Steel Market Update recently published a “letter to the editor” regarding the domestic mills need to compete in a world market. We received comments from a mill based source who asked they not be identified. The original letter is below with the response being the “bold” print below: I guess it’s fine for the US […]
Just to make sure that everyone saw this: SMU received a note from a Nucor spokesperson that their Louisiana DRI facility would be back up later this week, “Repairs at our Louisiana DRI plant are ahead of schedule and we plan to restart the plant this week. An equipment failure resulted in the need to […]
Flat rolled steel prices rose this past week on every item with the exception of the SteelBenchmarker hot rolled index. Steel Market Update (SMU) saw benchmark hot rolled as up $25 per ton to $625 per ton. Platts moved up $5 per ton to $630 per ton and SteelBenchmarker, who reports prices twice per month, […]
The U.S. International Trade Commission issued two new final determinations on Wednesday related to imports of steel products from China. The ITC determined that the U.S. industry is materially injured by the imports of carbon and alloy steel cut-to-length plate from China. Countervailing subsidy rates of 251.00% and antidumping margins of 68.2 percent will be […]
We are still early in the negotiation process for ferrous scrap pricing for the month of February. The expectation is for much higher than originally thought (sideways to +$30) a couple of weeks ago. SMU scrap sources are advising the Detroit market settled today at up $40 per gross ton on obsolete and shred grades […]
Steel Market Update received the following “Letter to the Editor” from a reader who in the past has been associated with companies supplying products to the domestic steel mills. With all of the articles being written about the industry from President Trump’s point of view we thought it a good idea to air a different […]
Steel Market Update (SMU) has adjusted our Price Momentum Indicator to reference spot prices as moving higher from this point over the next 30 days. Our decision to move our indicator is due to the continued high prices for steel mill inputs, such as 62% Fe iron ore fines in China being sold at $91.50/dmt […]
The rumors about March ferrous scrap prices have been flying ever since prices rebounded early in February from the initial down $10-$30 per gross ton we saw in the early negotiations. As the month of February continued scrap prices rebounded and, in some cases, returned to levels seen in January. As we prepared for March […]
If at first you don’t succeed, try, try again. On Monday Nucor began the flat rolled steel price increase announcement train as they, and just about every other flat rolled mill in the United States, came out with a $30 per ton increase. Steel buyers, however, were confused as to where spot base prices were […]
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 […]
Scrap, scrap, scrap, scrap and scrap…that is what everyone is going to be talking about for the next week to ten days. David Feldstein in tonight’s HRC Futures article suggested prime grades could go higher in March by as much as $80 per gross ton. I have read articles that suggest the numbers could be […]
Three mills have made price increase announcements of $30 per ton on all flat rolled products produced by those mills. The three mills are Nucor, NLMK USA and USS/POSCO (UPI) on the West Coast. On Monday morning Nucor made it official and was the first mill to announced a $30 per ton ($1.50/cwt) price increase […]
Galvanized steel buyers need to remain aware of the movement in zinc pricing. With the strike at the zinc-processing facility in Canada there is a possibility that zinc supplies could tighten here in the United States. Zinc prices have been trading on the LME in the $1.30-$1.35 per pound over the past week. At the […]
A large flat rolled steel service center shot me a note late on Friday advising a steel mill had told them earlier in the day to expect a $40 per ton price increase as soon as Monday of this week. At the same time the customer was told if scrap prices in March increase by […]
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 […]
The following article is the opinion of John Packard, Publisher, Steel Market Update. I haven’t gone back and reviewed the records as to how many times flat rolled steel prices moved higher after a quick run up followed by a stable to slightly down market for a couple of weeks. Probably less than the fingers […]
We have a number of articles in tonight’s newsletter about China and Chinese steel and iron ore prices. Why do we pay so much attention to one country? China controls 50 percent of the world’s steel production. The country has somewhere around 300 million metric tons (330 million net tons) of excess capacity. They have […]
The Nucor Louisiana DRI plant is down for 4-5 weeks according to information just received by SMU from Nucor spokesperson Katherine Miller. Here is what she told us: “We recently had an equipment failure that has temporarily stopped production at our Louisiana DRI plant. Due to the nature of the DRI process and the cooling […]
The following article is the opinion of Steel Market Update (SMU) founder and publisher, John Packard. There is a new kid in town, his/her name is Big River Steel. No other steel mills like BRS because they are taking market share and, well, everyone wants to keep all of their toys. Big River Steel Arkansas […]
Over the weekend, we were able to discuss the status of ferrous steel scrap negotiations for February with a couple of scrap dealers as well as one individual associated with the pig iron markets. The Detroit areas mills were the first to settle and the decline in shred and obsolete grades was not as dramatic […]
US Steel said it is prepared to provide steel for the pipeline projects recently approved by the Trump administration. “The American manufacturing base on steel is fully prepared to supply what is needed for the pipelines and for the general infrastructure projects that are certainly going to come,” US Steel CEO Mario told CNBC in […]
Nucor Corporation plans to help the new administration bring manufacturing back to America. It is off to a good start by posting solid earnings results for fourth quarter 2016. Nucor announced consolidated net earnings of $159.6 million for fourth quarter 2016 compared to $305.4 million in third quarter and a loss of $187.5 million a […]
Two of America’s steel industry leaders are among a team of 28 business leaders assembled by President Trump to provide ideas on how to promote job growth in the manufacturing sector. US Steel president and CEO Mario Longhi, and John Ferriola, president and CEO of Nucor will be among those consulted by the President for […]
Are steel prices poised to give back some of the gains collected over the past few months? Steel Market Update and our readers have been debating this subject as word of mills being more receptive to negotiate steel pricing has been leaking out into the market. On Tuesday of this week, SMU published an article […]
Steel Market Update (SMU) received the following question from one of our readers: “We are a galvanized sheet metal fabricator. We purchase around 5 million pounds a year (mostly 26ga-14ga). I was hoping you could help us out. We have not had to raise prices in years but galvanized pricing has steady risen over the […]
I want to take a moment to thank all of the attendees who attended our Steel 101 workshop in Huntsville, Alabama. We had a great two days and the Nucor team at Decatur did a great job hosting our mill tour on Tuesday of this week. Thank you again to Nucor for supporting our educational […]
Are cracks starting to develop in the floor of steel prices? Are any cracks a harbinger to a reversal of flat rolled steel prices? It is too early to tell. However, buyers and sellers of steel need to be aware of that the markets may be in the early stage of change. Since the beginning […]
SMU sources advised that US Steel Great Lakes had a furnace issue due to a leaking water line and a weld gas explosion. They were down for about a shift and are now back up and working for the time being. I wrote the Price Momentum article this evening to make sure that there was […]
The Final Thoughts section is the area where I get to provide my opinions about what I am seeing and sensing in the market. I have been debating over the weekend whether or not now is the time to adjust our Price Momentum Indicator from Higher to Neutral. A Neutral reading would mean prices are […]
On January 18, 2017, the Department of Commerce announced its final affirmative determinations in the antidumping and countervailing investigations of imports of cut-to-length steel plate from China. The China-wide rate for antidumping was established at 68.27 percent. The China-wide entity was assigned duties based on adverse facts for failure to cooperate with the investigation. The final subsidy […]