Steel Market Update (SMU) has been going through the import data as presented by the U.S. Department of Commerce going back to 2009 (Great Recession) and looking at the market as we came out of the Great Recession. In 2009, 2010 and 2011 galvanized imports were 1 to 1.5 million net tons. In 2012 and […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing futures […]
Earlier today, President Donald Trump signed an Executive Order requesting the U.S. Department of Commerce conduct an investigation under the Section 232 statutes (national security) to see if steel and imports of foreign steel are important to National Security interests of the United States. “We’re going to use American steel, we’re going to use American […]
The U.S. Department of Commerce released the latest update on foreign steel import license request on Tuesday evening. The data suggest that April will be similar to that of March where license data is at 3.5 million net tons. Both March and the April trend a well above both the 12 month and 3 month […]
The debate these days seems to be centered around how much inventory is really out there, how much is incoming (especially from foreign sources) and how much flat rolled will buyers need to buy come this summer? Earlier today I asked a small steel mill if they believed the low coated inventories (1.65 months) according […]
For the week ending April 15, 2017, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,740,000 net tons of raw steel, a 2.2 percent increase over the previous week and a 2.5 percent increase over the revised rate from the same week one year ago. The estimated capacity utilization rate […]
We saw mixed results this past week regarding flat rolled steel spot prices in North America. Steel Market Update (SMU) only moved one index (hot rolled +$10) while all of the other products remained the same as the prior week. SteelBenchmarker, which only produces pricing twice per month, reported hot rolled and cold rolled prices […]
The following is a press release on steel exports from the American Institute for International Steel with updates from AIIS on 4/18/2017: Falls Church, VA. April 17, 2017. Steel exports rose slightly from January to February to total 827,559 net tons. February exports were 1.1 percent higher than in January and 6.2 percent higher than […]
We believe that misinformation (or lack of) about regional import volumes is often used to influence purchase decisions. Our intent with this analysis of tonnage by district of entry is to describe in detail what is going on in a company’s immediate neighborhood and thus provide a negotiating advantage for our premium subscribers. We are […]
Steel Market Update is asked many times where we think flat rolled steel prices are heading. Our current SMU Price Momentum Indicator is at “Neutral” which means we believe the market to be in transition and, prices could move in either direction from this point. We adjusted our indicator just recently from Higher to Neutral […]
Around the middle of the month Steel Market Update (SMU) will analyze the US Department of Commerce Steel Import Monitoring & Analysis (SIMA) system to see how foreign steel imports are tracking and project total imports for the month based on the mid-month daily average. What we have been tracking is a very high number […]
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 Interesting week in HR futures as spot retraced back to the mid $650/ST after moving higher the prior week. HR futures […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel export prices and domestic (USA) hot rolled coil prices. We want our readers to note that we have made a decision to replace SteelBenchmarker as the primary data provider of foreign hot rolled coil prices. We […]
Mesabi Metallics has competition in its effort to take over the half-finished Essar Steel Minnesota taconite facility in Nashwauk, Minn. Chippewa Capital Partners, LLC, which includes the new owner of Magnetation, has thrown its hat into the ring along with Cliffs Natural Resources. Last Saturday, Chippewa Capital submitted a bid for $250 million. Cliffs’ non-binding […]
Flat rolled prices were essentially unchanged this week with the exception of hot rolled coil which seems to have a few more “legs” in the product due to an improving energy market and limited foreign steel imports. The pressure on HRC right now is coming from the two new players: Big River Steel and Acero […]
In July 2015 the domestic steel mills filed Antidumping (AD) and Countervailing Duties (CVD) against seven countries: Brazil, China, India, Korea, Russia, Japan and the United Kingdom. The final determinations were affirmed by the ITC in late June (Japan, China) and early September (all others) 2016. Antidumping deposit rates ranged from zero (Japan & UK) […]
February 2017 steel exports totaled 827,559 net tons (750,750 metric tons), up 1.1 percent over January and up 6.2 percent from February 2016. This is the highest export level seen since June 2015 when 885,190 tons were exported out of the US. The total February export figure is above the three month moving average (average […]
For the week ending April 8, 2017, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,703,000 net tons of raw steel, a 0.7 percent increase over the previous week and a 0.3 percent increase over the revised rate from the same week one year ago. The estimated capacity utilization rate […]
According to the latest data released from the U.S. Department of Commerce and the American Iron and Steel Institute, apparent steel supply for the month of February 2017 was 8,501,854 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports, then subtracting total US steel exports. February apparent […]
Flat rolled steel prices dropped significantly on the SMU Index while Platts had prices much more stable with hot rolled moving lower on Friday by $5 per ton and cold rolled, which had dropped earlier in the week, bouncing back to the same levels reported the week before last. We seem to be in a […]
Licensed data for March was reported by the Steel Import Monitoring System of the US Commerce Department on March 4th. An explanation of the methodology that we at SMU use to analyze the trade data is given at the end of this piece. All volumes in this analysis are reported in short tons. The total […]
We are continuing our investigation to quantify the players in the global trade of both HRC and CRC. We now have data for all of 2016. This information is sourced quarterly from the Iron and Steel Statistics Bureau in the UK. Data is not very current because many countries are slow in reporting but we […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing futures […]
Scrap dealers are pointing at the order book at the domestic mills as one of the main reasons why ferrous scrap prices inched back after the domestic mills initially pushed for shred and obsolete grades to be lower by $30 per gross ton. The mills could not get enough dealers to fill their scrap order […]
Based on the report filed by the U.S. Department of Commerce earlier this week, March 2017 foreign steel imports will be well above 3 million net tons and could be as high as 3.4 million tons. The last time we saw licenses at, or above, 3.4 million net tons was May 2015, the month prior […]
Cyclone Debbie passed through Australia’s metallurgical coal region last week doing minimal damage to the mines and ports but shut down railway lines. Damage to the major coal carrying Goonyella rail corridor was extensive and may take as long as five weeks to repair. Australian companies estimate 15-20 million tonnes of met coal may be […]
Flat rolled steel prices are showing themselves as being in a “mature” market having been on the rise for most of the 24 weeks since prices began their climb at the end of October 2016. We peaked out on hot rolled at $655 per ton over the last two weeks. This week we moved off […]
April ferrous scrap prices continue to be in negotiation as the domestic mills try to drive down the buying prices while the dealers try to hold on because they know the mill order books are still good – especially on the sheet mills. We learned from one of our sources in the Ohio Valley the […]
For the week ending April 1, 2017, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,692,000 net tons of raw steel, a 1.9 percent decrease over the previous week but a 0.4 percent increase over the revised rate from the same week one year ago. The estimated capacity utilization rate […]
In August 2015, the U.S. steel mills filed antidumping and countervailing duty charges against seven countries: Australia, Brazil, Japan, the Netherlands, Turkey and the United Kingdom. Antidumping (AD) was found in each of the seven countries with duties of 3.73 percent to as high as 34.28 percent. Countervailing Duties (CVD) were found to exist in […]