The recent upturn in the physical market has continued to fuel the upswing in steel futures prices as nearby periods have surged this past week. The May and June HRC contracts have traded to highs of $660/ton while second half periods have traded up to $643. The nearby prices have improved over $40 during the […]
Today is the 3rd of April and negotiations between the steel mills and their scrap suppliers continue in earnest. We heard from one of our sources that Detroit has settled up $10 per gross ton. Our source reported #1 Heavy Melt (HMS) at $365-$370 per gross ton, shredded scrap at $395-$400 per gross ton and […]
With the expected steel price hikes finally coming to fruition the futures market has reacted strongly as offers were lifted and bids take a step up. After months of a down trending physical market sentiment has taken a clear turn to bullishness. The nearby months (March and April) traded to lows around $615 last week […]
The following article on hot rolled futures (HRC), #1 busheling futures (BUS) as well as information regarding the iron ore spot pricing and futures trading in China is written by Andre Marshall, CEO of Crunch Risk, LLC and the instructor for Steel Market Update’s Managing Price Risk workshop series. Our new: Managing Price Risk 2: […]
March scrap prices have settled with most areas of the country moving lower. The key Chicago area saw prices as follows: #1 Heavy Melt = $370 to $380 with $385 average down $15 per gross ton.Shredded scrap = $388 down $17 per gross ton.#1 Busheling = $388-$400 with an average of $394 per gross ton […]
The futures market stabilized this week as renewed buying interest has returned. It seems that the recent spot weakness is being shrugged off by most market participants as buyers are looking down the curve to add length. Recent history has shown us that waiting for the physical market to bottom is too late to pick […]
The hot rolled coil futures market took a leg down this week as offers down the curve became more aggressive. After weeks and months of a fairly static forward curve, this renewed downward pressure of the past few days has shaken up the market. The Q2 traded today as low as $623, the Q3-4 at […]
Scrap prices for February deliveries to the domestic mills have settled in most areas of the country. In Chicago and the Upper Midwest we are seeing prices down from the previous month as #1 HMS (heavy melt scrap) is at $390 per gross ton, shredded scrap ranges from $400-$410 per gross ton (average $405) and […]
The busheling market started to take shape this week as buyers and dealers came into the market, with early indications to be in the mills favor. Initial reports are for scrap in the Midwest to be down $30-40 / ton depending on grade and location. It seems that weather constraints have had a more negative […]
During the month of January Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. Benchmark hot rolled prices averaged $673 per ton ($33.65/cwt) according to the Steel Market Update index. CRU posted their monthly average at $676 per ton ($33.80/cwt). You can find the balance of our weekly and monthly averages […]
The busheling scrap market is starting to take shape, though it is still early in the month. Initial sentiment suggests that the market for prime scrap may be down around $20 / gt. With weakness in the export market as Turkish corruption problems, the weakening Lira and soft economy have prevented imports, additional material should […]
Ferrous scrap prices, which prior to the beginning of negotiations for the month of January were forecast to rise by $20 to $50 per gross ton, actually began shrinking as this past week progressed. Early settlements ranged from $10 on prime grades to $15-$25 per gross ton on obsolete and shredded scrap. As the week […]
Steel Market Update (SMU) would like to share some of the data we collected during the past 12 months. Below is a review of flat rolled steel pricing for 2013, scrap pricing during the year, SMU Steel Buyers Sentiment Index and more… Benchmark Hot Rolled Pricing in Review Benchmark hot rolled ended 2012 at $635 […]
The year 2013 for hot rolled steel futures was a story of two halves, with the beginning of the year trading in a strong contango and the second half of the year stuck in backwardation. The beginning of the year was characterized by low prices and significant volatility while the second half of the year […]
Manufacturing activity expanded in December for the seventh consecutive month and rose to its second highest reading of 2013. The PMI (purchasing managers index) registered 57 percent according to the December 2013 ISM Manufacturing Report on Business. New orders, employment, supplier deliveries and prices all grew at a faster rate in December. New Orders increased […]
The futures market has traded in a very tight range over the past couple of weeks. Prices in the front months, December and January, have continued to firm trading around $670 per ton. The further out, the curve prices have remained backwardated as the risk of imports in the 2nd quarter onwards continues to weigh […]
The original forecast for December scrap pricing was for ferrous scrap prices to move sideways (no change) to slightly higher, maybe $10 per gross ton. That was three weeks ago. As the month of December moved closer, the expectation for a sideways move was replaced with up $10 to $20 per gross ton. The month […]
After weeks of ascending prices, the hot rolled coil (HRC) futures market has taken a breather in the last couple of days. Prices have retreated by about $5-10/ton down the curve as a weaker than expected Wednesday brought in several new sellers to the market. November and December periods remain well bid around $660 but, […]
Scrap prices settled higher as the first full week of November came to conclusion. Our sources pegged the Upper Midwest/Chicago area prices up approximately $30 per ton compared to the beginning of October. #1 Heavy Melt (HMS) was referenced at $375 per gross ton ($370-$380 range). Our previous price level for the area averaged $348 […]
TSI Iron Ore: Market Remains Firm Iron ore prices have continued to be strong as Rebar futures have bounced off recent months lows last week and spot steel in China continues to go higher. Over the past couple of weeks iron ore prices have pushed up around $5/ton down the curve with Q1 trading around […]
TSI Iron Ore: Market Soften As Rebar Slides Iron ore prices have been fairly volatile over the past week as conflicting data and information coming out of China as moved the needle in opposite directions. The upshot to all of this intraday volatility is that prices remain fairly unchanged on a week-on-week basis. With rebar […]
There is a lot going on regarding contracts, contract negotiations and the timing of when orders/commitments need to be placed with the domestic steel mills. SMU has had direct conversations and seen email correspondence which suggests at least one of the integrated steel mills is pushing for remaining 2013 tonnage to be placed right away […]
TSI Iron Ore: Market Quiet During Chinese Golden Week… Iron ore prices have remained steady over the past week as the Chinese have been off for their Golden Week holiday. Demand while steady appears to be seen as fragile by many. The market remains in backwardation with prices down the curve continuing to trade at a […]
TSI Iron Ore: Prices Wobble in Signs Market is Cooling… Iron ore prices have softened over the past couple of weeks, but are still holding the recent range above $130 per ton. Mixed news out of China regarding steel demand has cooled off buying for the time being as the market has failed to break […]
TSI Iron Ore: Prices Stay Firm, Future Is Uncertain… After breaking through the psychological ceiling of $140/ ton a couple of weeks ago, the iron ore spot market has retreated ever so slightly to $137. While this is not necessarily an indication of a reversal in the pricing trend, it may shed light on […]
Final Scrap Pricing Settlement Numbers Still in Negotiation Scrap prices continued their weakening trend – especially on shredded with cut grades such as #1 HMS and prime grades such as #1 busheling are moving sideways to down $10 depending on the geographical location and the status of the mills in each area. We heard from […]
Steel Market Update sources are forecasting slightly lower shredded scrap prices in the Midwest and Ohio Valley as we prepare to move into September. Prime grades (such as #1 busheling) are forecast to be sideways to down slightly and cut grades are forecast to move sideways across most areas of the country. This is what […]
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 […]
Written by: Bradley Clark, Director of Steel Trading, Kataman Metals TSI Iron Ore: Prices Up, Up and Away… Iron Ore over the past few weeks remains a true bright spot in the commodities complex as stronger than expected summer steel demand in China has driven prices to highs not seen in months and monthly shipments […]
Written by: John Packard Chicago area scrap deals were lower on shred and basically sideways on #1 HMS and #1 Busheling according to SMU sources as of today. #1 heavy melt was put at $351-$355 per gross ton. Shredded Scrap was put at $366 per gross ton. #1 Busheling was reported to be sideways […]