The ongoing correction in steel prices is not a reflection of demand, which is strong now and is expected to remain so for the balance of 2022, Steel Dynamics Inc. (SDI) executives said. Hot-rolled coil prices are roughly in line with published price ranges of $1,300-1,400 per ton ($65-70 per cwt), although a limited number […]
In another skirmish in the battle between steel and aluminum for a greater share of the automotive market, aluminum producer Novelis Inc. plans to invest $365 million to build a highly advanced recycling center adjacent to its new automotive finishing plant in Guthrie, Ky. Groundbreaking is scheduled for early 2022, with commissioning expected in 2024. Aluminum producers claim the high […]
Steel Dynamics Inc. (SDI) posted record fourth-quarter earnings to finish a year of unprecedented profitability for domestic steel mills. And the Fort Wayne, Ind.-based steelmaker predicted that it would benefit from increased steel consumption in 2022 compared to 2021 levels. The company did not directly address a steep drop in prices that occurred in the […]
JSW Steel (USA) Inc., the U.S. subsidiary of Indian steelmaker JSW Steel Ltd., reported pretax earnings of more than $55 million in its third quarter of fiscal 2022 ended Dec. 31, 2021, outperforming year-ago results. JSW Steel’s EAF sheet mill in Mingo Junction, Ohio, reported third-quarter earnings of $42.12 million on sales of 92,557 net tons of hot […]
U.S. consumer confidence fell in January, the first decline in four months, reported The Conference Board. The headline index lost momentum at the onset of 2022 after staging a small recovery during the fourth quarter, rebounding from a summer lull. Sentiment towards current business and labor market conditions was slightly improved in January even though […]
U.S. auto sales fell further in December to 1.2 million units, down 26.4% versus the same year-ago period, according to LMC Automotive. The results caused the selling rate to decelerate to 12.4 million units annually, compared to 12.9 million units the month prior. Low inventories continued to plague the market and were the chief cause […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled For obvious reasons 2021 was a very active year for HR futures – the runaway rise in prices helped bring […]
Steel Buyers Sentiment, as measured by Steel Market Update, has seen little change in the past two months despite declining steel prices and concerns about the economy and COVID heading into 2022. SMU surveys buyers every two weeks and asks how they view their chances of success in the near and longer term. SMU’s Current […]
Among the attributes of the new, advanced minimill U.S. Steel plans to build in Osceola, Ark., next to its Big River Steel plant, is endless casting and rolling technology that will make the facility the first of its kind in the United States. What is endless casting and rolling, and what competitive advantages will it […]
North American auto assemblies contracted in December to the second lowest monthly total in 2021 after expanding the two prior months. December’s production total was down 14.7% sequentially, and down 15.0% from the same month last year. The ongoing microchip shortage and supply-chain disruptions are still limiting the automotive sector. And although most carmakers have […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor, Feb. 10 The CRU metallics price indicator (CRUmpi) rose in February m/m by 2.4% to 392.9, gaining back some of the ground lost during January’s unusually bearish market. This slight upward trend was driven primarily by supply scarcity for obsolete grade scrap and pig iron, […]
By Principal Analyst Josh Spoores from CRU’s Steel Sheet Products Monitor, Jan. 22 Trends in the North American sheet market have picked up where 2021 left off, particularly a continued decline in sheet prices. Various supply pressures have overwhelmed demand and led to lower sheet prices in all North American markets. In the U.S. Midwest […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor, Feb. 9 Sheet prices in the North American sheet market have continued to collapse due to a temporary supply surplus. Since prices peaked in late September/early October, the price decline for HR and HDG coil has been at a larger amount in USD […]
Nucor Corp. has confirmed that its greenfield, $2.7 billion electric arc furnace (EAF) sheet mill will be built in West Virginia. The Charlotte, N.C.-based steelmaker said the mill, expected to have capacity of three million tons per year, would be located in Mason County along the Ohio River. Additional sites in northern West Virginia are […]
After disappointing years in 2020 and 2021, the auto industry and its suppliers stand to enjoy a considerably better year in 2022, said Rod Lache, managing director and automotive analyst with Wolfe Research. “We think in the U.S. there are at least 10 million units of undersupply in the market, which represents pent-up demand and is […]
Popular analyst Timna Tanners may have changed where she works but not her view that there’s a “sheet storm” on the horizon, one that will bring in sharply lower steel prices over the next few years. Formerly with Bank of America, Tanners is now the managing director of metals and mining at Wolfe Research. Speaking […]
Stelco plans to enter the electric-vehicle (EV) battery recycling business with a new integrated shredding and hydrometallurgical refinery at its Lake Erie Works in Nanticoke, Ontario. The Canadian flat-rolled steelmaker said engineering studies for the new recycling operation are expected to be completed in mid-2022 with the plant anticipated to start up in 2023. The […]
Welcome back to those who took an extra day or two off after the New Year. This is my first article of the year as Michael and Tim continue to absorb more of my workload. For those of you who did not view or listen in on the SMU Community Chat we hosted yesterday with […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. U.S. consumer confidence rose for the third straight month in December, following a slight upward revision on November’s results and steady momentum after decreasing from July through September, reported The Conference Board. […]
First the takeaway: Don’t overthink it on the way down. Prices are falling, like it or not. The good thing, demand is still good – so don’t let falling prices ruin your holidays. Now, let’s overthink it a little. We’ve seen some chunky declines in recent weeks: SMU’s hot-rolled coil price fell $70 per ton […]
Tubular products producer PTC Alliance has agreed to purchase the business of Metal-Matic Inc., another maker of welded and drawn over mandrel (DOM) carbon steel tubing. The transaction, which will strengthen the company’s foothold in the Midwest, is expected to close by the end of the year. The deal will add four production facilities employing […]
Market forces are beginning to restore equilibrium to some parts of the economy, but not to others, said supply-chain expert Tom Derry, CEO of the Institute for Supply Management (ISM). Supply constraints will continue to be a drag on economic recovery in 2022, along with inflation and labor issues, he said during Steel Market Update’s […]
Steel Dynamics Inc. (SDI) has joined competitor Nucor in predicting another quarterly earnings record for the last quarter of 2021. The Fort Wayne, Ind.-based steelmaker predicted fourth-quarter earnings in the range of $5.46 to $5.50 per diluted share, according to guidance released on Thursday, Dec. 16. That’s up from $4.85 per diluted share in the […]
Steel Technologies, Louisville, Ky., has agreed to purchase the assets of Calstrip Industries, Inc., expanding Steel Technologies’ North American steel processing platform to 31 facilities, including joint-venture operations, located throughout the United States, Canada and Mexico. The transaction is expected to close late this month. Calstrip – a flat-rolled processor with operations in California, New […]
Reliance Steel & Aluminum Co. announced two more acquisitions this month, bringing the total to 70 since the service center giant’s IPO in 1994. The latest additions to Reliance’s portfolio are Admiral Metals Servicecenter Co. Inc. and Nu-Tech Precision Metals Inc. Admiral Metals, Woburn, Mass., is a distributor of nonferrous metal products serving the semiconductor, […]
Nucor has acquired a majority stake in California Steel Industries (CSI) for approximately $400 million in a deal that will significantly expand its presence on the West Coast. The Charlotte, N.C.-based steelmaker paid that amount for Brazilian iron ore miner Vale’s 50% stake in Fontana, Calif.-based CSI. It also acquired 1% of Japanese steelmaker’s JFE […]
Flat-rolled steel inventories continue to rise at service centers, and steel buyers are not flocking to do their normal end-of-year deals with steel mills. Steel Market Update has not yet produced our final Service Center Inventories and Shipment report. But we have published our “Flash” report, which we provide to our data providers after collecting five […]
Flat-rolled steel inventories continue to rise at service centers, and steel buyers are not flocking to do their normal end-of-year deals with steel mills. Steel Market Update has not yet produced our final Service Center Inventories and Shipment report. But we have published our “Flash” report, which we provide to our data providers after collecting five […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor, Jan. 5 Sheet prices fell in most markets around the world as supply availability grew. In the USA, market participants report that end users are cancelling or postponing orders, which has led to an even greater build up in inventory levels and caused […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. North American auto assemblies pushed higher in November, expanding for the second straight month as they recover from the lowest monthly total year-to-date in September. November’s production total was up 4.1% sequentially, […]