Wholesalers who sell galvanized steel products to the construction and HVAC markets are skeptical of analysts’ predictions of a big price correction in the next few months. Judging by the persistently strong inquiries from their customers, most believe the experts underestimated steel demand as prices were on the way up and may do the same […]
The market for secondary steel is even tighter than the market for prime steel, report service center sources. Secondary steel is a niche market occupied by a handful of distributors who specialize in finding homes for coils that have been rejected by their original buyers. Some coils may have minor surface flaws, others may have […]
By CRU Senior Analyst Ryan McKinley and Analyst Dave Thewlis, from CRU’s Steel Long Products Monitor U.S. domestic long product prices rose further m/m in January, hitting multi-year highs (see chart) as limited supply met with strong demand. Buyers are increasingly relying on domestic mills to acquire material, as global prices have made importing less […]
By CRU Analyst Sam Grant, from CRU’s Steel Sheet Products Monitor Galvanized steel sheet equates to around 30% of refined zinc demand, making it the most significant first use for zinc globally. China is by far the world’s largest producer, responsible for 33% of the global total, with North East Asia, North America and Europe […]
This report examines the import share of sheet, plate, long and tubular products. As of November 2020, imports’ share of total sheet products was 11.4 percent, down from 11.8 percent in October. Imports’ share has been on a steady decline since its most recent peak of 16.6 percent this past May. The import share of […]
The upward trend in mill shipments and supply of sheet products continues, although the pace fell off as the fourth quarter carried on. After reaching bottom in June, as a result of the global pandemic, mill shipments and supply maintained a slow but steady upward trajectory through November 2020. This analysis is based on steel […]
The Biden administration could act fast on a big infrastructure bill if the Senate is quick to approve the president-elect’s Cabinet, the head of the American Iron and Steel Institute (AISI) said. “By sometime this spring, I think we could have a major infrastructure bill done,” AISI President and Chief Executive Officer Kevin Dempsey said […]
The Biden administration could act fast on a big infrastructure bill if the Senate is quick to approve the president-elect’s Cabinet, the head of the American Iron and Steel Institute (AISI) said. “By sometime this spring, I think we could have a major infrastructure bill done,” AISI President and Chief Executive Officer Kevin Dempsey said […]
By Greg Wittbecker, Advisor, CRU Analysis An administrative change in Washington, D.C., arrives this week. Some of the parties with vested interests in Section 232 are already messaging the Biden administration. On Jan. 13, the American Primary Aluminum Association (APAA), which consists of Century Aluminum and Magnitude Seven Aluminum, sent a letter to President-elect Biden […]
By CRU Prices Analyst George Pearson from CRU’s Steel Sheet Products Monitor HR coil import prices and lead times are now competitive with domestic mills in the U.S. and Europe. Both markets remain tight in the short-term, but this is giving buyers more optionality for forward deliveries than in previous months and some negotiation power […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Sheet Products Monitor Sheet order volume decreased in the last week across regions as several buyers have recently placed forward orders and are now covered for deliveries. Prices remain stable at a high level because mills are well-booked and lead times are long. China is slowing down ahead of its New Year holiday next week. […]
By CRU Analyst Dave Thewlis, from CRU’s Steel Long Products Monitor U.S. long product prices continued to surge into the month of February due to ongoing market tightness and strong demand. Imports remain too costly to seriously consider for the majority of buyers, given high international steel prices coupled with costly shipping rates and tariffs. Rebar […]
By Greg Wittbecker, Advisor, CRU Analysis Like the steel industry, the aluminum industry has long recognized the economic value of scrap. Every time virgin aluminum prices have risen, buyers have accelerated substitution of scrap for virgin metal. Now, economic sensibility has been married to the new focus on sustainability. Consumer-facing market segments are leading the […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Sheet Products Monitor U.S. sheet prices have continued to increase, but this week is the lowest w/w rise since the uptrend started. In Europe, HR prices have fallen, albeit marginally, for the first time since October last year. Although we believe prices are at or near […]
By CRU Chief Economist Jumana Saleheen and CRU Principal Economist Alex Tuckett, from CRU’s Steelmaking Raw Materials Monitor After years in which inflation has been low in major economies, financial markets are becoming increasingly concerned about high future inflation. In this Special Feature, we examine a number of factors which could be inflationary over the […]
By CRU Analysis Advisor Greg Wittbecker Ford announced in February that it would be all electric in Europe by 2030. This comes on the heels of General Motors stopping production of internal combustion engines (ICE) by 2035. These decisions underscore the shifting landscape in key aluminum applications and use within automotive. Die-castings have always been […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Sheet Products Monitor Chinese sheet prices reached a new high this week after a government policy notice on March 2 notifying of emissions production cuts in Tangshan province in late-February to late-March. We expect the impact of this announcement to be lower than the initial price rise suggests. In other regions, sheet prices globally have continued to rise, […]
By Greg Wittbecker, Advisor, CRU Analysis The grounding of the MV Ever Given in the Suez Canal has multiple repercussions on the global maritime supply chain, but it is especially acute for the aluminum market. Gulf Region Production is Important The Gulf Region in terms of aluminum production comprises Bahrain, Oman, Qatar, Saudi Arabia and […]
By Greg Wittbecker, Advisor, CRU Analysis China has staked out ambitious goals to decarbonize its overall economy. President Xi has said that CO2 emissions will peak before 2030 and that China will be carbon neutral by 2060. The Macro-economic Perspective China generates 28% of global CO2 emissions. Its energy-related emissions are 15% of the world’s […]
By Greg Wittbecker, Advisor, CRU Analysis U.S. Midwest primary aluminum expressed over LME cash is 26-27 cents per pound, touted at “record levels.” In October 2014, Midwest traded premiums reached 23 cents per pound, so on paper we have set a new high….or have we? 2014: the Era of the LME Warehouse Queues We don’t […]
By Greg Wittbecker, Advisor, CRU Analysis The EU continues to move ahead on its plan to decrease greenhouse gases (GHGs). Here’s some historical context on emissions management in the EU. The EU has been on a long journey to its current condition. Phase 1 of its decarbonization plan took place between 2005-2017. The Emissions Trading […]
By CRU Principal Analyst James Campbell, from CRU’s Steel Long Products Monitor Global long product prices have increased to the highest level since 2008. Global supply has tightened due to production cuts and changes to export tax rebates in China. Demand is strong in many regions, but Covid-19 outbreaks and seasonal patterns mean some weakness […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Monitor Global steel prices, as measured by the CRUspi index, have increased for the 10th consecutive month, gaining 9.4% m/m and 116% y/y. This index now stands at 301.1, a new record high. This index continues to be supported by higher finished steel prices across all regions. […]
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 […]
The benchmark price for hot rolled steel reached a new record high of $1,080 per ton this week, according to Steel Market Update’s latest check of the market, surpassing the previous high of $1,070 per ton recorded by SMU in 2008. Prices for flat rolled and plate steel products jumped by another $40-80 per ton […]
November steel import figures were finalized at 1.37 million net tons, down 9 percent from one month prior, but up 9 percent over September’s 11-year low of 1.26 million tons. December import licenses are now at 2.10 million tons, the highest monthly level seen since July. January import licenses are currently at 1.03 million tons, […]
U.S. steel lobbying groups and the United Steelworkers union want the administration of President-elect Joseph Biden to keep Section 232 tariffs and quotas in place. The steel groups and the union think the protections are necessary because of global steel overcapacity and because of the economic impact of the Covid-19 pandemic, according to a recent […]
Despite market challenges related to COVID-19, Commercial Metals Company reported earnings of $63.9 million on net sales of $1.4 billion for the first quarter of FY 2021. CMC is encouraged by stabilizing backlogs and a renewed enthusiasm by clients to move forward with projects. “Market uncertainty continues to persist,” said Chairman, President and CEO Barbara […]
Hot rolled steel prices are venturing into uncharted territory as an unprecedented combination of variables—idled capacity, short supplies, limited imports and an economy that’s surprisingly strong despite the pandemic—keep pushing them higher. Assuming that today’s record-high prices are unsustainable for the long-term, Steel Market Update asked in its survey last week: At what level do […]
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 […]