Three out of four respondents to Steel Market Update’s market trends questionnaire this week said they expect to see shortages and possible allocation of steel in the next few months. Buyers report that deliveries from all the mills are routinely 2-4 weeks late. Service centers are getting inquiries from other service centers, even competitors, who […]
Two recent steel mill issues have taken steel capacity out of the market, further tightening supply. Sources report that a COVID-19 outbreak at ArcelorMittal Burns Harbor has disrupted production affecting “at least” 50,000 tons. Customers report they have been told some January orders will be delayed until February and new orders for February may not […]
Much has changed since Flack Global Metals announced its plan a year ago to build a new painting and processing center adjacent to Big River Steel in Osceola, Ark. Minority shareholder U.S. Steel plans to buy the rest of BRS. Competitor Nucor got into the prepaint business with its purchase of Precoat Metals’ nearby Armorel, […]
The thought of a possible steel shortage gained new ground this past week as news of spreading coronavirus infections at ArcelorMittal Burns Harbor, the breakout at the No. 2 caster at Dofasco, the slow return of production at Stelco due to a hack of their computer systems, and the continued strike at the NLMK USA […]
Big River Steel has successfully started up a second electric arc furnace at its mill in Osceola, Ark., completing the Phase Two expansion that doubles the capability of the advanced steelmaking facility ahead of the original timeline. “When describing the success of our Phase Two construction efforts, I am extremely proud to be able to […]
I am hearing the U.S. Steel Gary Works #4 blast furnace will be coming back up by the end of this year. According to AIST, the #4 furnace is rated at 1,390,000 tons of pig iron annually. So, this means we will have more supply added from USS and from Big River Steel as they […]
Big River Steel is expected to roll the first coil from its new electric arc furnace sometime next week, according to U.S. Steel’s Q3 comments and other sources. The project ran ahead of the scheduled January start-up by more than two months. Although the first coil will be produced next week, full capacity won’t be […]
The SMU Steel Price Momentum Indicators on all flat rolled and plate steel products are currently pointing toward higher prices over the next 30 days. We expect hot rolled, cold rolled, galvanized, Galvalume and steel plate pricing to increase during the coming weeks. The two major reasons for our position are the limitations of supply […]
By CRU Analyst Estelle Tran, from CRU’s Global Steel Trade Service The U.S. market is at a unique point where steel buyers could be convinced to buy imports because of extreme supply tightness. With about 7Mt of blast furnace capacity remaining idled in the U.S. and Canada, sheet mills in operation are effectively running at […]
U.S. Steel narrowed its loss to $234 million in the third quarter from a net loss of $589 million in the second quarter. Net sales increased to $2.34 billion from $2.09 billion. “Our third-quarter results exceeded our guidance and demonstrated the power of the actions we have taken since the onset of COVID-19 with dramatically […]
Ferrous scrap prices saw a big jump in December, settling up by a minimum of $70/GT, with rumored sales exceeding $100/GT, report Steel Market Update sources. Scrap prices are widely expected to see further increases in January, adding ongoing support to the uptrend in finished steel prices. Scrap for December reportedly settled in the following […]
Friday, Saturday, Sunday, Monday, Election Day – Tuesday, Nov. 3, 2020. If you have a mail-in ballot, it is now too late to put in the mail. You will need to personally drop the ballot off at a collection box. If you can vote early, I would highly recommend it (I voted last week in […]
U.S. Steel has successfully started its new electric arc furnace steelmaking facility at Fairfield, Ala. The EAF commenced its first arc, charged and melted scrap and on Oct. 20 tapped its first heat of liquid steel. EAF #1 at Fairfield Tubular will have an annual steelmaking capacity of 1.6 million tons and is part of […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
Have you ever attended a wedding and thought to yourself as you looked at the lovely young bride and her much older groom: “How is this going to work?” The marriage of U.S. Steel and Big River Steel is raising some of the same doubts. U.S. Steel announced today that is has exercised its option […]
Steel buyers have mixed views on the sustainability of steel demand and the likelihood the mills will continue to collect higher prices. In our latest check of the market, SMU asked: Do you think the mills will be able to collect the price increases they announced last week on flat rolled and plate products? Do […]
On Thursday, Steel Market Update produced an article on lead times with the headline, “Steel Mill Lead Times: Mixed Messages.” The lead times being discussed in the article come from our proprietary survey, which is produced every other week. The lead times are based on the average from the manufacturing companies and steel service centers […]
On Thursday, Steel Market Update produced an article on lead times with the headline, “Steel Mill Lead Times: Mixed Messages.” The lead times being discussed in the article come from our proprietary survey, which is produced every other week. The lead times are based on the average from the manufacturing companies and steel service centers […]
With a presidential election on the horizon, the AIST Town Hall Forum asked steel executives how a new administration may affect the steel industry and trade. “I continue to expect bipartisan support in Washington for American workers, American steelmaking, regardless of who is in the White House,” said U.S. Steel CEO Dave Burritt. “But I […]
With steel mills currently having extended mill lead times, steel buyers need to be cognizant of their inventories. If one has two months of inventory and the mills are running seven-week lead times on your products, then you need to be concerned should lead times move out even further. If you are an active buyer […]
With steel mills currently having extended mill lead times, steel buyers need to be cognizant of their inventories. If one has two months of inventory and the mills are running seven-week lead times on your products, then you need to be concerned should lead times move out even further. If you are an active buyer […]
Recovery, fundamental, opportunity, strategic, exciting. These are the five words steel executives used during AIST’s Virtual Town Hall Forum Wednesday to describe the current state of steel. In the aftermath of an unprecedented upheaval for the economy and the industry caused by the COVID-19 crisis, executives from Big River Steel, Cleveland-Cliffs, Nucor, Steel Dynamics and […]
Mill lead times are extended, price increase announcements are being made (with ArcelorMittal USA putting a minimum base price on hot rolled out there of $650 per ton and cold rolled and coated at $850 per ton) and mills are holding the line on spot negotiations. Momentum is clearly on the side of the steel […]
From one of our SMU readers to John Packard, President & CEO of Steel Market Update, “Welcome back… Regarding steel, wow. What a difference a month (or, a month and half) makes!” A second reader told us, “Market pricing and lead-times have moved aggressively…and rapidly. Many are finding themselves too late to the party.” It […]
There is a lot of catching up that I have had to do over the past few days. In the process I have spoken to steel buyers and sellers, mills, service centers, and traders. Steel buyers should anticipate another flat rolled price increase between now and early October. Scrap is rumored to be going up […]
Galvanized steel prices have skyrocketed by more than $200 per ton since August, leaving wholesalers who serve the HVAC market to wonder how much higher the price can possibly go before it begins to cut into demand. On a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) said […]
Our thoughts and prayers go out to the millions of people on the West Coast who are suffering the threat and devastation of historic forest fires. The loss of life and property is staggering. And the blow to business and commerce in the region has yet to be measured. Face masks are doing double duty […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of financial market trading experience and has been active in the ferrous futures space for eight years. David earned an MBA from the University of Chicago Booth School of Business with concentrations in economics, statistics and analytical finance. […]
The galvanizing line at Big River Steel’s mill in Osceola, Ark., will be down from 10-14 days for repairs following an electrical failure on Sunday. The company said it will continue to meet customer needs despite the unplanned incident. Big River Steel confirms that its electrical energy provider, Entergy Arkansas, experienced a substation failure on […]
The future of U.S. Steel and Big River Steel as one entity continues to excite CEOs from both companies. Speaking during the SMU Virtual Steel Summit this past week, U.S. Steel CEO David Burritt could barely contain his enthusiasm regarding the opportunities the marriage of the two companies will provide the iconic steel producer. Burritt […]