One of the questions being asked in the marketplace is how much foreign steel is being ordered and will there be a flood of imports as we move into the months of May and June. There is a portion of the market who believe there will be a flood while others are of the opinion […]
Source World Steel Association with Analysis by SMU. Global steel production in the 12 months of 2015 totaled 1.595 billion tonnes with a capacity of 2.33 billion tonnes. The WSA has made no downward revision to capacity as production fell in the course of 2015 making capacity utilization look increasingly dismal. Production in the month […]
SMU has developed a series of reports that cover hot rolled, cold rolled, HDG, other metallic coated, coiled plate and semi-finished slabs. These reports are a detailed drill down into tons by source country and port of entry. Total imports of HR in 2015 were 3,477,187 metric tons. Table 1 shows the tonnage by port […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Assisting Andre with tonight’s article is Jack Marshall also associated with CrunchRisk. Here is how Andre and Jack saw trading […]
All is quiet in the flat rolled steel markets as prices essentially moved sideways, even though we picked up on slightly different ranges which affected our averages slightly. Steel buyers should not interpret this to mean there is weakness in the current market. Instead it is just a normal ebb and flow that we pick […]
The U.S. Department of Commerce released foreign steel import license data through the 16th of February this afternoon. Licenses are running in line with what we saw during the month of January. January (which has 31 days) is looking like a 2.6-2.8 million ton month. February should be slightly less than that and currently is […]
For the week ending February 13, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,703,000 net tons of raw steel, a 1.1 percent increase over the previous week but a 0.1 percent decrease over the same week one year ago. The estimated capacity utilization rate is 72.8 percent, up […]
Flat rolled steel prices are beginning to stabilize according to the most recent revisions in the flat rolled steel indices followed by Steel Market Update. Benchmark hot rolled remained stuck at $410 per ton ($20.50/cwt) at both SMU and Platts while SteelBenchmarker, which reports prices twice per month, published their new HRC number as being […]
In 2015, 4.9 million metric tons of slabs were imported into the US. Of that tonnage 1.8 million tonnes (1,984 million net tons) came into Mobile (bound for AMNS Calvert) and 1.2 million (1.322 million net tons) into Los Angeles (bound for California Steel). Most of the Mobile tonnage came from Brazil and the Los […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Assisting Andre with tonight’s article is Jack Marshall also associated with CrunchRisk. Here is how Andre and Jack saw trading […]
The following calculation is used by Steel Market Update to identify the spread between world hot rolled export prices as determined by SteelBenchmarker and domestic (US) hot rolled prices as published by SMU. Steel Market Update compares the world hot rolled export price to which dollars are added for freight, handling, trader margin, etc. The number […]
In the twelve eleven months of 2015 bulk scrap exports were 12,955,000 metric tonnes, down by 9.7 percent from 2014 (14,280,000 net tons). The tonnages shown in Figure 1 are based on three month moving averages (3MMA) for 2015 and on the annual monthly average for previous years. The graph shows that exports declined for three […]
Flat rolled steel prices remained relatively range bound over the past week with only one product, cold rolled, showing any movement other than sideways. While speaking to steel buyers around the country many of the discussions centered on lead times, demand and what will the mills do next regarding steel prices. The consensus of opinion […]
With the release of the December 2015 Final Census data we thought our readers would like to see not only how imports have fared over the past few years but, how those who are the largest exporters fared as well as those who are involved in the hot rolled, cold rolled and CORE (corrosion resistant) […]
For the week ending February 6, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,685,000 net tons of raw steel, a 1.7 percent increase over the previous week but a 1.2 percent decrease over the same week one year ago. The estimated capacity utilization rate is 71.9 percent, up […]
According to the latest data released from the US Department of Commerce and the American Iron and Steel Institute, apparent steel supply for the month of December 2015 was 7,878,660 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports and subtracting total US steel exports. December supply […]
Steel exports from the U.S. dropped 17.2 percent in 2015 to an annual total of 9.97 million net tons. The strong U.S. dollar and a recession in Canada contributed heavily to the decline, says the American Institute for International Steel. More than half of U.S. steel exports go to Canada each year. In 2015 the […]
We were reminded recently of an article we produced on February 24, 2015 regarding our theoretical marginal cost of Steel Making (cost will vary by mill and not included in our formula is any adjustment for running at less than 70 percent capacity levels, SA&G are not included, etc.). We were asked if we could […]
Flat rolled steel prices are moving higher albeit at a slow pace – especially for hot rolled coil which continues to be the weakest of the flat rolled products. SteelBenchmarker did not report new prices this week (they only report prices twice per month) so we will review what our index as well as Platts […]
On Friday the U.S. Department of Commerce released Final Census data for foreign steel imports for the month of December 2015. Imports totaled 2,342,582 net tons. We saw very low numbers on semi-finished (mostly slabs) which came in under 300,000 net tons. We also saw low numbers on OCTG, galvanized and other metallic (mostly Galvalume). […]
Pete Meyers, Vice President of Ferrous Scrap Sales & Marketing for Metalico advised Steel Market Update this morning as to what they saw for trading for the month of February: “The Feb scrap market has indeed traded sideways. There were instances of higher sales based on individual mills having to reach remote tons, and mills […]
The following article is written by Spencer Johnson of FC Stone LLC. With six years of experience, Spencer provides his customers strategic and tactical advice on protecting themselves against commodity price volatility in the steel markets. Spencer rotates weekly futures articles with Andre Marshall of Crunch Risk, LLC. Spencer can be reached at spencer.johnson@intlfcstone.com. If […]
According to the AISI A7 report, total crude steel production in 2015 was 86,912,000 tons, down by 10.6 percent from 2014. Figure 1 puts this into a historical context with 130 years of data. Peak production was 150,483,000 in 1973 and in that year 26 percent was produced in open hearth furnaces, 18.4 percent in […]
The following article is normally produced for our Premium level members. However, we wanted to share this report so those who are Executive level members can evaluate the product and if you find it of interest you can contact our office to see about upgrading (or trialing) to our Premium level service. If you have […]
We saw mixed results for flat rolled steel price ranges and averages this week. We saw modest gains in hot rolled, cold rolled and Galvalume while galvanized remained the same as last week. Lead times remained short on hot rolled which continues to be the weakest product. We are also beginning to see “inquire” only […]
For the week ending January 30, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,657,000 net tons of raw steel, a 0.8 percent decrease over the previous week and a 8.3 percent decrease over the same week one year ago. The estimated capacity utilization rate is 70.7 percent, up […]
We thought our readers might be interested in seeing what steel imports were from the American Institute for International Steel perspective. Steel imports declined 12.6 percent in 2015 according to data analyzed by the American Institute for International Steel. The press release from AIIS follows: Falls Church, VA. February 2, 2016. Steel imports closed out […]
Flat rolled steel prices continue to move higher this past week, based on what we saw in the indices we follow on a regular basis (SteelBenchmarker reported prices this past week). The weakest product continues to be hot rolled which has broken above the $400 level as the mills are pushing for $400-$420 per ton. […]
The following calculation is used by Steel Market Update to identify the spread between world hot rolled export prices as determined by SteelBenchmarker and domestic (US) hot rolled prices as published by SMU. Steel Market Update compares the world hot rolled export price to which dollars are added for freight, handling, trader margin, etc. The number […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Assisting Andre with tonight’s article is Jack Marshall also associated with CrunchRisk. Here is how Andre and Jack saw trading […]