with either sustained or recovering scrap demand to lift prices across most of the globe, although pig iron demand was […]
Despite announcements by the major mills of price increases or higher base prices, flat rolled steel prices saw relatively little change in the past week as the market continues to struggle with weak demand due to the coronavirus shutdowns.Steel Market Update’s Price Momentum remains at Neutral. Here is how we are seeing prices this week: […]
Has steel production turned a corner? After a series of sharp declines since the coronavirus shutdowns in mid-March, the mill utilization rate actually saw a small uptick last week. In the week ending May 9, steel production totaled 1,204,000 net tons with the mills operating at an average capability utilization rate of 53.7 percent. Production […]
By CRU Senior Analyst Erik Hedborg, from the CRU Steelmaking Raw Materials Monitor In the past week, the iron ore price has risen to $88.8 /dmt as seaborne supply displayed some temporary weakness while China’s steel production remained at a high level. The current iron ore price, $5.3 /dmt higher than last week, sits at […]
United States steel exports totaled 664,129 net tons of steel in March, up 4 percent from February and up 13 percent from one year prior, according to recent U.S. Department of Commerce data. March export levels are the hightest seen since October 2019 when 709,496 tons were exported to other countries. Prior to October, the […]
U.S apparent steel supply rose to 8.66 million net tons in March, according to recent U.S. Department of Commerce and American Iron and Steel Institute data. Although up over the previous month, March supply remains on the low-side historically and is the fourth lowest supply level seen in the past three years. Apparent steel supply, […]
By CRU Principal Consultant Laura Brooks and Senior Consultant Amir Sabet, from CRU’s Crude Steel Market Outlook The market impacts of Covid-19 are unknown in scale, varied and staggered in time across the world. The steel raw materials markets are being affected to a lesser or greater extent depending on the demand-side and supply-side regional […]
If there is one thing you can count on with the steel industry, it’s for rumors to begin flying as soon as the mills appear to have seized pricing momentum. The domestic steel mills, led by ArcelorMittal USA, began announcing price increases the week ending May 1. The announcements ranged from $50 to $60 per […]
Ferrous scrap prices for May have settled up $30/GT for shredded and up $40-50/GT for busheling as the coronavirus shutdowns have disrupted scrap generation and collection, resulting in extremely tight supplies. Higher scrap prices may lend support to the higher finished steel prices announced by the mills this week. The tight supply is a more […]
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 A large drop in the HR index used to settle the CME HR contract last week helped push April to settle […]
Recently updated license data shows final March steel imports totaling 1.75 million net tons, according to the U.S. Department of Commerce. This is just 1,400 tons over the preliminary March import figures reported last week. Unchanged over what SMU published last week, finished imports in March were 1.5 million tons, up 12 percent over the […]
The prices we reference this evening reflect orders being placed this week, as well as the prices being quoted by the mills to their customers. It is important that our readers understand there was a flurry of activity last week at numbers at, or below, the low end of our range. We discussed with one […]