Mill utilization among domestic steelmakers continues to inch upward and is now well above the profitable 80 percent level the industry hopes to maintain. U.S. raw steel production for the week ending Nov. 17 totaled 1,924,000 net tons for a capability utilization rate of 82.1 percent, a half-percent more than the prior week and a […]
By the CRU Zinc Analysis Team After reaching a 3-month high above $2,700/t on Oct. 24, zinc’s price shed $200/t in a matter of days as a tech stock rout caused shares to plunge in Asia and the USA, compounded by concerns over the outlook for global trade and economic growth. The tide briefly turned […]
Steel buyers can be fickle people. They are tasked with keeping their company in product, and that those purchases be competitively priced at the time they are used. This is a daunting task when markets ebb and flow, and even more difficult when the government decides to become a major player in determining who will […]
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 […]
By CRU Senior Analyst Erik Hedborg Iron ore prices have lifted since last week, primarily due to concerns over BHP suspending operations on its Pilbara network. [Editor’s note: BHP suspended rail operations in Western Australia after it was forced to deliberately derail a runaway ore train on Nov. 5.] This caused iron ore prices to […]
The U.S. Department of Commerce has released import license data for the months of October and November through the 13th of the month. October foreign steel imports are expected to reach 3 million net tons on the back of almost 900,000 net tons of semi-finished steels (mostly slabs going to the domestic steel mills). It […]
Flat rolled steel prices dropped this week based on our analysis of the market. Benchmark hot rolled coil dropped $5 per ton and is now averaging $800 per ton ($40.00/cwt). We saw even larger negative price movements in cold rolled, galvanized and Galvalume steels. Plate prices, however, were flat and the expectation of plate steel […]
Domestic steelmakers have been able to sustain operations above 80 percent capacity utilization for a month now, keeping production at the highest rate seen in a decade. U.S. raw steel production for the week ending Nov. 10 totaled 1,915,000 net tons, a utilization rate of 81.7 percent, just slightly below the prior week, but a 12.1 […]
U.S. steel exports in September totaled 584,858 net tons (530,575 metric tons), down 9.6 percent from August and down 35.3 percent from September 2017. Surpassing August’s low, this is now the lowest total monthly export figure seen since December 2002 when 527,659 tons were shipped out of the country. Prior to the last three months, […]
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 […]
Total rolled product imports declined by 20.4 percent in October, versus the same month last year, measured as a three-month moving average, but the effects of Section 232 are still not clear. This early look at October’s import volume is based on Commerce Department license data (see explanation below). Figure 1 shows the tonnage of […]
Flat rolled steel prices continue to vacillate as we saw the low end of our range on benchmark hot rolled coil improve by $20 per ton. We are aware of a couple end-of-the-year deals that are below our range, but we feel at this point they are limited and not available to the greater market. […]
Domestic steelmakers achieved their highest production rate in a decade last week, hitting a capability utilization of 81.8 percent. The last time production was higher was the week ending Sept. 27, 2008, when the mills operated at 83.2 percent and produced nearly 2 million tons. U.S. raw steel production for the week ending Nov. 3 […]
Ferrous scrap prices have risen for the second month in a row as November buys settled early at up $10 for prime grades and up $20 for obsoletes, report Steel Market Update sources. “Dealers and mills both wanted to wrap things up given that November is a shorter shipping month and they need to get […]
U.S. steel imports for October are likely to fall just below 3 million tons when the Census data is final, based on license data from the Department of Commerce. The total is roughly in line with the 12-month moving average for imports, but up more than 30 percent from September. Imports of semi-finished steel, mostly […]
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) 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 HR futures have been subdued the last week or so. With spot HR and the Oct’19 settle both pegged at $831/ST, the […]
CRU Steel Analyst Ryan McKinley offers the following brief analyses of steel prices in Europe, China and Asia and the factors that have influenced them this week. Europe Sheet prices in Germany have remained unchanged this week. Last week’s Euroblech trade fair has not brought any immediate change to the spot market, though this may […]
Flat rolled steel prices have stalled, despite the increase announcements out of many of the domestic steel mills. Plate steel spot prices, on the other hand, continue to remain firm in December with an expectation of a $40 price increase being collected in January. Steel Market Update canvassed the flat rolled and plate steel buyers […]
The price increase on flat rolled seems to have “fizzled out,” according to many of the steel buyers Steel Market Update spoke with over the past two days. A number of mills have sweetened their end-of-the-year deals in order to finish out their 2018 order book. This is not unusual during a normal fourth quarter, […]
Domestic steel mills achieved a production rate last week not seen in more than six years. U.S. raw steel production for the week ending Oct. 27 totaled 1,898,000 net tons with the mills averaging 81.0 percent of their capability, up from 80.0 percent reported the prior week, according to the American Iron and Steel Institute. […]
The following article was contributed by CRU North America Steel Analyst Ryan McKinley The trade dispute between the United States and Canada has caused inventories to build and put downward pressure on prices. The 25 percent duties on steel imports in place by Canada and the U.S. against one another is eroding profits and driving […]
Steel Market Update sources are expecting another $10-$20 per ton increase in ferrous scrap prices in November, much like the bump seen in October. “If there is a $10-$20 change, shredded scrap will be on the higher end, given typical seasonal slowdowns and lower scale prices,” said CRU North America Steel Analyst Ryan McKinley. Some […]
As expected in a market where foreign suppliers must pay a 25 percent tariff (50 percent for those in Turkey), steel imports into the United States are down 11 percent for the year to date. Unexpected were the increases in imports of hot rolled sheet and plate. Steel Market Update’s analysis of Commerce Department data […]
The U.S. Department of Commerce released updated foreign steel import data for September and October yesterday, with the September figure down to 2.2 million tons and the October trend remaining over 3 million tons. Prior to this week, the September total was hovering around 2.7 million to 2.9 million net tons. Our October trend is […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, 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 […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, 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 […]
Flat rolled steel buyers are advising Steel Market Update that lead times have extended about one week since the recent price announcements. The mills continue to ask about their competition and to negotiate, which is not a sure-fire sign of strength or conviction in the new increases. Plate is a different animal and continues to […]
U.S. mills have operated at 80 percent of capacity or better for two weeks in a row. U.S. raw steel production for the week ending Oct. 20 totaled 1,875,000 net tons with the mills averaging 80.0 percent of their capability, down slightly from 80.2 percent reported the prior week, according to the American Iron and […]
Table 1 summarizes the October prices of the five materials considered in this report and the month/month, three months/three months and year/year change. Price changes have been mixed. In the last three months, coking coal and iron ore have trended up as pig iron, scrap and zinc have trended down. This was the same pattern […]