Steel Dynamics Inc. (SDI) expects lower first-quarter 2023 earnings on costs related to its Sinton, Texas, flat-roll mill and the continued work-through of higher-priced pig iron purchased in 2022. The Fort Wayne, Ind.-based steelmaker expects Q1 earnings in the range of $3.47 to $3.51 per diluted share. This is down from $3.61 per diluted share […]
What’s perhaps most shocking about Cleveland-Cliffs starting the week up $100 per ton ($5 per cwt) on sheet and targeting $1,200 per ton for hot-rolled coil (HRC) is that many of you didn’t find it shocking. In early February, we got used to prices going up by $50 per ton from one week to the […]
The steel industry in the US, and across much of the developed world, finds itself between two greens. On the one hand is the constant innovation towards sustainable, decarbonized “green” steel. And, on the other, is a more traditional green, the bottom line: money. The hope is to keep the two aligned, increasing profits while […]
By CRU Senior Analyst, Puneet Paliwal, from CRU’s Scrap, DRI/HBI & Pig Iron Monitor The CRU metallics price indicator (CRUmpi) for March rose by 7.4% month on month (MoM), to 357.7, which is its highest value since June 2022. Strong Turkish buying of scrap and pig iron since the second half of February is the key […]
What a difference a month makes in light of a difficult forecast environment for hot rolled (HR) prices. The mills have been raising HR spot prices faster than folks can track, and the futures appear to be in lockstep as lead times continue to extend. While steel capacity utilization rate seems stuck in the mid-70% […]
Steel market participants are bracing for prime scrap prices to rise in March, according to SMU’s most recent survey data. Approximately 82% of survey respondents think prime scrap prices will increase when prices settle later this month. Prices for obsolete grades are heating up as well, according to scrap sources contacted by SMU. One scrap market source […]
The Biden administration has hit Russian pig iron as well as other steel and metal products with tariffs of up to 70%. The move was made with less fanfare than the 200% tariffs on Russian aluminum announced in a presidential proclamation last week. The tariffs were included in an annex attached to that proclamation. The […]
Canadian flat-rolled steelmaker Stelco Holdings Inc. recorded sharply lower fourth-quarter profits. The culprit: the “triple whammy” of declining steel prices, shorter lead times, and higher costs, company chairman and CEO Alan Kestenbaum said. “Now, however, we are seeing a reversal of all of these factors with rising steel prices … lengthening lead times, and input […]
We are in moving into an interesting period here for spot markets for hot rolled coil. Steel mills are driving hard for a further rally in the face of what appears to us to be weaker year over year demand and an overall challenging macro-economic backdrop, with interest rates likely to create headwinds this year […]
By CRU Senior Analyst Thais Terzian, Analyst Anton Perevezentsev, and Research Analyst Rosy Finlayson On February 6-7, a series of devastating earthquakes struck several provinces in southeastern Turkey and northwestern Syria, leaving thousands dead and many injured. The quakes also resulted in a massive destruction to the infrastructure of both countries. The first quake measured […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor Steel sheet price volatility has peaked in the US after record average week-on-week (WoW) price changes during 2022. In our view, prices will trade in a much narrower band over at least the next five years (barring any further black swan events) – […]
We’ll kick off the Tampa Steel Conference next Sunday, and I’m looking forward to seeing many of you there in person. For kicks, I decided to look back at how the market was in mid-February 2022, when we held the event along with the Port of Tampa Bay last year. So join me for a […]
Steel Dynamic Inc.’s new sheet mill in Sinton, Texas, should become profitable in 2023 after costing the Fort Wayne, Ind.-based steelmaker more than $400 million in 2022, company executives said. The shift should come thanks to increased shipments, lower raw material costs, and a lack of import competition from Mexico stemming from production issues at […]
This week’s survey didn’t land quite as I expected. Some data points indicate that the price rally we’ve seen since late November will continue, but others suggest it might be running out of steam. For starters, if you’re an SMU subscriber, you can find our latest market survey results here. If you aren’t, this data […]
By CRU Senior Analyst, Puneet Paliwal, from CRU’s Scrap, DRI/HBI & Pig Iron Monitor The CRU metallics price indicator (CRUmpi) for January rose by 5.5% month-on-month (MoM), to 319.2, registering the fastest MoM growth since last April. The optimism brought in by China’s unexpected reopening has reverberated across major economies and was further boosted by the […]
Steel Manufacturers Association president Philip K. Bell will be the featured speaker on the next SMU Community Chat on Wednesday, Jan. 11, at 11 a.m. ET. You can register here. SMA is the leading voice of the electric-arc furnace (EAF) steelmaking industry in Washington, D.C., which means Bell is ideally suited to discuss important policy […]
Steel Manufacturers Association president Philip K. Bell will be the featured speaker on the next SMU Community Chat on Wednesday, Jan. 11, at 11 a.m. ET. You can register here. SMA is the leading voice of the electric-arc furnace (EAF) steelmaking industry in Washington, D.C., which means Bell is ideally suited to discuss important policy […]
At the start of each year, CRU continues to feature top expectations and outliers for the year ahead. This annual list of expectations is a thought piece, meant to stimulate internal discussions, scenario analysis, and strategic planning around potential risks to the markets we cover. This 2023 edition covers six expectations and three potential outliers. […]
US Steel said sourcing pig iron from its Gary Works in Indiana in the first half of 2023, and working through the remainder of the high-priced raw materials, are expected to improve its mini mill segment’s financial results. However, in guidance released Thursday, Dec. 15, the Pittsburgh-based steelmaker said the mini mill segment’s adjusted earnings […]
Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from […]
US Steel said hot commissioning is underway, and the first small batch of pig iron was cast at its Gary Works in northwest Indiana. The Pittsburgh-based steelmaker said it has cast several full ladles of hot iron and produced over 1,000 tons of pig iron. This occurred months ahead of schedule, while maintaining a perfect […]
As this year winds down, many have 2023 business on their minds. Reports of waning demand have contributed to pessimism among buyers. But the domestic steel industry has reason for optimism heading into the New Year, according to the top executives at steel’s two leading trade associations. Steel Market Update spoke with Phil Bell, president of […]
By CRU Research Analyst Aaron Kearney-Keaveny, from CRU’s Steelmaking Raw Materials Monitor The CRU metallics price indicator (CRUmpi) for November fell by 3.5% month-on-month (MoM), to 298.3, which is the lowest level since December 2020. Global scrap demand continues to be undermined by weak steel market fundamentals in key markets. Over the past few months, […]
Prices of steelmaking raw materials moved in differing directions over the last 30 days, as they did the month prior, according to Steel Market Update’s latest analysis. Through the latest data available as of Nov. 16, pig iron and aluminum increased 7% in the last month, coking coal prices rose 6%, and zinc prices increased 4%. […]
The following article on the hot-rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled The indicated value of HR spot has declined roughly $31 per short ton ($687/ST to $656/ST) this month. For comparison purposes, […]
By CRU Senior Analyst, Puneet Paliwal, from CRU’s Scrap, DRI/HBI & Pig Iron Monitor The CRU metallics price indicator (CRUmpi) for November fell by 3.5% month-on-month (MoM), to 298.3, which is the lowest level since December 2020. Global scrap demand continues to be undermined by weak steel market fundamentals in key markets, causing prices to stay […]
Prices of steelmaking raw material moved in differing directions over the last 30 days, according to Steel Market Update’s latest analysis. Through the latest data available as of Oct. 27, coking coal prices increased 15% over the last month, aluminum prices rose 8%, and zinc prices increased 2%. Pig iron prices remained stable. Busheling scrap […]
By CRU Senior Analyst, Puneet Paliwal, from CRU’s Scrap, DRI/HBI & Pig Iron Monitor Global scrap prices stay subdued while those of ore-based metallics have found some support. Overall metallics demand continues to be hampered by the steel market weakness, a trend which may sustain through the short term, particularly in Europe. The CRU metallics price […]
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 […]
We’ve seen a wave of mill idlings and outages this fall. But steel buyer reaction to date has been subdued. The yawn now in response to all those tons coming out of the market stands in stark contrast to the almost hysterical reaction to downtime at even the smallest producers in early 2021. Remember the […]