Service Center Spot Pricing Ignores Latest Price Increase Announcements “[Unnamed service center] They are making a big push in VA/NC HVAC market – dropping numbers all over the place. This is how a mill price increase announcement begins to die.” East Coast Distribution Company Based on the results from our most recent steel survey, service […]
Written by: Sandy Williams Steel Dynamics announced that John Nolan, Vice President and General Manager of the Company’s Structural and Rail Division, has been appointed to the newly created corporate level position of President-Product Development. Nolan will be responsible for identification, development and innovation of new products for the automotive, construction and rail markets. Nolan, […]
Written by: Sandy Williams Klockner and Co. is undergoing a major restructuring program to shrink its European line to a profitable core by eliminating 60 sites, 40 of which have already been sold or closed. Klockner EBITDA before restructuring was €139 million in 2012 (down from €227 million in 2011) and €62 million after restructuring. […]
SMU asked those taking this week’s steel survey if the latest price announcement stood a better chance of having at least some of the increase being collected than the one announced six weeks prior. We presented the percentages in our last issue of Steel Market Update (SMU 3/6) and now we would like to provide […]
Written by: Sandy Williams Day one of the SMU Steel 101: Introduction to Steelmaking & Market Fundamentals workshop ended by rubbing shoulders with our mill hosts at a cocktail party at our hotel. This was my first opportunity to speak to the General Manager of the Severstal Columbus plant as well as a number of […]
In our last issue of Steel Market Update we published an article regarding the latest round of price increases and how those responding to this week’s steel survey felt regarding the potential success of this increase versus the one announced six weeks earlier. Our survey was finding 60 percent of those responding to the survey […]
Utilizing a trailing average hot rolled coil (HRC) price, the SMU Price MoMo Index for flat rolled steel in the U.S. remained below zero percent this week for the eighth week after eight consecutive weeks of positive momentum readings. MoMo is based upon the current hot rolled coil price weighed against the previous 12 week […]
Written by: Damon Sun, Daido International The Far East and Asian markets are in a definite flux versus the USA market. I will preface my explanation with, the ferrous scrap markets in Asia increased in February first while the USA scrap markets were down in February. With that in mind, the scrap markets in North […]
Scrap prices rose for the month of March from a low of $20 per gross ton in the east and parts of the south to as much as $50 per gross ton on some prime grades in the Midwest. The Detroit market was reported by SMU sources to have settled at $410 for busheling, $410 […]
Based on the results of our latest SMU steel market survey, service center flat rolled inventories (as of this week) dropped from 2.37/2.33 in January and early February to 2.19 months. We did hear from service centers during the survey process of their continued focus on lowering inventories from these levels. SMU considers large, medium […]
Written by: Bradley Clark, Director of Steel Trading, Kataman Metals U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Firm on Weather Concerns As the beginning of the month progresses the physical scrap market has begun to price higher lending impetus to the futures market to begin trading. After months of stagnant and softer busheling markets, March […]
Mill lead times grew only fractionally since the price increase announcements which began on Tuesday of this past week. Based on our SMU steel market survey results, hot rolled lead times went from 3.15 weeks to 3.28 weeks; cold rolled actually declined from 4.97 weeks to 4.65 weeks; galvanized rose slightly from 5.14 weeks to […]
Written by: Bradley Clark, Director of Steel Trading, Kataman Metals Well it certainly is beginning to feel like déjà vu all over again. Last week’s price hike announcements come during the same last week of the month as they did the previous month. They came after the spot price was trending down and after deals […]
Optimism waned this week as steel buyers and sellers toiled over price announcements, demand questions and a heightened sense of insecurity regarding their company’s ability to be successful in the current market environment. Based on the results from our just completed steel market survey, SMU Steel Buyers Sentiment Index dropped 6 points to +15 from […]
The CME Group announced it had record volumes for its NYMEX U.S. Midwest Hot-Rolled Coil Steel Index futures (HRC) and options (HRO). During the month of February HRC futures recorded 6,619 contracts eclipsing the previous record set in January 2012 of 6,214 contracts. At the same time HRO (options) contracts which have only been available […]
Written by: Sandy Williams Iron ore had its biggest slide in seven weeks dropping 2.4 percent on Tuesday to $145.20 per dry metric ton (Fe 62) at the Chinese port of Tianjin (source: The Steel Index). Ore shipments out of Australia have been slowed by a series of seasonal hurricanes forcing sporadic port closures. Although […]
The American Iron & Steel Institute (AISI) reported their estimated raw steel production data for the week ending March 2, 2013. According to AISI estimates the U.S. steel industry produced 1,857,000 net tons of raw steel last week. This represents an increase of 0.8 percent compared to the week earlier but is 7.2 percent lower […]
Written by: Sandy Williams Billowing flames, sparks careening upward like thousands of fireflies, the brilliant blue-white glow of the arc, and heat—intense heat. It is hard to adequately describe the power emanating from the electric arc furnace as one stares at it enthralled. Our Steel 101 class felt that power up close and it was […]
Written by: Brett Linton The American Iron & Steel Institute (AISI) reported their final raw steel production numbers for the month of January 2013. This estimation is different than the weekly raw steel production as it is based on 75 percent of the domestic mills reporting vs. 50 percent for the weekly estimates. The difference […]
Early indications our of SMU industry sources is for Midwest scrap prices to be $30-$45 per ton higher than what we found at the beginning of February. Negotiations are continuing with a number of mills but we have heard of a few deals being done on prime grades at +$40 per gross ton. We heard […]
Large steel buyers with whom Steel Market Update had direct contact with over the past few working days paint a picture of the domestic mills still uncomfortable leading on pricing. Although that may be changing as word starts to spread on the newest scrap pricing. We saw a widening of the range on hot rolled […]
“No demand- it is like raising ticket prices to see a last place team.” – Service Center Domestic mill price increases have a way of touching the nerve of the steel community. Whenever there is a price increase announcement and Steel Market Update (SMU) conducts our next steel market survey – we tend to gather […]
On Monday Steel Market Update will begin our next steel market survey. This will be the first for the month of March. Invitations should go out at approximately 8 AM ET. This will be an interesting week as we watch scrap prices, mill lead times and for evidence that the domestic mills will be serious […]
Originally published by IHS Global Insight on March 1, 2013 Congress has failed to secure a deal to prevent the “sequester” – USD1.2 billion of spending cuts divided equally between security and non-security spending. The impact of the cuts will be cumulative rather than immediate, which raises the prospect of congress agreeing to forestall them […]
According to Baker Hughes data from March 1st, 2013, the U.S rig count for this week is 1,757 rigs exploring for or developing oil or natural gas. This number represents a decrease of 4 rigs from last week. Compared to last year the 1,757 count is a decrease of 232 rigs. Canadian rigs decreased by […]
Written by: Sandy Williams The JP Morgan Global Manufacturing PMI slipped to 50.8 from 51.4 in January indicating a slowing in manufacturing. Global manufacturing output rose for the fourth month in a row with the U.S. leading the upward momentum. India, Mexico and Brazil also saw acceleration in production. China showed slowing in February while […]
Written by: Sandy Williams Activity in the manufacturing sector continued to improve in February according the latest Institute for Supply Management Manufacturing Report on Business. The February PMI (Purchasing Managers Index) registered at 54.2, indicating growth in the manufacturing sector for the third consecutive month since its drop below the neutral point to 49.9 in […]
Written by: Sandy Williams “Whenever you are asked if you can do a job, tell ‘em ‘Certainly I can!’ Then get busy and find out how to do it.”—Theodore Roosevelt. When I was asked to write for SMU I did exactly what Teddy suggested and every day since I’ve been learning how. With a background […]
This week, the SMU Fair Value HRC (hot rolled coil) Model has spot HRC pricing below Fair Value for the third consecutive week after rising above the Fair Value price in the week of February 8th. This is due to the SMU average spot HRC index decreasing $10 per ton last week to $600 per […]
Falls Church, VA, March 1, 2013 – Steel imports increased 4.6 percent in January 2013 compared to December 2012 according to preliminary government data. “Import levels improved in January in a normal seasonal rebound from end of the year declines as many consumers and distributors delay purchases to January due to inventory tax costs at […]