GrafTech Mexico SA de CV is resuming operations after a brief hiatus.The Brooklyn Heights, Ohio-based graphite electrode producer initially announced the operational pause due to an operational license being out of date on Sept. 15, 2022. “We are pleased to have received an order that allows for the immediate restart of our operations in Mexico,” said […]
The number of active drilling rigs increased this week in both the US and Canada, according to data from oilfield services company Baker Hughes. Counts have been trending in different directions in recent weeks. Drilling activity in the US continues to improve, although it is still not back to pre-Covid levels. Canadian rig counts have been […]
New Commitments in Middle East Around Carbon Capture and Alcoa Gives Updates on Elysis Technology We were struck this week by reports from Saudi Arabia that the Ma’aden smelter intends to pursue a carbon capture, utilization, and storage (CCUS) approach to reducing its carbon footprint. During the current COP27 event in Egypt, Ma’aden’ Senior Vice […]
Producer prices came in below expectations in October, adding to hopes that inflationary pressures are beginning to ease, the US Labor Department reported. Last month’s Producer Price Index (PPI), a measure of the prices received for final-demand products, advanced just 0.2% month-on-month (MoM) and 8% from a year ago, the smallest annual gain in more […]
The Tampa Steel Conference – which SMU does every February together with the Port of Tampa Bay – offers the tantalizing prospect for those of us in the Midwest of getting out of the cold to network outdoors in Florida. We’ll again hold the conference at the Tampa Marriot Water Street hotel. We’ve got a solid agenda […]
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 indicated value of HR spot has declined roughly $31 per short ton ($687/ST to $656/ST) this month. For comparison purposes, […]
Prices between imported hot-rolled coil (HRC) and domestic steel have further diverged, according to Steel Market Update’s latest foreign versus domestic price analysis. US HRC is approximately 9–14% cheaper than foreign prices this week, after consideration of freight costs, trader margins and any applicable tariffs. This spread has been growing for the last four to […]
Steel market conditions might be tough for the balance of the year, but Stelco sees the early signs of better times in the first quarter. The Hamilton, Ontario-based integrated sheet producer is also keeping a keen eye out for potential distressed acquisitions, company executives suggested during an earnings conference call with analysts on Wednesday, Nov. […]
Canadian steelmaker Stelco posted sharply lower earnings in the third quarter on falling steel prices and higher raw material tags. The Hamilton, Ontario-based integrated sheet producer expects lower prices and short lead times to characterize the market through the end of 2022. “Despite market headwinds driven by cost inflation and a further deterioration in steel […]
The BMW Group is taking another step in its initiative to achieve its decarbonization goal. The German automaker announced CO2-reduced steel supply agreements with Steel Dynamics Inc. and US Steel’s Big River Steel on Nov. 15. “Steel is one of the main sources of CO2 emissions in our supply chain. That is why we are comprehensively […]
Exceeding expectations, business activity in the state of New York improved in November, moving into positive territory for the first time in four months, according to the Empire State Manufacturing Survey. The New York Fed’s Empire State headline general business conditions index — a gauge of manufacturing activity in the state — recovered by 13.6 […]
North American auto assemblies rose by 8.7% in October, rebounding from a similar decline in September. Last month’s assembly output was the third-best total year-to-date (YTD) and nearly 22% higher year-on-year (YoY), according to LMC Automotive data. Though the market remains supply-constrained due to ongoing parts and supply shortages, production in October continued to show signs […]
US light vehicle (LV) sales grew in October, coming in at an unadjusted figure of 1.15 million units. Last month’s total was a 9.5% increase year-on-year (YoY), the US Bureau of Economic Analysis (BEA) reported. October was the third consecutive month to see YoY increases in sales. Prior to August, YoY sales gains had not been […]
The London Metal Exchange (LME) consultation with industry has come and gone with no action. The Exchange on Friday, Nov. 11, published its response to submissions from the industry on the issue of Russian metals. As a refresher, the LME asked for opinion on three options: • Do nothing • Impose limits on the warranting of […]
Total US mill shipments of steel products were down in September, falling to their lowest total year-to-date (YTD). Mill shipments have been fluctuating up and down all year with little consistency. September’s shipments totaled 7.58 million tons, a 7.2% decline from August’s 8.18 million tons, and the lowest total since February 2021. Apparent supply also saw a […]
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 […]
Domestic hot-rolled coil (HRC) continues to hold the upper hand over imported steel when it comes to price, according to Steel Market Update’s latest foreign versus domestic price analysis. US HRC is approximately 4–7% cheaper than foreign prices this week, after consideration of freight costs, trader margins and any applicable tariffs. Prior to this week, […]
The US labor market added 261,000 jobs in October, down from an upwardly revised total of 315,000 payroll gains the month prior. Last month’s total, though better than expected, still marked the slowest pace of job gains since December 2020, according to data from the Bureau of Labor Statistics (BLS). The decline in payroll gains […]
Data on US industrial production, capacity utilization, orders and inventories remained strong through September, indicating a healthy manufacturing sector. The health of the manufacturing economy has a direct bearing on the health of the steel industry. The Industrial Production (IP) Index The IP index is a gauge of output from factories, mines and utilities. Figure […]
The US economy added 261,000 new jobs in October, outperforming consensus expectations but still decelerating to the slowest pace since December 2020, according to data from the US Department of Labor. In contrast, the unemployment rate moved higher last month to 3.7%, after estimates expected the October measure to remain sideways and match the five-decade […]
The number of active drilling rigs was mixed this week, with counts increasing in the US and falling in Canada, according to data from oilfield services company Baker Hughes. Activity in the US and Canada has held steady in recent weeks but is not quite back to pre-Covid levels. The number of oil and gas rigs […]
With the recent trade case decision resulting in antidumping duties placed on both seamless and welded oil country tubular goods (OCTG) imports, Tenaris plans to ramp up its OCTG production in the US as demand and pricing remain strong, according to company executives speaking on a third-quarter earnings conference call with analysts on Friday, Nov. 4. […]
The Hard Work Starts Now, Executing on the Announced New Aluminum Capacity After the flurry of announcements in May and July of this year, the three new greenfield aluminum rolling mills are in various stages of execution. Novelis Breaks Ground Official ground breaking took place on Novelis’ Bay Minette, Ala., mill on Oct. 7. The […]
GrafTech International Ltd. posted sharply lower earnings results for the third quarter as steel demand, and thus demand for graphite electrodes waned, while production at its Monterrey, Mexico facility remains suspended. “Ongoing geopolitical tensions and global economic uncertainty have softened near-term demand for steel and, therefore, graphite electrodes. This, combined with the current inflationary environment […]
Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from Princeton […]
Latin American steelmaker Ternium saw a big earnings drop in the third quarter but remains upbeat on its position in and the fundamentals of the North American markets, according to the company’s Q3 earnings report and conference call with analysts on Thursday, Oct. 3. The Luxembourg-based company’s Q3 net income declined substantially, falling 84% year-on-year […]
Hot-rolled coil (HRC) imports offer no cost advantage over domestic steel this week, according to Steel Market Update’s latest analysis. Domestic HRC prices are now approximately 1-3% cheaper than foreign steel, after consideration of freight costs, trader margins and any applicable tariffs. Although down, the relationship between foreign and domestic prices has remained within $18 […]
It’s official. Steel Dynamics Inc. (SDI) will build its $1.9 billion flat-rolled aluminum mill in Columbus, Miss., where the company already operates an electric-arc furnace (EAF) steel sheet mill. The Fort Wayne, Ind.-based steelmaker said it would also construct a “biocarbon” facility in Columbus to reduce reliance on anthracite coal in its EAFs and to […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook Despite some slightly better-than-expected data for Q3, we have further revised down our forecast for 2023. We continue to believe that stubbornly high inflation, the energy crisis, and China’s domestic problems will lead to a sharp slowdown in world growth, with outright recessions in […]
Ryerson is expanding its value-added portfolio with the addition of a West Coast fabrication and machining company, in a move likened to its purchases of Specialty Metals Processing and Apogee Steel Fabrication over the past 12 months. The Chicago-based metals service center group has acquired Fresno, Calif.-based Excelsior Inc. for an undisclosed sum. “Excelsior has […]