With less than three weeks to go before the Soo Locks are scheduled to open on March 25 the Great Lakes are 80.4 percent covered in ice. The heaviest concentrations of ice are Lake Superior, Huron and Erie at 95 to 96 percent coverage. The ice comparison below from the Great Lakes Environmental Research Laboratory […]
Esmark Europe has filed a lawsuit in U.S. District Court against Slovakian businessman Peter Kamaras for attempting to undermine Esmark Europe’s bid for Zelezara Smederevo Steel Works. Esmark asserts that Kasmaras aligned himself as an investor and agent with Esmark Europe to gain inside information while simultaneously undermining Esmarks’ bid to privatize Zelezara Smederevo for […]
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. Our next Managing Price Risk II workshop will be held in Chicago at the end of April – […]
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 […]
I spent three days in Chicago this past week, enjoying the snow, wind and cold temperatures. Upon my return one of my first directives was for Sandy Williams of our staff to research the ice cover on the Great Lakes as the opening of the Soo Locks is only three weeks away. We will let […]
We made a mistake in our most recent issue when we referenced $440 as being the low for hot rolled back in June 2009. That was actually the low for the galvanized base price (noted in the HARDI article in that same issue). The low for hot rolled in June 2009 was $380 per ton […]
Hot rolled prices continued lower this week with the CRU down $9 to $508/ton with HRC futures following suit. Q2 has been trading around $510/ton with March trading as low as $503/ton – $13 lower than the week prior. The second half of 2015 is reasonably higher with Q3 and Q4 both trading around $535/ton. […]
Global steel production in 2014 totaled 1.627 billion tonnes with a capacity of 2.2 billion tonnes which yields an average utilization for the year of 74 percent. China accounted for 51 percent of global production in 2014. Asia as a whole, including India, accounted for almost 70 percent of global production. Production in January on […]
Once a month, HARDI sponsors a galvanized steel conference call with the wholesalers who sell sheet and coil to the HVAC mechanical contractors. Steel Market Update (SMU) has participated in these informative discussions for a number of years and they are very useful in our understanding of the ebb and flow of both pricing and […]
With the reset of iron ore and ferrous scrap pricing there is an extraordinary amount of interest in trying to figure out the cost to produce a hot rolled coil at the domestic steel mills. This is a question Steel Market Update is asked on an almost weekly basis. We wrote about the subject recently […]
Magnetation LLC announced it will indefinitely idle its Plant 1 in Keewatin, Minn., due to iron ore prices that have fallen more than fifty percent in the past 18 months. Forty-one hourly and eight salaried employees will be affected the closure which will occur by the end of March. “Due to the unprecedented collapse in […]
The following article about the Asian ferrous scrap markets comes to us from one of our contributing writers, Damon Sun of Daido International. Firstly, I believe we are at the bottom or near bottom of the current scrap market. The latest bulk scrap sales into Far East Asia were at $249 per metric ton CFR […]
Those of us near the Great Lakes (presently experiencing minus degree temperatures and seemingly endless snow) are beginning to wonder if winter 2015 is a repeat of 2014. Last year the Great Lakes had unprecedented ice coverage. The Great Lakes shipping season was delayed into April with cargo shipments plummeting by nearly 7 million tons […]
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. We are working on adding new futures workshops in the coming months. If interested please email us at: […]
“It’s not 2008 or 2009.” We heard this from trading companies, steel service centers and mills during the Port of Tampa Steel Conference this past week. This week we are hearing similar comments as we make our rounds talking to those active in the industry. Prices have been collapsing but there does not appear to […]
Steel Market Update saw an interesting report on the impact of lower scrap prices to the steel industry. The report was produced by metals and mining analysts, Timna Tanners of Bank of America Merrill Lynch Research for her clients. A question Steel Market Update receives on a regular basis is what is the marginal cost […]
The monthly value of the Federal Reserve Broad Index value of the US $ against our major trading partners has continued to strengthen and in January reached 92.44 after breaking 90 in December for the first time since July 2009. The monthly BI is a “Real” inflation adjusted index. The Fed also reports a daily […]
Steel Market Update recently attended the Port of Tampa Steel Conference in Tampa, Florida. When speaking with the service centers and traders it was apparent that we are in a period of time when buyers do not trust that the price today will be any good tomorrow. Our Comparison Price Indices report accentuates the issues […]
During the ArcelorMittal earnings conference call which was conducted this past Friday, Lakshmi Mittal, CEO of AM told the analysts on the call, “At ArcelorMittal, we remain confident, that the steel will remain the material of choice for automotive. We are the leader in providing light weighting products and solutions for our automotive customer and […]
Dry cargo rates continue to plummet as the Baltic Dry Cargo index dropped to record lows last week. The index fell to 553 on Wednesday and continued to slide downward to end the week at 530 points. MID-SHIP says shipowners and operators are suffering major revenue losses, with one owner/operator declaring bankruptcy last week. Charterers […]
ArcelorMittal narrowed its net loss to $1.1 billion in FY 2014 and cut its debt to $15.8 billion, the lowest level since the company was formed in 2006. Cash flow from operations in 2014 totaled $3.9 billion. Consolidated steel shipments for 2014 were up 3 percent year over year to 85.1 million tonnes. Fourth quarter […]
On Monday we will begin our mid-February flat rolled steel market analysis. The market has seen prices dropping over the past few weeks at a rate not seen for a number of years. Our survey will help us not only understand where price offers/orders are today but when we think the bottom will be reached. […]
The following article on the futures market was written by Andre Marshall, CEO of Crunch Risk, LLC and our instructor for Managing Price Risk I and II workshops. Financial Markets: Too bad we’re not all money managers as life would be pretty easy – just keep your customer long the market, sit back, and enjoy […]
In Thursday evening’s issue of Steel Market Update we advised that our SMU Pricing Momentum Indicator continues to point to lower steel pricing over the next 30 days. One of our service center readers pointed out two reasons why he believes pricing will move lower when he wrote us, “Prices here are falling due to […]
As we reported last week, prior to negotiations beginning for the month of February market players were predicting ferrous scrap prices would drop by $30-$50 and then $50-$70 per gross ton. Then we heard prices would drop by $100 per gross ton over the months of February and March combined. When the smoke cleared at […]
Earlier this week Steel Market Update suggested that perhaps we are getting close to that time when it is necessary to have a dialogue/debate as to when and at what level will flat rolled steel prices bottom. As of Tuesday of this week, Steel Market Update range for benchmark hot rolled coil was $520 to […]
Even the Cliffs Natural Resources CEO weighed in on the food of foreign steel imports and what the domestic steel industry should do to protect their markets. Lourenco Goncalves is never at a loss for words and his comments made during Cliffs quarterly earnings conference call was no exception. First, the results posted by the […]
Steel Market Update thought it might be worthwhile to pick out some of the comments made by Steel Dynamics CEO Mark Millett during his earnings conference call with analysts late last week. We have focused on comments made about foreign steel, scrap, energy markets and the new Columbus facility. Each of the comments made are […]
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 […]
Chinese steel trade data was recently released for the month of December 2014, providing updated data on iron ore imports, steel scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in December were 86,850,000 metric tons, an increase of 28.9 percent from the previous month and an increase of 18.4 percent […]