Contributor: Brett Linton

Most steelmaking raw material prices we track saw little change across the month of August. Iron ore, pig iron, shredded scrap, busheling scrap, zinc, and aluminum prices all held relatively steady,

Steel Market Update will be taking time off in observance of Labor Day.

Steel prices, end-use demand, inventory levels, tariffs, imports, and evolving market events... what is the steel industry talking about this week?

Steel prices remained largely unchanged this week, staying at or near lows last seen in February. All five sheet and plate products tracked by SMU moved by no more than $5 per short ton (st) from the previous week.

World crude steel output declined for a second straight month in July, falling 2% from June to an estimated 150.1 million metric tons (mt), according to recent data published by the World Steel Association (worldsteel).

Domestic mill output increased last week, according to the latest data released by the American Iron and Steel Institute (AISI). Production remains historically strong, holding near multi-year highs since June.

SMU’s Steel Buyers’ Sentiment Indices moved in opposing directions this week. Our Current Steel Buyers’ Sentiment Index dropped to one of the lowest levels recorded in over five years, while Future Buyers’ Sentiment inched higher.

Steel buyers report steady lead times for sheet and plate products, a soft-sideways trend we've seen since May.

The majority of steel buyers responding to our market survey this week continue to say that mills are negotiable on new spot order prices. Negotiation rates have remained high since May.

On Monday and Tuesday of this week, SMU polled steel buyers on an array of topics, ranging from market prices, demand, and inventories to tariffs, imports, and evolving market events.

All five of SMU's steel sheet and plate price indices declined this week, falling to lows last seen in February.

Total heating and cooling equipment shipments eased from May to June, according to the latest data released by the Air-Conditioning, Heating, and Refrigeration Institute.

The amount of finished steel coming into the US market increased 3% from May to June, climbing to one of the highest rates seen in recent years, according to SMU’s analysis of Department of Commerce and American Iron and Steel Institute (AISI) data

US steel mills have ramped up output since April, with weekly production increasing in all but four of the past 16 weeks.

Both SMU Sentiment Indices continue to show that buyers remain optimistic for their company’s chances of success, though far less confident than they felt earlier in the year.

The volume of steel shipped outside of the country in June fell 3% from the prior month to 618,000 short tons (st), according to recently released data from the US Department of Commerce.

Following January’s pre-tariff surge, imports have remained low since February compared to post-pandemic volumes

Mill production times for sheet products are holding just above multi-year lows, while plate lead times remain elevated.

Most steel buyers continue to report that mills are open to negotiating spot prices. Negotiation rates have remained high for most of the past three months.

Sheet and plate prices were either flat or modestly lower this week on softer demand and increasing domestic capacity.

Steel Market Update is proud to celebrate its 17th birthday this month.

Domestic mill output remains historically strong, holding near multi-year highs since early June.

Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was adjusted $10 per short ton (st) lower this week after holding steady last week.

Prices for four of the seven steelmaking raw materials we track were unchanged from late June through the end of July, while two increased and one declined. Collectively, these material prices rose 1% month over month (m/m), but are down 3% compared to three months ago.

Earlier this week, SMU polled steel buyers on an array of topics, ranging from market prices, demand, and inventories to tariffs, imports, and evolving market events.

US raw steel output rebounded last week, according to the American Iron and Steel Institute (AISI). Mill production remains historically strong, with output at or near a multi-year high since early June.

Drilling activity slowed in the US and increased in Canada last week, according to the latest oil and gas rig count data released by Baker Hughes.

SMU’s Steel Buyers’ Sentiment Indices eased this week, both approaching multi-year lows.

Steel mill lead times on sheet products contracted across the board this week compared to early July, while plate production times moderately extended, according to steel buyers responding to this week’s market survey.

More than nine out of every ten steel buyers polled by SMU this week reported that mills are negotiable on new order prices. Negotiation rates have increased in each of our last three surveys following the early-June lull, reaching a record high this week.