In its second quarter 2015 earnings guidance, AK Steel said it expects to report a net loss of $0.37 to $0.42 per diluted share of common stock. The company attributed negative results to low steel prices caused in part by high levels of unfairly traded imports. Shipments of 1.8 million were up 3 percent from […]
I will be in my office all week (yea!) this week. This is probably the first time I have spent a full week behind my desk in the last couple of months. If you have any questions for me this is a good week to track me down and ask away…. I would like to […]
Nucor’s second quarter guidance indicates earnings in the range of $0.20 to $0.25 per diluted share, below analyst consensus of $0.30 per share for the quarter. Earnings decreased from Q2 2014 at $0.46 per share and are comparable to $0.21 in Q1 2015. Overall operating performance is down from Q1. Prices are beginning to stabilize, […]
I am back in my office for the first time in about three weeks. Of course, I am only here on Monday and Tuesday before taking a quick trip to Chicago where I will be speaking to a Bank of America group and then the following day I will attend the Association of Steel Distributors […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Here is how Andre saw trading over the past week: Financial Markets: We continue to be the best […]
Earlier this week, World Steel Dynamics and their friends at AMM, hosted their Steel Success Strategies conference in New York City. Over the past 40 years the conference has become a magnet for those associated with the steel industry from around the world. Not everyone can afford to attend the conference which runs about $2300 […]
I was able to pick up a number of sponsors for our Steel Summit Conference. We now have commitments from: Magic Coil Products, Pacesetter Steel, Alliance Steel and Cargill. We thank those who support our efforts to produce quality steel workshops and conferences. Sponsors, such as the ones named above, help us keep our conference […]
According to Investopedia, a subsidy is “a benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.” The example accompanying the definition […]
Ferrous scrap prices rose in June as obsolete flows continue to be weaker than normal and the domestic mills have come back into the market. The strength of the market has come as a surprise to dealers and mills alike. Number 1 Heavy Melt (HMS) ranged from $230 to $265 per gross ton with the […]
Steel Market Update found it interesting as we received a number of comments regarding Al Plummer’s letter to the editor regarding foreign steel imports, pricing and potential dumping. What was most interesting was the vast majority of the comments received were from other steel traders… One trader responded to the continued threats of filing dumping […]
Construction of Essar Steel’s Minnesota taconite operation is accelerating now that the project is fully financed. The $1.9 billion project near Nashwauk involves the construction of a taconite plant with a total annual production capacity of 7.0 million tons of iron ore pellets. The pellets will be initially sent to Essar Steel Algoma and to […]
Last month, Alfred (Al) Plummer, Sales Manager for Hanwa American Corporation, made a presentation about the steel industry at a regional meeting of the Association of Steel Distributors (ASD). Over the past few days Mr. Plummer has been communicating with Steel Market Update and we thought that the items being discussed should be of interest […]
This is the first time we have dedicated a piece specifically to raw materials prices. It combines our own data analysis with expert opinion published in the last couple of weeks that we find credible. Iron Ore As of this past weekend, the Platts IODEX of 62% Fe delivered North China recovered by $6.25/dmt in […]
Steel Dynamics announced this morning that it will idle its Minnesota ironmaking operations in Chisholm and Hoyt Lakes, Minn., effective immediately. The operations will be idled initially for 24 months due to the “continued significant decline in pig iron pricing, which has resulted in the cost of iron nugget production being meaningfully higher than product […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Here is how Andre saw trading over the past week: Financial Markets Well, the last time we spoke […]
Global steel production in 12 months through April totaled 1.624 billion tonnes with a capacity of 2.2 billion tonnes which yields a utilization for the 12 month period of 73.8 percent. China accounted for 50.9 percent of global production in April. Asia as a whole, including India, accounted for 68.4 percent. Production in April on […]
Networking is always an important piece of doing business in the steel business. There are, in my opinion, three great places to network and each is a little different from the others. I attended the Metals Industry Dinner in support of the Chicago area Boy Scouts (Boy Scout Dinner) on Thursday of last week. The […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Here is how Andre saw trading over the past week: Financial Markets: We are last 2118 on the […]
MID-SHIP continues to report concerns over weak demand in the dry cargo market coupled with over-supply of ships. The drop in shipping to and from China has pushed freight rates to their lowest levels since the mid 1980s according to the May 12 MID-SHIP Report. The Baltic Dry Index (BDI) was at a low of […]
This week Steel Market Update adjusted our Price Momentum Indicator to Higher from Neutral. Based on our checks of the steel buying community, prices are beginning to firm and the $20 per ton price increase announced by a number of the steel mills appears to be sticking. SMU is of the opinion as long as […]
Perhaps the scrap market can best be described by those actively sourcing/selling ferrous scrap. Here is how one of the larger groups saw the market this week, “The scrap trade was quite tumultuous this week. Scrap demand, both export and domestic was robust, forcing the scrap processors to take a hard look at what sales […]
Iron ore was the topic for keynote speaker Lourenco Goncalves at the AISTech 2015 Presidents Award Breakfast in Cleveland on May 5. Goncalves, chairman, president and chief executive officer of Cliffs Natural Resources, received the AIST William T. Hogan, S.J. Lecture Award in recognition of individual outstanding leadership to the iron and steel industry. Goncalves […]
ArcelorMittal reported a net loss of $728 million in first quarter 2015 compared to a loss of $955 million in fourth quarter 2014. EBITDA was $1.4 billion. Steel shipments were up 3 percent year over year to 21.6 million tonnes. Iron ore shipments rose 5 percent to 9.4 million tonnes. Total sales for the company […]
Magnetation, an iron ore concentrate and pellet producer, announced it will file for Chapter 11 bankruptcy protection while it undergoes reorganization. The company has received a commitment for $135 million in debtor-in-possession financing from certain holders of Senior Secured Notes that will support the business while it reorganizes. Magnetation said it will continue to pay […]
Despite significant decreases in iron ore, steel, and metallurgical coal pricing, Cliffs Natural Resources, Inc. was able to achieve revenue of $446 million (excluding North American Coal) with adjusted EBITDA of $94 million. US iron ore shipments of 2.9 million tons were less than the 4 million anticipated, but in the US iron ore business […]
Chinese steel trade data was recently released for the month of March 2015, providing updated data on iron ore imports, steel scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in March were 80,509,000 metric tons, an increase of 18.5 percent from the previous month and an increase of 8.9 percent […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
Today is the final day of April and, as is our habit, we will review much of the critical data reviewed or created during the month. SMU Price Momentum Indicator remained at Neutral where it had been for the entire month. SMU has been forecasting a change in the momentum pushing prices from lower to […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Here is how Andre saw trading over the past week: Financial Markets: The S&P has retraced from its […]
AK Steel earnings in first quarter were challenged by high levels of imported carbon steel products, said CEO James Wainscott. “The first quarter of 2015 was certainly more challenging than we anticipated. That because of the extremely high level of imported carbon steel products–unfairly traded imports, in our opinion–that hit our countries shores at the […]