I got a note from one of my Asian trading sources yesterday explaining the reason for some of the price volatility seen in the Chinese markets earlier this week. He told us, “We see Ore at below USD50/mt in 2017. Reasons being that China is shutting down capacity big time, probably about 150 million MTS […]
OK, don’t get freaked out (yet) as the new flat rolled steel base price increases aren’t really impacting the numbers for this week. However, there were a couple of steel mills already seeking higher hot rolled, cold rolled and coated prices prior to the announcement. We did collect some of that data in tonight’s steel […]
Shipping wound down for 2016 with mixed reports. Seaborne rates hit bottom and began an upward climb. U.S. river traffic was sluggish due to holidays and weather. U.S. rail volume, down overall for 2016, picked up in the final week of December. U.S. truck rates increased and shipping volume surged due to holiday delivery and […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As Flack Steel’s director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing Futures articles for […]
Earlier this week we reported on the status of the Chinese steel markets and steel export price offers as of the end of this past week. Both trading company sources used by SMU reported that prices were artificially high and the expectation was that they would fall if not soon by no later than the […]
The last month of the year was a strong one based on the data we just reviewed and have shared with you in the table at the end of this article. SMU Price Momentum Index finished both the month and the year pointing toward higher prices in the coming 30 to 60 days. Our Sentiment […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. This will explain the difference between our view of the present situation which is subjective and our analysis of trends which is based on the latest facts available. Looking back from the […]
US Steel announced today that it plans to restart its Keetac iron ore plant in Keewatin, Minn. In a press release on Thursday, US Steel said new iron ore pellet agreements with third party customers prompted an adjustment of its iron ore pellet production to take advantage of the new opportunities. One of those opportunities […]
Please see the end of this report for an explanation of data sources. The Broad Index value of the US $ is reported several days in arrears by the Federal Reserve, the latest value published was dated December 16th, Figure 1. The dollar as of that date was stronger than at any time since April […]
The following analysis of the steel markets in China is from Beijing Metal Import & Export Co.,Ltd and is being reproduced by Steel Market Update with permission: Please allow us to update China steel market (Dec 19 – Dec 25, 2016) as usual as following: In the past week, China steel market had a heavily […]
This is our first ever write up of global scrap trade. We believe that to understand the gyrations of the domestic scrap market we should study where the US stands as a global player. This data is not very current because some nations are slow to report but we still believe it gives a valuable […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As Flack Steel’s director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing Futures articles for […]
United Steelworkers Local 2251 wants clarification from the Ontario court on whether it has permission to talk with Essar Global backed Ontario Steelworks about its bid for Essar Steel Algoma. Local 2251 favors a bid by Ontario Steelworks saying it would preserve the pension plan and union rights under the collective agreement. In July, the […]
The following analysis of the steel markets in China is from Beijing Metal Import & Export Co.,Ltd and is being reproduced by Steel Market Update with permission: Please allow us to update China steel market ( Dec 12 – Dec 18, 2016) as usual as following: In the past week, China steel still stood at […]
We have an unusual hot rolled futures market article tonight which will be dealt with in two segments: First, we will have an article written by Andre Marshall of Crunch Risk, LLC as he deals with the financial markets (S&P 500), oil and copper and then he has some comments about an errant trade which […]
The following report on the Chinese steel markets comes to SMU from Beijing Metal Import & Export Company,Ltd.: Please allow us to update China steel market (Dec 05 – Dec 11, 2016) as usual as following: In past week, China market still very firm! Iron ore, coke and Billets all touched the highest level in […]
Steel Market Update received the following information about the Chinese steel market through one of our trading sources located in Taiwan. Our source is a very active trader in China trading iron ore, steel and equipment with the Chinese steel mills. Here is some new information about the Chinese steel mills: Things are more complicated […]
Bankrupt iron ore producer Magnetation LLC has a buyer. Tom Clarke owner of ERP Iron Ore has made an offer for the iron ore operation that closed its last plant in October 2016. Magnetation was a joint venture of Magnetation Inc. and AK Steel. The company recovered waste tailing for conversion into iron ore pellets […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As Flack Steel’s director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing Futures articles for […]
Early December logistic reports show no major problems in the shipping markets. Shipments on most transportation modes are expected to slow as the holiday season approaches. A new Secretary of Transportation has been appointed by President-elect Donald Trump. Elaine Cho, former Secretary of Labor under President George W. Bush and Deputy Secretary of Transportation under […]
The following analysis of the steel markets in China is from Beijing Metal Import & Export Co.,Ltd and is being reproduced by Steel Market Update with permission: Please allow us to update China steel market (Nov 28 – Dec 04, 2016) as usual as following: In the past week, China markets still stood at high […]
The first thing that jumps out at you when reviewing the end of the month data for November is the pace of the price index averages as they push toward $600 hot rolled (which we believe we may hit by the end of the calendar year). Our monthly average at $522 per ton was $11 […]
US Steel Canada has been granted an extension of its CCAA protection while it hammers out a deal with suitor Bedrock Industries. The stay period for USSC was due to terminate on November 30, 2016 and has now been extended to March 31, 2017. According to the 32nd court monitor’s report by Alex Morrison, US […]
Today is Monday, please allow us to update you on the China steel market (Nov 21 – Nov 27, 2016) as usual as follows: In the past week, the market still kept rising heavily. It is out of our expectations as many non-market factors pushed spot prices to stand at very high levels. 1. China […]
Steel Market Update went out to a couple of hundred steel buyers and executives today as we probe for information about flat rolled steel prices. At the same time we asked questions about price direction and demand. Tonight we will cover price direction (prior to AM increase announcement) and on Thursday we will cover their […]
Please see the end of this report for an explanation of data sources. The Broad Index value of the US $ is reported several days in arrears by the Federal Reserve, the latest value we have was dated November 10th, Figure 1. The dollar has appreciated strongly since the election in anticipation of higher interest […]
Often with steel related economic statistics it’s useful to compare a given data stream with others which may or may not be causally related. This usually puts the steel data into context and shows whether a direction change is for real. In this piece we are comparing the price of Chicago shredded scrap with the […]
The following analysis of the steel markets in China is from Beijing Metal Import & Export Co.,Ltd and is being reproduced by Steel Market Update with permission: Today is Monday, Please allow us to update China steel market (Nov 07 – Nov 13, 2016) as usual as following: In past week, market and non-market factors […]
As we discussed earlier this week, higher international prices for iron ore, coking coal, pig iron and steel are helping take ferrous scrap export prices higher. SMU had lunch with one of our scrap/pig iron experts who advised that 80/20 scrap export prices may have reached $280 per metric ton delivered. At the same time, […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by David Feldstein. As Flack Steel’s director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. […]