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 HR futures trading has been very muted this week as only 5,300 ST of futures traded since the latest round of […]
The scrap market created a lot of buzz over the past two months that resulted in, so far, two domestic steel mill price increases totaling $60 per ton ($3.00/cwt). I got a note over the weekend from one of the national companies who told me about the scrap markets, “There is a sense the market […]
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 […]
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 […]
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 […]
Our next Steel 101 workshop will be held in Toledo, Ohio on April 11-12th. Included will be a tour of the North Star Bluescope steel mill. We should have details and registration available on our website by the end of the week. Late today I received a note from one of my pig iron sources. […]
Ferrous scrap prices are poised to increase to the domestic steel mills and negotiations are under way. The domestic mills did not cancel the open orders that have not yet been delivered which is a sure sign that they expect prices to be higher in December than what they negotiated in November. A pig iron […]
First, I want to wish every one of our USA readers a safe and pleasant Thanksgiving Holiday. Due to the holiday Steel Market Update will not publish a newsletter on Thursday. We do expect to publish an issue on Sunday evening that may be a little lighter than normal and we will return to our […]
As we discussed earlier this week, higher international prices for iron ore, coking coal, pig iron and steel are helping take ferrous scrap export prices higher. SMU had lunch with one of our scrap/pig iron experts who advised that 80/20 scrap export prices may have reached $280 per metric ton delivered. At the same time, […]
Steel Market Update (SMU) ferrous scrap sources advised us over the weekend that strength in the Ohio Valley, as well as in the export markets, has led to ferrous scrap prices trading higher than originally thought. Talks continue in many of the regions of the country which have not yet completed scrap pricing negotiations for […]
Steel Market Update (SMU) is adjusting our Price Momentum Indicator to “Higher” from Neutral. It is our opinion that flat rolled steel prices in the United States and Canada will move higher over the next 30 to 60 days. There are a number of reasons why we have chosen to make this move now, here […]
All eyes this week will be on the scrap dealers and their steel mill customers as they haggle over where ferrous scrap prices will trade for the month of November. The opinion of many in the steel industry is that as scrap prices increase, it will both support the flat rolled steel price announcements already […]
Steel Market Update scrap sources are advising us to expect ferrous scrap prices have bottomed and will increase once the November negotiations get underway next week with the domestic steel mills. We are hearing scrap prices should increase by a minimum of $10 per gross ton and some items could go up by as much […]
Nucor Corporation announced today that it has agreed to acquire Independence Tube Corporation (ITC), a leading independent manufacturer of hollow structural section (HSS) steel tubing, for $435 million, or approximately 6x average EBITDA over the 2013-2015 period. “Independence Tube is a natural fit with Nucor. Their business model is similar to ours with extremely efficient […]
SMU Sources are advising us that obsolete grades of ferrous scrap are trading sideways (prices remaining the same as last month) while prime grades move lower by $10 to $15 per gross ton in the Chicago, Ohio Valley, Detroit and Indiana markets. Prior to negotiations beginning, the expectation was for obsolete grades to remain intact […]
Initial reports coming out of the financial community are suggesting ferrous scrap prices could be down $5 to $15 per ton once the August negotiations between the steel mills and their suppliers get under way. The expectation that the prime grades will be hit after spending a couple of months moving sideways. However, not all […]
As reported last week, obsolete grades of ferrous scrap came under price pressure as negotiations concluded for July deliveries. Prime grades, however, saw prices move sideways as the spread between shredded scrap and primes increased. The product that saw the most movement was shredded due to excessive inventories and little movement on the export front […]
An executive with one of the larger scrap companies told us that trading finally got under way in the Southeast over the past 24 hours. We were told, “Scrap trading got underway in the Southeastern markets late yesterday and today. While demand remained intact for the most part, bearish sentiment seems to be on the […]
We purposely did not begin this article on where our sources are seeing ferrous scrap prices with an attention grabbing headline as we think readers would be confused. The confusion comes from the pressure the domestic steel mills are expected to put on obsolete grades, like shredded scrap and HMS (heavy melt scrap). Those of […]
There is a big difference between the settlement prices in the Midwest versus those on the East Coast. Ferrous scrap prices in the Chicago area saw shredded scrap drop by $30 per gross ton, cuts (obsolete scrap) was down $20 per ton while prime grades (bundles and busheling) went sideways. In the Detroit numbers shredded […]
Supply is the over-riding issue affecting steel buyers today. Supply is constrained for a number of reasons, some expected and some by chance. We wrote an article earlier this week about two situations affecting steel buyers in the United States. The accident at CSN in Brazil took out their lone blast furnace costing them about […]
Steel buyers are beginning to brace themselves for what may well be another tumultuous month of allocations, closed order books and even higher steel prices. At this point it is a foregone conclusion with most buyers that there will be another increase. The question really is how much higher will prices go during the month […]
This may come as a surprise to some but, there are many who think 2016 may be one of those years where flat rolled steel price volatility, maybe even extreme volatility, could become the norm. We are now in the midst of a five month upswing in flat rolled steel prices which has taken benchmark […]
With lead times extended and supply constrained any surprise outages, or the rumor of an outage, could have a dramatic impact on an already spooked flat rolled market. On Sunday, US Steel suffered a short term unexpected outage on their largest blast furnace, #14 at Gary Works. The two day outage is projected to have […]
Steel Market Update ferrous scrap sources are advising us that scrap prices are poised to move $30 to $50 per gross ton higher for April deliveries than what we saw negotiated at the beginning of March. The issue is supply. The domestic sheet mills are having issues finding all of the tonnage they need and […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Andre Marshall and Jack Marshall of Crunch Risk LLC. Here is how they saw trading over the past week: Financial Markets:Wow what a difference a week makes! Like a lot of you, I was on vacation […]
SMU sources have advised us that there were two vessels of pig iron sold out of Brazil to the United States at $200 per metric ton NOLA. This represents a $12 per ton increase over last sales ($188 per metric ton). Shipment of the pig iron is anticipated for April/May out of Brazil. Fifteen years […]
The following article is one of the key proprietary products produced for our Premium level members. We wanted to share it with all of our readers this evening to give everyone a feel for how we are seeing the steel economy based on “the numbers.” An explanation of the Key Indicators concept is given at […]
“We will follow the market,” is what Mark Bula, Chief Commercial Officer at Big River Steel, told SMU during a phone interview late last week. We asked Bula to outline the progress of the mill and when they anticipate beginning production. We learned that with the strength of the cold rolled markets, Big River Steel […]
According to the AISI A7 report, total crude steel production in 2015 was 86,912,000 tons, down by 10.6 percent from 2014. Figure 1 puts this into a historical context with 130 years of data. Peak production was 150,483,000 in 1973 and in that year 26 percent was produced in open hearth furnaces, 18.4 percent in […]