Contributor: Kristen DiLandro

Some hot-rolled coil buyers expect continued incremental price increases from domestic mills. Others expect steeper increases, even if it risks inviting imports.

During Worthington Steel’s fiscal fourth-quarter earnings call on June 25, company executives cited interest rates as a market headwind.

Participants in the domestic plate market anticipate incoming price notifications before the end of the month, SMU learned in recent conversations. 

During its upcoming contract negotiations with U.S. Steel (USS), the United Steelworkers (USW) labor union will address wages, retirement, contracting out, health & safety, training, and job security.  

Galvanized sheet buyers and distributors report that strong demand and constrained supply persist, exerting upward pressure on prices.

Nucor announced on Monday, June 22, that its consumer spot price (CSP) for hot-rolled coil will be $1,130 per short ton for the week, up $5/st from last week. 

Hot-rolled coil market participants report little disruption to their contact volumes, finding timely spot HR proved less straightforward, some sources told SMU. 

Some domestic plate market participants recently voiced concerns that current market conditions will impact fabrication and manufacturing, which rely on steady product supply.   

“The issue we heard most about is healthcare. You were loud and clear at every location and in the surveys that maintaining our healthcare benefits is a top issue," the USW said.

May was the fifth consecutive month of expansion for the US manufacturing sector, according to the most recent Institute for Supply Management (ISM) report.

Bull Moose Tube Co. and Hanna Steel Corp. have reached an acquisition agreement, which will expand Bull Moose’s manufacturing footprint and add new tubing, coating, and logistics capabilities.

The United Autoworkers (UAW) local 2093 voted 80% in favor of ratifying the latest contract agreement between the union and American Axle/Dauch Corporation.  

Spot market participants recently told SMU they foresee additional plate price rises for domestically made products.

Some domestic spot market buyers say they're seeking imported hot-rolled (HR) coils.

Gregg Troian, industry veteran and president of both PGT Trucking and the Board of Directors at the American Transportation Research Institute, cautions that the trucking industry continues to face mounting obstacles.  

The American Iron and Steel Institute (AISI) reports that US steel shipments fell from March to April.

Over the next three years, U.S. Steel’s investment to upgrade its hot strip mill at Mon Valley is projected to result in over 6,000 jobs and $58 million in tax revenue, according to an economic impact study conducted by the Parker Strategy Group.

Catherine Cobden, President and CEO of the Canadian Steel Producers Association (CSPA) called the past year’s 50% tariff imposed on Canada’s steel exports to the US ‘severe and unsustainable.’ 

Participants in the plate market doubt prices, lead times, and demand forces will cool down any time soon.

Members of the United Autoworkers (UAW) Local 2093 went on strike at the Dauch Corp.'s (formerly named American Axle and Manufacturing) Three Rivers, Mich., facility on Monday. 

Canadian Steel Producers Association President and CEO stepping down July 31.

Participants in the hot-rolled coil spot market revealed that growing discomfort with current market dynamics hasn't deterred them from conducting spot transactions.

American Axle Workers prepare for strike on Sunday 

Market participants report frustration with extending lead times for domestically produced plate products.  

The May Business Conditions Report issued by the Precision Metalforming Association (PMA) found metalforming manufacturers anticipate stable market conditions for the next three months.  

Tenaris, alongside Ontario’s provincial and Canada’s federal governments’ pledge $30Canadian $306 million (USD$221.6 million) to modernize and expand Tenaris’ Ottawa-based industrial center.

Domestic plate market participants named extended lead times, increased freight costs, escalating fuel surcharges, and spotty demand as their most recent challenges.  

Galvanized steel buyers and distributors expect tightening supply and rising price pressure to last into summer.

Sources told SMU they’ve begun considering whether US imports of sheet might benefit the overall market.

Plate market participants wonder how plate supply will hold up in coming weeks and months, sources told SMU.   Some sources called out dwindling availability of heavier grades and said certain domestic producers have “a huge backlog.” of all grades.