Olympic Steel’s chief executive officer is bullish on steel demand in the months ahead despite the risks posed by higher prices. That optimism stems from the Biden administration indicating that it plans to spend big on infrastructure and from the prospect of the U.S. getting a better handle on the Covid-19 crisis, Olympic Steel CEO […]
With one month of the new year in the record books, steel demand continues to outpace supplies, leaving the mills in a dominant negotiating position. Roughly nine out of 10 buyers responding to Steel Market Update’s questionnaire this week reported that their mill reps are unwilling to talk price on virtually all flat rolled and […]
Steel prices surging to their highest levels ever has masked another potentially key market trend–a narrower spread between hot-rolled coil and galvanized base prices, according to Steel Market Update (SMU) data. SMU’s hot-rolled coil price averages $1,130 per ton ($56.50/cwt), $60 per ton above 2008’s peak of $1,070 per ton. The base price for galvanized […]
At least two more automakers with substantial North American operations have cut production because of a global microchip shortage, according to company representatives. Stellantis has scheduled “down time” at an assembly plant in Brampton, Ontario, a company spokeswoman said. The Canadian plant makes the Chrysler 300, Dodge Charger and Dodge Challenger cars. The company – […]
Flat-rolled steel prices have room to rise despite being at record levels, and any correction might not come until well into the second quarter. That was the takeaway from a conference call this morning with members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI). “I don’t remember a market like this. Maybe at […]
Tex-Isle Inc. plans to build a new electric-resistance welded (ERW) pipe mill with annual capacity of 350,000 tons per year near Steel Dynamics Inc.’s (SDI’s) new flat-rolled mill in Sinton, Texas. The new pipe mill is scheduled to open in Robstown, Texas, in the third quarter of this year and will be adjacent to Tex-Isle’s […]
Plate prices usually carry a premium to hot-rolled coil tags – but that typical relationship has been turned upside down since early October. The question now: Could price hikes of at least $140 per ton announced by some North American plate mills last week help narrow the gap? The Numbers SMU’s hot-rolled coil price currently […]
The U.S. steel industry has enough capacity to meet demand even if the Biden administration passes a big infrastructure bill, said the top executive of the nation’s biggest steelmaker. The United States “desperately needs” an infrastructure package worth “more than $1 trillion,” and Nucor hopes such a bill will be passed in the early days […]
Most new U.S. flat-rolled electric-arc furnace steelmaking capacity won’t start up until the second half of this year, which could have big implications for spot hot-rolled coil prices. The back-ended nature of the capacity add means the market might sustain hot-rolled coil prices of $1,000 per ton or more longer than many buyers believe, industry sources […]
Boomerang Tube has laid off 150 people at its mill in Liberty, Texas, because of a “rapid spike” in steel prices as well as in COVID-19 infections, according to documents filed with state labor officials. The layoffs were effective on Dec. 23, 2020, and affected approximately 50 salaried and 135 hourly employees, according to Worker Adjustment […]
We welcome Michael Cowden to Steel Market Update next week as the guest speaker for our SMU Community Chat. The webinar will be held on Wednesday, Jan. 13, at 11 a.m. ET. The webinar is free to anyone who is interested in the flat rolled and plate steel markets. Joining Michael will be SMU President […]
Evraz North America (NA) has followed Nucor in increasing plate prices by at least $140 per ton ($7/cwt). The steelmaker said that the increase was effective immediately and that it applied equally to all carbon, high-strength low-alloy, hot-rolled coil, normalized, and quenched-and-tempered products, according to a letter to customers Jan. 6. “We reserve the right […]
NLMK USA and striking workers at its operations in western Pennsylvania appear no closer to a labor accord than they were more than four months ago. And the two sides remain at loggerheads despite near-record hot-rolled coil prices and despite slab being available following the reset of the Section 232 quota on Brazilian semi-finished goods. […]
Nucor and SSAB Americas have raised plate prices sharply higher to ring in the New Year. Effective immediately, Nucor’s new ex-works base price for cut-to-length grade A36 plate is $940 per ton ($47/cwt), up $140 per ton from $800 per ton on Dec. 14, according to letters to customers dated Tuesday, Jan. 5. The new […]
Brazil’s annual Section 232 slab quota has reset, a move that is likely to at least partially relieve a supply squeeze that has sent U.S. sheet prices to their highest point in more than 12 years. Brazil’s Section 232 slab quota for 2021 is approximately 3.86 million tons, according to information from U.S. Customs and […]
Brazil’s annual Section 232 slab quota has reset, a move that is likely to at least partially relieve a supply squeeze that has sent U.S. sheet prices to their highest point in more than 12 years. Brazil’s Section 232 slab quota for 2021 is approximately 3.86 million tons, according to information from U.S. Customs and […]
By CRU Research Manager Paul Butterworth, from CRU’s Steel Raw Materials and Steel Costs CRU price and cost forecasts suggest that the steel sector generally will return close to steady-state, or “through-cycle,” levels of profitability over the five-year forecast period. However, as our analysis highlights, steady-state profitability of individual steel mills has varied widely in […]
By CRU Principal Analyst Josh Spoores and CME Group Commodities Research Analyst Gregor Spilker The CME Group recently launched a new steel futures contract which follows the U.S. hot-dipped galvanized (HDG) coil market. The U.S. Midwest Domestic Steel Premium (CRU) Futures is financially settled against the difference between U.S. Midwest hot-dipped galvanized coil (base) steel […]
“The SDI team shines in moments of challenge,” said Steel Dynamics President and CEO Mark Millett. First-quarter results support that confidence as the company reported strong earnings for January-March despite the coronavirus pandemic. First-quarter net sales totaled $2.6 billion and net income $187 million, an improvement from Q4 2019 for both metrics. Selling price per ton […]
Australian steelmaker BlueScope withdrew its earnings guidance for the second half of FY 2020 based on challenges it foresees related to the COVID-19 global outbreak. Previously, the company believed earnings would be similar to 1H FY 2020 earnings of $302.4 million. Although group performance to date, including stable performance at North Star BlueScope, has been in […]
The following article is written by John Packard, President & CEO, Steel Market Update On Sunday, SMU published in my Final Thoughts the following: “There has also been discussion about U.S. Steel in the marketplace as to whether the mill has decided to concentrate on auto, appliance, energy and electrical markets and perhaps move away […]
By CRU Research Manager Paul Butterworth Profitability in the steel industry is highly volatile with the last few years particularly seeing a huge swing in profits. Some producers saw margins hit ten-year highs only to see them quickly fall away, with many becoming loss-making in recent months. As steelmakers navigate the ups and downs of […]
By CRU Analyst Alexander Ordosch Last week, Turkish scrap import prices were assessed at $248 /t CFR for HMS 80:20. Only one deal was assessed from Europe, after strong restocking activity over recent weeks. Prices have been rising in recent weeks as sellers have pushed for gains as it had become uneconomic to supply at the lower prices […]
So far, China has held its own in the prolonged trade war with the U.S., but August saw an unexpected decline in exports. China’s exports fell 1.0 percent in August after gaining 3.3 percent in July. Imports declined 5.6 percent, resulting in an overall trade surplus of $34.84 billion, said China’s General Administration of Customs. […]
By CRU Analyst Alexander Ordosch Last week, Turkish scrap prices declined slightly by $4 /t w/w to $290 /t CFR for HMS 80:20, based on one 40 kt deal from the U.S. The Turkish market remains quiet because of the Eid al-Adha (Festival of the Sacrifice) holidays this past week. We consider this new price level of around $285-290 /t […]
By Chris Houlden, CRU Research Manager For the last 40 years, CRU has provided its U.S. Midwest HR coil (HRC) price, or The CRU as it is sometimes called, to the market. We have done this with the sole focus of faithfully reflecting the spot market and with the clear understanding that the market would […]
It is now three weeks to go before the beginning of the 2019 SMU Steel Summit Conference in Atlanta (Aug. 26-28). We want to remind everyone that the CME Group is hosting a Price Risk Management Workshop just prior to the opening of the conference on Monday at 10:30 a.m. Please find the link to […]
It is now three weeks to go before the beginning of the 2019 SMU Steel Summit Conference in Atlanta (Aug. 26-28). We want to remind everyone that the CME Group is hosting a Price Risk Management Workshop just prior to the opening of the conference on Monday at 10:30 a.m. Please find the link to […]
By CRU Prices Analyst Estelle Tran Hundreds of steel executives from around the world gathered in New York City this week to hold meetings and learn about what will drive the steel markets in the second half of the year. The CRU Steel Briefing on Monday, June 17, provided attendees with our views on sheet […]
By CRU Research Manager Chris Houlden, CRU Principal Analyst Josh Spoores and CME Metals Products Manager Sean Kessler. U.S. Midwest HR coil price volatility has increased markedly in recent months as opaque policy decision-making processes and inelasticity of domestic supply have led to large variations in physical market price. Concurrently, volume and open interest on […]