When Nucor announced their earnings on April 24th they held a conference call with analysts to discuss their business and to make statements about their company, the markets they serve and about the economy in general. John Ferriola, Nucor’s Chairman, CEO and President, provided an opening statement during which he made the following remarks regarding […]
Nucor announced consolidated net earnings of $111 million for first quarter 2014, up from $84.8 million a year ago but down from $170.5 million in the previous quarter. Net sales were up 12 percent to $5.11 billion year over year and 4 percent from fourth quarter 2013. Tons shipped to outside customers increased 8 percent […]
We were somewhat in disbelief when we analyzed the March housing data this week but on checking the formulas in our spread sheets it appears that our first impression was correct. Table 1 shows building permits and housing starts data for Q1 2014 compared to Q1 2013. Total construction starts were down by 3.6 percent […]
In February total building permits exceeded total starts by 38,000 units which would seem at first glance to be a good sign. However digging down into the data reveals a much more complex situation in this market. The two sub sectors, single and multi-family units are behaving differently. Single family permits were 12,000 less than […]
Haixen Steel, a mill in Shanxi province of China, suspended operations on five blast furnaces after defaulting on a bank loans due on March 7. Haixen is not a top tier Chinese steel mill nor is the default and shutdown a surprise to most. It is a mill heavy in debt and on the Chinese […]
The following article on the financial, hot rolled coil futures, busheling scrap futures and iron ore markets is written by Andre Marshall, CEO of Crunchrisk, LLC and our Managing Price Risk 1 and 2 instructor. Financial Markets: Today was not a good one, a repeat of last week when the market retraced on the back […]
An ousted president, deadly violence, military insurgence and a possible secession—the crisis in the Ukraine has been moving at an alarming speed in the last several weeks. As the Ukraine struggles to create a new government, economic sanctions are increasingly being considered by the global powers to sway preferred outcomes. The US and the EU […]
This article was originally published on Thursday, February 27th and was written by Andre Marshall, CEO of Crunch Risk, LLC. Andre is an expert in the futures/derivatives markets. Financial Markets: Two weeks back on the 13th the S+P 500 was approx 1825, and, as I mentioned, headed to test 1846 again. We bounced of that […]
Financial Markets: Two weeks back on the 13th the S+P 500 was approx 1825, and, as I mentioned, headed to test 1846 again. We bounced of that 1846 on the 19th only to retest it again on the 24th with better results, reaching our 1858 all time high. Since then, we are essentially sideways in […]
Steel Market Update has been in constant contact with one of our Asian trading sources who is a trader of iron ore to Chinese steel mills and exporter of finished steel out of China around the world. We have been discussing the iron ore “bubble” which continues to inflate and our source believes it will […]
Andre Marshall of Crunch Risk, LLC shared the following information about iron ore and busheling futures trading for the past week. Iron Ore: As always traders make a big deal about the Chinese post New Year’s holiday making a big buying push upon their return, but it appears whatever buying has been done hasn’t been […]
The Eurozone is expected to have mild yet fragile growth throughout 2014 according to the EUROFER Q1-2014 Economic and Steel Market Outlook compiled by the EUROFER Economic Committee (EC). Indicators are pointing towards increased growth for industrial production, an important component for carbon flat rolled steel production in Europe. GDP has been edging up since […]
The Chinese economy grew by 7.7 percent year-over-year (y/y) in the fourth quarter and by 7.7 percent in 2013 as a whole (Figure 1). The GDP growth rate has been in the range 7.4 percent to 7.9 percent for the last seven quarters. The Chinese economy is performing in line with the government’s goals at […]
The American Iron and Steel Institute (AISI) released data earlier this week for net shipments of steel mill products for the month of November. Total shipments for the month were reported to be 7,604,428 net tons (NT), down 8.2 percent from October tonnage but up 2.8 percent from November 2012. YTD tonnage through November was […]
In the United States approximately 60 percent of the steel produced is through electric arc furnaces (EAF) used by so-called “mini-mills.” Electric arc furnaces use primarily scrap along with pig iron or DRI (direct reduced iron) to charge the furnaces. All of the long products (rebar, bar, angles, beams) are produced through EAF technology and […]
Steel buyers are bracing for a new round of flat rolled price increases according to steel buyers and executives as well as the results of our most recent Steel Market Update (SMU) market analysis of the flat rolled steel market which we conducted this past week. “It’s time to raise the price of flat rolled […]
The recent resurgence of the steel industry in Japan has resulted in a scrap shortage in the Far East, despite lackluster finished steel sales. Japan’s resurgence is a partial result of Abenomics due to the weakening yen (currently at 101). Automobile sales, appliances and public infrastructure spending/reconstruction has resulted in very healthy steel demand in […]
TSI Iron Ore: Market Remains Firm Iron ore prices have continued to be strong as Rebar futures have bounced off recent months lows last week and spot steel in China continues to go higher. Over the past couple of weeks iron ore prices have pushed up around $5/ton down the curve with Q1 trading around […]
The European Steel Association (Eurofer) says the year-over-year decline in the European Union (EU) steel industry is beginning to lessen and should show positive growth in 2014, according to the Eurofer Economic and Steel Market Outlook 2013-2014. The SWIP (Steel Weighted Industrial Production) Index is expected to be down -1.1 percent in the third quarter […]
TSI Iron Ore: Market Soften As Rebar Slides Iron ore prices have been fairly volatile over the past week as conflicting data and information coming out of China as moved the needle in opposite directions. The upshot to all of this intraday volatility is that prices remain fairly unchanged on a week-on-week basis. With rebar […]
When I last wrote two weeks back the SP 500 had failed to break down as expected and technicals suggested we were headed to 1775 as next long term target. Well within one week of that report the SP 500 hit 1730 from that Sep 12th 1685 area. This rally was in large part due […]
Iron Ore The spot price is still $135/MT zone with the forward curve still in a healthy backwardation. Most expect Iron Ore to retrace, difference of opinion lies in whether it will see a big sell off or a modest one. The recent positive economic data out of China along with not terrible inventory levels […]
I read two articles recently regarding the impact of the devaluation of the India rupee against the U.S. dollar. One article (IHS Global Insight) discussed the metallurgical coal markets as the Indian steel mills have pulled back from the market as their costs spiral out of control. According to IHS Global the Indian currency lost […]
Written by: Damon Sun, Daido International The Far East markets will be rather quiet this week. Finished demand is still rather poor. Mills were able to lift construction steel prices up about $10/mt, but scrap prices moved up $20/mt. Rebar prices in Taiwan and in S. E. Asia have retreated/sideways from last week and […]
Written by: Damon Sun, Daido International The Far East and Asian markets are in a definite flux versus the USA market. I will preface my explanation with, the ferrous scrap markets in Asia increased in February first while the USA scrap markets were down in February. With that in mind, the scrap markets in North […]
Written by: Bradley Clark, Director of Steel Trading, Kataman Metals U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Firm on Weather Concerns As the beginning of the month progresses the physical scrap market has begun to price higher lending impetus to the futures market to begin trading. After months of stagnant and softer busheling markets, March […]
Written by: Bradley Clark, Director of Steel Trading, Kataman Metals U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Firm on Weather Concerns As the month has progressed sentiment is starting to fall solidify around the idea that busheling prices may rebound $10-20 in March. Worsening weather conditions in the Midwest and dealers trying to recoup last […]
Our next Steel 101 workshop is looking like another well-rounded group with representatives from the manufacturing sector, service centers, metal building, scrap companies, steel mills and one of our own (Sandy Williams). We have had freight and railroad companies express interest, trading companies, the AIIS, rebar companies, full-line service centers, electrical companies, mining companies, steel […]