It has only been one week since ArcelorMittal USA increased flat rolled steel prices. As the week progressed, it became obvious that steel mills were reacting to the price announcements in different ways. We heard from steel buyers that some mills withdrew open quoted pricing and repriced at new levels at least $40 per ton […]
Steel Market Update (SMU) found steel buyers receptive to speaking their minds on how various steel mills are responding to the price increase announcements made last week. It appears mills with shorter lead times are perhaps a little more receptive to waiving part or all of the increases. Other mills have better order books and […]
Wholesaler/distributors who sell galvanized steel products to the HVAC market are waiting anxiously to see what happens to prices in the coming weeks. In the monthly steel conference call hosted today by the Heating, Air-conditioning, and Refrigeration Distributors International, HARDI members asked two key questions: Will the mills be able to collect the flat roll […]
The supply of trucks available to transport steel is tightening, more so because of a man-made state of affairs than the recent natural disasters. “The storms didn’t help, but they are not the big driver. It’s getting into compliance with the new ELD regulations,” said a service center executive in the Southeast. “The hurricanes have […]
Many of the domestic steel mills raised prices on Tuesday and Wednesday of this past week. ArcelorMittal USA lead the way by announcing specific “minimum” base prices on hot rolled ($625 per ton), and cold rolled and galvanized steels ($825 per ton each). The other mills all announced $40 per ton price increases (which to […]
We have an article in tonight’s newsletter from Mario Briccetti that I want to make sure is not misconstrued as a criticism of the domestic steel mills. The Kobe Steel violation of trust by certifying test results for tests that were not conducted has created some unease here in the United States. It is Steel […]
On Tuesday of this week, ArcelorMittal USA announced new “minimum” base pricing on hot rolled, cold rolled and galvanized products. On Wednesday, Nucor and North Star BlueScope followed with increase announcements of their own of $40 per ton ($2.00/cwt). This morning (Thursday), NLMK USA emailed a letter to their customers advising of their intention to […]
John Ferriola, chairman, president and CEO of Nucor Corp., has been named vice chairman of the World Steel Association board of directors. Ferriola will serve a one-year term with the Brussels-based trade association. Named as chairman of the worldsteel board was Kosei Shindo, president of Nippon Steel and Sumitomo Metals Corp. Ohjoon Kwon, CEO of […]
The delay by the Trump administration in making a decision on Section 232 is allowing further damage to the steel industry, said Nucor CEO, Chairman and President John Ferriola during the company’s third-quarter conference call. Ferriola said he is not surprised by the surge of imports that have come into the U.S. since spring. Countries […]
Late this afternoon, the Nucor Sheet Group sent a written note to customers advising them of a $40 per ton ($2.00/cwt) price increase on spot orders of hot rolled, cold rolled and galvanized steel. This follows the announcement by ArcelorMittal USA yesterday, taking spot base prices to $625 per ton on hot rolled and $825 […]
Flat rolled steel prices continued their slow slog south (prices are moving lower). The pace has not accelerated, but there are questions as to whether some of the mills are cutting “quiet” deals in order to fill their fourth-quarter order book without giving the steel away. One service center put it to us this way: […]
Prior to the ArcelorMittal USA price increase announcement, Steel Market Update analysis of steel prices found flat rolled steel prices continuing their slow slog south (prices are moving lower). The pace has not accelerated, but there are questions as to whether some of the steel mills are cutting “quiet” deals in order to fill their […]
The next Steel 101 steel training workshop will be held in Mobile, Ala., and will include a tour of the SSAB Mobile minimill. Registration is open, and the workshop currently is almost half full. “SMU Steel 101 is a great learning tool for anyone working in the steel industry in any position. I wish I […]
As the afternoon turned into evening, I began hearing rumors that a flat rolled price increase would be announced “soon.” I heard from a service center who was texting us from his car (a definite no-no) telling SMU that a yet to be named (by us) mill was moving prices. We are still waiting for […]
It’s on the table: the U.S. proposal for rules of origin for NAFTA automobiles. On Friday, the Trump administration made its demand for 50 percent U.S. content in NAFTA-produced cars and trucks and an increase of North American content from 65.2 percent to 85 percent. The increase for U.S. content would be made within the […]
Zinc prices continue their rally that began in early 2016, taking the metal’s price to a 10-year high and raising the cost of producing galvanized steel and other products. Zinc prices have managed to breach the psychological ceiling of $3,000 per metric ton, which stalled rallies in November 2016 and February 2017. Breaking this ceiling […]
Some key price levels have been left in the dust when it comes to flat rolled and plate prices. On Friday of this past week, Steel Market Update (SMU) reduced the lower end of the range on hot rolled and our average dropped below $600 per ton. This week our HRC took a hit on […]
Flat rolled steel prices continue to “drift,” with some items drifting lower, some staying the same and cold rolled actually increasing by $5 per ton. One commercial officer at a steel mill told SMU that in his view the range has shrunk for the products they produce. Even so, “We are finding business, and it […]
Steel tariffs are still likely from the Trump administration, said Nucor CEO and President John Ferriola. In an interview with Bloomberg, Ferriola said a White House official that regularly meets with the president told him that the topic is brought up by Trump several times a week. Ferriola said he was told that two or […]
SMU Price Momentum Indicator is now at “lower,” meaning flat rolled steel spot prices are expected to move lower over the next 30 to 60 days. Steel prices have begun to retreat with benchmark hot rolled beginning the month at $630 per ton ($31.50/cwt) and ending the month down $20 to $610 per ton ($30.50/cwt). […]
The ferrous scrap market is softening and SMU’s sources expect prices to drop by $10 to $20 per gross ton in October. Domestic mills are beginning to cancel September orders that have not been completed (delivered) by the end of the month. This is a sure sign the mills believe ferrous scrap negotiations for October […]
When asked to comment on spot flat rolled steel prices this week, the president of a medium-sized service center told SMU, “Drifting. Demand seems down.” He went on to report that even with AK Steel and ArcelorMittal reporting extending lead times, the market “feels soft.” Other steel buyers reported that their perception of the market […]
A contractor at Nucor Steel in Decatur, Ala., died at the mill on Saturday afternoon after falling into a vat containing waste product from finished rolled steel. Nucor issued the following statement from Mike Lee, vice president and general manager of Nucor Steel Decatur: “Nucor Steel Decatur and Atlantic Recovery Services, Inc., a specialized industrial […]
A contractor at Nucor Steel in Decatur, Ala., died at the mill on Saturday afternoon after falling into a vat containing waste product from finished rolled steel. Nucor issued the following statement from Mike Lee, vice president and general manager of Nucor Steel Decatur: “Nucor Steel Decatur and Atlantic Recovery Services, Inc., a specialized industrial […]
On Friday, Steel Market Update (SMU) adjusted our Price Momentum Indicator to Lower from Neutral. It is our opinion that flat rolled steel prices will move lower over the next 30 days for the following 10 reasons: First, when the head of commercial of a domestic steel mill tells SMU that “transaction pricing cannot go […]
Nucor Corp. executives urged the U.S. Trade Representative and Department of Commerce to vigorously oppose any efforts to weaken existing Buy America/n requirements, in their comments on President Trump’s April executive order. The steel company also urged the U.S. government to take additional action to stimulate demand for domestic steel in U.S. and foreign government […]
Zinc is once again trading above $1.40 per pound ($1.42 as of 3:30 PM ET) and the smaller steel mills and converters are wondering why U.S. Steel, ArcelorMittal USA and Nucor haven’t made the move to higher zinc coating extras on galvanized steel? We have seen four mills make changes on their “spot” new orders: […]
Despite recent price increase announcements from major domestic mills and imports that are trending lower, wholesalers and distributors who sell galvanized steel products to the HVAC market don’t expect much change in lead times or pricing until there’s some resolution to the Section 232 and Vietnam circumvention trade actions pending in Washington. In the monthly […]
Flat rolled steel average prices are once again “mixed” as some items have dropped, some have remained the same and some rose last week compared to the previous week. We received numbers from Platts, SteelBenchmarker and our own steel index late last week and we found hot rolled down $5 on SMU, up $7 on […]
Nucor expects earnings to be lower in third quarter compared to second quarter. Although Nucor sheet mills are operating at high utilization rates, pricing is not keeping pace with raw material costs due to pressure from imports. Plate demand has been tepid in end-use markets following a restocking of inventory in the supply chain earlier […]