Category: SMU

Oil and gas drilling activity declined in both the US and Canada this week, according to Baker Hughes.

We're going to have to wait a bit longer for the final outcome of the Nippon/USS deal.

Steel Market Update will be taking time off in observance of Memorial Day.

Global raw steel production dipped from March to April, according to the latest release from the World Steel Association.

Here are highlights of what’s happened and a few things to keep an eye on this upcoming week.

According to our latest analysis, prices for four of the seven steelmaking raw materials we track increased from April to May. However, select materials saw a collective 1% decline month over month and are down 4% compared to three months ago.

Metallus shuffles the management deck with new appointments.

One cause of this was increased competitiveness from imports that have put pressure on some domestic producers.

On Monday and Tuesday of this week, SMU polled steel buyers on an array of topics, ranging from market prices, demand, and inventories to imports and evolving market events.

Sure, demand isn’t as good the market had hoped it would be earlier this year. But assuming it doesn’t fall of a cliff, buyers will have to restock at some point. And that might give domestic mills enough leverage to raise prices again.

Most sheet and plate prices edged lower again this week, albeit at a slower pace compared to the movements seen over the last seven weeks. Buyers remain cautious and hesitant to hold onto much inventory, citing lingering demand concerns, ongoing tariff uncertainty, and a potentially weakening scrap market in June.

Following three weekly increases, domestic mill output edged lower last week, according to the American Iron and Steel Institute (AISI).

While I would anticipate market sentiment to pivot and improve if all the questions around tariffs were answered, that still leaves us with a few other factors.

Market participants in both the US and Europe noted that most buyers are patiently waiting for prices to reduce as they have enough inventory at hand.

SMU’s Buyers’ Sentiment Indices resumed their downward trend this week, erasing the modest recovery seen two weeks ago.

Let's see what SMU survey respondents are saying about Trump's tariffs.

SMU’s Mill Order Index (MOI) declined for a second straight month in April after repeated gains at the start of the year, according to our latest service center inventories data.

Sheet and plate lead times declined across the board this week, according to buyers responding to the latest SMU market survey. While our lead time ranges were unchanged compared to mid-April levels, average production times for each steel product we measure have declined from they were two weeks ago.

Domestic mills are largely negotiable on spot prices, according to the majority of steel buyers responding to our latest market survey.

The Tariff Town amusement park ride shows no signs of slowing down.

All of SMU’s sheet and plate steel price indices declined this week, easing by $30-40 per short ton (st) on average since early May. Prices continue to slide lower as buyers remain on the sidelines, wary of holding much excess inventory and expecting further declines.

The price spread between hot-rolled coil (HRC) and prime scrap narrowed again in May, according to SMU’s most recent pricing data.

Since the US ferrous scrap settlements for May have been finalized, steelmakers are turning their attention to continued pig iron flows with the wind behind their backs.

Domestic mill output continues to grow, with raw steel production rising last week to the highest rate recorded since last September, according to the American Iron and Steel Institute (AISI).

The volume of finished steel entering the US market rebounded in March, according to our analysis of US Department of Commerce and American Iron and Steel Institute (AISI) data.

A Pennsylvania state senator plans to submit legislation to incentivize steelmaking in the state.

Nucor lowered its weekly spot price for hot-rolled (HR) coil for a second straight week, down $10 per short ton (st), after keeping it in a holding pattern for most of April.

Shipments of water heaters, air conditioner/heat pumps, and warm-air furnaces all increased from February to March. Total monthly shipments are now at a seven-month high.

However, in a month plagued by tariff and economic uncertainty, both current and near-term outlooks for our scrap survey respondents remained surprisingly optimistic.

Here are highlights of what’s happened and a few things to keep an eye on this upcoming week.