The spread between foreign and domestic steel prices has changed direction again since our last update, according to our latest foreign versus domestic hot rolled steel price comparison. The price differentials (after taking freight costs, trader margins and tariffs into consideration) between domestic HRC and foreign imports had surged from February to March of this year, reaching record […]
Steel prices will turn lower and quickly fall back in the next 6-12 months, but mill profitability will remain substantial, predicted Principal Analyst Josh Spoores during CRU’s virtual New York Steel Seminar on Wednesday. Steel prices have hit historic highs, with hot rolled offers at more than $1,700 per ton, as demand continues to outstrip supply. […]
Hot-rolled coil prices have broken through the $1,700 per ton ($85 per cwt) threshold and now average $1,720 per ton. That’s up $45 per ton from a week ago and closing in on quadruple a 2020 low – reached last August – of $440 per ton. The latest gains come after Steel Market Update’s sentiment […]
Flat Rolled = 45.3 Shipping Days of Supply Plate = 45.2 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories grew significantly in May as mills caught up on deliveries and intake increased. At the end of May, service centers carried 45.3 shipping days of supply on an adjusted basis, up from […]
By Greg Wittbecker, Advisor, CRU Analysis The COVID-19 pandemic’s effects on overall aluminum demand in 2020 was well documented. However, that storyline masked a remarkable rebound in the demand for aluminum beverage cans. Data from the Aluminum Association shows this: • 2020 total domestic shipments of can stock supplied to the can market rose 3.3% […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor Sheet prices in northern Europe, like in other areas of the world, have begun to decline – although prices in the USA have yet to follow this trend. Still, it appears that this upward trend in the U.S. market is nearing an end. […]
U.S. steel product shipments fell by 2.4% in April following an increase of 15.6% in the month prior. The decline, although disappointing, is not surprising because steel product shipments have been irregular from month to month since bottoming out in May 2020. The lack of consistency has been attributed to seasonal factors at times but […]
Flat rolled and plate steel mill lead times continue to extend, according to the results of this week’s flat rolled and plate steel analysis conducted by Steel Market Update. Hot rolled lead times have sustained 10 weeks or more for a month – the first time that has happened in the history of our records, […]
Steel buyers reported to Steel Market Update this week that the trend for steel mills to limit or totally remove any negotiations on spot steel prices continues. Steel pricing power is totally in the hands of the steel mills as supply continues to be less than the demand for mill products. Steel Market Update went […]
Steel prices will correct sharply as supply catches up with demand, potentially falling back to an average of $575 per ton ($28.75 per cwt) in 2022, according to one leading industry analyst. “This too will pass,” was the title chosen by Timna Tanners, metals and mining analyst at Bank of America, for her SMU Community […]
Hot-rolled coil prices charged higher yet again even as lead times stretched into August, a typically slower time of the year. Is a year-long hot streak for sheet possible? The answer in ordinary times would be ‘no’. But these are not ordinary times. Hot-rolled coil prices have hit a new all-time high of $1,675 per […]
The U.S. International Trade Commission voted to continue antidumping orders on imports of cut-to-length carbon steel plate from China, Russia and Ukraine. Removing the orders, said the Commission in its sunset review, would “likely lead to continuation of recurrence of material injury within a reasonably foreseeable time.” The original investigation into CTL steel plate imports […]
I want to thank the National Association of Steel Pipe Distributors for giving me a chance to open their summer conference in Denver last week. I spoke about – what else, these days – steel prices. During the Q&A afterward and on the sidelines of the event, it was clear people were worried about (a) […]
I want to thank the National Association of Steel Pipe Distributors for giving me a chance to open their summer conference in Denver last week. I spoke about – what else, these days – steel prices. During the Q&A afterward and on the sidelines of the event, it was clear people were worried about (a) […]
Foreign steel imports from two of the three regions tracked by Steel Market Update are losing their price advantage over domestic steel, according to our latest foreign versus domestic hot rolled steel price comparison. The price differentials between domestic HRC compared to foreign imports had surged through February and March to reach record highs in […]
Several automakers are resuming normal production – or levels closer to normal – even as others continue to grapple with the global microchip shortage. Case in point: Toyota has restarted production at its North American assembly plants. “We’ve resumed normal operations at all plants, but we are still experiencing periodic challenges,” a company spokeswoman told […]
Hot rolled steel prices passed another milestone this week, topping the $1,600 mark to set yet another record that would have been unimaginable at this time last year when HR was selling for around $500 a ton. Steel Market Update’s latest check of the market shows an average HR price of $1,620 per ton, up […]
Hot rolled steel prices passed another milestone this week, topping the $1,600 mark to set yet another record that would have been unimaginable at this time last year when HR was selling for around $500 a ton. Steel Market Update’s latest check of the market shows an average HR price of $1,620 per ton, up […]
Good news on the global manufacturing front in May: The J.P. Morgan Global Manufacturing PMI showed production accelerating at one of the fastest rates in a decade and new order growth was at an 11-year high. The PMI, produced by J.P Morgan and IHS Markit, rose to 56.0 in May. Only six of the 20 […]
Global manufacturing remained in a strong growth phase in June, with output, new orders and employment all rising and business optimism at robust levels. However, stressed global supply chains continued to disrupt production schedules and delay input deliveries resulting in sharp price increases. The J.P. Morgan Global Manufacturing PMI dipped slightly to 55.5 in June, […]
Steel prices continued to climb higher in May, now the ninth consecutive month prices have increased. Hot rolled steel prices increased an average of $23 per ton each week, reaching $1,590 per ton as of last week when this article was filed. The SMU Price Momentum Indicator has remained unchanged since the August 2020 adjustment […]
New orders, production and employment picked up in May despite slower supplier deliveries and lengthening backlogs, said the Institute for Supply Management in the May 2021 Manufacturing ISM Report on Business. The Manufacturing PMI rose 0.5 percentage point to 61.2 after contracting in April and indicates expansion for the overall economy. “Manufacturing performed well for the […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled Increased directional volatility as well as inter-day volatility have helped increase hot rolled open interest. May is proving to be […]
Except for a notable decline in the average Galvalume lead time, delivery times for spot orders of flat rolled and plate from the mills registered only small ups and downs in the data from Steel Market Update’s survey this week. Generally speaking, lead times remain two to three times longer than the historical averages and […]
Hot-rolled coil prices continue their unrelenting march upward. Steel Market Update’s benchmark hot-rolled coil price now stands at $1,590 per ton ($79.50/cwt), up $20 per ton from a week ago and up $180 per ton versus last month. Lead times remain extended at eight to 12 weeks. And SMU’s Price Momentum Indicator continues to point […]
Much attention has been paid to how much new electric-arc furnace (EAF) flat-rolled steel capacity is being added to the North American market. Less has been written about how many tons of integrated steelmaking capacity have been taken out. An analysis by Steel Market Update indicates that the latter figure is perhaps equally significant. It […]
Much attention has been paid to how much new electric-arc furnace (EAF) flat-rolled steel capacity is being added to the North American market. Less has been written about how many tons of integrated steelmaking capacity have been taken out. An analysis by Steel Market Update indicates that the latter figure is perhaps equally significant. It […]
Ah, remember the good old days… In this month’s galvanized steel conference call with HARDI wholesalers, one of the manufacturing companies discussed the frustrations of buying foreign steel, issues with late deliveries and then difficulties moving the steel from the port to his manufacturing facilities. Traders expressed frustrations related to freight issues (ship and truck). […]
Ah, remember the good old days… In this month’s galvanized steel conference call with HARDI wholesalers, one of the manufacturing companies discussed the frustrations of buying foreign steel, issues with late deliveries and then difficulties moving the steel from the port to his manufacturing facilities. Traders expressed frustrations related to freight issues (ship and truck). […]
Ford has joined General Motors in extending North American assembly plant outages into the third quarter because of a persistent shortage of microchips. “Our teams continue making the most of our available semiconductor allocation and will continue finding unique solutions to provide as many high-quality vehicles as possible to our dealers and customers,” a Ford […]