Allegheny Technologies Inc. and NLMK USA have signed a one-year agreement to extend and expand carbon steel hot rolling conversion services for NLMK at ATI’s Hot-Rolling and Processing Facility (HRPF) in Brackenridge, Pa., through December 2020. ATI expects 2020 volumes to increase significantly compared to 2019 levels and provide guaranteed volumes and fixed fee-per-ton revenues, […]
Earlier this week Steel Market Update went out to a group of steel buyers to gather pricing information and market intelligence regarding how they were reacting to the recent price announcements, and if they thought this round of increases would result in yet another dead cat bounce. (A dead cat bounce is one where prices […]
The price hikes by the mills on flat rolled and plate are beginning to take hold, as the average price of hot rolled is up $30 per ton, galvanized is up $5 and plate is up $15, according to Steel Market Update’s latest canvass of the market Here is how we see prices this week: […]
Flat rolled steel prices are on the way up following two recent rounds of price increases. Steel Market Update has been anticipating the turnaround in prices as the market has been near the point of “capitulation” for several weeks. Capitulation is the point when 75 percent or more of our service center survey respondents are […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. This analysis breaks down the imported tonnage of six flat rolled products into the district of entry and the source nation. We believe that misinformation (or lack of) about local import […]
As flat rolled steel prices move higher, we need to remember that prior to the price increases there was an abnormally large spread between hot rolled based prices and those of cold rolled and coated. Instead of being $100-$140 per ton, they had been running as high as $180-$200 per ton. The spread was created […]
Not surprisingly following the mills’ $40 price increase announcements Oct. 24-25, negotiations between steelmakers and steel buyers have tightened somewhat. What is surprising is that roughly two out of three buyers still report mills actively negotiating spot prices on hot rolled, cold rolled and galvanized, as well as plate. In the hot rolled segment, 62 […]
Mill lead times for spot orders of flat rolled showed early signs of lengthening in the first week of November following the $40 per ton price increase announcements Oct. 24-25. Lead times for steel delivery are a measure of demand at the mill level. Thus, this data suggests the mills are getting busier as buyers […]
Will the market accept the recent price increases—a total of $80 on flat rolled and $40 on plate? Obviously much depends on steel demand. Judging by the responses from steel buyers polled this past week by Steel Market Update, demand remains a question mark. More than half of those responding to SMU’s market trends questionnaire […]
The U.S. exported 614,893 tons of steel in September, according to final Census data, a 6 percent decline from August, but up 5 percent from the same month one year ago. September exports were right in line with the 2019 average of 615,874 tons, but remain significantly muted compared to recent years. It was just […]
The domestic steel mills announced new $40 per ton ($2.00/cwt) price increases on flat rolled this past week. This is the second price increase on flat rolled over the past two months. The domestic mills, led by ArcelorMittal USA, announced $40 per ton spot base price increases on Oct. 24-25 and were able to collect […]
Steel Market Update was working on an article predicting a flat rolled price increase very soon when we received notice about 5 p.m. ET this evening that the Nucor Sheet Mill Group was raising base prices of flat rolled by a minimum of $40 per ton, effective immediately. This is the second flat rolled price […]
This afternoon Nucor Plate Mill Group increased prices for all plate products by $40 per ton ($2.00/cwt). The follows a $40 per ton increase on plate by Evraz North America dated Oct. 28, 2019. The Nucor increase is to be effective “immediately” and impacts all transaction (spot) prices on new orders of carbon, alloy and […]
Despite the Oct. 28 plate price increase announcement out of Evraz ($40/ton), plate prices continue to be under pressure. [Please note: This article was completed just prior to the Nucor $40 price increase announcement, which was made on plate products at 4 p.m. this afternoon.] A large plate buyer told SMU they had just received […]
Ferrous scrap prices traded $15-25/GT higher in November, with some variation by region, report Steel Market Update sources. Scrap prices were widely expected to rise in November due to slowing scrap flows, mills returning from seasonal outages, rising import demand and the onset of winter weather in some parts of the country. “Mills’ appetite for […]
The day was bubbling with rumors as I was actively speaking with both plate and flat rolled steel buyers. They were telling me to expect a price increase announcement on both products. The plate guys were much less confident that any increase would “stick,” but it is worth trying. On the flat rolled side, mill […]
Flat rolled prices are beginning to shift gear and are slowly rising after the recent $40 per ton price increase announcements by the domestic steel mills. SMU continues to see a wide variety of pricing in our survey this week, but our channel checks are providing details of prices firming (although some mills appear to […]
Two-thirds of the way through the month, steel imports into the United States are trending significantly lower in November compared with the prior month and averages for the year. Steel Market Update projections based on Commerce Department license data estimate imports will total about 2.1 million tons this month, well below the average for the […]
I have noticed many articles in the mainline press over the past few days slamming the Trump administration’s Section 232 tariffs as not helping the steel industry. Most of the articles point to the recent loss announced by U.S. Steel as proof, along with minimal to no job gains in the industry. I don’t think […]
London, Brexit, new election, split country. As I was standing in line to enter the House of Lords, the gentleman to my left began discussing how Brexit has severed parties and even families. No longer can British families talk about their government openly. I heard the theme on many occasions as I traveled about London […]
The market is just starting to react to the $40 price increase announced by the flat rolled mills late last week, making it a little tricky to settle on the price ranges in this issue of Steel Market Update. Generally speaking, it appears flat rolled prices are leaning upward, though SMU’s Steel Price Momentum Indictor […]
Steel Market Update’s negotiations data showed just a hint of tightening in price talks between the mills and their customers this past week, perhaps in anticipation of the $40 price increase on flat rolled steel announced by the mills on Thursday and Friday. The data, gathered by SMU prior to the price increase announcements, shows […]
Mill lead times for flat rolled products continued to shorten slightly over the past few weeks. The average lead time for hot rolled is now down to three and a half weeks, cold rolled is less than five and a half weeks and coated steels are just six weeks. Plate lead times remain around four […]
By CRU Prices Analyst George Pearson The North American market has continued to see steel prices erode. We had previously anticipated that October scrap prices may be the lowest price seen over the next several years. We are now hearing that at least some market participants expect gains for November. The recent decline in scrap […]
JSW Steel divisions in Ohio and Texas both reported EBITDA losses in the second quarter of FY 2019-20. The Ohio mill increased production and revenue, which was offset by inventory writedowns and lower steel prices during the quarter. JSW Steel-Ohio produced 87,337 metric tons of hot rolled coil during the quarter, an increase from 80,037 […]
ArcelorMittal USA announced a $40 per ton ($2.00/cwt) price increase today, which is in line with our expectations that an increase was inevitable based on comments from service centers and manufacturing companies responding to our flat rolled steel market trends questionnaires over the past few weeks. By the end of the day, NLMK USA had […]
SSAB Americas saw its third-quarter profits decrease to $54.5 million from $82.2 million in Q3 2018 due to lower plate steel prices. Sales were down 2 percent from the second quarter to $490 million and 6 percent from a year ago. Demand during the quarter was relatively stable with shipments of 521,000 metric tons, up […]
Over the past couple of weeks, Steel Market Update has been suggesting flat rolled steel prices were at a bottom and the domestic steel mills would soon announce price increases. Today, ArcelorMittal USA began advising customers of their intention to raise prices by $40 per ton. By the end of the workday, NLMK USA had […]
We saw modest movement in hot rolled this week as our survey respondents, both manufacturing and service centers, were consistent in reporting a decrease in the upper end of our range while holding the line at the bottom. As we reviewed the data, the vast majority of buyers were reporting numbers in the $460-$480 range […]
By John Packard, President & CEO, Steel Market Update On Monday, I spoke to the North American Steel Alliance (NASA) in Chicago. My comments centered on a wide variety of proprietary indices Steel Market Update produces–our flat rolled and plate indices, SMU Sentiment Index, SMU Service Center Inventories and Shipments data, Mill Lead Times and […]