By CRU Analyst Alexander Ordosch After several weeks of steady Turkish scrap, import prices were stable last week at $225 /t CFR for HMS 80:20. We have assessed seven deals totaling about 274 kt, indicating a second week of strong scrap purchasing activity. Turkish scrap import prices have now reached a level that allows Turkish steel mills to export […]
BY CRU Analyst Alexander Ordosch For the week ending Sept. 20, Turkish scrap import prices fell for the seventh consecutive week to $228 /t CFR for HMS 80:20, down $11 /t w/w. We assessed two deals from the UK totaling 37 kt of scrap. The current price is the lowest in the weekly price assessment on record and the lowest level […]
Nucor expects a weaker performance from its steel mills segment in the third quarter due to lower prices for sheet and plate steel. “Although we still see stability in most of the end-use markets that we serve, there has been some softening in automotive, agricultural products and power transmission markets,” said the company in guidance […]
Following on a small $20 increase in August, ferrous scrap prices for September are down $30 to $40 per ton as U.S. mills adjusted to lower demand and planned for upcoming fall shutdowns. “Prices fell this month amid a confluence of factors including ample supply, a weakening export market and mill outages,” reported CRU North […]
Do plans by U.S. mills to add millions of tons of new steelmaking capacity over the next few years make a price-killing supply glut inevitable? That’s a question very much open to debate, as shown by the spirited exchange between three leading analysts during Steel Market Update’s Steel Summit Aug. 28 in Atlanta. Despite some […]
By CRU North America Analyst Ryan McKinley U.S. long product price declines were limited for most products in September after finding support from the scrap market, but downward pressure continues to mount. Even with scrap prices rising by $20 /l.ton in August, persistent price falls throughout the year have yet to spur buyers’ interest amid high […]
The effectiveness of the Trump administration’s Section 232 tariff gets mixed reviews. The 25 percent tariff has contributed to a 13 percent reduction in steel imports this year, easing the competitive pressures on domestic mills. But after an initial spike in steel prices last year, and record earnings by the mills, the price of finished […]
SMU contributor Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in […]
Nucor has received more than 2,300 applicants for 250 positions at its $400 million steel plant in Sedalia, Mo. The rebar plant is expected to open in November. Jessica Craig, Sedalia-Pettis County economic development executive director, says 153 employees have already been hired, some coming from as far away as Columbia and Kansas City, more […]
The import market share of all steel products including semifinished has been below 20 percent every month since January. Steel Market Update data goes back to January 2003 in which time period the high import share was 38.8 percent in January 2015. Between January 2014 and February 2019, there were only four months when the […]
By CRU Analyst Iris Speelmanns Last week, Turkish scrap prices slid further, dropping by $9 /t w/w to $281 /t CFR for HMS 80:20, based on one 40 kt deal from Europe. This new price level is the lowest level since the brief drop in mid-June and before that the distinct, though brief, weakness last winter. Weaker global […]
By CRU Analyst Alexander Ordosch Last week, Turkish scrap prices declined slightly by $4 /t w/w to $290 /t CFR for HMS 80:20, based on one 40 kt deal from the U.S. The Turkish market remains quiet because of the Eid al-Adha (Festival of the Sacrifice) holidays this past week. We consider this new price level of around $285-290 /t […]
Electric arc furnace minimills may have a cost advantage in steel production today, but there are still 19 traditional blast furnaces going strong in the United States. Blast furnaces dominate about three-fourths of global steelmaking, but only three steel producers in the U.S. currently are using BF or basic oxygen furnace technology: U.S. Steel, ArcelorMittal […]
By CRU Analyst Chris Bandmann CRU is launching weekly Turkish HR coil export prices, enhancing the existing suite of weekly Turkish long product and scrap prices. This Insight being offered for these other markets has now been brought to flats – and offers a window into the world of Turkish hot rolled coil exports. Turkey […]
By CRU Analyst Jordan Permain Ironmakers are continuously seeking ways to increase production efficiency and reduce costs but, particularly when profitability is good, productivity is a focus area. To achieve this, ironmakers can increase their usage of metallics in the blast furnace (BF), and benefits include not only increased productivity but also a lower coke […]
Nucor reported a decline in earnings for the second quarter of 2019 due to lower shipments and pricing. A build-up of inventory before the Section 232 tariffs resulted in aggressive destocking at the end of 2018 and into 2019, which impacted order rates, along with an increase in domestic steel supply and a declining scrap […]
NLMK USA’s second-quarter sales dropped 3 percent from the previous quarter to 580,000 metric tons due to lower shipments in anticipation of further deterioration of steel prices. Flat steel prices in the U.S. went down by 6-11 percent from first to second quarter and 23-30 percent on a year-over-year basis. Pricing was impacted by steel […]
Expansion at Commercial Metals Corp. is paying off with a 33 percent increase in revenue to $1.6 billion in the third quarter of FY 2019. In November, CMC acquired Gerdau’s four rebar mills and 33 fabrication facilities in the U.S., increasing its U.S. mill capacity by 75 percent. Net earnings for CMC totaled $78.6 million. […]
SMU contributor Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in […]
By CRU Senior Analyst Erik Hedborg Iron ore prices have continued ascending in the past week as low port inventories in China have forced steelmakers to turn to seaborne cargoes. On Tuesday, June 18, CRU assessed the 62% Fe fines price at $108.00 /t, a $7.60 /t increase w/w. Seaborne supply has been particularly strong […]
This report examines the import share of sheet, plate, long and tubular products and 16 subcategories. Table 1 shows total supply to the market in three months through April and in 12 months through April for the four product groups and the 16 subcategories. Supply to the market is the total of domestic mill shipments […]
By CRU Principal Analyst Chris Asgill Scrap supply has continued to outpace demand in most of the key scrap supply markets and CRU’s metallics price indicator (CRUmpi) has fallen a further 4.2 percent m/m to 231.2 (see chart). This is the lowest level for the indicator since June 2017. The depth of U.S. scrap price weakness surprised the […]
By CRU Senior Analyst Erik Hedborg Iron ore prices went through a correction in the past week as Chinese steel prices kept falling and seaborne supply remained robust. On Tuesday, June 4, CRU assessed the 62% Fe fines price at $98.50 /t, a $9.50 /t fall w/w. Our sources see the price fall as a […]
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 […]
By CRU Senior Analyst Manjot Singh As has been the case in the last few weeks, Chinese BF utilization rates have remained above 80 percent and rebar inventories have continued to dwindle, suggesting buying appetite for raw materials has been robust in China. In terms of iron ore specifically, inventories at Chinese ports and mills […]
AISTech 2019, presented by the Association for Iron & Steel Technology, boasted more than 8,000 attendees this year. The four-day conference May 6-9 in Pittsburgh included more than 550 technical presentations and nearly 550 domestic and international exhibiting companies. The exhibit floor was a dizzying display of the latest innovations from software and robotics to cranes […]
AISTech 2019, presented by the Association for Iron & Steel Technology, boasted more than 8,000 attendees this year. The four-day conference May 6-9 in Pittsburgh included more than 550 technical presentations and nearly 550 domestic and international exhibiting companies. The exhibit floor was a dizzying display of the latest innovations from software and robotics to cranes […]
Canada will keep safeguard tariffs on imports of heavy plate and stainless steel wire—only two products of the original seven provisional safeguards implemented in October. In April, the Canadian International Trade Tribunal found that imports of hot-rolled steel, pre-painted steel, energy tubular products, rebar and wire rod did not pose a threat of “serious injury” […]
Nucor announced net income of $501.8 million for the first quarter of 2019, a 22 percent decrease from income of $646.85 million in the fourth quarter. Net sales slipped 3.0 percent sequentially to $6.10 billion from the fourth quarter as the average sales price per ton dipped 4.0 percent. The drop in earnings was expected […]
By CRU Analyst Michelle Liu Turkish prices have continued to fall, down $7 /t w/w for the week ending Friday, April 12, to $305 /t CFR for HMS 80:20. Warmer weather has increased supply in the U.S. and Europe, placing downward pressure on scrap prices there. This was compounded by reduced scrap demand on both […]