Shipbuilder Austal USA has been awarded a design contract to build a new ship for the U.S. Navy. The agreement, valued at $3.6 million, is for the functional design and construction of the new 80-meter (252.5 foot) Navajo-class Steel Towing, Salvage and Rescue Ship (T-ATS). This follows recent news of Austral USA’s new steel manufacturing […]
Steel prices continued to climb higher in May, now the ninth consecutive month prices have increased. Hot rolled steel prices increased an average of $23 per ton each week, reaching $1,590 per ton as of last week when this article was filed. The SMU Price Momentum Indicator has remained unchanged since the August 2020 adjustment […]
Prices for all of the steelmaking raw materials tracked in this SMU analysis increased from April to May, with most products following large gains seen in previous months. Over the last 30 days, pig iron and coking coal prices have increased 17-19%, respectively. In that same period, prices increased for iron ore 9%, zinc 6%, scrap 5% and […]
A reminder to our readers – Steel Market Update will not publish a Sunday evening issue due to this weekend being a national holiday here in the United States (Memorial Day). We will publish as normal on Tuesday, June 1. Inventories are a key component when it comes to understanding the squeeze we have with […]
The United States leads the world in production of sustainable steel and doesn’t get enough credit for its performance in reducing climate-changing CO2 emissions, said Steel Manufacturers Association President Philip Bell, during during Wednesday’s SMU Community Chat webinar. The minimill electric arc furnace is the preferred technology for lowering CO2 intensity. “The U.S produces over 70% […]
Steel buyers’ sentiment remains firmly in bullish territory even as carbon steel prices are nearing levels more commonly associated with stainless steel or even aluminum. While some sources continue to fret about the steep downside risk of current high prices, most have gotten over their initial sticker shock and are busy trying to secure enough […]
Steel Market Update surveys readers each week to monitor market sentiment. The prevailing view on key issues this week: record high steel prices still have room to run; the high prices have not cut into demand yet; repealing Section 232 on imports from the EU is a questionable move; and inflation poses a threat to […]
Steel Market Update surveys readers each week to monitor market sentiment. The prevailing view on key issues this week: record high steel prices still have room to run; the high prices have not cut into demand yet; repealing Section 232 on imports from the EU is a questionable move; and inflation poses a threat to […]
A coalition of U.S. steel industry lobbying groups and the United Steelworkers (USW) union want the Biden administration to keep Trump-era Section 232 tariffs and quotas on imported steel in place. The groups say the tariffs – rolled out in March 2018 on national security grounds – are necessary for the survival of the domestic […]
The United States and the European Union have begun negotiations that could lead to the removal of Section 232 tariffs on steel and aluminum imported from the continent, according to market participants and a joint statement from the two sides. The official trigger of the talks: U.S. Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo […]
Will the Section 232 tariffs be modified in some way in the near future? That is what U.S. Trade Representative Katherine Tai appeared to suggest during testimony before the Senate Finance Committee on Wednesday. Tai told the committee that the Biden administration seeks a better tool for addressing trade than the 1962 Trade Expansion Act. […]
Time for Good News… It is time for optimism as the pandemic begins to fade in the USA, reported a Washington Post article posted at 2:18 p.m. this afternoon. Today, the Centers for Disease Control (CDC) stated that fully vaccinated Americans no longer need to wear masks indoors or outdoors. “Americans who are fully vaccinated […]
Pressure is building on the Biden administration to provide relief for numerous manufacturing companies in the U.S. that say Section 232 tariffs are making supply chain problems worse. The Coalition of American Metal Manufacturers and Users, the National Foreign Trade Council and other steel and aluminum users collaborated on a May 6 letter to President […]
Record-high steel prices result not from Section 232 tariffs or industry consolidation but instead from uniquely strong supply-demand fundamentals, Cleveland-Cliffs’ top executive said. And an ambitious infrastructure package would go a long way toward keeping those fundamentals, and the resulting investment in the domestic steel industry, stronger for longer, he suggested. “We in this country […]
Record-high steel prices result not from Section 232 tariffs or industry consolidation but instead from uniquely strong supply-demand fundamentals, Cleveland-Cliffs’ top executive said. And an ambitious infrastructure package would go a long way toward keeping those fundamentals, and the resulting investment in the domestic steel industry, stronger for longer, he suggested. “We in this country […]
Olympic Steel kept the momentum going at the start of 2021, achieving its most profitable first quarter ever and third best quarter overall in the company’s history. Despite supply/demand challenges, Olympic recorded record net sales of $463 million due to higher metals pricing. Net income was $22 million, a big improvement from $600,000 in Q1 […]
ArcelorMittal’s joint venture AMNS Calvert ran at near capacity in the first quarter of 2021, delivering record first-quarter results. Hot strip mill production jumped 19.3% to 1.3 million metric tons from the fourth quarter. EBITDA nearly tripled to $159 million from $56 million in the prior quarter. The mill is currently supplied with slab sourced […]
Ryerson’s first-quarter profits expanded despite an “extreme commodity environment” thanks to strong demand, higher selling prices and the sale of a facility in Washington. And the Chicago-based metals service center thinks the black ink will flow into the second quarter as well. “At this point in the second quarter, demand fundamentals have continued to improve […]
Ken Neumann, United Steelworkers National Director for Canada, will retire at the end of his term on March 1, 2022, after serving 18 years as director. “I am very proud of the work we have been able to accomplish as Steelworkers – we have improved the work lives, safety and well-being of hundreds of thousands […]
Limited supply and strong demand continued to push steel prices higher throughout April, now the eighth consecutive month in which prices have increased. Hot rolled steel prices increased an average of $25 per ton each week, reaching $1,440 per ton by the end of April, exceeding any historical price by far. The SMU Price Momentum […]
The ISM Manufacturing Report on Business came in lower than expected in April. The PMI dipped four points to a reading of 60.7% as both the new orders and production indexes edged downward to 64.3% and 62.5%, respectively. A score above 50, however, indicates expansion, which means demand continued to improve in April. Fabricated metal […]
By CRU Chief Economist Jumana Saleheen and CRU Head of Fertilizers Chris Lawson, from CRU’s Steel Monitor Commodity prices have continued an upwards tear in 2021. Steel and its raw materials have seen the sharpest gains, but less well-known commodities such as fertilizers are also attracting attention. With such steep price rises, calls for a […]
By CRU Consulting CEO Rebecca Gordon and Principal Consultant Alex Laugharne The increasing momentum behind transportation electrification is driving new supply chains to evolve rapidly. Historically, long and lean automotive supply chains led to cost efficiencies. The challenges of developing entirely new suppliers and embedding sustainability objectives mean: working with many completely new suppliers who […]
By CRU Research Manager Charlie Durant and Peter Ghilchik, CRU Head of Multi-Commodity Analysis 2021 is shaping up to be a year of economic recovery. CRU is forecasting the fastest annual growth in the world economy for 40 years, underpinned by successful vaccination programs and supportive fiscal and monetary policy. 3+1 Macro Themes In January, we […]
Ford expects to lose 50% of its planned second-quarter production because the global chip shortage has become a “significant headwind” for the company. The Dearborn, Mich.-based automaker had already lost 17% of its planned production in the first quarter because of the chip issue, and it anticipates losing 10% of forecast output in the second […]
Feralloy Corporation., a subsidiary of Reliance Steel & Aluminum Co., is planning to build a massive service center on the site of Steel Dynamics Inc.’s new flat rolled mill under construction in Sinton, Texas, near Corpus Christi. The new warehousing and processing center will be known as Acero Prime-Feralloy Texas. Acero Prime is Feralloy’s subsidiary […]
Metalforming companies are optimistic about business conditions for the next three months, but are concerned about longer lead times for steel and other materials. In the April 2021 Business Conditions Report by the Precision Metalforming Association, 56% of participants expect improvement in economic activity in the next three months compared to 50% in March. Only […]
Among steelmaking raw materials, the prices of iron ore, pig iron, zinc and aluminum rose through mid-April, on top of large gains seen in previous months. Prices increased as much as 10% month-over-month for those four products. Iron ore prices have reached record levels, while coking coal prices remain down. Pig iron and scrap prices […]
Reliance Steel & Aluminum Co., the nation’s largest metals distributor and processor, reported record pretax income of $359 million in first-quarter 2021, fueled by the unexpectedly high steel prices and solid demand in most of the markets the company serves. “The combination of a record quarterly gross profit margin, average selling prices well above our […]
My first job in the steel industry started in July 1977. I have been involved with the industry ever since. I’m coming up on 44 years in a few months. That either makes me old or wise…well, old anyway. What I can tell you is during those 44 years I have never seen a market […]