Flack Global Metals announced the appointment of David Feldstein to Chief Market Risk Officer. Feldstein will bring more than 15 years of extensive knowledge of commodity markets along with a history of customized and profitable financial structuring to assist customers and the FGM team in presenting, training, quoting and executing a wide range of fixed price […]
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 […]
Earlier this week, the U.S. Department of Commerce released the latest license data on foreign steel for the months of July and August. As SMU reported last week, the August trend has been for imports to be at, or above, 3 million net tons. This week the trend suggests August will be closer to 2.9 […]
Flat rolled steel prices moved lower over the past week. Benchmark hot rolled coil dropped to $885 per ton and momentum continues to point toward lower prices on all but plate products. Here is how we see prices this week: Hot Rolled Coil: SMU price range is $860-$910 per ton ($43.00/cwt-$45.50/cwt) with an average of […]
U.S. mill capability utilization hit another new high for the year last week, moving closer to the 80 percent level sought by the industry. The American Iron and Steel Institute reported a utilization rate for the week ending Aug. 18 of 79.5 percent, up from 79.1 percent in the prior week, and up from 75.8 […]
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 […]
CRU zinc analyst Helen O’Cleary reported late last week on what was causing the short-term movement of zinc pricing: “Zinc’s price has been pressured lower again in recent days on a combination of risk-averse investor sentiment, U.S. dollar strength and a sizeable delivery of warrants into the LME’s New Orleans warehouses. It breached support at […]
By CRU Group’s Zinc Analysis Team Despite lower-than-expected smelter output in China last year, which contributed to record refined deficits, 2018 marked the turning point for zinc’s price, reports CRU Group’s Zinc Analysis Team. Despite a still-tight refined market with stocks at critical levels, zinc’s price has had a shaky start to 2019, trading at […]
There are big differences in the year-to-date increase of hot rolled coil imports on a regional basis, according to Steel Market Update’s latest analysis of government data. Imports of hot rolled coil into the U.S. as a whole were up by 21.4 percent in June year to date, but the Pacific South was up by […]
The Great Lakes and Gulf dominate as entry points for cold rolled imports. There are big differences in the year to date decreases on a regional basis, according to Steel Market Update’s latest analysis of government data. Imports of cold rolled coil into the U.S. as a whole were down 23.1 percent year to date […]
Zekelman Industries, Inc., a manufacturer of steel pipe and tube, has filed for an initial public offering with the U.S. Securities and Exchange Commission. The company listed an offering of $100 million and hopes to complete its IPO this year, according to Bloomberg. Zekelman posted net income of $161 million on net sales of $2.1 […]
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 […]
Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this new role, he and his firm design and execute risk management strategy for clients along with providing process and analytical support. In Gaurav’s previous role, he was a Trader at Cargill spending time in Metal […]
Boom, zinc has collapsed taking a big hit on Wednesday when it dropped to $1.05 per pound. At the beginning of 2018, zinc was trading over $1.60 per pound. The $1.05 per pound level was last seen in late fourth-quarter 2016. Yesterday, during the HARDI steel conference call, coating extras for galvanized steel were discussed. […]
U.S. steel exports in June 2018 totaled 913,705 net tons (828,900 metric tons), up 6.5 percent over May and up 0.3 percent from June 2017. Total exports have averaged around 875,000 tons the last few months. The total June export figure is above both the three-month moving average (average of April 2018, May 2018 and […]
We saw flat rolled steel prices as being lower this week compared to one week ago. As we reported last week, we are seeing lead times shortening and the mills more active and willing to discuss price during their negotiations. The ArcelorMittal USA price announcement on cold rolled and coated products is not a sign […]
U.S. mill capability utilization hit a new high for the year last week, inching closer to the industry’s desired 80 percent mark. The American Iron and Steel Institute reported a utilization rate for the week ending Aug. 11 of 79.1 percent, up from 78.0 percent in the prior week, and up from 75.8 percent in […]
If nothing else, foreign steel imports are resilient. After June imports came in at 2,491,574 net tons, July headed right back to 3.2 million net tons on the back of the domestic steel mills who imported approximately 800,000 of slabs. Now, based on August license data through today (Tuesday, Aug. 14), the domestic mills are […]
June apparent steel supply fell 7.4 percent over May to 8,941,089 net tons, according to government data released late last week. Although down somewhat, supply remains in line with levels of 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 […]
Steel Market Update offers this early look at July’s import volume based on license data (see explanation below). The analysis evaluates the pressure that imports are having on individual products at the national level, but gives no indication of regional differences. SMU has developed a new series of regional reports for the six main flat […]
Earlier this month the U.S. Department of Commerce released Final Census Data for the month of June. We found foreign steel imports were at the lowest level seen since 2012 at just under 2.5 million net tons. Finished steel imports totaled 1,886,767 net tons with all but coated steels seeing reductions. When looking at the […]
U.S. raw steel production remained above the 1.8 million ton mark for the third week in a row, reports the American Iron and Steel Institute in Washington. Raw steel output for the week ending Aug. 4 totaled 1,828,000 net tons, a 4.3 percent increase from the same period last year, but down 0.4 percent from […]
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 […]
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 […]
Boosted by the Trump tariffs, the high price of steel in the U.S. tends to mask other issues. Notably, strained credit limits. While mills report record profits, some of their customers report cash flow issues that threaten their very viability. Steel Market Update canvassed the market this week and gathered the following observations from steel […]
A pretty quiet week as buyers and sellers sneak away for their summer vacations. Not much has changed. We saw a few of the flat rolled items as down $5 to $10 per ton and one as unchanged compared to one week ago. Plate prices were up as mills start to take October orders. Here […]
Reports of demand easing a bit in some markets and declining scrap prices in August hint at a steel market that may be in transition. But steel prices remained largely unchanged from last week based on Steel Market Update’s latest data. Here is how we see prices this week: Hot Rolled Coil: SMU price range […]
Iron ore prices have jumped from about $62 to $66 per ton in the past month, but the change is only temporary, said CRU senior analyst Erik Hedborg. “Ore prices are slightly higher in July, but we expect them to continue to fall for the rest of the year.” Hedborg attributes the July bump to […]
U.S. raw steel production topped the 1.8 million ton mark for the second week in a row and mill utilization, at 78.3 percent, almost equaled this year’s peak of 78.7 percent achieved in March, reports the American Iron and Steel Institute in Washington. Raw steel output for the week ending July 28 totaled 1,836,000 net […]
Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this new role, he and his firm design and execute risk management strategy for clients along with providing process and analytical support. In Gaurav’s previous role, he was a Trader at Cargill spending time in Metal […]