Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. US construction spending in February totaled $1.704 trillion at a seasonally adjusted annual rate, rising less than expected as an increase in outlays on private projects was partially offset by a decline […]
Total active drilling rigs in the US increased this week, while Canadian rigs declined further, according to recent data released by oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook The invasion of Ukraine by Russian forces has continued to rock commodity and financial markets. We expect the fallout from the invasion to reduce world growth this year and next, through three main channels: Energy prices. Russia is a major producer and exporter of […]
Steel prices rose again this week on continued strong demand (outside of automotive). But hot-rolled coil price gains moderated for the second week in a row. SMU’s benchmark hot-rolled coil price rose to $1,460 per ton this week, up $25 per ton from $1,435 per ton last week and marking the smallest week-over-week gain since […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
Fuel surcharges continue to march higher along with increased steel prices and ballooning costs for raw materials such as ferrous scrap and pig iron. Case in point: Wheeling-Nippon Steel’s fuel surcharge will increase to 24% effective with shipments on Monday, April 4. “The surcharge will continue to be added to the freight on all invoices […]
Fuel surcharges continue to march higher along with increased steel prices and ballooning costs for raw materials such as ferrous scrap and pig iron. Case in point: Wheeling-Nippon Steel’s fuel surcharge will increase to 24% effective with shipments on Monday, April 4. “The surcharge will continue to be added to the freight on all invoices […]
Too much went on last week to limit this week’s column to a single issue. The Ukraine war touches everything these days, including almost all recent developments on the trade front. It was a week that, to paraphrase Winston Churchill, was “not entirely uneventful.” First, the NATO summit meeting took on issues that have divided Europe […]
The number of active oil and gas drill rigs in the U.S. increased this week, while Canadian rigs declined, according to recent data released by oilfield services company Baker Hughes. The active drill rig count is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand. The […]
Nucor will implement a biweekly update to its current fuel surcharge effective Thursday, April 3, for some steel products. Certain divisions of the Charlotte, N.C.-based steelmaker said the move was necessary because “fuel prices are at all-time high levels,” in letters to customers dated Wednesday, March 16. SMU has seen matching letters from the company’s […]
The Energy Information Administration’s March Short-Term Energy Outlook (STEO) is subject to an even higher level of uncertainty than usual due to Russia’s invasion of Ukraine. As EIA’s latest report explains, “supply uncertainty results from the conflict in Ukraine, the production decisions of OPEC+, and the rate at which U.S. oil and natural gas producers […]
Steel import permit applications for February totaled 2,274,000 net tons—a 24.5% decrease from the 3,013,000 permit tons recorded in January and a 25.3% decrease from the January final imports total of 3,044,000. Import permit tonnage for finished steel in February was 1,759,000, down 22.8% from the final imports total of 2,279,000 in January, reported the […]
Steel Market Update’s hot-rolled coil price was at $1,050 per ton ($52.50 per hundredweight) last week. Several mills are now offering hot band at $1,200 per ton ($60 per cwt). I don’t know where things will settle when we adjust prices on Tuesday. But I think it’s fair to say that prices will be significantly […]
By Trade Attorney Lewis Leibowitz (Editor’s note: The following views are those of the author and do not necessarily reflect the opinions of Steel Market Update.) On Friday, President Biden announced that the United States would end “Most Favored Nation” status, termed “PNTR” in the United States, for Russia, a member of the World Trade […]
Steel import permit applications for February totaled 2,274,000 net tons—a 24.5% decrease from the 3,013,000 permit tons recorded in January and a 25.3% decrease from the January final imports total of 3,044,000. Import permit tonnage for finished steel in February was 1,759,000, down 22.8% from the final imports total of 2,279,000 in January, reported the […]
By CRU Research Analyst Christopher Dix and Analysts Diego Giangreco and Tiago Vespoli, from CRU’s Steelmaking Raw Materials Monitor, March 10 Pig iron prices have increased following disruption to CIS supply. The global pig iron market is short of supply as Russian exports are difficult to replace. Black Sea freight options are now very limited, […]
In a letter to the White House on Thursday, the American Trucking Associations called on the Biden administration to boost domestic energy production and take other steps to provide relief at the pump for truckers and other motorists. Fuel is the second largest operating expense for trucking fleets, and surging diesel prices threaten to decimate […]
In his remarks during Wednesday’s Community Chat, Johnny Sjöström, the top executive at SSAB Special Steels, suggested that the fighting in Ukraine will make nations more gun-shy about becoming too dependent on their foreign trading partners. Nations in Europe and many other parts of the world are scrambling to maintain production without the exports of […]
The global steel industry will see ripple effects from the war in Ukraine for years to come. Its direct and indirect effects will cut European steel capacity by 30-40% in the near term as the conflict disrupts the flow of natural gas and steelmaking raw materials – most notably steel slabs from Russia, said Johnny […]
It seems all the swans are black now. First we had a pandemic. Now war. You don’t need a reminder from SMU on the terrible human suffering caused by each. When it comes to steel, the result is higher raw material costs and higher prices. Pricing levels that were unimaginable a month ago, when it […]
While 29 states now employ more construction workers than before the pandemic, construction employment is still below February 2020 levels in 21 states and D.C., underscoring how spiking materials prices and tight labor markets are undermining the sector’s recovery, said the Associated General Contractors of America. “Employment has risen in most of the nation over […]
SMU’s Steel Buyers Sentiment Index continues to inch downward from its late-2021 peak, with the latest three-month moving average sliding to the lowest level seen in nearly 10 months. Although down, sentiment remains at very optimistic levels on the 100-point scale. Steel Market Update surveys buyers every two weeks and asks how they view their […]
By Trade Attorney Lewis Leibowitz (Editor’s note: The following views are those of the author and do not necessarily reflect the opinions of Steel Market Update.) A bit over a week into the new world order (i.e., the Russian invasion of Ukraine) and things are proceeding, but slowly. We have all been following the conflict—but […]
Europe will suffer substantial economic consequences from Russia’s invasion of Ukraine, while the Russian economy will be hurt by the array of sanctions imposed by the West. But the United States should emerge relatively unscathed from the “economic mayhem” caused by Russia’s aggression in Eastern Europe, unless the war escalates dramatically, predict the experts at […]
The number of active oil and gas drill rigs in the U.S. and Canada was flat or fell this week after gains in prior weeks, according to recent data released by oilfield services company Baker Hughes. The active drill rig count is important to the steel industry because it is a leading indicator of oil […]
U.S. construction spending in January totaled $1.68 trillion at a seasonally adjusted annual rate, boosted 1.3% by strong outlays on single-family homebuilding and private nonresidential structures, the Commerce Department reported. The gain is even more significant given December data was revised higher to show construction outlays rising 0.8% instead of 0.2% as previously reported. January’s […]
I continue to watch what is happening in Europe, the Middle East and in Asia as it relates to the flow of steel-and steel-related commodities that normally come from Russia and the Ukraine. One of my experienced trading contacts was wondering if the Russians will begin flooding China with cheap steel. (Wouldn’t that be special?) […]
The fog of war. That’s what we’re all dealing with now. Even in steel as realization grows that the war in Ukraine will have consequences here in North America too. The exact contours are still uncertain. We know that pig iron prices are up sharply, and that concerns about shortages are mounting – not just […]
U.S. manufacturing activity grew in February amid stronger demand and easing supply disruptions, according to the latest U.S. Manufacturing PMI data from IHS Markit. The report noted that the strong improvement in operating conditions was driven by the sharpest expansion in new orders since last October. Stronger new sales growth spurred manufacturers to increase staffing […]
By CRU Multi Commodity Analyst Alex Christopher and Research Analyst James Mills, from CRU’s Steel Sheet Products Monitor, March 3 The sanctions imposed on Russia over its invasion of Ukraine will have direct and indirect implications for commodity markets, and their impact will be felt by everyone involved along the length of commodity value chains. […]