A higher percentage of manufacturing companies and flat rolled steel service centers are reporting distributors as continuing to lower spot pricing to their customers. We have now passed through the mythical “capitulation” level and we will explain what that means in a moment. First, we saw 79 percent of the manufacturing companies responding to our […]
Total rolled product imports in May declined by 27.4 percent year over year on a three-month moving average (3MMA) basis. This follows the 24.4 percent decline in April. This early look at May’s import volume is based on Commerce Department license data (see explanation below.) This import analysis includes all major steel sectors: sheet, plate, […]
U.S. steel imports appear to have declined in May from the big jump in April, based on a preliminary total of May license data from the Commerce Department. Semi-finished imports dropped sharply, from 1.3 million tons in April to 697,000 tons in May as domestic steelmakers worked down their supplies of foreign slabs. Imports totaling […]
This coming week will be a full week when I will be in my office. I am ecstatic. As with most weeks, this coming one will be spent trying to figure out what will cause this market to turn around. On Tuesday, I will publish our analysis of service center spot pricing to their end […]
The Georgia International Convention Center (www.gicc.com) as well as the three Gateway Hotels (Marriott, Renaissance and SpringHill Suites) are all conveniently located at the first stop of the free SkyTrain out of the Atlanta International Airport (ATL). The second stop on the SkyTrain is for car rentals. Our overflow hotel – the Atlanta Airport Marriott […]
2019 SMU Steel Summit Conference – A Sneak Peek – Day 1 Written by: John Packard, President & CEO, Steel Market Update RE: 2019 SMU Steel Summit Conference, August 26-28, 2019 – Location: Georgia International Convention Center, Atlanta, GA The Georgia International Convention Center (www.gicc.com) as well as the three Gateway Hotels (Marriott, Renaissance and […]
Industry sentiment has continued to erode this month as the attitudes of steel executives appear to be suffering from the relentless uncertainty over steel pricing, demand and Trump administration trade policies. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current […]
Industry sentiment has continued to erode this month as the attitudes of steel executives appear to be suffering from the relentless uncertainty over steel pricing, demand and Trump administration trade policies. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current […]
It’s nearly unanimous that steel prices are in play. More than nine out of 10 flat rolled steel buyers responding to SMU’s market trends questionnaire this week reported that the mills are willing to negotiate price in order to secure the order. The vast majority even reported the mills willing to talk price on plate. […]
It’s nearly unanimous that steel prices are in play. More than nine out of 10 flat rolled steel buyers responding to SMU’s market trends questionnaire this week reported that the mills are willing to negotiate price in order to secure the order. The vast majority even reported the mills willing to talk price on plate. […]
Lead times for spot orders of all types of steel products continued to shorten in the past two weeks with demand falling below the pace of steel production. The average lead time for hot rolled is now below three and a half weeks, cold rolled is nearing five weeks, galvanized is less than six weeks […]
Lead times for spot orders of all types of steel products continued to shorten in the past two weeks with demand falling below the pace of steel production. The average lead time for hot rolled is now below three and a half weeks, cold rolled is nearing five weeks, galvanized is less than six weeks […]
Steel buyers are hoping the market will find a bottom soon, but it did not happen in the past week. Steel Market Update data indicates that hot rolled and cold rolled both saw further declines averaging around $10 per ton. Plate prices saw a small increase. Here is how we see prices this week: Hot […]
Steel Market Update’s Steel Buyers Sentiment Index dipped below the +50 mark and continued to erode last month as the uncertainty over tariffs and trade had a negative effect on buyers’ attitudes. With OEM and service center executives feeling less positive about their prospects for the next few months, as indicated by SMU Future Buyers […]
I am in Washington, D.C., attending the joint SMA/AISI annual meeting. I had the unique opportunity to sit down with Phil Bell, President of the Steel Manufacturers Association, and the SMA board to discuss my viewpoints regarding various issues affecting the electric arc furnace manufacturers. The SMA got to see a few of the proprietary […]
I am back, well sort of… (I took some vacation days this past week. Did you miss me?) I will be traveling to Washington, D.C., where I will be speaking with the board of directors of the Steel Manufacturers Association. This will be interesting as there are no prepared remarks, just SMA President Phil Bell […]
The chairman of Mexican steel producer Altos Hornos de Mexico SAB was arrested on Tuesday in an anti-corruption probe, resulting in the freezing of AHMSA accounts and a possible disruption to steel production in Mexico. The investigation involves the sale by AHMSA of an idled fertilizer plant in 2014, allegedly worth $50 million, to oil […]
By CRU Principal Analyst Josh Spoores In the U.S. Midwest market, sheet prices have continued to decline on increased domestic, and now North American, supply. In addition to rising supply, falling scrap costs have also allowed EAF-based mills to remain competitive at these lower prices. It has now been one week since Canada and Mexico […]
Prices declined further on all types of steel products in the past week, according to Steel Market Update sources. Demand appears soft as buyers wait to see if import offers pick up now that President Trump has cut tariffs on Canada, Mexico and Turkey. Here is how we see prices this week: Hot Rolled Coil: […]
Average lead times for spot orders of hot rolled, galvanized and plate steels continue to shorten as mill production, at more than 80 percent capacity, appears to be outpacing demand. Hot rolled lead times are now approaching three and a half weeks, cold rolled less than six weeks, and galvanized and Galvalume slightly above six […]
Steel Market Update data on negotiations and pricing corroborate the same trend. More than eight out of 10 flat rolled steel buyers responding to SMU’s market trends questionnaire this week reported that the mills are willing to talk price to win their business. Thus, it’s no surprise that steel prices continue to move lower. About […]
I am flying back to Florida after completing my second speaking engagement this week. I think I’ve logged 10,000 miles over the past few weeks flying to Atlanta (twice), Chicago, Iowa, Minnesota after having previously flown to Monterrey, Mexico, and Los Angeles. I am looking forward to not going anywhere for a week (I am […]
Steel prices declined yet again this week with some hot rolled offers falling below the $600 per ton level, according to Steel Market Update data. The market will be watching intently in the coming weeks to see if imports from Canada and Mexico add to the downward price pressure, now that President Trump has removed […]
By CRU Principal Analyst Josh Spoores and Analyst Ryan McKinley Steel imports to the U.S. from Canada and Mexico prior to the S232 tariffs were near 12 Mt on an annualized basis. Data from this past March and April show arrivals closer to 7.5 Mt annually. With the end of the S232 on the U.S.’s […]
Premium subscribers to Steel Market Update have reports available on our website that break out the import tonnage into district of entry and source nation for six sheet and plate product categories. This report takes the total national tonnage of hot rolled and breaks it down into product detail. Using U.S. International Trade Commission (USITC) […]
Demand for long products and tubular goods have shown strong growth, but sheet products are declining. This analysis by SMU staff is based on data from the American Iron and Steel Institute (AISI) and the U.S. Department of Commerce (DoC). The analysis summarizes total steel supply by product from 2003 through March 2019 and year-on-year […]
I am in Atlanta speaking at a supplier conference for an OEM both today and again on Thursday. As expected, the questions were about Mexico and Canada and where prices go from here. There were also questions about our index versus the CRU index (different methodologies). I am looking forward to revising and doing it […]
So, I don’t even need to be in the office to know what question(s) I am going to be asked all this week. Now that President Trump has removed the Section 232 tariffs from Canada and Mexico (without a quota, but instead a promise of no surge), everyone wants to know how this will affect […]
Although not a disaster, steel demand has fallen short of expectations so far in 2019, contributing to the downtrend in steel prices. The benchmark price for hot rolled steel has declined by double digits since the beginning of the year. Steel Market Update’s canvass of the market over the past week reveals that many service […]
Final Census data shows that steel imports into the U.S. were well below average in March at 2.26 million tons, but have trended up sharply in April and May. Based on license data, April imports jumped by more than 28 percent to nearly 2.9 million tons, largely due to a 450,000-ton increase in semi-finished imports, […]