The U.S. Department of Commerce released foreign steel import preliminary Census data for June and license data for July. June imports totaled 2,023,081 net tons with 1,720,318 of those tons being finished steels (as opposed to semi-finished, which is slabs/billets). The July license data has total finished imports trending toward a 2 million net ton […]
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 Latest HR indexes have physical trading higher at around $555/ST to $560/ST, which appears to reflect the first of the three mill […]
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: Lighter volume summer market conditions prevail in the HR futures market. After six consecutive price increases, in the HR index that the […]
Flat rolled steel prices continued their march higher – even prior to the ArcelorMittal USA price increase announcement. The domestic mills are determined to move prices higher. As one mill executive put it to Steel Market Update today, “I think the fall from $940 to $505 was too much, too fast. Way overshot a fair […]
This week we solicited input from steel buyers (and steel mills) regarding their reaction to the third round of price increases, which was kicked off by ArcelorMittal USA yesterday. On June 24, Nucor announced the first of the latest round of mill price increases on spot flat rolled steel. Nucor advised that hot rolled, cold […]
Domestic steelmakers are keeping their capacity utilization above the 80 percent mark as they seek higher prices in the marketplace. The U.S. mill utilization rate averaged 80.4 percent in the week ending July 20, an increase of 0.3 percent from the previous week. Raw steel production for the week totaled 1,872,000 net tons. Production was […]
May apparent steel supply was calculated at 9,387,605 net tons, according to data recently released by the American Iron and Steel Institute and U.S. Department of Commerce. Apparent steel supply, a proxy for demand, is determined by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports. May apparent steel […]
Brian Harroun, founder and president of Nobilis Pipe Co., sees an opportunity for a new domestic steel mill to bring production of specialty pipe and tube products back to the United States—and to do it in an environmentally responsible and sustainable way. Nobilis Pipe is now working to secure financing for construction of one of […]
Domestic steelmakers showed solidarity this week in their pursuit of higher flat rolled steel prices with most major mills announcing their third $40 increase in just the past month. U.S. Steel and USS-POSCO Industries (UPI) were the latest to notify customers of their price change on Tuesday, following on announcements Monday by Nucor and ArcelorMittal […]
By CRU Research Manager Chris Houlden and CRU Principal Analyst Josh Spoores FOB US Midwest HRC pricing: new research reveals market preferences Physical market preferences for attributes of FOB US Midwest mill HR coil (HRC) prices have recently been established by independent market research. Key findings are that weekly FOB US Midwest mill prices are […]
Cleveland Cliffs reported a dramatic increase to $249 million in adjusted EBITDA in the second quarter compared to $21 million in the first quarter of this year. Seasonality and stronger than expected demand resulted in shipping volumes of 6.2 million long tons. The full year pellet forecast remains at 20 million long tons despite reduced […]
By CRU Principal Analyst Josh Spoores and CRU North America Analyst Ryan McKinley U.S. domestic scrap prices fell by $10 /l.ton m/m in the Great Lakes and Ohio Valley for most grades prior to the Independence Day holiday, but dealers the following week pushed back on the price decline, with some successfully securing little to […]
Imports of “finished” foreign steel are trending below 2 million net tons for the month of July. Overall, the trend, based on the first two weeks of license data for all products, is for a 3.2 million net ton month. SMU believes these numbers are overstated due to the opening of a new quarter and […]
SMU contributor Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in […]
Total U.S. raw steel production in the month of May rose 2.7 percent to 8,325,489 net tons, reports the American Iron and Steel Institute in Washington. May production was at one of the higher levels in recent history, only surpassed by March 2019 and October 2018. Prior to those three months, the last time production […]
U.S. steel exports in May totaled 630,107 net tons (571,624 metric tons), up 4.6 percent from April, but down 26.5 percent from levels one year ago. May levels are on the high side for 2018, but low comapred to the past few years. This time last year, exports were averaging 840,000 to 860,000 tons. The […]
We saw upward price movement in flat rolled steel prices this week. Benchmark hot rolled prices now average $550 per ton, up $15 per ton over the past week. All of the other products indexed by Steel Market Update also moved higher. Here is how we see prices this week: Hot Rolled Coil: SMU price […]
The U.S. mill capability utilization rate increased by 1.1 percent from the previous week, edging back up over 80 percent, reported the American Iron and Steel Institute. Raw steel production for the week ending July 13 totaled 1,867,000 net tons, for a mill utilization rate of 80.2 percent. Production was up by 1.6 percent compared […]
By CRU Senior Analyst Erik Hedborg Iron ore prices jumped back in the past week as Chinese iron ore demand remained steady while weak seaborne supply from Australia has kept port inventories at a low level. On Tuesday, July 16, CRU has assessed the 62% Fe fines price at $122.00 /t, a $4.00 /t increase […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. 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 costs […]
California Steel Industries is the latest mill to raise flat rolled steel prices. In a letter to customers on Wednesday, the Fontana, Calif.-based steelmaker said transaction prices for hot rolled, P&O, cold rolled and galvanized steels would increase by $40 per ton ($2/cwt) effective immediately. CSI’s move follows on similar announcements this week from Nucor, […]
Total rolled product imports in June were down by 20.5 percent on a three-month moving average (3MMA) basis year over year. This follows the 27.4 percent decline in May on the same basis. This early look at June’s import volume is based on Commerce Department license data (see explanation below.) This import analysis includes all […]
The analysis breaks down the imported tonnage of six flat rolled products into the district of entry and the source nation. 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 […]
As widely expected, U.S. Steel, NLMK USA and USS-POSCO Industries notified customers Wednesday that they have increased flat rolled steel prices by $40 per ton, following on similar announcements by Nucor and ArcelorMittal the day before. All total, U.S. steelmakers have raised prices for hot rolled, cold rolled and galvanized steels by $80 per ton […]
Steel imports into the U.S. in June potentially jumped by more than 30 percent in a comparison of May final Census data with June import license data. The final tally of June imports has not yet been released by the Commerce Department. Total steel imports in May, at around 2.1 million tons, were well below […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations made by […]
By CRU Principal Analyst Josh Spoores Sheet price movements have varied across the major markets since mid-June. There were slight gains in China and South East Asia, while prices in Europe were primarily steady m/m. However, for all other markets including North & South America, CIS, India and Japan, prices were lower by 3-9 percent […]
Our pricing data was collected on Monday and Tuesday of this week prior to the new Nucor price increase announcement on flat rolled steel. We are seeing the market as stable to slightly higher. This week, especially in light of the second price announcement (combined totaling $80 per ton), we will be able to see […]
Nucor and ArcelorMittal announced a second price increase on flat rolled steel today, and other mills are likely to follow suit. Effective immediately on new orders, prices for Nucor’s hot rolled, cold rolled and galvanized steel products are increased by $40 per ton ($2/cwt). Following Nucor’s lead, ArcelorMittal USA also raised base prices on its […]
Ferrous scrap prices for July settled down $10 per ton in the Western Pennsylvania/Ohio/Indiana markets, stayed sideways in the southern markets, and saw a combination of the two at points west, reported Steel Market Update sources. “This is a far cry from recent expectations of down $20-30/GT and represents what I believe is the bottom […]