By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor The bullish sentiment in the Chinese steel industry has resulted in continuous strong demand for iron ore. Meanwhile, iron ore supply from Australia has been weak throughout November and inventories in China have remained at a low level as a result. On Tuesday, […]
By CRU Principal Analyst James Campbell, from CRU’s Global Steel Trade Service The recent acceleration in news of a pre-approved vaccine has led us to bring forward the economic recovery to the first half of 2021. Confidence has returned and spending is resuming. An earlier-than-expected vaccine provides upside risks to our automotive and construction outlook. […]
By CRU Senior Analyst Helen O’Cleary, from CRU’s Steel Sheet Products Monitor The impact of Covid-19 restrictions on global manufacturing this year has led to the loss of ~ 700,000 t of refined zinc demand compared to our pre-Covid-19 forecasts. Smelter output has been far less impacted, despite mine supply losses, and this has led […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices have continued to surge in the past week as robust Chinese demand has coincided with lower Australian exports. As a result, prices have climbed above $130 /dmt and on Tuesday, Dec. 1, CRU assessed the 62% Fe fines price at […]
By CRU Chief Economist Jumana Saleheen and Principal Economist Alex Tuckett, from CRU’s Steel Monitor In this Global Economic Outlook, we look ahead to 2021 and outline our top ten calls for the global economy. These include predictions on Covid-19 vaccines, world growth, the auto and construction sectors, the U.S. dollar, monetary and fiscal policy, […]
For those of us who live in the United States, today should be one where we recognize we have expressed our opinions about politics and politicians with our vote. We recognize the strength of our democracy is rooted in the belief that we are all Americans no matter our political ilk. To believe otherwise only […]
Despite some initial concern that the ferrous scrap market would dip in November, scrap dealers anticipate a “strong sideways” price trend next month. “Export sales have been voluminous over the last two weeks, and prices are now about $10 off the lowest levels they fell to over the last month or so,” said a dealer […]
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 […]
Following big jumps in December and January, ferrous scrap prices are expected to moderate in February. Steel Market Update sources predict obsolete grades could drop by $30-50/GT and prime grades by $10-20/GT due primarily to the large amount of scrap offered to the mills in January and the weakening export market. “Scrap dealers are lowering […]
Ferrous scrap prices are expected to rise anywhere from $40-70/GT in March after declines in February, lending further support to higher finished steel prices. Scrap prices are likely rise in March by at least as much as they fell in February, said CRU Senior Analyst Ryan McKinley. “The cold snap over the last few weeks […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Sheet Products Monitor HR coil was the standout product across all regions this week. HR coil deal prices and buyer bids increased in Vietnam, strong demand data supported prices in China, and tight availability continued to bolster U.S. prices and sure up the market in Europe. […]
By CRU Chief Economist Jumana Saleheen and Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook In this Global Economic Outlook, we reflect on some of the most important risks to the forecast we discussed with clients during LME week. Three issues were foremost: risks to the recovery from the second Covid-19 wave, policy stimulus […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Monitor Reflecting a basket of finished steel prices, CRU’s global finished steel CRUspi reached 162.9, its highest level since May 2019. This indicator, which covers Asia, Europe, and North America, increased 5.2% m/m and is now up 9.9% y/y, the first y/y increase since November 2018. […]
Our latest foreign vs domestic hot rolled steel price comparison shows that U.S-producers continue moving closer to losing their price advantage over foreign imports, according to SMU and CRU indices released this week. The price differentials between domestic HRC compared to foreign imports had widened through mid-August to reach record highs, but have since declined […]
ESG (Environmental, Social and Governance) and decarbonization are big concerns for corporate investors in the metals and mining sector, according to a recent survey by CRU. How prepared are global corporations to take on the changes needed to reach zero emissions? China is a leader in decarbonization, announcing in September a target of net zero emissions […]
With early voting underway, record breaking mail-in ballots, and a final voting date a mere 14 days away, it is safe to say that much is riding on the upcoming U.S. presidential election. With two candidates who share little common ground in a bitter election battle, it’s clear that a shift in presidential administration will […]
By CRU Senior Analyst Ryan Smith and Research Manager Paul Butterworth CRU analyzes hydrogen-steelmaking costs in the EU and explains why CO2 prices of more than $200/t-CO2 are required to incentivize an EU industry shift to these technologies. Climate Goals vs. Economics The 2050 goal for the EU economy is to be climate-neutral, meaning that […]
By CRU Principal Economist Alex Tuckett and Economist Anissa Chabib, from CRU’s Steel Monitor It now seems clear that Joe Biden will become U.S. president in January. However, it is likely that the Republicans will maintain their Senate majority. This will significantly limit Biden’s ability to implement his economic policy agenda. In this insight, we […]
Steel Market Update’s service center inventories data for September shows supplies on hand at very low levels. At the same time, the percentage of inventory on order is at very high levels. That suggests, say some observers, that some service centers may have waited too long to replenish their inventories, then did some panic buying […]
By CRU Economist Ippolito Tarabini, from CRU’s Steel Sheet Products Monitor The dollar has been extremely volatile over the past two quarters. Underlying this is macroeconomic uncertainty linked to the coronavirus pandemic. We expect such uncertainty and volatility to continue into Q4, but trade-weighted dollar and dollar-euro to be range bound around a stable trend. […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) was unchanged m/m in October at 225.6 following large price increases the prior month. Supply in many markets became more available as prices rose, and this helped prevent additional upside pressure. For November, market sentiment is that prices […]
By CRU Analysts Ben Carstein and Lize Wan On Oct. 9, it was reported that Chinese state-owned power plants and steel mills had received verbal notice from China’s customs to stop importing Australian metallurgical and thermal coal with immediate effect. In this article, we review the announcement and its potential implications. Has the Announcement Been […]
By CRU Senior Analyst Helen O’Cleary The U.S. economy saw an impressive overall rebound through Q3, following severe Covid-19 disruption in Q2. We estimate that U.S. industrial production contracted 7.5% y/y in Q3, following a decline of 14.4% y/y in Q2. However, the momentum of the recovery is slowing as fiscal stimulus and the effects […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices have fallen by $8 /dmt in the past month as seaborne supply has been robust, even during the start of the new quarter, which is typically a weak supply period. As a result, arrivals to China have remained strong and […]
By CRU Analyst Estelle Tran, from CRU’s Global Steel Trade Service The spike in sheet purchasing activity pushed prices up $200 /s.ton over the last two months and mill lead times for HR coil over six weeks. Steel Market Update, which is owned by CRU, also reported CR and HDG coil lead times in the […]
By CRU Multi-Commodity Analysts Zanna Aleksahhina and Will Young Over the summer and into Q3 2020 commodity prices staged a remarkable recovery from Q2 lows and in October many prices are comfortably above where they started the year. Given that the major economies are still struggling to control the spread of Covid-19, underlying demand is […]
Flat Rolled = 45 Shipping Days of Supply Plate = 51.3 Shipping Days of Supply Flat Rolled Service center flat roll inventories fell significantly month on month as shipments increased and mill lead times extended. The SMU service center inventories data for September shows that service centers carried 45 shipping days of supply of flat […]
Welcome to the year that never ends…and the worst part is just beginning. First, the good news. According to the manufacturing and service center executives who made up 82 percent of the respondents to this week’s survey, the steel economy is going to be much improved in 2021 versus what we have seen this year. About […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices have remained steady in the past week as a price increase last Thursday was met by similar falls in the past few days. Steel prices in China have risen after the holidays on an optimistic demand view, but iron ore […]
By CRU Analyst Anh Nghiem, from CRU’s Steelmaking Raw Materials Monitor Optimism from the steel market led to good buying interest of iron ore from Chinese steel mills last week. There was also post-holidays restocking demand as iron ore inventory at Chinese steel mills fell by 13% w/w last week. However, there was an announcement […]