Contributor: Brett Linton

Oil and gas drilling activity declined in the US this week, while Canadian rig counts saw a rebound, according to the latest data from Baker Hughes.

Both SMU Steel Buyers' Sentiment Indices remain in positive territory, indicating that steel buyers are optimistic about the success of their businesses.

Domestic steel imports fell 14% from October to November to a one-year low of 2.07 million short tons (st), according to final US Commerce Department data. While steel trade has declined from early-2024 highs, November imports are slightly higher than volumes seen one year prior.

Buyers participating in our first market survey of 2025 reported a slight decline in mill lead times compared to our last survey in mid-December. After rising moderately in early December, lead times edged lower through this week and are now only slightly above the lows seen back in July and November. Overall, production times have remained historically short since last summer, with minimal movement since then.

Steel buyers say mills remain open to negotiation on sheet and plate spot prices this week, slightly more so than in mid-December, according to our most recent survey results.

Domestic raw steel production is now at the lowest level seen since mid-November. This comes just two weeks after production had recovered to a three-month high.

Global steel mill output totaled 146.8 million metric tons (mt) in November, marking the third-lowest monthly rate seen in 2024 to date.

The number of active oil and gas rigs operating in the US held steady this week for the fifth consecutive week, while Canadian activity declined further, according to the latest figures released from Baker Hughes.

SMU’s Monthly Review provides a summary of important steel market metrics for the previous month. Our latest report includes data updated through December 31st.

The 36th annual Tampa Steel Conference is just four weeks away. We now have over 300 people registered to join us at the JW Marriott Tampa Water Street from Sunday, Feb. 2, through Tuesday, Feb. 4. Join us along with hundreds of industry participants in warm and sunny Florida!

Domestic steel production has modestly recovered since bottoming out in October but is significantly less than levels recorded earlier in the year.

SMU offices will be closed from Monday, Dec. 23, 2024 through Wednesday, Jan. 1, 2025.

The November ABI decreased month over month but was still the third-highest reading of the past two years.

The number of oil and gas rigs operating in the US remained unchanged this week for the second consecutive week, while Canadian activity declined, according to the latest data released from Baker Hughes.

Both of our Sentiment Indices remain in positive territory and indicate that steel buyers are optimistic about the success of their businesses.

SMU looks back at stories from Decembers past, one, five, 10, and 100 years ago.

Steel mill production times have seen very little change since September, according to buyers participating in our latest market survey.

Steel buyers of sheet and plate products say mills are still willing to bend on spot pricing this week, though not quite as much as they were two weeks prior, according to our most recent survey data.

We have seen very little change in sheet and plate prices across the past month.

Following a substantial recovery in November, business activity in New York state’s manufacturing sector held steady in December, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.

Shipments of heating and cooling equipment were stable from September to October, AHRI said.

Domestic production remains significantly low compared to levels recorded earlier in the year.

Trends in energy prices and active rig counts are leading demand indicators for oil country tubular goods (OCTG), line pipe and other steel products

We are less than two months away from the 36th annual Tampa Steel Conference! We hope you will join us there!

Referred to as ‘apparent steel supply’, we calculate this volume by combining domestic steel mill shipments with finished US steel imports and deducting total US steel exports.

The volume of steel exported from the country declined in October for the second-consecutive month, following a one-year high in August.

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

Steel prices have remained relatively stable in recent weeks, though they have generally trended downward since October.

Monthly imports have remained within a relatively narrow range since June, significantly lower than volumes seen earlier this year, but stronger than late-2023 levels.

Since sharply falling in September and October, weekly production has marginally trended higher for the past two months, but remains significantly low compared to levels recorded earlier this year