We saw further weakening in pricing this week, based on the active flat rolled and plate steel market trends questionnaire which began on Monday. We did see evidence of pressure on prices from a number of different areas. From the service centers, we saw reports of hot rolled at $500 per ton. However, we do […]
U.S. steel imports were trending considerably below average though mid-September at less than 2 million tons, based on Commerce Department license data. Imports of semi-finished steel, tracking at just over 360,000 tons, are a bit more than half the normal level, as the mills are still working off the nearly 1.2 million tons of slabs […]
Demand for sheet products is declining due to the weakness in manufacturing. Construction expenditures are showing signs of softening and will reduce the demand for long products through the balance of 2019. This analysis by Steel Market Update is based on steel mill shipment data from the American Iron and Steel Institute (AISI) and import/export […]
Flat rolled and plate steel prices have definitely reversed course and are moving lower, based on the results of our market analysis this week. We found the number of steel buyers actually buying steel to be limited. Sentiment has become negative and price momentum has shifted to Lower on all products as demand is now […]
Service centers and manufacturing companies are telling Steel Market Update of softening demand, shortening lead times (may not be in the published numbers, but orders are coming out early), and negotiable pricing. Many buyers are sitting on their hands and only buying what they need. On top of this, SMU Service Center inventories appear to […]
The pendulum appears to have swung back in buyers’ favor as service centers and OEMs report most mills willing to negotiate to secure spot orders of all types of steel products. In the hot rolled segment, 82 percent of respondents to Steel Market Update’s market trends questionnaire this week said the mills were open to […]
Mill lead times saw a small uptick following the mill price increases announced in late June and July, but have since reverted back to relatively short levels. Lead times for steel delivery are a measure of demand at the mill level. The shorter the lead time, the less busy the mills, and the more likely […]
Steel price momentum has shifted Lower for hot rolled steel. With scrap prices down in September, the market may have passed a tipping point. Here is how we see prices this week: Hot Rolled Coil: SMU price range is $550-$600 per ton ($27.50-$30.00/cwt) with an average of $575 per ton ($28.75/cwt) FOB mill, east […]
U.S. steel imports are trending well below average in September, based on Commerce Department license data. Extrapolating the current rate of import licenses out through the end of the month shows total imports on track to hit about 1.8 million tons–significantly below the 2.4 million ton average for the past three months and the 2.6 […]
Steel Market Update is making adjustments to our Price Momentum Indicators on hot rolled, cold rolled, galvanized and Galvalume steels. The pressure behind rising steel prices seems to be subsiding as lead times at most mills are reasonable (especially considering the maintenance schedules in place for September and October). Steel buyers are beginning to tell […]
Ferrous scrap prices are starting to settle as of today. Initial checks with some of our scrap sources found prime grades down $40 and obsolete grades down $30 in portions of the Midwest. We learned the Cleveland area mills bought busheling down $20 to $300/gross ton. We also learned of a purchase of HMS at […]
Prices were mixed this week, although we are starting to see signs of weakness in hot rolled, while cold rolled and coated were slightly stronger. We are evaluating price momentum on all products and will have more to say on that subject on Thursday. Here is how we see prices this week: Hot Rolled Coil: […]
Demand for long products continues to be very strong, driven by the construction industry. Demand for sheet products is declining due to the weakness in manufacturing. This analysis by Steel Market Update is based on steel mill shipment data from the American Iron and Steel Institute (AISI) and import-export data from the U.S. Department of […]
The import market share of all steel products including semifinished has been below 20 percent every month since January. Steel Market Update data goes back to January 2003 in which time period the high import share was 38.8 percent in January 2015. Between January 2014 and February 2019, there were only four months when the […]
If the price increases announced by the mills over the past two months were gaining real traction, it should be showing up in lengthening mill lead times. According to Steel Market Update data, the impact on lead times has been mixed and minimal. Lead times for steel delivery are a measure of demand at the […]
There has been little change in the tone of price talks over the past two weeks. The majority of buyers continue to report that mills generally are willing to negotiate to secure spot orders, even as they work to collect recent price increases on flat rolled and plate products. Since late June, the mills have […]
With about 10 days left in the month, steel imports are trending below average at just over 2.2 million tons, based on Commerce Department license data. Imports of semifinished steel, at around 240,000 tons, are tracking at less than half of normal levels following a surge in July. Domestic mills scrambled last month to secure […]
Steel prices were the same or lower this week, depending on the product. Price momentum is still pointing Higher for flat rolled, but with less confidence. Are we at a tipping or inflection point? Here is how we see prices this week: Hot Rolled Coil: SMU price range is $570-$600 per ton ($28.50-$30.00/cwt) with an […]
Noting that “strict enforcement of U.S. trade law is a primary focus of the Trump administration,” the Commerce Department announced its 21st anticircumvention inquiry Wednesday, notable as the first self-initiated by the government without a complaint from the domestic industry. Commerce will be looking into possible circumvention involving exports of certain corrosion-resistant steel products (CORE) […]
Halfway through the month of August, steel import license data is trending down considerably, as expected following a big bump in July. Taking the rate of license requests and extrapolating it out for the entire month, August is on track to see less than 2.1 million tons of total steel imports, down from nearly 3.6 […]
Flat rolled price increases seem to be slowing, based on what we learned from steel buyers this week. We did see some uptick, but only modest movement. Here is how we see prices this week: Hot Rolled Coil: SMU price range is $550-$620 per ton ($27.50-$31.00/cwt) with an average of $585 per ton ($29.25/cwt) FOB […]
Year to date, June, total other metallic coated imports (mainly Galvalume) were down by 11.8 percent, but the Pacific North was down by 71.8 percent and the Great Lakes region was up by 110.5 percent. SMU now offers a comprehensive series of import reports ranging from the first look at licensed data to the very […]
For a steel industry that is hoping to collect higher prices on flat rolled and plate products, the mills seem surprisingly willing to negotiate, according to the findings from Steel Market Update’s latest market trends questionnaire. Well, then again, when you announce $120 per ton of base price increases (or more, depending on what your […]
Lead times for steel delivery are slightly longer for hot rolled, galvanized and plate steels following price increases announced by the major mills. The average lead time for hot rolled is now approaching four and a half weeks, cold rolled nearly six weeks, and coated steels around six and a half weeks. Plate lead times […]
Steel mills continue to press for higher prices and this week SMU found success on everything but hot rolled coil, which continues to lag behind the rest of the flat rolled market. We found that maintenance at Steel Dynamics and other mills over the next 30-45 days is weighing on some steel buyers. Here is […]
Domestic steelmakers appear to be collecting at least some of the price increases they have announced on flat rolled steel. Steel Market Update data shows prices for hot rolled, cold rolled and galvanized steel up by $10 to $25 per ton over last week. The mills hope to do the same with steel plate, announcing […]
Steel Market Update data indicates that the mills have been able to collect some, but not all, of their recent price increases. Their apparent willingness to continue negotiating on spot orders, as reported by steel buyers to SMU, casts doubt on the resolve they will need to collect the rest. Certainly, steel prices are much […]
Lead times for steel delivery have continued moving out over the past two weeks as the three price increases announced by the mills have drawn more buyers off the sidelines. The average lead time for hot rolled has moved up to more than four weeks, cold rolled to about six weeks, and coated steels to […]
Flat rolled steel prices continued their march higher – even prior to the ArcelorMittal USA price increase announcement. The domestic mills are determined to move prices higher. As one mill executive put it to Steel Market Update today, “I think the fall from $940 to $505 was too much, too fast. Way overshot a fair […]
This week we solicited input from steel buyers (and steel mills) regarding their reaction to the third round of price increases, which was kicked off by ArcelorMittal USA yesterday. On June 24, Nucor announced the first of the latest round of mill price increases on spot flat rolled steel. Nucor advised that hot rolled, cold […]