A weary market worn down by the absence of any positive demand reports ran below the critical $2,300-per-tonne trading line. Falling all the way to $2,200 before settling in the $2,270 – 2,290 range, the LME is in a new lower range as of the week ending May 19 as bearish sentiment pervades the market. […]
Prices for steel sheet continue to move lower as market participants debate how far and how fast prices might fall before they reach bottom. Some are also questioning when and how quickly prices might rebound. But most don’t see that happening until the back half of the year. SMU’s hot-rolled coil price has in the […]
Raw steel production by US mills recovered last week, up 0.8% from the week prior and moving to its highest output since late August 2022, according to data released by the American Iron and Steel Institute (AISI) on Monday, May 15. Domestic production stood at 1,725,000 net tons in the week ended May 13 vs. 1,712,000 […]
US apparent steel supply rose 6% in March to 8.03 million net tons compared to the previous month, according to data from the US Department of Commerce and the American Iron and Steel Institute (AISI). Apparent steel supply is determined by combining domestic steel mill shipments and finished US steel imports, then deducting total US […]
US non-farm payrolls data showed stronger than expected job growth in April and a further drop in the unemployment rate. The US Bureau of Labor Statistics (BLS) reported that 253,000 jobs were created in April against an expectation of 180,000, while the unemployment rate fell slightly from 3.5% to 3.4%. US non-farm payrolls data showed […]
Private equity firm Apollo has been looking to add Arconic to its portfolio for some time. Almost since its spin-off from its upstream parent, Alcoa, in 2016, Arconic’s assets and key position in the aluminum semis value chain have been on Apollo’s radar. The deal is expected to close before the end of 2023, at […]
The spread between hot-rolled coil (HRC) and prime scrap prices narrowed in May from April after having widened since the beginning of the year, according to Steel Market Update data. Both SMU’s hot-rolled coil price average and busheling prices dropped this week. Our hot-rolled coil average slipped $15 per ton week over week to $1,105 per ton ($55.25/cwt) […]
Sheet price continued to decline this week on increased supply, shorter lead times, and aggressive pricing from some domestic mills. Also pressuring steel prices were expectations of lower scrap prices and import competition. SMU’s hot-rolled coil price now stands at $1,070 per ton ($53.50 per cwt), down $35 per ton from $1,105 per ton last […]
Raw steel production by US mills dropped slightly last week vs. the previous week, according to data released by the American Iron and Steel Institute (AISI) on Monday, May 8. Domestic steel production was 1,712,000 net tons during the week ended May 6, off 0.2% from 1,716,000 tons the prior week. Production was 3.4% lower than the […]
Premiums for aluminum in the US took fell again last week following a period of stability after the Federal Reserve stepped in the wake of the closure of Silicon Valley Bank (SVB). Economic struggles have continued to depress shipment volumes into Q2, and many major macro data points are still muddied. Last week another bank […]
Licenses to import steel into the US declined from March to April, with all major flat-rolled product categories showing month-on-month (MoM) declines, according to the latest figures from the Department of Commerce’s US Steel Import Monitor. Import licenses totaled more than 2.292 million net tons in April. This was a 12% drop from March’s final import […]
Northwest Pipe reported a drop in first-quarter earnings but is optimistic on the remainder of the year. The Vancouver, Wash.-based pipe producer saw Q1 net income dropped 34% from the year-ago quarter to $2.4 million, with sales down 9% to $99.1 million. “As we expected, the first quarter was challenging due to severe weather events […]
US hot-rolled coil prices slipped for a third consecutive week as market participants debated whether and when the declines might accelerate. Another big question: where the new floor for HRC might be? SMU’s hot-rolled coil price dipped to $1,105 per ton ($55.25 per cwt), down $15 per ton from last week and down $55 per […]
Raw steel production by US mills inched up again last week, rising 0.9% from the week before and moving higher for a fourth consecutive week, according to data released by the American Iron and Steel Institute (AISI) on Monday, May 1. Domestic steel production stood at 1,716,000 net tons during the week ended April 29 vs. 1,700,000 tons […]
Sheet prices fell across the board this week on the heels of shorter lead times, higher-than-anticipated inventory levels, and potential import competition. Some market participants predicted that further declines would be “managed” by a more consolidated flat-rolled steel industry. Others said they feared that prices could come down quickly given how sharply they rose in […]
Hot-rolled coil prices edged downward for the first time since late November, according to SMU’s latest check of the market. The dip in HRC prices comes after we saw lead times contract slightly, an uptick in the number of mills willing to negotiate lower prices, and a modest increase in sheet inventories. SMU’s hot-rolled coil price […]
CRU expects metallics prices to continue trending down in May 2023 as supply will continue to outpace demand in most markets. In the US, obsolete scrap prices are expected to move lower as the inflow to scrap yards will pick up seasonally, and dealers get more inclined to sell. In Europe, the macroeconomic environment will […]
The World Trade Organization keeps on rolling along. Last week, the current director general (DG) of the World Trade Organization, Ngozi Okonjo Iweala, made a trip to the United States to attend the IMF annual meetings and to meet with international trade-oriented officials and business representatives. Her itinerary included addressing the Washington international trade community, […]
SMU’s Steel Current and Future Buyers Sentiment Indices have both slipped from two weeks ago as the gap between them has widened, according to SMU’s most recent survey data. The Steel Buyers Sentiment Indices measure how steel buyers feel about their company’s ability to be successful in the current market, as well as three to six […]
Cleveland-Cliffs is set to offer $750 million in unsecured guaranteed notes due in 2030. “The offering is expected to close on April 14, 2023, subject to the satisfaction of customary closing conditions,” Cliffs said in a statement on Tuesday, April 11. The Cleveland-based steelmaker said the offering is exempt from the registration requirements of the Securities […]
Does anyone think the “new normal” will be normal? In fact, has anyone even mentioned the word “normal” since 2020? I haven’t consulted the Merriam-Webster, but by this point they might’ve changed the definition. Black Swans. Mini-Swans. Bracket-busters. Good old fashioned Force Majeure. There is no shortage of terms to show that unexpected big changes […]
An upgrade to JSW Steel USA’s mill in Mingo Junction, Ohio, is reportedly in the works. The company has proposed a $160 million investment for the mill, according to Samir Kapadia, principal at Vogel Group and lobbyist for JSW in Washington. Kapadia recently met with Parth Jindal, heir of India’s JSW Steel (of which JSW […]
Despite reporting a steep drop in year-over-year (YoY) earnings in its fiscal second quarter, Schnitzer Steel Industries’ sequential results improved on higher sales volumes and average net selling prices for recycled metals. The Portland, Ore.-based scrap recycler and long steel producer posted net income of $4 million in its Q2 2023 ended Feb. 28, down 89% […]
Hascall Steel Co., a steel service center based in Grand Rapids, Mich., has acquired a new location in Chicago. The company said the operation, which opened its doors on Monday, April 3, is equipped with a full team of industry professionals and is already stocked to service current and new customers in the Chicago area […]
You may have wondered what goes on behind the scenes over here at CRU and Steel Market Update. CRU principal analyst Josh Spoores will talk about what goes into forecasts as well as his take on the latest market trends at the next SMU Community Chat on Wednesday, April 5, at 11 am ET. (You can register […]
Ternium SA and its affiliates aim to take a majority stake in Brazilian flat-rolled steelmaker Usinas Siderúrgicas de Minas Gerais SA (Usiminas). The Latin American flat-rolled steelmaker said it and related companies had agreed to pay $111 million in cash for 57.7 million in ordinary shares of Usiminas. The shares will be purchased from Japan’s […]
About half of the US added construction jobs from January to February, according to Associated General Contractors of America (AGC) figures. Month over month (MoM), construction employment increased in 24 states, held constant in six states, and declined in 20 states and Washington, D.C. Year-over-year (YoY) construction employment increased in 45 states. California added the […]
On March 17, the Court of International Trade, the federal court with jurisdiction over most cases involving international trade regulation, issued a major ruling giving control over China tariffs to the discretion of the US Trade Representative (USTR). The case dealt with legal challenges in nearly 4,000 separate cases to the “List 3” and “List […]
Galvanized sheet continues to experience stable demand but market sentiment is waning, according to members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI) speaking on the March 22 meeting of its Sheet Metal/Air Handling Council. Bullishness has subsided from sentiment in February. With lead times approaching eight weeks, HARDI members are experiencing tighter inventories and delayed […]
Esmark Inc. has announced the passing of Hans Joachim Schmidt, father of Esmark founding investor and longtime member of the Esmark board of directors, Uwe T. Schmidt. Hans Joachim Schmidt passed away on Feb. 19 at the age of 90, Esmark said, noting that he was a leader and internationally recognized business executive serving the […]