Selling the family business “is not just a personal choice, but what’s best for the company,” said Roy Berlin of Berlin Metals one year after selling his Hammond, Ind., service center operation to Olympic Steel. Speaking with Steel Market Update on his first day of retirement, “the first day of the rest of my life,” […]
Major U.S. automakers reported weaker sales in March, in line with analysts’ forecasts. Cox Automotive expects auto sales volume for the month to drop 7 percent year-over-year to 1.547 million. The seasonally adjusted annual rate is forecast at 16.5 million vehicles. “The year has started relatively soft for new-vehicle sales,” notes Jonathan Smoke, chief economist […]
April saw steel prices lose momentum as hot rolled dipped to an average of $662, cold rolled to $803 and galvanized G90 to less than $900 per ton. Even plate, which has been in tight supply, has now moderated to around $964 per ton from prices near or above $1,000 earlier in the year. Steel […]
By CRU Principal Analyst Josh Spoores In the U.S., plate prices rose $16 /s.ton after falling by $34 /s.ton last week. Prices here started to fall back from their high levels in February, though mills announced a $40 s/.ton price increase, which at best may only stabilize prices at this lower level unless seasonal demand […]
Over the next two years, Big River Steel will expand its Osceola, Ark., flex mill with help again from German plant builder SMS Group. Big River has commissioned SMS to supply mechanical equipment, electrical and automation systems and digitalization. BRS will add a second electric arc furnace and twin-ladle furnace to the complex, increasing output […]
Steel Market Update asked: With steel imports dropping and domestic mills running close to capacity, are you concerned about where steel prices may go over the next few months? Surprisingly, nearly two out of three respondents to SMU’s market trends questionnaire earlier this week said they are unconcerned about a big swing in prices. Their […]
Over the next couple of years there will be approximately 20 million tons of capacity built in North America. Most of us focus on the capacity being built by Nucor, Steel Dynamics, JSW USA and others. What is overlooked is the capacity being built just south of the U.S. border in Mexico. In an effort […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Worthington Industries President Andy Rose described the third quarter of fiscal year 2019 as a “noisy period” in terms of earnings. “There continues to be a lot of noise in our third-quarter results,” said Rose. “The biggest challenge we have been facing is the steel tariffs, which have created artificial pricing mechanics that should have […]
U.S. Steel announced that Daniel (Dan) R. Brown has been advanced to the position of General Manager, Great Lakes Works, effective April 1. In this position, he will be responsible for the day-to-day operations of Automotive Solutions’ fully integrated steel mill, Great Lakes Works, located in Ecorse, Mich., and the Midwest Plant located in Portage, […]
I am traveling this week. I have been in Monterrey, Mexico, where I visited the Roberto Rocca Industrial School in Pesqueria in the state of Nuevo Leon (just outside of Monterrey). I also visited the Ternium Industrial Center, which is already a major rolling facility and where Ternium is expanding capacities dramatically so the mill […]
The North American Steel Alliance, the member-owned purchasing cooperative serving the metals distribution industry, has added three new members, bringing its total to 124. Harris Steel, Cicero, Ill., is a flat rolled distributor specializing in unique steel grades, chemistries and tempers. It operates three coil-to-coil slitting lines for both ferrous and nonferrous products, supplying the […]
Are steel prices witnessing a dead cat bounce or the beginning of a bullish reversal? The market appears split on the feline vs. bovine analogy. In other words, there is a huge divergence of thought on what is going to happen to steel prices over the next three or four months. The benchmark price of […]
United Autoworkers are gearing up for contract negotiations this summer and are ready for a fight. At the UAW bargaining convention in Detroit last week, the UAW announced the negotiating teams for FCA and General Motors. Bargaining will be led by UAW President Gary Jones along with department directors Cindy Estrada at FCA and Terry […]
Total foreign steel imports are on the decline as license data from the U.S. Department of Commerce has February imports at 2.5 million net tons. Based on license data through March 12, it appears March imports will also be in that same vicinity. To put this into perspective, imports for February 2018 were 2,478,000 net […]
Total foreign steel imports are on the decline as license data from the U.S. Department of Commerce has February imports at 2.5 million net tons. Based on license data through March 12, it appears March imports will also be in that same vicinity. To put this into perspective, imports for February 2018 were 2,478,000 net […]
I have been very pleased with the response we have received for the SMU Steel Summit Conference agenda, which we rolled out earlier this week. I have received multiple comments about the quality of the program and speakers. Brian Robbins of MidWest Materials told me, “It’s good!!!! If not exhausting… I am thinking of bringing […]
We live in a time when nothing is as it seems and uncertainty rules the roost. This can make for a daunting task when considering when, what and how much steel you need to purchase at any point in time. It appears the second price increase announcement out of Nucor moved some of the end […]
We live in a time when nothing is as it seems and uncertainty rules the roost. This can make for a daunting task when considering when, what and how much steel you need to purchase at any point in time. It appears the second price increase announcement out of Nucor moved some of the end […]
As markets transition from one phase to another, the process can sometimes be “messy” until there is a clear direction as momentum shifts. Many steel buyers reported a higher sense of confidence that the market has “turned the corner” and will move higher from here. However, the feelings are not universally shared as some buyers […]
Steel Market Update is sharing this Premium content with Executive-level subscribers in this issue. For more information on upgrading to a Premium-level membership, email info@SteelMarketUpdate.com Key market indicators were strong in March and the trends have improved since January. This report is designed to provide a big picture summary of data we have covered in […]
Canadian steel company Stelco announced a new CEO and defied U.S. tariffs with a strong earnings report for the fourth quarter. David Cheney, formerly chief business development officer, will assume the mantle of CEO from Alan Kestenbaum who will continue to serve as Executive Chairman. Cheney will have executive responsibility for the company’s day-to-day business, […]
President Trump has received the long-awaited report from the Commerce Department on whether imports of automobiles and auto parts pose a threat to national security and now has 90 days to consider whether to place a 25 percent tariff on automotive imports under Section 232. Details of the Commerce findings were not disclosed but the […]
Section 232 tariffs on imported autos and auto parts would cause “substantial harm” to the U.S. economy, says a new report by the Center for Automotive Research. CAR analyzed the impact of 25 percent auto tariffs in 10 policy scenarios, concluding that, in all cases, the outcomes “are all profoundly negative for consumers, for new […]
Section 232 tariffs propelled ArcelorMittal to its best results in nearly 10 years, the company reported to analysts and investors today. The 25 percent tariffs on steel imports helped drive up steel prices, adding to company revenue from its U.S. assets. Average steel selling price in North America rose 15 percent year-over-year. Net income for […]
January got off to a tentative start as steel prices continued to decline, leaving buyers with a cautious perspective on the months ahead. Steel Market Update’s Buyers Sentiment Index shows buyers slightly less optimistic than they were in November. Sentiment factors into buyers’ decision-making about such factors as purchasing, inventory levels, capital investment and hiring. […]
Auto sales dipped in January as cold weather and the government shutdown chilled consumer demand. Automotive News estimated the seasonally adjusted annual sales rate at 16.9 million, down from 17.72 million in December and 17.22 million in January 2018. Light trucks and SUVs continued to carry sales, inching up 0.3 percent while sales of cars […]
Key Market Indicators in January, indicators of the present situation, remained strong, but trends deteriorated to the weakest level in two years. This report summarizes 36 data streams that we believe critically describe the state of and provide forward guidance for the steel market. Due to the government shutdown, 13 of the 36 indicators were […]
The big news for AK Steel this week was the closing of Ashland Works, but the company also posted remarkable financial results for full-year 2018. Sales in 2018 increased 12 percent to $6,818.2 million, generating net income of $186.0 million, a 25 percent increase from 2017. Increased sales were driven by higher carbon steel pricing […]
More than 800,000 car enthusiasts turned out for the North American International Auto Show this week in Detroit to admire the shiny new offerings for the 2019 model year. The steel industry is even more interested in what’s beneath those shiny exteriors. The Steel Market Development Institute displayed a degree of pride in congratulating the […]