The following chart is based on price variances from the end of March until the most recent numbers produced at the end of April. All commodities saw price increases with the exception of iron ore which was down quite dramatically (China spot market).
Based on revised domestic and world export pricing on hot rolled coil (SteelBenchmarker), the price spread between the two continues to grow. As you can see by the graphic shown below, the spread has been widening ever since domestic steel production issues began impacting flat rolled steel pricing in the U.S. and Canada. The spread […]
Iron ore prices continue to boil and bubble, with the key word being bubble. At the beginning of April, 62% Fe fines were trading at $117 per dry metric ton (dmt). They peaked nine days later at $119.4/dmt and since then the air has been leaking out of the bubble. On Wednesday, iron ore prices […]
According to the American Iron and Steel Institute (AISI) domestic raw steel production totaled 8,273,082 net tons (all products). Of the total 60 percent was produced by electric arc furnaces and the balance by blast/BOF furnaces. Carbon steel products totaled 7,681,790 net tons with 4,665,056 tons being produced by EAF’s and the balance, 3,016,734 tons […]
Iron ore prices continue to boil and bubble, with the key word being bubble. At the beginning of April, 62% Fe fines were trading at $117 per dry metric ton (dmt). They peaked nine days later at $119.4/dmt and since then the air has been leaking out of the bubble. On Wednesday, iron ore prices […]
Steel Market Update is aware that many buyers and sellers of steel have been keyed in on the variations between various flat rolled steel indexes. In the past, Steel Market Update found the spread between our steel index and those of Platts and CRU to generally be negligible ($1-$10 per ton at any one time). […]
Each week during the month Steel Market Update (SMU) checks the license data from the U.S. Department of Commerce regarding imports of foreign steel. Based on the data compiled each week we then project where we think imports will end up at the end of the month. April license data is suggesting we could see […]
Steel Market Update continuously is in conversation with flat rolled steel buyers from around the country. We have noticed a growing nervousness within the steel community as the buyers grapple with ever higher steel prices and extended lead times. In some cases the lead times on foreign material are not much more than what the […]
Prices moved sideways this week as buyers digest the $30 per ton of movement made in benchmark hot rolled pricing going back to the beginning of the month of April. Steel Market Update is aware there are a number of domestic mills who have made “internal” spot price adjustments, taking price offers from $34.25/cwt ($685 […]
Each week during the month Steel Market Update (SMU) checks the license data from the U.S. Department of Commerce regarding imports of foreign steel. Based on the data compiled each week we then project where we think imports will end up at the end of the month. April license data is suggesting we could see […]
According to a note recently received from one of our active trading sources in Asia, iron ore traders are under pressure as port stocks hit 112.63 million metric tons and new orders for steel exports become more difficult due to anti-dumping sentiment against Chinese steel around the world. Our source told SMU late last week, […]
For the week ending April 26, 2014, the American Iron & Steel Institute (AISI) reported that the U.S. steel industry produced 1,835,000 net tons (NT) of raw steel, a 1.5 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 76.3 […]
According to the American Iron and Steel Institute (AISI) domestic raw steel production totaled 8,273,082 net tons (all products). Of the total 60 percent was produced by electric arc furnaces and the balance by blast/BOF furnaces. Carbon steel products totaled 7,681,790 net tons with 4,665,056 tons being produced by EAF’s and the balance, 3,016,734 tons […]
According to a note recently received from one of our active trading sources in Asia, iron ore traders are under pressure as port stocks hit 112.63 million metric tons and new orders for steel exports become more difficult due to anti-dumping sentiment against Chinese steel around the world. Our source told SMU late last week, […]
Flat rolled steel prices continued to rise for the 6th week (according to SMU HRC average) with the benchmark hot rolled coil price average just below $680 per ton and just a few dollars away from the $685 announced by Nucor and a number of other mills at the beginning of April. For the first […]
The U.S. Department of Commerce released preliminary steel import census data for March and reported total steel imports at 3,218,914 net tons (NT). Compared to February, March imports are down by 2.0 percent or 66,960 NT. Compared to the same month one year ago, total March 2014 imports are up 25.2 percent or 648,510 NT. […]
Flat rolled steel prices continue to be firm as supply issues haunt the northern steel mills and lead times remain extended at most mills throughout the eastern United States and Canada. US Steel has issues with receiving raw materials into their Gary Works facility which has slowed steelmaking operations to approximately 50 to 75 percent […]
Foreign steel imports, for the month of April 2014 are projected by Steel Market Update to exceed 3.5 million net tons. Based on preliminary license data collected by the U.S. Department of Commerce through April 22, 2014 imports could reach as high as 3.7 million net tons. However, as our regular readers already know, license […]
For the week ending April 19, 2014, the American Iron & Steel Institute (AISI) reported that the U.S. steel industry produced 1,808,000 net tons (NT) of raw steel, a 1.3 percent increase over the previous week but a 1.6 percent decrease over the same week one year ago. The estimated capacity utilization rate is 75.2 […]
Production in March was at an all-time high of 141.3 million tonnes and increase of 15.4 million tonnes from February. This jump has become normal for the month of March which for the last three years was the highest month of the year. The three month moving average (3MMA) of production was at an annual […]
All of the steel indices followed by Steel Market Update saw flat rolled steel prices increase this past week. Benchmark hot rolled coil saw the spread between the indices shrink while the average HR price increased by $17 per ton. Cold rolled was one item where the price spread increased across the various steel indexes […]
The spread between the world hot rolled export price and the SMU USA HR price has widened since our last update by $39 per net ton (NT). The current spread is at the highest level since our data history began at the start of 2012. Based on the latest SteelBenchmarker price report, the world HR […]
Northwest Pipe was selected to provide 108-inch diameter pipe for a Texas water project. The 81,958 feet of pipe translates into 23,000 tons of hot rolled substrate with production slated to begin as early as May 2014 according to SMU sources. VANCOUVER, WA – Northwest Pipe Company, an industry leader of engineered welded steel pipe […]
General Electric reported today that the beginning of 2014 is off to a good start. Profits from its industrial segment rose 12 percent to $3.3 billion in the first quarter of 2014. Double digit growth was seen in five of its nine growth regions. Infrastructure orders were valued at $23.7 billion, flat with the same […]
All of the current production issues are relegated to the northern fully integrated steel mills. One of our service center contacts laid out the production scenario and how it is impacting the other northern steel producers: “The Great Lakes outage, and then accident during repair, and the Gary reduction in output is the important factor […]
Steel Market Update found flat rolled steel prices to be higher this week. As mentioned in our first article, pricing is not even across the country and we are seeing some flexibility in the numbers in the south compared to those in the Midwest. The Midwest is where all of the mill production disruptions are […]
The U.S. Department of Commerce released license data through Tuesday, April 15th for imported steel scheduled to arrive into the United States during the month of April. Based on this early license data (knowing it can be misleading) we are projecting total steel imports will exceed the 3.5 million net tons forecast for March. Our […]
The convoy of freighters headed to Minnesota under US and Canadian Coast Guard escort arrived safely on Monday morning. The ships dispersed to begin loading iron ore pellets and to queue up for the return convoy east across the Great Lakes to the mills. USCG Mackinaw is expected to depart Duluth this afternoon to escort […]
SMU recently published an article about the excitement in the aluminum industry regarding automotive applications. We asked for comments from the steel industry on the competition by aluminum for a share of the automotive manufacturing industry. We received the following comments from Ron Krupitzer, vice president, automotive market for the Steel Market Development Institute (SMDI): […]
For the week ending April 12, 2014, the American Iron & Steel Institute (AISI) reported that the U.S. steel industry produced 1,785,000 net tons (NT) of raw steel, a 1.3 percent increase over the previous week but a 2.8 percent decrease over the same week one year ago. The estimated capacity utilization rate is 74.2 […]