The most recent weekly raw steel production data is showing a slowing in production by the U.S. steelmakers. For the week ending March 7, 2015, the American Iron & Steel Institute (AISI) estimated that the U.S. steel industry produced 1,645,000 net tons of raw steel, a 0.7 percent decrease over the previous week and a […]
The pace of the drop in flat rolled steel prices slowed this past week. From our perspective, we saw hot rolled prices as down $5 per ton, cold rolled and galvanized as flat and Galvalume up $5 per ton compared to the previous week. All of the reporting steel indexes (SMU, CRU & Platts) followed […]
The U.S. Department of Commerce (US DOC) released final foreign steel import census data late last week, showing final January tonnage at 4.39 million net tons (3.99 million metric tons). This is a 20.8 percent increase over December 2014 imports and 37.1 percent higher than January 2014 levels. Total January imports were the highest seen […]
Licensed data for February was updated on March 3rd through the Steel Import Monitoring System of the US Commerce Department. Steel Market Update publishes several import reports ranging from this very early look using licensed data to the very detailed analysis of final volumes by district of entry and source nation which is published in […]
The Russians are coming! The Russians are coming! Well, at least that is what the rest of the world is seeing when it comes to steel. The Russian steel mills have become the benefactors of the drop in the value of the Russian currency (the ruble). Steel Market Update has learned the Russian ruble lost […]
Steel Market Update hot rolled average pricing broke through $500 this week as we saw HRC prices as being $5 per ton lower than one week ago. When looking at the market as a whole we are seeing a slowdown or flattening of the downward price movement. Cold rolled saw the spread between the high […]
Every week the US Department of Commerce (US DOC) releases steel import license data for those months that have not had Preliminary Census or Final Census data announced. The latest license data was released this afternoon covering the month of February through today. Since we are so early into the month of March SIMA did […]
The most recent weekly raw steel production data is showing a collapse in production by the U.S. steelmakers. For the week ending February 28, 2015, the American Iron & Steel Institute (AISI) estimated that the U.S. steel industry produced 1,657,000 net tons of raw steel, a 3.4 percent decrease over the previous week and a […]
The USW reported that U.S. refinery negotiations will resume on March 4. Talks stalled on Feb 20 prompting the USW to enlarge the strike, adding three refineries co-owned by Shell Oil to the walkout. Currently 6,550 workers are now on strike at 15 plants. “We can confirm that Shell and USW have agreed to speak […]
Virtually all flat rolled steel products indexed by the steel indices followed by Steel Market Update saw steel pricing decline by double digits and, in most cases, the erosion in pricing on hot rolled, cold rolled, galvanized and coated was at least $20 per ton ($1.00/cwt). First an observation, as we watch the weekly price […]
The American Iron & Steel Institute (AISI) recently reported final raw steel production estimates for the month of January 2015. The monthly estimates are different than those produced showing the weekly raw steel production. The monthly estimates are based on 75 percent of the domestic mills reporting vs. 50 percent for the weekly estimates. Total […]
We made a mistake in our most recent issue when we referenced $440 as being the low for hot rolled back in June 2009. That was actually the low for the galvanized base price (noted in the HARDI article in that same issue). The low for hot rolled in June 2009 was $380 per ton […]
The U.S. Department of Commerce released the latest steel import licensing data for February as well as the Preliminary Census Data for the month of January 2015. January imports are being reported as being 4,250,041 net tons (3.9 million metric tons). This is up 32.6 percent compared to one year ago. Hot rolled imports, even […]
Global steel production in 2014 totaled 1.627 billion tonnes with a capacity of 2.2 billion tonnes which yields an average utilization for the year of 74 percent. China accounted for 51 percent of global production in 2014. Asia as a whole, including India, accounted for almost 70 percent of global production. Production in January on […]
We are seeing the benchmark hot rolled coil average as sitting right on the critical $500 per ton mark this week. Most steel buyers with whom we speak are of the opinion that hot rolled coil will drop below $500 per ton within the next week or two. The question then becomes how far down […]
For the week ending February 21, 2015, the American Iron & Steel Institute (AISI) estimated that the U.S. steel industry produced 1,716,000 net tons (NT) of raw steel, a 2.5 percent decrease over the previous week and a 5.9 percent decrease over the same week one year ago. The estimated capacity utilization rate is 72.6 […]
Magnetation LLC announced it will indefinitely idle its Plant 1 in Keewatin, Minn., due to iron ore prices that have fallen more than fifty percent in the past 18 months. Forty-one hourly and eight salaried employees will be affected the closure which will occur by the end of March. “Due to the unprecedented collapse in […]
For the first time in many weeks, Steel Market Update, Platts and CRU hot rolled price indices are almost the same. SMU and Platts see HRC prices as averaging $515 per ton while CRU is two dollars higher at $517 per ton. Cold rolled prices did not meet the same fate as Platts sees CRC […]
The U.S. Department of Commerce released the latest import licensing data for the license requests received through the 18th of February. Steel Market Update (SMU) then compares the daily tonnage rate against the previous four months and the daily license rate being reported during the 3rd week of that particular month. Based on that analysis, […]
We received a very mixed bag when it came to hot rolled pricing this week. Our range expanded from the $490-$530 we reported last week to $480-$550 this week. Our HR average actually rose by $5 compared to one week ago. We are not ready to announce prices as having “bottomed,” as one renegade mill […]
Steel Market Update saw an interesting report on the impact of lower scrap prices to the steel industry. The report was produced by metals and mining analysts, Timna Tanners of Bank of America Merrill Lynch Research for her clients. A question Steel Market Update receives on a regular basis is what is the marginal cost […]
For the week ending February 14th, 2015, the American Iron & Steel Institute (AISI) estimated that the U.S. steel industry produced 1,760,000 net tons (NT) of raw steel, a 0.5 percent decrease over the previous week and a 3.5 percent decrease over the same week one year ago. The estimated capacity utilization rate is 74.4 […]
Steel Market Update recently attended the Port of Tampa Steel Conference in Tampa, Florida. When speaking with the service centers and traders it was apparent that we are in a period of time when buyers do not trust that the price today will be any good tomorrow. Our Comparison Price Indices report accentuates the issues […]
Phillip Bell, President of the Steel Manufacturers Association (steel mills) told those assembled at the 26th annual Port of Tampa Steel Conference, “There is a growing consensus that something just isn’t right.” What he was referring to was the domestic steel mills running at 75 percent capacity utilization rates and the industry still suffering due […]
Keith Busse, former CEO of Steel Dynamics (SDI) told those assembled at the Port of Tampa Steel Conference held this past week in Tampa, Florida that “…It was bound to happen.” What he was referring to was the steel community being impacted by the strong dollar, surging imports and a world economy which he described […]
Steel Market Update received a question from one of our readers regarding a comment we made in Tuesday evening’s issue during our analysis of flat rolled steel pricing. The comment was about the domestic mills negotiating away extras and how this was impacting transactional pricing. All of the indexes are suppose to take into consideration […]
Apparent steel supply for the month of December 2014 was 10,020,704 net tons, the sixth month in 2014 to be above the 10 million ton mark. Steel Market Update calculates our apparent steel supply figure by combining total domestic steel shipments with finished US steel imports and subtracting total US steel exports. December supply represents […]
In the twelve months of 2014, ferrous scrap exports totaled 15,308,000 tonnes (metric tons), down by 17.1 percent from the same period in 2013. In the single month of December scrap exports were 1,056,570 tonnes, down 21.5 percent from November. Figure 1 shows that the three month moving average (3MMA) has been declining slightly for […]
For the week ending February 7th, 2015, the American Iron & Steel Institute (AISI) estimated that the U.S. steel industry produced 1,769,000 net tons (NT) of raw steel, a 0.7 percent decrease over the previous week and a 3.0 percent decrease over the same week one year ago. The estimated capacity utilization rate is 74.8 […]
January steel exports from China in rose to an all-time monthly record of 10.29 million tons, surprising analysts who were expecting reduced shipments this month. Steel shipments were expected to fall after China canceled the export tax rebate for Boron-added steel on January 1. Analysts predicted steel export volume would drop as much 30 percent […]