On Friday, the Labor Department announced the inflation rate for November. At 0.8%, it was a tick lower than the October inflation rate of 0.9%. But most observers paid more attention to the annual rate of inflation. At 6.8% compared to prices one year ago, the inflation rate was the highest it’s been since 1982. […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor , Dec. 8 The CRU metallics price indicator (CRUmpi) was little changed m/m in December at 401.6 after expectations of another price increase for metallics were dampened by weaker-than-expected demand. Supply is becoming seasonally scarcer in some markets. But, in our view, weakness in […]
Brazilian iron ore miner Vale is in an “advanced stage of negotiations” to sell its stake in California Steel Industries (CSI), according to an investor day presentation. The presentation did not say which company Vale was in talks with. CSI is a Fontana, Calif.-based slab converter. It is also a 50-50 joint venture between Vale […]
By CRU Research Analyst Aaron Kearney-Keaveny from CRU’s Steelmaking Raw Materials Monitor Dec. 7 Iron ore remained largely stable in the past week, before rising noticeably on Monday and Tuesday, now standing at $108.0 /dmt. Supply is rising and demand seems stable, but speculation around China has resulted in the iron ore price rising yet […]
By CRU Steel Analyst Tiago Vespoli, from CRU’s Steel Sheet Products Monitor, Nov. 17 There is a high probability that the weather phenomenon La Niña will start at end-November, which could have serious consequences for the steel supply chain, depending on the severity of the event. Some expected impacts include increased rainfall in Australia and […]
Prices for four of the seven steelmaking raw materials tracked in this SMU analysis declined over the last 30 days. Through Nov. 18, iron ore prices fell 27% from one month prior, aluminum prices are down 17%, zinc prices declined 15%, and coking coal prices decreased 4%. In that same time frame, shredded scrap prices […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Before joining Metal Edge Partners, Bryan held a variety of commercial […]
By CRU Principal Analyst Matthew Watkins, from CRU’s Global Steel Trade Service, Nov. 18 There was a big price collapse in China over the past month. HR coil export prices have fallen by 13% since October and rebar is down by 10% in the same period. For HR coil, this means that China has returned […]
By Philip Bell, President, Steel Manufacturers Association Earlier this year, the European Commission began reviewing its Waste Shipment Regulation (WSR) and considering proposals for its revision. On Nov. 17, the EU commission announced that it may restrict waste exports including metal scrap to non-OECD countries. In yesterday’s formal announcement, the commission proposed revised legislation on […]
Cleveland-Cliffs Inc. has completed its $775 million acquisition of scrap recycler Ferrous Processing and Trading (FPT). Cliffs Chairman, President and CEO Lourenco Goncalves said the deal could change the way the scrap business has traditionally worked by creating more “closed-loop” transactions. Such deals would mean more scrap – and especially prime scrap, FPT’s specialty – goes […]
Ferrous scrap prices saw an unexpectedly big jump in November, with shredded scrap selling as high as $75/GT above October levels. Prime scrap rose $20/GT, sources tell Steel Market Update. Observers were expecting higher prices in November on strong export demand and some seasonal tightening of supplies, but were surprised by the size of the […]
By CRU Principal Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor, Nov. 9 Iron ore prices remain under pressure as Chinese steel production levels remain low and iron ore inventories continue to pile up, both at ports and at steel mills. A price of $92 /dmt is the lowest seen since May 2020, and […]
With record third-quarter earnings of $2 billion in the bank, U.S. Steel President and CEO David Burritt offered a bullish outlook for the steel industry and his company in 2022. Highlights of the company’s earnings call on Friday included an update on the steelmaker’s progress in finding a site for its new electric arc furnace […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
In this year’s edition of CRU Breakfast – part of LME Week – we explored three key themes that shaped the commodities markets – the global economic and commodities outlook, the changing role of China, and Navigating ESG. All three themes have been central to many developments in the industry and remain equally crucial moving […]
Cleveland-Cliffs Inc. has restarted the No. 7 blast furnace at its Indiana Harbor steel mill in northwest Indiana following a reline. “We just concluded the repair of Indiana Harbor No. 7. … We finished 24 hours ahead of schedule,” company Chairman, President and CEO Lourenco Gonvalves said during a conference call with analysts on Friday, […]
The 2022 Tampa Steel Conference agenda and speakers are coming together nicely. Steel Market Update enjoys working with our friends at Port Tampa Bay as we prepare for a unique, fun, quality steel experience in Tampa, Fla., in mid-February. The conference dates are Feb. 14-16, but if you are concerned about conflicts with Valentine’s Day, […]
The 2022 Tampa Steel Conference agenda and speakers are coming together nicely. Steel Market Update enjoys working with our friends at Port Tampa Bay as we prepare for a unique, fun, quality steel experience in Tampa, Fla., in mid-February. The conference dates are Feb. 14-16, but if you are concerned about conflicts with Valentine’s Day, […]
NLMK USA posted record third-quarter earnings supported by strong downstream demand and historically high steel prices. The U.S. subsidiary of NLMK Group – Russia’s largest steelmaker – reported EBITDA of $354 million in the third quarter, a 66% surge from the previous high mark of $213 million in the second quarter and a big jump […]
Prices for four of the seven steelmaking raw materials tracked in this SMU analysis increased over the last 30 days. Through Oct. 20, zinc prices shot up 24% over one month prior, iron ore prices rebounded 18% in one month’s time, aluminum prices rose 9%, and coking coal prices increased 8%. In that same time […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor Over the past five weeks since we last reviewed the CME Group’s HR coil futures market, there has been a renewed surge in volatility. Spot prices of physical HR coil have clearly plateaued, yet more likely started a new downtrend, and futures prices […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor After 14 consecutive months of rising global sheet prices, CRU’s Global Flat Products Steel Price Indicator (CRUspi flats) has fallen m/m. This indicator fell 3.5% as sheet prices continue to fall across most regional markets. The U.S. Midwest market remains the last holdout […]
NLMK USA’s sales surged in the third quarter on record domestic prices and strong demand, Russian parent company NLMK Group said. The solid showing in the U.S. helped to offset slowing demand in Russia and elsewhere as well as a protracted outage at the company’s mill in Lipetsk. “The U.S. became the growth leader, with […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor North American sheet prices are lower m/m as prices in the U.S. have finally started to fall, at least for HR coil. Over the past several weeks, the amount and overall volume of spot transactions between mills and buyers have slowed, yet we […]
As “the next precious metal,” prime scrap is a growth opportunity and a logical fit for Cleveland-Cliffs, which announced Monday that it plans to acquire Detroit-based Ferrous Processing and Trading Co. (FPT). The $775-million deal, Cliffs’ first foray into scrap, comes as no big surprise to most market observers. Cleveland-Cliffs is the largest producer of […]
Cleveland-Cliffs Inc. has agreed to acquire Midwestern scrap recycler Ferrous Processing and Trading Co. (FPT) for $775 million. The deal means the Cleveland-based steelmaker has secured its own reserves of prime scrap, which Cliffs Chairman, President and CEO Lourenco Goncalves has previously characterized as a “precious metal.” FPT recorded earnings before interest, taxes, depreciation and amortization […]
Cleveland-Cliffs Inc. has agreed to acquire Midwestern scrap recycler Ferrous Processing and Trading Co. (FPT) for $775 million. The deal means the Cleveland-based steelmaker has secured its own reserves of prime scrap, which Cliffs Chairman, President and CEO Lourenco Goncalves has previously characterized as a “precious metal.” FPT recorded earnings before interest, taxes, depreciation and amortization […]
Cleveland-Cliffs Inc. isn’t feeling the heat of soaring metallurgical coal prices, at least not yet. And the Cleveland-based miner and steelmaker plans to turn to its own mines if the market overheats. “We are benefiting from our existing multi-year contracts with suppliers and also the supply from our own coal production operations,” a company spokeswoman […]
By CRU Principal Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices have increased in the past week on post-holiday optimism that a real estate collapse can be avoided and the fact that steel production is increasing after the Chinese holiday. CRU has assessed the iron ore price at $132.0 /dmt, up […]