The U.S. Department of Commerce advised Steel Market Update, as a member of the media, who would be speaking at tomorrow’s (Wednesday, May 24, 2017) Section 232 hearing on steel. The hearing is part of the Commerce Department’s investigation about the need for steel for national security. Here is what we received from the US […]
AISI, WASHINGTON, D.C. – The American Iron and Steel Institute’s (AISI) Board of Directors today elected John Ferriola, Chairman, President and CEO, Nucor Corporation, to serve another year as chairman of the Institute, through May 2018. “John is a recognized leader in the global and domestic steel industry. He is an outspoken advocate for the […]
Steel Market Update has begun to ask our scrap sources to provide some color as to what we can expect. Early indications from our sources are to expect ferrous scrap prices to trade “sideways” (unchanged) from the levels reported at the beginning of May. One of our sources told us, “The June market looks to […]
In a move that has been building over the past few weeks, today Steel Market Update (SMU) is moving our Price Momentum Indicator to Lower from Neutral. Our belief at this point is flat rolled steel prices will continue their drift lower over the next 30-60 days as we approach what many in the steel […]
Nucor Corporation announced today the promotion of Leon Topalian to Executive Vice President, effective May 14, 2017. Topalian is currently Vice President and General Manager of Nucor-Yamato Steel Company. John Ferriola, Nucor’s Chairman, CEO and President, commented, “Leon has served Nucor in many key roles, and now he will be a strong addition to our […]
The U.S. International Trade Commission made a final determination that the U.S. steel industry has been materially injured by imports of carbon and alloy steel cut-to-length plate from Austria, Belgium, France, Germany, Italy, Japan, Korea, and Taiwan. Antidumping (AD) orders will be issued on imports of these products from the eight countries as well as […]
It is the first week of May and the negotiations between the long and flat rolled steel mills have been in full swing all week. By late today (Thursday) word of how the scrap dealers had fared has been coming into our offices. The first region to settle was Detroit which was up $10 on […]
Ferrous scrap prices settled in Detroit with prime grades (bundles/busheling) settling at $360 per gross ton. At the same time there is Chinese auto bundles for sale at very low prices FOB China. Chinese scrap exports are new for the Chinese and there are issues that need to be overcome before they become major suppliers […]
SMU sources are expecting scrap prices to remain somewhat range-bound as the scrap dealers begin negotiations with the domestic steel mills for the month of May. Most dealers are forecasting May settlement prices to be within $10 per ton of what we saw in April and this can vary from region to region. We understand […]
I have received a number of comments on the LinkedIn posts that I have put out there over the weekend. I shared our “Black Swan” article on my personal LinkedIn account as well as our Steel Market Update LinkedIn group account. I also received a question about the “average margin for a service center” that […]
Over the course of the last four days Steel Market Update (SMU) has been conducting our mid-April flat rolled steel market trends analysis. We finished earlier this afternoon and we are providing the results of some of our findings to our readers this evening. Lead times, which is the length of time it takes to […]
With consolidated sales of $4.82 billion which is a 30 percent increase over 1Q 2016 and net earnings of $356.9 million it was a good 1st Quarter 2017 for the company. The company reported that the second quarter earnings should exceed that of 1st Quarter. The overall operating rates at the Nucor steel mills was […]
Steel Market Update is asked many times where we think flat rolled steel prices are heading. Our current SMU Price Momentum Indicator is at “Neutral” which means we believe the market to be in transition and, prices could move in either direction from this point. We adjusted our indicator just recently from Higher to Neutral […]
The Coalition for a Prosperous America (CPA) announced that, effective April 11, 2017, Daniel DiMicco will serve as Chairman. CPA is a nonpartisan coalition of domestic manufacturing, organized labor, ranching and farming focused on U.S. policies that ensure fair trade for Americans. DiMicco was the former CEO of Nucor Corp and a member of President […]
First, a reminder that Friday is Good Friday and Sunday is Easter Sunday. Our office will be open for part of Good Friday since I have been traveling extensively and I have a need to catch up. Sunday is a holiday and we will not publish an issue on Sunday evening. The next time we […]
Scrap dealers are pointing at the order book at the domestic mills as one of the main reasons why ferrous scrap prices inched back after the domestic mills initially pushed for shred and obsolete grades to be lower by $30 per gross ton. The mills could not get enough dealers to fill their scrap order […]
US Commerce Secretary Wilbur Ross announced today that a final finding has been made on the dumping of carbon and alloy steel cut-to-length (CTL) plate into the U.S. from eight countries. Commerce affirmed that dumping had occurred regarding imports of CTL from Belgium, France, Germany, Italy, Japan, South Korea and Taiwan and imposed duties ranging […]
Nucor Steel Hickman’s new specialty cold rolling mill complex will get equipment from the international technology group ANDRITZ. The expansion at the Arkansas mill was announced in September and is expected to cost an estimated $230 million. The mill will produce specialty grade steels including third generation advanced high strength steel, high-strength low-alloy steels and […]
We are getting mixed messages regarding “real” lead times coming out of the domestic steel mills. The information we are sharing below comes from actual mill lead times coming directly from the producing mills to their customers. This is different than the lead time averages collected by Steel Market Update and shared with our readers […]
The article title is “Dan DiMicco’s Nucor Has Killed Off More Of The American Steel Industry Than China Ever Has” and was written by Tim Worstall, a Fellow at the Adam Smith Institute in London, England. The article, which can be seen in its entirety online, points out, “That American steel industry which has suffered […]
Early indications (and we should put special emphasis on the word “early”) are for ferrous scrap prices to trend slightly lower on shred and obsolete grades while prime grades (busheling/bundles) are expected to trade sideways due to strong demand from sheet mills. In March, prices for prime grades of scrap rose $60-$65 per gross ton […]
Steel mill lead times are one of the key indicators of future direction of steel prices. Steel buyers must be aware of the amount of time it takes a supplier to produce and ship a new order. Lead times and balancing inventories go hand in hand. When lead times shrink, buyers can pull back on […]
Over the course of a few weeks, buyers and sellers of flat rolled steels changed their view of the direction of flat rolled steel price direction. In the middle of February only 14 percent of those responding to our flat rolled steel market trends analysis survey reported prices would move higher with the majority (52 […]
Nucor Corporation increased its earnings guidance for first quarter 2017 to $1.10-$1.15 per diluted share, more than double its consolidated net earnings of $0.50 per diluted share in fourth quarter and well above analyst consensus of $0.69 EPS. Increased profitability is due to stronger performance of Nucor’s sheet and plate mills. Nucor said in its […]
Total foreign steel imports for the month of January were announced this past week by the U.S. Department of Commerce. Imports totaled 2,814,081 net tons or about 120,000 tons more than December and slightly above the twelve month and three month moving averages. At the same time license data was updated for February imports and […]
On Wednesday, Nucor Sheet Group announced a $30 per ton ($1.50/cwt) price increase on hot rolled, cold rolled and galvanized steels. The base price increase was to take effect immediately and was the second $30 per ton increase announced since the beginning of the New Year. Since October 21, 2016 Nucor has made six price […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing Futures […]
Flat rolled steel order books have been helping push ferrous scrap prices higher for March delivery to the domestic steel mills. Steelmakers have paid $50 to $80 per gross ton higher prices than February for prime grades such as busheling and bundles. Sheet mills pushed their buying prices in order to get the supply of […]
Scrap prices moved higher as scrap dealers and the domestic steel mills finished their March negotiations. With prime grades of scrap settling at about twice the $30 per gross ton originally thought a couple weeks ago, the sheet mills have got a decision to make. Do they take prices up or have they raised prices […]
On Friday of last week Nucor Plate Mill Group announced a $30 per ton price increase on carbon and alloy plate and $50 per ton on heat-treated plate. The increase was to be effective immediately. Today, ArcelorMittal USA also followed the Nucor lead with an increase of their own. A Nucor plate customer told SMU […]