US automotive sales in May are expected to drop below previous forecasts and to fall to their slowest pace in 2022, Cox Automotive reported. Declines of roughly 28% in sales year-on-year (YoY) were expected last month, though preliminary results indicate a drop of more than 29%, the automotive agency said. “Auto sales in May are […]
Editor’s note: Steel Market Update is pleased to share this Premium content with Executive members. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. The US economy surprises in May by adding 390,000 new jobs, higher than earlier estimates and despite growing concerns about economic slowdown and surging inflation. The result kept the […]
By Greg Wittbecker, Advisor, CRU Group The First Movers Coalition (FMC) was launched in November 2021 at COP26 as a public-private partnership to decarbonize hard to abate sectors. At that time, the 25 founding members of FMC targeted eight sectors where innovative technology would need to be applied to effect change. The sectors of initial […]
US light vehicle sales fell to 1.25 million units in April, down 18.2% year on year (YoY). The annualized selling rate rose to 14.29 million units from 13.41 million units, the US Bureau of Economic Analysis (BEA) reported. Interest rates are rising. But what’s holding sales back is supply rather than demand, disrupting normal seasonality. The […]
Cleveland-Cliffs Inc. has changed how it supplies the automotive industry in response to chip and parts shortages that have thrown a wrench into automaker production forecasts, the company’s top executive said. “We no longer adopt their forecast as the final truth, like it was historically,” Cliffs chairman, president and CEO Lourenco Goncalves said. How did […]
Earlier this week SMU canvassed buyers on a variety of subjects, ranging from steel prices and demand to supply chain issues and new domestic capacity. Rather than summarizing the comments we received, we thought it would be fitting to share them in each buyers’ own words. Where do you think steel prices will bottom, and […]
Earlier this week SMU canvassed buyers on a variety of subjects, ranging from steel prices and demand to supply chain issues and new domestic capacity. Rather than summarizing the comments we received, we thought it would be fitting to share them in each buyers’ own words. Where do you think steel prices will bottom, and […]
Steel prices eased each week in May, following increases in March and most of April. Hot rolled prices were $1,440 per ton ($72 per cwt) the first week of May, just $40 lower than the mid-April peak. Prices then slipped between $15 and $75 each of the following weeks, with the SMU index averaging $1,255 […]
Sheet and plate prices continued to slip this week on expectations of lower scrap costs in June, increased import competition, and so-so demand, market participants said. Hot-rolled coil prices were down $35 per ton as were plate prices. Coated products were off by $25 per ton. Cold-rolled prices were up $10 per ton – or effectively […]
Who wants to be in the hot-rolled coil business anymore? I ask that only partly in jest. It’s not that no one wants to make spot HRC anymore. It’s just that not many companies seem to want to make it their bread and butter. Nucor spending $3 billion for a garage door company and looking […]
Major capital investments come to the aluminum can sheet market By Greg Wittbecker, Advisor, CRU Group This month, the market has seen two new projects announced in the flat-rolled aluminum product sector: • Novelis will spend $2.5 billion for a new state-of-the art rolling mill in Bay Minette, Ala. • Ball Corporation will partner with […]
What a whirlwind last week was. I want to thank Wolfe Research and Bank of America for inviting me to speak, the former virtually, the latter in person. I also want to thank Stanislav Zinchenko and the GMK Center for taking time to join us for what I thought was one of our better Community […]
What a whirlwind last week was. I want to thank Wolfe Research and Bank of America for inviting me to speak, the former virtually, the latter in person. I also want to thank Stanislav Zinchenko and the GMK Center for taking time to join us for what I thought was one of our better Community […]
Editor’s note: Paul Lowrey did a presentation at the Tampa Steel Conference in February 2022 covering a range of industry issues. It was well received by the audience. and SMU asked him to do it again at Steel Summit 2022 with updates. This is an excerpt of his anticipated presentation. I’m approaching 30 years in […]
North American auto assemblies shrank by 15.8% in April, falling for the first time in 2022 as ongoing supply hurdles mount. Despite the recent decline, North American production has improved since bottoming out last December. April’s results are just 4.6% higher year-on-year (YoY), and still 14.4% below the pre-pandemic period of April 2019. North American […]
Flat Rolled = 51.4 Shipping Days of Supply Plate = 48.3 Shipping Days of Supply Flat Rolled US service center flat rolled inventories declined slightly in April in terms of shipping days of supply, while the amount of material on order rose again. At the end of April, service centers carried 51.4 shipping days of […]
By Greg Wittbecker, Advisor, CRU Group The LME cash price for high grade aluminum continues to give ground, with prices at $2,715 per metric ton versus $2,861 per ton last week. There is still a lot of gloom and doom out there. Fear factor over demand is dominating price discovery Here are a few of […]
Steel Market Update sources report ferrous scrap prices fell $75-100 per gross ton in May, following record high prices in March and April due to the war in Ukraine. Heavy melt (HMS) was down nearly $100 per gross ton, whereas shredded and busheling prices were down $75 per gross ton. “Demand is okay, but there’s just too much supply […]
Steel Market Update sources report ferrous scrap prices fell $75-100 per gross ton in May, following record high prices in March and April due to the war in Ukraine. Heavy melt (HMS) was down nearly $100 per gross ton, whereas shredded and busheling prices were down $75 per gross ton. “Demand is okay, but there’s just too much supply […]
Stellantis, Chrysler’s European parent company, is the latest domestic carmaker to halt production due to the semiconductor shortage, a spokeswoman told Steel Market Update (SMU). The Auburn Hills, Mich.-based automaker will pause production of some high-demand SUVs the week of May 9. The Belvidere, Ill., assembly plant, which makes the Jeep Cherokee SUV, has seen […]
I hope the balance of the year turns out to be as good as steel mill and service center executives say it will be. I’ve covered a lot earnings reports and spent a lot of time on earnings calls over the last month. (It sometimes feels like the sun never sets on earnings season.) And […]
Olympic Steel Inc. posted strong first quarter earnings despite falling carbon steel prices earlier in the year. And the Cleveland-based service center expects the good times to carry into the second quarter even if steel prices slip. “We’ve worked hard to diversify our business, reduce our exposure to cyclical risk, and drive operational efficiencies,” Olympic […]
By Greg Wittbecker, Advisor, CRU Group US equities market this past week were a microcosm of how fast sentiment can change. It reminded me of a favorite statement I use to explain commodity trading to people outside our world: “Markets move on fear and greed.” Welcome to the fear cycle. This cycle has plenty of […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook Each of the three largest economies now face a serious risk that could push them into recession: For Europe, the greatest risk is the fall-out from the Ukraine war, particularly the potential impact on energy markets. In China, a resurgence in Covid-19 which has […]
ArcelorMittal is considering adding a second electric arc furnace (EAF) to its AM/NS Calvert joint venture in Alabama. The Luxembourg-based steelmaker said the potential second EAF, which is “being studied” now, would have capacity of 1.5 million metric tons per year (tpy). That’s according to information released along with first quarter earnings data on Thursday, […]
ArcelorMittal predicts that global steel consumption will “contract slightly” in 2022, a departure from prior forecasts of modest growth. The Luxembourg-based steelmaker now expects global consumption to contract by as much as 1% this year. It had previously forecast of global steel consumption growth of as much as 1%. “Market conditions are currently strong although […]
SMU is looking for the Next NexGen Leadership Award Winner. The NexGen Leadership Award process is now open and accepting nominations. What is the NexGen Leadership Award? The SMU NexGen Leadership Award, sponsored by the Steel Manufacturers Association (SMA), is awarded to an individual working in manufacturing or fabrication companies that utilize mild carbon or automotive […]
Steel prices were relatively steady in April, following increases in March. Hot rolled prices were at $1,460 per ton ($73 per cwt) the first week of April, the highest level seen since January 2022. Prices then bounced around within a $30 per ton range for the remainder of the month, with the SMU index averaging $1,450 per ton as […]
It’s cliché to compare steel price cycles to a roller coaster. But the description feels apt right now. People in the front can see a big drop coming. People in the back are still climbing. Why do I suggest we’re in for a drop? Our full survey results won’t be released until tomorrow. But we’ve […]
Ternium plans to continue to invest heavily in and to grow its North American presence – including in the US, company CEO Máximo Vedoya said. Case in point: The Latin American steelmaker is considering a new United States-Mexico-Canada (USMCA) compliant greenfield electric-arc furnace facility. “An announcement could still be seen in either 2022 or 2023 – we […]