Domestic steel orders are strong and flat roll prices are on the rise, which means demand from the mills is likely to push ferrous scrap prices higher in January. “All things are pointing up for ferrous scrap,” said a dealer in the Northeast. Obsolete grades should rise in higher proportions than primes, but all grades will […]
Steel Dynamics Inc. provided guidance on fourth-quarter earnings, predicting a lower sequential quarter. Planned outages at the company’s flat rolled divisions resulted in higher costs and lower value-added shipments, reducing pretax earnings by approximately $27 million. Flat rolled steel pricing declined at a steeper rate than prices for scrap raw material. The long products division […]
The ferrous scrap market is heading higher. In a surprise to scrap experts (and probably the mills), prices are rising with some early deals done at +$20 per gross ton on prime grades and +$30 per gross ton on everything else. That is where Detroit settled earlier this week. Steel buyers need to be aware […]
Steel Market Update (SMU) has been canvassing our ferrous scrap sources to find out where the industry sees prices once the negotiations begin with the domestic steel mills. All of our sources tell SMU they expect prices to be higher, somewhere in the $10 to $30 per gross ton range, compared to the November prices. […]
Ferrous scrap prices for the month of November began coming into focus on Friday with SMU scrap sources advising prime grades as being down $10 per gross ton compared to October levels. Obsolete and cut grades were reported as trading sideways (same prices as October). Not all regions are trading at the same pricing or […]
When Steel Market Update (SMU) began talking to our ferrous scrap sources over the past couple of days, we got a variety of opinions as to where prices will go for the month of November. From the East Coast we heard sideways was the most likely direction with a little “slightly stronger” for prime grades […]
When Steel Market Update (SMU) began talking to our ferrous scrap sources over the past couple of days, we got a variety of opinions as to where prices will go for the month of November. From the East Coast we heard sideways was the most likely direction with a little “slightly stronger” for prime grades […]
Steel Dynamics and CEO Mark Millett are expecting a tighter steel market in the fourth quarter. After surging ahead of possible Section 232 trade action, import levels have declined and, coupled with strengthening order rates and longer lead times, steel prices are expected to appreciate significantly, said Millet in remarks during the company’s quarterly conference […]
SMU published an article in Tuesday evening’s issue about the comments made by General John Adams on national security and the need for steel. The title of the article was “General Goes Nuclear in Support of Section 232.” We received a number of comments from that article wanting to know if we had fact-checked what […]
What goes around comes around, as they say. In the case of the ferrous scrap market, what goes around and comes around again and again are residuals such as copper that complicate the steelmaking process and threaten to erode some of the competitive cost advantage now held by minimills. Minimill steelmaking has transformed the steel […]
The negotiations for ferrous scrap were pretty “easy,” according to one ferrous scrap analyst who told Steel Market Update on Friday that virtually every market in the United States was down $30 per gross ton on heavy melt and shred and other obsolete grades, while prime grades such as bundles and #1 busheling dropped $40 […]
Steel Market Update (SMU) has been speaking with a number of our ferrous scrap sources over the past few days to get a better feeling as to where scrap will trade for the month of October. Early reports are that Detroit (which tends to lead the charge most months) saw cut/obsolete grades down $30 per […]
The United States’ share of the global steel scrap trade has changed little in the two and a half years through second-quarter 2017. Steel Market Update performs this analysis quarterly to understand the gyrations of the domestic scrap market and where the U.S. stands as a global player. This data is not very current because […]
The ferrous scrap market is softening and SMU’s sources expect prices to drop by $10 to $20 per gross ton in October. Domestic mills are beginning to cancel September orders that have not been completed (delivered) by the end of the month. This is a sure sign the mills believe ferrous scrap negotiations for October […]
Hurricanes Harvey and Irma were devastating for the many Americans still struggling to recover from the damage. But for the scrap metal market, contrary to common belief, the storms will be a mere blip. “Everyone’s immediate reaction to Harvey is, ‘Oh, there will be so much scrap coming out of Houston, prices will drop.’ The […]
Pictures of countless cars and trucks submerged in Houston floodwaters and homes shattered by high winds in the Southeast have the worth of a thousand words in describing the destruction from Hurricanes Harvey and Irma. What they say about post-storm conditions in the ferrous scrap market is less clear. For those who assume thousands of […]
On Friday, Steel Market Update (SMU) adjusted our Price Momentum Indicator to Lower from Neutral. It is our opinion that flat rolled steel prices will move lower over the next 30 days for the following 10 reasons: First, when the head of commercial of a domestic steel mill tells SMU that “transaction pricing cannot go […]
The Steel Market Update (SMU) Price Momentum Indicator has been “stuck” in Neutral for a number of weeks as steel buyers and steel mills wrestle with the direction of flat rolled steel prices going forward. Steel buyers are beginning to say the next move in flat rolled steel prices may well be lower, rather than […]
Ferrous scrap prices were expected to rise by $20 to $30 per gross ton once the September negotiations began. By Thursday afternoon (today), we were learning that steel mills are suddenly able to buy at sideways numbers. We understand North Star BlueScope was able to buy September at the same prices as August. Other sources […]
The chaos to commerce continues in the Houston area as a result of flooding and damage from Hurricane Harvey. Texas Governor Gregg Abbot estimates damage to the area will be in the range of $150 billion to $180 billion. A quick survey of steel service centers and distribution centers in the area found that many […]
The following table is for the month of August 2017. Most of the data speaks for itself. We produce this information at the end of every month. There are a number of data points or reference points that are proprietary to Steel Market Update. These include our SMU Price Momentum Indicator which, at the end […]
Tomorrow, Monday, Aug. 28, the steel event of the year will kick off in Atlanta. With over 650 steel and manufacturing executives registered, expectations are for this conference to truly be the most dynamic steel conference in North America for 2017. Welcome to the Steel Market Update Steel Summit Conference. This is what the fuss […]
SMU scrap sources advised us early this morning of an export sale of an 80/20 mix of ferrous scrap bound for Turkey. Our sources reported the sale price at $350 per metric ton delivered Turkey. The sale price is up approximately $50 per metric ton since early July and $20 per metric ton from last […]
Ferrous scrap prices are up about $20 per ton across the board on strong domestic demand and scrap export markets “that are on fire,” say SMU’s scrap sources. One scrap metal processor with locations across the country reports HMS at $300, shred at $315 and busheling at $390 per gross ton for August delivery. Export […]
I adjusted our Price Momentum Indicator from Higher to Neutral. I did this after spending time analyzing the results from last week’s flat rolled steel market trends survey, looking at what was being recorded by some of the other indexes, noting that Congress and the president are on holiday for a few weeks and there […]
Ferrous scrap prices are poised to rise in the NAFTA region for several reasons, says John Harris, CEO of Aaristic Services, Inc., and former director of Raw Materials for ArcelorMittal. Harris is part of a panel that will take a deep dive on commodities during the Steel Market Update Steel Summit Conference Aug. 28-30 in […]
It has been another busy week here at Steel Market Update. We are hearing from steel buyers that Nucor is considering raising flat rolled prices by $25 per ton within the next few working days. The increase would follow an increase in ferrous scrap prices for August delivery. We have also heard that at least […]
Written by: John Packard, Founder, Steel Market Update Steel Market Update was incorporated and began selling subscriptions (memberships) of just our steel newsletter during August 2008. Today, we are celebrating our ninth birthday. I want to take a moment to thank our members and those who participate in our conference and workshops. I want to […]
Written by: John Packard, Founder, Steel Market Update Steel Market Update was incorporated and began selling subscriptions (memberships) of just our steel newsletter during August 2008. Today, we are celebrating our ninth birthday. I want to take a moment to thank our members and those who participate in our conference and workshops. I want to […]
On Monday, August 28, the steel event of the year will kick off in Atlanta. With less than four weeks to go and 575 steel and manufacturing executives already registered, expectations are for this conference to truly be the most dynamic steel conference in North America for 2017. Welcome to the Steel Market Update Steel […]