Stellantis said it will idle its Belvidere, Ill., auto plant effective Feb. 28, 2023. The automaker, Chrysler’s European parent company, said 1,350 workers will be affected at the plant, which manufactures the Jeep Cherokee. A Stellantis spokesperson cited a range of factors for the idling, such as fallout from the Covid-19 pandemic and the global […]
Steel sheet prices have bottomed or soon will, according to most respondents to our latest market survey. We’ve also seen an uptick in expectations about future prices. The chart below provides a quick before/after snapshot of expectations for prices ahead of Thanksgiving and then following price hikes of $60 per ton ($3 per cwt) announced […]
Despite ongoing volatility, the steel industry has been experiencing growth. Recently, there’s been an air of caution as industry leaders look ahead to greater uncertainty. Price volatility and supply chain disruptions continue, but the steel industry is different. Steel has proven resilient and can stand the test of time. And now the US is looking to […]
There has been a reduction in the percentage of sheet buyers reporting that mills are willing to talk price on new orders, according to Steel Market Update’s latest market questionnaire. Mill willingness to negotiate on sheet products is now at the lowest rate recorded since May. Negotiation rates on plate products went in the opposite […]
Sheet imports into the US slowed noticeably in November, while imports of plate and semifinished slab rose, according to the latest license figures released by the US Department of Commerce’s International Trade Administration. All steel imports into the US require an import license to enter through Customs. The license count provides a first look into […]
Sheet price hikes announced last week by domestic mills appeared to have succeeded in putting a floor under tags this week. The question now is to what extent the increases will stick and whether those gains will be sustainable. Our hot-rolled coil price reflects broader market trends. SMU’s average HRC price stood at $615 per […]
The construction industry added 20,000 employees in November month over month, after adding just 1,000 in October. A boost in wages for hourly workers vs. competing industries drove the sector’s unemployment rate lower, the Associated General Contractors of America (AGC) said in a statement. The struggle to locate qualified workers continued, though, the report, released […]
The number of active drilling rigs remained flat this week in the US and increased by one in 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. The […]
2022: A Year of Unprecedented Change and Volatility We entered 2022 expecting plenty of change in aluminum and the market delivered more than its fair share of twists and turns. There were 3 macroeconomic effects that rippled through the entire global economy: Russia’s invasion of Ukraine sent global energy prices soaring, as they “weaponized” their […]
Domestic hot-rolled coil (HRC) continues to hold a sizeable price advantage over imports, according to Steel Market Update’s latest analysis on foreign and domestic prices. US HRC is approximately 5–12% cheaper than foreign prices this week, after consideration of freight costs, trader margins and any applicable tariffs. This is the fifth consecutive week that US […]
More North American steel producers are joining in the attempt to increase prices for steel sheet products. NLMK USA said in a Dec. 1 letter to customers that “due to increased order placement and extending lead times,” its base prices will increase by a minimum of $60 per ton ($3 per cwt) for spot orders. […]
US consumer confidence slipped again in November, declining for the second straight month amid ongoing high inflation and rising interest rates. Despite the weaker outlook, household spending has had a generally healthy start to winter holiday shopping, The Conference Board reported. The headline Consumer Confidence Index fell by two points in November to a reading […]
Stelco Holdings Inc. intends to increase spot prices for carbon steel sheet by at least CAD $80 per ton (USD $60 per ton or $4 per cwt). The move is effective immediately, the company said in a letter to customers on Tuesday, Nov. 29, and applies equally to all new orders of hot-rolled, cold-rolled, and […]
New orders for US-manufactured durable goods rose in October to a seasonally adjusted $277.4 billion. That figure has risen for seven out of the last eight months. Shipments picked up as well last month despite persistent inflation and global economic instability. Last month’s bookings for durable goods were up roughly 1%, or $2.8 billion more month-on-month […]
Demand for design services from US architectural firms declined in October. The drop came after the pace of growth had slowed in recent months. The October AIA Architecture Billings Index (ABI) score slipped below 50, ending a 20-month run of growth following the pandemic-induced downturn in 2020. Recall that the ABI is an advanced economic indicator for nonresidential […]
World crude steel production declined month-on-moth (MoM) in October, driven almost singlehandedly by lower Chinese output. Global production was still, however, up 1.1% versus the same period last year, according to World Steel Association (worldsteel) data. October’s output lost ground when compared to September, down 2.9%, declining for the first time in three months. World […]
The Energy Information Administration’s (EIA) October Short-Term Energy Outlook (STEO) was released earlier this month, forecasting spot prices, production, and inventories for crude oil and natural gas. Crude oil prices are forecast to remain stable through the first quarter of 2023, while natural gas prices are expected to decline slightly after January. The EIA continues […]
Global crude steel production was estimated at 147.3 million metric tons in October as output was up by 1.6 million metric tons — 1.1% higher than the same period last year, the World Steel Association (worldsteel) reported. Last month’s estimated production was down sequentially, however, declining by 2.9%, or by 4.4 million metric tons from September’s […]
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 […]