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, […]
Total mill shipments of steel products fell 3.3% in November to 8.334 million tons, slipping for only the second time in eight months. Apparent supply rose fractionally in November, up 0.2% after eroding successively the prior two months. This analysis is based on steel mill shipment data from the American Iron and Steel Institute (AISI) and import-export […]
U.S. apparent steel supply levels remained high through November, down less than 1% from the month prior to 9.77 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. Recall that in September we saw the highest supply level in over six years, going back to January […]
November U.S. steel exports increased 1% from October to 725,000 net tons, according to the latest U.S. Department of Commerce data. While October and November levels are down compared to the summer months, the 12-month moving average through November is now at a 32-month high. Recall that March and June of 2021 were the two […]
SMU’s Community Chat webinar with Wolfe Research metals and mining managing director Timna Tanners last week was our second-best attended ever. With more than 800 registered attendees, Tanners topped her own previous record. Barry Zekelman, executive chairman and CEO of Zekelman Industries, still holds the title. But not by quite as wide a margin. We […]
By Trade Attorney Lewis Leibowitz Tomorrow in Geneva, the U.S., Russia and Ukraine will start talks that could defuse, or not, the threat of war in Europe. Of course, a war has been going on between Russia and Ukraine for a while. In 2013, Viktor Yanukovich, then Ukraine’s president, rejected an agreement that would have […]
Steel prices declined for the fourth consecutive month in December, following a year-long streak of continuous price increases. Hot-rolled coil prices declined $130 per ton throughout the month, with the SMU index averaging $1,600 per ton ($80.00 per cwt) as of Tuesday, Dec. 21 (SMU did not published updated prices on Dec. 28). The SMU Price Momentum […]
By Trade Attorney Lewis Leibowitz It’s a new year and a new start on many things. COVID does not appear to be one of them, but China relations may be. At the beginning of 2020, China and the U.S. agreed to settle some of their trade differences by inking a deal that reduced some U.S. […]
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. gross domestic product (GDP) expanded at an annual 2.3% rate in the third quarter, up from the prior estimate of 2.1% but still at the slowest pace in more than a […]
By CRU Principal Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor, Dec. 21 Iron ore prices have continued to rise in the past week, a typical year-end development observed in recent years. This is the time when steelmakers start building iron ore stocks in anticipation of restricted transportation of ore from ports to mills […]
By Greg Wittbecker, Advisor, CRU Group Legislation passed Dec. 16 by the Senate and now on its way to the White House will all but ban imports connected at any point in the supply chain to materials from China’s Xinjiang Uyghur Autonomous Region. However well justified by human rights, this ban will be a challenge for […]
The Commerce Department has declined to initiate a duty-circumvention case filed by Steel Dynamics Inc. (SDI) against Vietnamese coated flat-rolled steel made from Japanese substrate The decision came on the heels of opposition from big foreign mills, major steel importers and exporters, as well as lobbying groups in Japan and Vietnam. “Commerce finds that SDI did […]
By Greg Wittbecker, Advisor, CRU Group It’s that time of year when we start looking ahead as we put the current year in our “rear view mirror.” Here are some of the things that I circulated to the CRU Aluminum Analysis team for consideration among our “top calls for 2022.” These are not officially “blessed,” […]
Apparent steel supply remained high in October at 9.86 million net tons, down just 0.6% from September, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. Recall that in September we saw the highest supply level in more than six years, going back to January 2015 when supply surpassed 10 million tons. October […]
Steel prices fell hard again this week. While the absolute numbers – down $60 per ton ($3 per cwt) on hot-rolled coil – might appear shocking at first glance, one could make the case that we’re being conservative. The development shouldn’t have come as a surprise to those who lived through past ups and downs. […]
By Greg Wittbecker, Advisor, CRU Group The massing of Russian troops on the border with Ukraine has raised tensions to a high level on the political scene. It forces us to take another look at the repercussions of new sanctions on the Russian state should Putin decide to invade. 2018 Repeated? In March 2018, sanctions […]
U.S. steel exports fell 2% from September to October and are now at 719,000 net tons, according to the latest U.S. Department of Commerce data. This is the lowest monthly export level in seven months. Recall that in March and June of this year, we saw the two highest monthly export levels in the last three […]
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 […]
Ferrous scrap prices for December settled mostly sideways across the U.S. following a big jump in November as export demand slowed and as mills sought to reduce year-end inventories. Steel Market Update sources generally put December scrap in the following ranges: Shred $520-540/GT; Bush $600-640/GT; and HMS $470-490/GT. “It was an unusual, and frankly unexpected, […]
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, […]
By CRU Analyst Tanya Bhaiji, from CRU’s Steel Sheet Products Monitor, Nov. 29 Galvanized sheet is the biggest first use for refined zinc, constituting around 30% of total refined zinc demand in 2020. The majority of galvanized sheet is consumed in end-use sectors such as construction and automotive while a smaller percentage is also consumed in […]
By CRU Research Analyst Aaron Kearney-Keaveny from CRU’s Steelmaking Raw Materials Monitor Dec. 7 Iron ore remained largely stable in the past week, before rising noticeably on Monday and Tuesday, now standing at $108.0 /dmt. Supply is rising and demand seems stable, but speculation around China has resulted in the iron ore price rising yet […]
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 Hot rolled futures sellers are betting that the price of HR will drop significantly in December based on the latest […]
Steel prices declined for the third consecutive month in November, following a 12-month streak of continuous price increases. Hot-rolled coil prices declined $105 per ton throughout the month, with the SMU index averaging $1,770 per ton ($88.50 per cwt) as of Tuesday, Nov. 30. The SMU Price Momentum Indicator for hot-rolled coil was adjusted from Neutral […]
U.S. gross domestic product (GDP) grew at a modest 2.1% annual rate in the third quarter, the slowest pace in more than a year, according to the Bureau of Economic Analysis (BEA). U.S. third-quarter economic growth was slowed by the Delta variant’s disruptions to consumer spending and global supply chains. The second review by the BEA […]
By CRU Principal Analyst Matthew Watkins and Analyst Iris Speelmanns, part of CRU’s steel and the energy transition series When we think about hydrogen and steel, we generally focus on steel supply. Hydrogen is a possible alternate reductant, replacing coke and offering a pathway to low-CO2 steel production. But a hydrogen economy could also be a huge […]
By CRU Steel Analyst Tiago Vespoli, from CRU’s Steel Sheet Products Monitor, Nov. 17 There is a high probability that the weather phenomenon La Niña will start at end-November, which could have serious consequences for the steel supply chain, depending on the severity of the event. Some expected impacts include increased rainfall in Australia and […]
South Korea wants the U.S. to start negotiations to ease Section 232 on its steel exports as soon as possible, according to local media reports. The latest call came during meetings this week between U.S. trade officials and their South Korean counterparts in Seoul. “We once again delivered our stance and concerns regarding the Section […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Before joining Metal Edge Partners, Bryan held a variety of commercial […]