Have steel prices peaked or do they still have some upside? That’s the question on steel buyers’ minds. Is today the time to buy or will steel be cheaper tomorrow? Information from Steel Market Update’s market trends questionnaire last week and our canvass of the market today is mixed. Steel prices rose in November and […]
By CRU Prices Analyst Estelle Tran, from CRU’s Bulk Ferro Alloys Monitor The steel market got a stronger than expected start to the year, lifting year-to-date U.S. steel mill capability utilization to 82.1 percent—the highest level since May 2019, according to the American Iron and Steel Institute. The Institute for Supply Management reported that the […]
The Super Bowl is done, the Grammys are behind us, the Oscars selected a foreign film (Parasite from South Korea) for the first time as Best Movie. The Iowa caucus presented more questions than answers. Today is the New Hampshire primary and the first votes finally are being cast to see who the Democrats will […]
When SMU last reported on foreign hot rolled prices on Jan. 23, we questioned whether the U.S. price attraction may be slipping, as the price spread had shrunk for all three foreign indices we compare. This week we see that has not been the case as German and Italian HRC prices have risen through February, […]
Mill lead times for spot orders of flat rolled steel extended by more than a week during last year’s fourth quarter, but so far this year have been fairly flat. The average lead time for orders of hot roll is now a bit less than five weeks, cold roll around six and a half weeks […]
John Packard is traveling… Steel Market Update changed its Price Momentum Indicator from Higher to Neutral today. Not that steel prices couldn’t start inching upward once again in the coming weeks. It’s just that the direction is unclear and we need to wait and watch for the next trend to reveal itself. Lead times aren’t […]
Steel prices can’t seem to gain any traction, as hot rolled, cold rolled and plate saw small declines this past week, while coated steel prices saw a small uptick. Steel Market Update’s Price Momentum Indicators remain pointing higher, but with less confidence about the trend. Here is how we see prices this week: Hot Rolled […]
Manufacturing grew in January along with the overall economy, reported the Institute for Supply Management. ISM’s January PMI gained 3.1 points from December to register 50.9, above the crucial no-change mark of 50. New orders and production pulled from contraction to post respective index readings of 52.0 percent and 54.3 percent for the month, said […]
Global manufacturing performed slightly better in January, according the latest J.P. Morgan Global Manufacturing PMI. The composite PMI rose to a nine-month high of 50.4 from December’s reading of 50.1, although only slightly above the no-growth mark of 50.0. Consumer and intermediate goods led the increase as investment goods continued to contract further. Output rose […]
U.S. Steel reported a net loss of $680 million for the fourth quarter of 2019 and a loss of $642 million for the year, but counts the quarter a success by exceeding its previously lowered Q4 expectations. The steelmaker sees last year as one of notable strategic progress. Sales for the year totaled $12.9 billion, […]
Except for a small decline in coated products, steel prices remained largely unchanged in the past week, according to Steel Market Update’s latest check of the market. While SMU’s Price Momentum Indicators continue to point higher, we’ll be watching closely to see if the uptrend in prices is losing steam. Here is how we see […]
Tap, tap, tap… the sound of fingers drumming on a stack of blank purchase orders. Today I spoke with a group of key steel buyers and many of them are sitting and waiting. They are waiting because they have no tons to place, they are waiting because service center resale prices have not caught up […]
On Thursday I provided some of the feedback I was getting from those involved in both the sales and purchasing of flat rolled steel into the North American markets. The comments continued to flow in and here are a couple more that I found interesting: The general manager of a service center provided these insights […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
Lead times for hot rolled and cold rolled steel have flattened out, seeing little change in the past month, as measured by Steel Market Update. Lead times for steel delivery are an indicator of demand at the mill level. The longer the lead time, the busier the mill. Lead times in general are about a […]
I have been spending time looking at market momentum, lead times (real, not from our survey), who is buying and who is not (and why), and what the market should be concentrating on over the next couple of months (not just today). I am going to start with comments I got from a couple of […]
Steel prices, which have been trending upward for the past two months, gave a bit back this past week, according to Steel Market Update’s latest check of the market. Whether this is a change of direction or just a brief pause remains to be seen, but SMU’s Price Momentum Indicator continues to point higher. Here […]
Acknowledging that “it’s a lot easier to sell steel when the price is going up,” distributors of steel products to the HVAC sector reported strong sales in the first month of the new year despite galvanized base prices that have risen by about $130 in the past 12 weeks to the current $800 per ton. […]
2019 was a challenge for steel suppliers, with both demand and pricing on a downward slope for the first three quarters of the year. Although it’s still early, there are signs 2020 could prove to be a better year for the steel industry. Steel mills, and the service centers that process and distribute their products, […]
Steel Market Update’s analysis of flat rolled and plate inventories and shipments for the month of December: Flat Rolled = 62.9 Shipping Days of Supply Plate Steels = 60.4 Shipping Days of Supply Flat Rolled Service center flat rolled steel inventories increased 5.7 percent month on month while shipments fell 10.1 percent, according to adjusted […]
The other day I mentioned I am open to suggestions regarding subjects to be discussed or possible speakers at this year’s SMU Steel Summit Conference. One of the suggestions I got was that we consider having a steel buyer’s panel. I like the idea and it has already been incorporated into the agenda. I have […]
The price of hot rolled steel topped the $600 per ton mark this week, cresting a psychological barrier that many saw as unreachable two months ago. Opinions are split on how much higher HR can go, and how long it can stay above the $600 level. Prices for all flat rolled products increased by another […]
I spent today working on two projects. First was contacting and communicating with flat rolled and plate steel buyers in order to get a sense of the current spot price offers/transactions and where the markets are heading over the near term. The second project was working on the 2020 SMU Steel Summit Conference. As with […]
I spent today working on two projects. First was contacting and communicating with flat rolled and plate steel buyers in order to get a sense of the current spot price offers/transactions and where the markets are heading over the near term. The second project was working on the 2020 SMU Steel Summit Conference. As with […]
As the laws of economics have proven time and again, supply and demand will determine whether steel prices continue to rise in 2020. Demand is set by the marketplace; supply can be controlled by producers. Steel Market Update canvassed the market this week, asking readers: Has enough flat rolled capacity been removed to keep prices […]
Lead times for coated steels and steel plate have extended a bit, but lead times for orders of hot rolled and cold rolled have seen little change in the past few weeks. Lead times for steel delivery are a measure of demand at the mill level. The longer the lead time, the busier the mill. […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: We are now in the third year of the steel tariffs. On Jan. 11, 2018, the Department of Commerce transmitted its report and recommendations to President Trump. The president was waiting for the document, which gave him power […]
As widely expected, Nucor was the first to announce another $40 increase in flat rolled steel prices Wednesday, followed closely by ArcelorMittal USA, NLMK USA, California Steel Industries, USS-POSCO Industries and Algoma Steel. This represents the fifth round of price hikes by the major mills since late October totaling around $190 per ton. In a […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
Flat rolled mills raised prices by another $40 per ton this week and the plate mills are expected to follow suit soon, possibly yet this week. “Lead times have jumped out to February-March-April. Scrap is up $20-30. The mills will certainly go for plate increase number four since November,” said one Steel Market Update source. […]