Steel Market Update did not see a huge move in flat rolled steel prices this week. Our benchmark hot rolled average rose a modest $5 per ton, but is still below $700 per ton and a long way away from the $730 per ton suggested by ArcelorMittal USA in their announcement email. The other flat […]
Manufacturing activity slowed its rate of growth in February, according to the latest Manufacturing ISM Report on Business. The headline PMI fell further than expected last month, coming in at 54.2, a 2.4 point decline, and below the general consensus of 55.0. “Production expansion continued in February, but at a slower pace compared to January,” […]
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 […]
Service center executives polled by Steel Market Update on Monday and Tuesday reported spot prices firming up, though perhaps not enough for the mills to collect both $40 increases they have announced in the past month. Below are some of their comments on the current price momentum for flat rolled and plate steel, as well […]
Flat rolled steel prices have begun moving higher. Benchmark hot rolled coil (HRC), which has been one of the weakest of the flat rolled products recently, was up $10 per ton. Cold rolled did even better, up $15; galvanized better than CR, up $20; and Galvalume bested them all, up $25 per ton compared to […]
This morning, Steel Market Update adjusted our Price Momentum Indicator on flat rolled from Neutral to Higher. Our Price Momentum Indicator was last adjusted on Jan. 28, 2019, when we moved from Lower to Neutral as the domestic steel mills, led by Nucor, began announcing price increases. It is normal for SMU to adjust our […]
As the domestic steel mills started raising flat rolled prices on Wednesday, Steel Market Update reached out to a number of steel buyers in order to get their reaction to the news. We discussed the $40 per ton increases announced by Nucor, NLMK USA, U.S. Steel, California Steel and USS/POSCO along with ArcelorMittal USA’s new […]
Mill lead times for spot orders of flat rolled steel continue to inch out as market momentum shifts toward strengthening steel prices. Lead times for steel delivery are a measure of demand at the mill level. The longer the lead time, the busier the mills. The busier the mills, the less likely they are to […]
With steel prices in transition following last month’s price increase announcement from the major mills, the tone of negotiations between producers and buyers appears mixed. The majority of buyers report the mills are still willing to talk price on all products but plate, but fewer in the high-demand categories of hot rolled and galvanized. Most […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel Market chatter suggests that February has been a fairly active month for HR physical steel sales as spot price indexes have pushed […]
This morning, Steel Market Update adjusted our Price Momentum Indicator on flat rolled from Neutral to Higher. Our Price Momentum Indicator was last adjusted on Jan. 28, 2019, when we moved from Lower to Neutral as the domestic steel mills, led by Nucor, began announcing price increases. It is normal for SMU to adjust our […]
The domestic steel mills have been able to put a floor on flat rolled steel prices since Nucor announced their $40 per ton price increase on Jan. 28, 2019. Now that they have a firm floor, the mills are slowly moving prices higher. In the process, they are very slowly shifting momentum. Steel Market Update […]
We found mixed results in flat rolled steel prices this week. Steel buyers are telling Steel Market Update that the bottom has been “firming” and that prices are moving sideways to slightly higher on most products. SMU talks more about price momentum and pricing in a separate article in tonight’s issue. Here is how we […]
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 […]
Steel prices are trying to rise following the $40 per ton increase announced by the mills last month, but how fast, how far and for how long remains the subject of much speculation. Comments from SMU’s market canvas this week show buyers with two basic views: Either, “Mills are very firm on pricing. We’ve got […]
Earlier this week I was at the Port of Tampa Steel Conference as I was asked to be the master of ceremonies, and I also moderated the two main panels on Wednesday morning. Both panels dealt with trade issues with the primary focus being on the Section 232 tariffs on steel. The Port of Tampa […]
I continue to get mixed messages regarding the strength of the flat rolled steel market, and specifically lead times and pricing. I have heard from a number of steel buyers of longer lead times on galvanized at a couple of mills. The strength does not yet seem to be universal. Neither is the weakness. For […]
Mill lead times for spot orders of flat rolled steel have extended slightly in the past few weeks, lending support to those who believe the market is near the bottom. Lead times for steel delivery are a measure of demand at the mill level. The longer the lead time, the busier the mills. The busier […]
There is a considerable amount of information/debate happening in Washington, D.C., Canada, Mexico, China and Europe regarding tariffs either in place or being threatened by the Trump administration. We included a press release in tonight’s issue that was sent out by Wilbur Ross of the U.S. Department of Commerce earlier this week. U.S. Trade Representative […]
We gathered mixed results regarding flat rolled and plate steel pricing over the past two days. When we say mixed, we don’t mean some prices falling while other prices were rising. What we found was pricing stable to rising. We heard from a number of buyers that there were mills still actively pursuing prices at, […]
Steel Market Update data and comments from industry executives suggest that steel prices may be near a firm bottom. Prices are trying to move higher following the mills’ $40 per ton increase announcement last month. SMU’s Steel Price Momentum Indicators remains at Neutral, but we will be reviewing the situation over the next few days. […]
The new year has gotten off to a positive start for members of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI), who supply steel products to the HVAC market. Most are optimistic about business, at least in the coming quarter, but comments during their monthly conference call today reflected some disagreement over steel prices. “We […]
Global manufacturing is approaching the stagnation point, says a new survey by J.P. Morgan and IHS Markit. The J.P. Morgan Global Manufacturing PMI fell for the ninth month in January to register 50.7, its lowest reading since August 2016. Trade tension originating with the U.S. was a common theme throughout the IHS Markit PMI reports […]
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 […]
The Chicago Business Barometer plummeted in January, falling 7.1 points to 56.7 from December’s downwardly adjusted reading of 63.8. New orders and production contributed heavily to the decline as new orders dropped to a two-year low and production to a 10-month low. Order backlogs eased to a three-month low and delivery of raw materials improved […]
We have seen Nucor, U.S. Steel, NLMK USA and ArcelorMittal move spot flat rolled base prices up $40 per ton effective immediately. That is what was announced this week. The reality is not yet clear, and the prices referenced in tonight’s pricing assessment only marginally take the increases into account as negotiations are very early […]
Major domestic steelmakers have announced a $40 per ton ($2/cwt) hike in the price of hot rolled, cold rolled and galvanized steel products, fueling the debate over whether current market conditions can support an increase or if the latest announcement is bound to flop like the last one in October. West Coast mills California Steel […]
Nucor Corp. surpassed expectations for 2018, reporting net earnings of $2.36 billion for the full year compared to $1.32 billion in 2017. Net sales jumped 24 percent to $25.07 billion due to a 5 percent increase in tons shipped and an 18 percent jump in the average sales price per ton. Nucor shipped 27.9 million […]
What an interesting week it has been, and it’s only Tuesday. As previous articles have already stated, Nucor, U.S. Steel, NLMK USA and ArcelorMittal (verbally) have joined California Steel and USS/POSCO by announcing $40 per ton price increases on flat rolled. For those of you who are new to the industry or to our newsletter, […]
Mill lead times for spot orders of flat rolled steel continued to shrink this month. Even plate, which has been in short supply, is showing signs of loosening with its average lead time dipping to less than six weeks from more than seven weeks at the beginning of January. Lead times for steel delivery are […]