Is buying foreign steel today a big opportunity, in light of the wide spread between foreign and domestic pricing, or a big risk, in light of the tenuous trade situation in Washington? Steel Market Update canvassed the market and received widely varying views. For some, placing foreign orders is “a no-brainer.” For others, concerned about […]
U.S. raw steel production for the week ending July 14 totaled 1,783,000 net tons, a 2.9 percent increase from the same period last year but down 0.5 percent from the previous week. The mill capability utilization rate for the July 14 week averaged 76.1 percent, down from 76.4 percent in the prior week but up […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA ports) and domestic hot rolled coil prices (FOB Domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other […]
May apparent steel supply fell 1.8 percent over April to 9,654,200 net tons, according to the data released late last week. Although down, supply remains strong in comparison to the last three years. Apparent steel supply is calculated by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports. May […]
Imports of other metallic coated sheet (OMC) into the U.S. as a whole were down by 17.6 percent in May year to date, according to Steel Market Update’s latest analysis of federal data. The Great Lakes region was up by 10.5 percent and the South Atlantic was down by 35.8 percent. SMU now has a […]
Imports of hot-dipped galvanized sheet into the U.S. as a whole were down by 10.9 percent year to date through May, according to Steel Market Update’s latest analysis of Commerce and ITC data. SMU now has a comprehensive series of import reports ranging from the first look at license data to the very detailed look […]
This analysis breaks down the imported tonnage of six flat rolled products into the district of entry and the source country. We believe that misinformation (or lack of) about local import volumes is often used to influence purchase decisions. Our intent with this analysis is to describe in detail what is going on in a […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Steel buyers are divided on whether prices have peaked, but most would agree that if they do move higher, any increase will be modest. Steel Market Update canvassed sources this week. Said one executive, expressing a common view: “I don’t see prices rising. I feel we are at the top.” Others anticipate a modest uptick […]
U.S. steel exports in May 2018 totaled 857,673 net tons (778,069 metric tons), flat over April but down 14.8 percent from May 2017 (which was at a 30-month high). Total exports have averaged around 860,000 tons the last few months. The total May export figure is a few thousand tons below the three-month moving average […]
Flat rolled steel prices were stable to moderately lower this week. Benchmark hot rolled coil was unchanged and, along with plate, is the strongest of the products followed by Steel Market Update. Cold rolled and galvanized index averages were lower compared to one week ago, while Galvalume was unchanged. September orders for plate delivered to […]
On Friday, July 6, the U.S. Department of Commerce released Final Census Data on foreign steel imports for the month of May 2018. May imports totaled 2,929,652 net tons, which was 824,335 tons less than the prior month. The import license data collected through July 6 shows June foreign steel imports to be on pace […]
Raw steel production for the week ending July 7 totaled 1,792,000 net tons, a 3.4 percent increase from the same period last year and up 0.6 percent from the previous week. The mill capability utilization rate for the July 7 week averaged 76.4 percent, up from 76.0 percent in the prior week and 74.3 percent […]
Flat rolled steel imports into the United States continue to decline. The three-month moving average (3MMA) for rolled product imports into the U.S. year over year was down by 11.3 percent as of June, according to Steel Market Update’s latest analysis of Commerce Department license data. This is an early look at June’s import volume […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA ports) and domestic hot rolled coil prices (FOB Domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other […]
Steel Market Update ferrous scrap sources have advised us there was quick buying of July scrap early this past week. We understand that a Midwest-based EAF mill was buying early, taking prime grades such as busheling up $10 per ton while obsolete grades (HMS, shred) were bought at sideways pricing to June. Busheling, which along […]
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 During the holiday week in the U.S., the HR futures markets have been thin, especially on the buy side of the market. […]
Raw steel production for the week ending June 30 totaled 1,781,000 net tons, a 1.9 percent increase from the same period last year and up 0.5 percent from the previous week. The mill capability utilization rate for the June 30 week averaged 76.0 percent, up from 75.6 percent in the prior week and 74.9 percent […]
Tariffs on cars and trucks made in Canada and exported to the United States could have a significant effect on ferrous scrap prices, says scrap consultant John Harris of Aaristic Services, Inc. Speaking at a recent meeting of the Canadian Association of Recycling Industries, Harris said if the proposed 20 percent or 25 percent tariff […]
With the price of zinc down considerably from recent highs, buyers of galvanized steel are wondering if the mills will reduce their coating extras anytime soon. The price of zinc on the London Metal Exchange was about $1.33 per pound on June 28. The average for the month of June was around $1.40, down from […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
On Tuesday, the U.S. Department of Commerce reported preliminary steel import license data for May at 2,886,606 net tons, a decrease of 23 percent from the April high and a decrease of 17 percent compared to the same month last year. Updated June license data was also released; taking the daily license rate and spreading […]
Steel Market Update canvassed steel buyers over the past two days and found that flat rolled prices are mixed and plate prices are rising. Two of our flat rolled indices increased over the prior week, and two of them declined, while the plate index rose. Here is how we see prices this week: Hot Rolled […]
We are in the middle of a U.S. holiday week, and the Fourth of July on a Wednesday gave plenty of steel buyers and sellers an excuse for taking the week off, or at least an extended long weekend. Benchmark hot rolled prices were seen as being modestly lower based on the responses received from […]
What are the issues affecting price negotiations? What is the direction of spot pricing? Steel Market Update canvassed the market this week to gather executives’ perspectives. Following are some insightful comments: Q: What are you seeing as the biggest issue affecting price negotiations with your suppliers? A: “Supply is constrained. That is the biggest issue.” A: […]
Raw steel production for the week ending June 23 totaled 1,772,000 net tons, a 1.4 percent increase from the same period last year and up 1.8 percent from the previous week. The mill capability utilization rate for the June 23 week averaged 75.6 percent, up slightly from 74.2 percent in the prior week and 74.9 […]
Argentina-based Tenaris announced last week it will begin producing pipe again at its mill in Conroe, Texas. The Conroe mill has been shuttered for the past three years after operations were suspended due to the plummeting oil prices and competition from imported pipe. Select areas of the mill will be restarted beginning with the heat […]
On Tuesday evening, the U.S. Department of Commerce releases the import licenses collected by product and by country through that date. This week, the licenses were reported for the first 19 days of June 2018. After looking at the data (see story about June import trend in tonight’s issue of SMU), the head of commercial […]
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 While the HR indexes continue to grind higher in a somewhat non-linear fashion, the HR futures curve is reflecting an even […]
On Tuesday, the U.S. Department of Commerce reported foreign steel import license data for the first 19 days of June. The data is indicating to Steel Market Update a significant drop in imported foreign steel. Taking the daily license rate and spreading it across the 30 days of June, we see the month trending toward […]