You will hear the term “spread” quite often when discussing the differences between flat rolled steel prices from one source to another. The term can be used when discussing domestic steel mills and their differences in pricing on the same product. It can also be used when discussing the differences between foreign steel imports and […]
Cold rolled sheet imports June 2013 and YTD by source and port of entry. This is one of an expanded series of analyses, exclusive to the Steel Market Update that is designed to provide a much more comprehensive view of actual volume by product. In the future, this data will be available to our Premium […]
Ultra light gauge galvanized (thicknesses less than .015”) have traditionally been associated with foreign steel suppliers as opposed to domestic mills. The U.S. mills have, over time, relegated the ultra light gauge markets as ones of the least interest due to the amount of line time it takes to produce these products versus running a […]
As reported by Sandy Williams here in the Steel Market Update on Friday, the National Association of Home Builders index reached its highest level in almost eight years in July but the Census Bureau construction starts data is not so encouraging. On a year over year basis the 3-month moving average (3MMA) of both permits […]
Iron ore prices continue to rise this month despite forecasts for a sharp correction in the last half of the year. The Steel Index reported 62% iron ore fines at Tianjin Port on August 14 was at a five month high of $142.8—a meteoric rise of more than 28 percent from $110.9/dry tonne on June […]
NLMK reported USA revenue of $314 million in the second quarter down from $362 million in Q1. The company noted lower demand from the US construction sector and general deterioration of market conditions in Europe and the USA along with industry oversupply. North American steel sales dropped to 432,000 tonnes (476,190 tons) from 473,000 tonnes […]
According to Baker Hughes data from August 16th, 2013, the U.S rig count for this week is 1,791 rigs exploring for or developing oil or natural gas. This number represents an increase of 13 rigs compared to last week, with oil rigs up 12 to 1,397 rigs, gas rigs up 2 to 388 rigs, and […]
From time to time SMU gets emails from our readers that we think others might find interesting. Here are a couple examples: In an email with the title “Bingo” we received the following comments from a large galvanized service center: “The bet is the first sign of weakness will come out of the conversion mills […]
Service Center Deficit Will Help Keep Mill Prices Firm Flat rolled inventories are at a 466,000 ton deficit according to Steel Market Update proprietary analysis of the recently released MSCI service center inventory data. The 466,000 ton deficit is the largest one we have measured since August 2009 when it was measured at 604,000 tons. […]
According to just released Metal Service Center Institute (MSCI) data, total steel inventories at the distributors as of the end of July were 7,642,600 tons. This is 12.2 percent below the 8,953,900 tons held by service centers at the end of July 2012. The daily shipment rate dropped to 157,500 tons per day (22 day […]
Canadian shipments for all steel products in the month of July were 459,400 net tons, an increase of 1.3 percent from the month before but a decrease of 2.5 percent from July 2012. Inventory at the end of the month stood at 1,462,600 tons, a decrease of 1.5 percent from last month and a decrease […]
It seems that the August month has brought with it a true summer lull. Trading volumes have been very low in the HRC futures market the past couple of weeks as many traders seem happy to sit on the sideline and await what the Autumn has to bring. The forward curve has risen ever so […]
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Typically Quiet Mid-Month Market While the HRC futures market is experiencing a summer lull, the AMM Busheling contract has been virtually non-existent the past few weeks. After the physical market for busheling priced sideways this month the futures market has not reacted. It seems that the usual pattern […]
This is one of an expanded series of analyses, exclusive to the Steel Market Update that is designed to provide a much more comprehensive view of actual volume by product. This will enable a steel buyer or manager to see exactly what came into his immediate vicinity and where it came from. This series of […]
Prepainted flat rolled imports declined on a month-over-month basis on all products with the exception of prepainted cold-rolled sheet and strip. Compared to the same month one year ago, prepainted imports increased for galvanized and electro-galvanized, but decreased for cold rolled sheet and strip. As you can see by our table below – prepainted cold […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained in positive territory this week for the 11th consecutive week. MoMo, a trailing indicator, is based upon the current hot rolled coil price weighed against the previous 12 week average spot price as recorded by Steel Market Update. MoMo was […]
Essar Steel Algoma reported a net loss of 28.7 million for the first quarter of its fiscal year 2014 ending on June 30, 2013, an improvement over its net loss of 92.7 million at the end of the fourth quarter in March. Sales of $464 million showed an improvement of 4 percent over the previous […]
Industrial production and manufacturing capacity utilization for July 2013 – Both these data points are reported in the Federal Reserve G17 data base. The IP index was reported as 98.95 for July, up from 98.91 in June this was 1.8 percent below the peak of September 2007. Manufacturing is still making progress. The three month […]
Metal fabricators are reporting stable business conditions according to the Fabricators & Manufacturers Association’s inaugural survey of small to mid-sized metal fabricating companies. No significant growth or shrinkage was noted in new order activity by most respondents. Commodities and logistic prices were also seen as fairly stable. New trucking rules have some respondents expecting higher […]
Manufacturing continued to expand in the Philadelphia region in August but with slightly less optimism for the current pace of growth. The general economic index of The Federal Reserve Bank of Philadelphia’s Business Outlook Survey fell to 9.3 this month from 19.8 in July (its highest reading since March 2011) and has been in the […]
Canadian housing starts in July fell slightly to a seasonally adjusted annual rate of 192,853 units from 193,797 units in June. The decrease was 0.5 percent from June levels and 9.5 percent below housing starts in July 2012. Urban starts for single units decreased by 5.5 percent to 58,732 units in July while urban multi-unit […]
Builders are feeling more confident about the housing market according to the National Association of Home Builders/Wells Fargo Housing Market Index. The August Index shows an increase of three points to 59, bringing the index to its highest level in almost eight years. Of the three components used in the monthly survey to compile the […]
Mexican industrial output surprised analysts by falling 2.4 percent in June compared to the same month in 2012 according to the government’s statistic agency Instituto Nacional de Estadística y Geografía. Output was expected to grow by at least 0.1 percent year over year. Compared to June 2012, construction dropped 6.0 percent, manufacturing declined 1.2 percent […]
Written by: John Packard With other periodicals calling a top or “peak” to the market the pressure has been put on Steel Market Update to clear up the muddied waters. From our perspective, the peak is usually identified when one of the domestic mills breaks ranks and starts cutting deals at numbers less than what […]
Written by: John Packard Essentially our review of the market has found little measurable movement in spot flat rolled prices this week. The opinion of many buyers is the market is closer to the top and any purchases need to be carefully considered prior to making any commitments. Buyers continue to express confidence in their […]
Written by: John Packard ThyssenKrupp AG continues to be in heavy negotiations with the lead bidder (believed to be CSN out of Brazil) regarding the sale of the Steel Americas assets. The assets in question consist of both the Calvert, Alabama operation as well as the CSA slab mill which is located in Brazil. In […]
Written by: Sandy Williams ThyssenKrupp reported adjusted EBIT €332 million ($439M) for the third quarter ending June 30, 2013 for its continuing operations, up from €241 million ($319M) in the second quarter. Third quarter net loss was €218 million in the third quarter as compared to a net profit of €403 million ($534M) in third […]
Written by: John Packard June apparent steel supply came in at 8,728,000 tons which was a 3.75 percent decline compared to the previous year. As you can see by the graphic below, all of the categories came in below June 2012 data. Year to date 2013 is on pace with 2012 averaging 7,900,000 tons […]
On Monday we will begin our mid-August steel market survey. If you receive an invitation we hope you will spend a few minutes and click on the link provided in the invitation and respond to our questionnaire. As mentioned late last week our Steel 101 workshop is sold out and we have at least one […]
Our Steel 101 workshop in Blytheville, Arkansas is officially “sold out.” For those interested in our next Steel 101 workshop we are working on the 2014 schedule and expect to announce the first two for next year within a few weeks. In the meantime, you are welcome to send us an email with your name, […]