With Nucor making a move and raising their coating extras, we decided to conduct a quick review of the LME spot zinc market going back to when the previous coating extra changes were made (prices were lowered) with the announcements being made just prior to January 2012. First, we will take a look at the […]
I got a note from a manufacturing company regarding the size of the Nucor move on galvanized coating extras. The comment that was made was, “Zinc average for 2014 is up 8.6% since average of 2012. Nucor increase is way too high.” This steel buyer went on to comment, “Aluminum average in same time period […]
Due to the higher LME zinc spot prices which have surged from about $.88 per pound in late March 2014 to just below $1.10 per pound in mid to late July, Nucor became the first steel mill to adjust their zinc coating extras for galvanized steel. With little fanfare, Nucor published new extras on the […]
At the end of each month Steel Market Update takes a look back at the data we have compiled and does a quick analysis for our readers. This is different than our SMU Key Market Indicators which is also included in this newsletter. Benchmark hot rolled coil prices averaged $667 per ton (SMU) for the […]
Once per month, HARDI sponsors a conference call for those HARDI members who are involved with the sale and distribution of galvanized steel to the HVAC and related industries. Steel Market Update participates in these calls along with wholesalers around the United States and Canada. Since the last HARDI conference call we have seen a […]
Based on a quick analysis of the just released July steel import license data (through the 15th of July) we see the foreign steel imports continuing at very high rates. The import data suggests we will see July imports at levels similar to that of May and June. May had the highest level of imports […]
Spot zinc prices on the LME are closing in on $1.05 per pound as the metal has traded just above $1.04 over the past four business days. The metal has moved from $0.9508 per pound on the 16th of June to its current level at $1.04 per pound. It is important to watch zinc pricing […]
Steel price inputs were mixed during the month of June. Shredded and heavy melt scrap prices declined $8 and $4 per ton respectively while busheling scrap prices increased by $3 per ton. Iron Ore prices increased for 62% Fe grades but decreased for 58% Fe. Zinc and Aluminum prices showed a slight increase of $0.0437 […]
For those buying coated products, zinc prices have been rising and by the end of the month of June were reported by the LME to be $1.0045 per pound. This is the first time zinc has exceeded $1.00 per pound since September 2011 just prior to the adjustment of the galvanized coating extras in January […]
Steel Market Update sources confirmed that the two Severstal North America (NA) steel mills are for sale. At 7.0 million tons of steelmaking capacity, Severstal NA is the fourth largest flat rolled steel producing mill in the United States. Rumors of the possible sale of the Dearborn and Columbus facilities had been circulating around the […]
Steel inputs were steady to down during the month of May. Scrap prices declined $18 to $3 per ton while iron ore prices were down $20.60 to $13.60 per ton. Zinc and Aluminum prices showed a slight increased of $0.0105 to $0.0074 per pound.
There are questions about potential manipulations of zinc and zinc trading which may have artificially inflated the metal’s price since 2010. Zinc, which is the metal used to coat galvanized steel as well as Galvalume, Galfan and ZAM, is believed to have been manipulated by The London Metal Exchange, Goldman Sachs, JP Morgan, Glencore Xstrata […]
Steel Market Update sources confirmed that the two Severstal North America (NA) steel mills are for sale. At 7.0 million tons of steelmaking capacity, Severstal NA is the fourth largest flat rolled steel producing mill in the United States. Rumors of the possible sale of the Dearborn and Columbus facilities had been circulating around the […]
In case you missed the special issue we put out on Saturday we have reproduced the article below: Steel Market Update sources confirmed that the two Severstal North America (NA) steel mills are for sale. At 7.0 million tons of steelmaking capacity, Severstal NA is the fourth largest flat rolled steel producing mill in the […]
The following article is a continuation of our Steel Buyers Basics series written by Mario Briccetti. Mario is Principal of Briccetti & Associates, a Supply Chain consulting firm, and can be reached at Mario@mbriccetti.com In my series of articles, I have stressed that buyers should have the best information possible in order to effectively negotiate pricing […]
April is now behind us and it proved to be one interesting month. In looking at the key data we follow on a monthly basis for our readers, SMU Price Momentum Indicator ended the month where it began pointing to higher prices over the near term. SMU Steel Buyers Sentiment Index ended the month at […]
According to a note recently received from one of our active trading sources in Asia, iron ore traders are under pressure as port stocks hit 112.63 million metric tons and new orders for steel exports become more difficult due to anti-dumping sentiment against Chinese steel around the world. Our source told SMU late last week, […]
According to a note recently received from one of our active trading sources in Asia, iron ore traders are under pressure as port stocks hit 112.63 million metric tons and new orders for steel exports become more difficult due to anti-dumping sentiment against Chinese steel around the world. Our source told SMU late last week, […]
Tomorrow is St. Patrick’s Day – it is also the beginning of the Steel Market Update flat rolled steel market analysis for mid-March. Invitations should be out around 8 AM ET. If you receive one please take a few minutes to click on the link contained in the email and respond to our questionnaire. John […]
Zinc and aluminum prices are something to keep an eye on when you’re involved with coated products such as galvanized or Galvalume steels. At current zinc price levels, the amount of zinc needed to coat 0.060″ thick G90 coil costs approximately $1.98 per cwt (based on zinc calculation shared with SMU from a domestic coating […]
The table below provides a quick look at the status of important commodity inputs used in the steel making or coating process (zinc and aluminum are used to make galvanized and Galvalume, etc.):
I have to admit I am very impressed with the quality of the speakers and the program that has been put on by the FMA Toll Processors Conference. One of the reasons why I am attending this particular conference was due to the agenda which included a couple of programs about Advanced High Strength Steels […]
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 […]
Galvanized steel buyers need to be aware that zinc prices have been rising since the beginning of February. The metal is close to its one year high but still has a ways to go before reaching the level at which the domestic mills last raised coating extras on galvanized steels. Zinc has been trading around […]
For the last couple of weeks we have been discussing various kinds of ethical issues that come up in the steel business. This week we will deal with the issue of when flat rolled steel is rejectable. Buyers and sellers often find that they disagree about the quality of the steel. Generally this problem is […]
During the month of January we saw scrap prices rise $5 to $16 per gross ton compared to December 2013 pricing. Iron ore prices dropped on both 62% Fe and 58% Fe (spot prices are based on Chinese spot sales). Zinc and aluminum prices used to coat galvanized, Galvalume, Galfan, aluminized, ZAM both dropped by […]
During the month of January Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. Benchmark hot rolled prices averaged $673 per ton ($33.65/cwt) according to the Steel Market Update index. CRU posted their monthly average at $676 per ton ($33.80/cwt). You can find the balance of our weekly and monthly averages […]
SMU Price Momentum Indicator ended the month of December where it began, indicating higher flat rolled steel prices over the next 30 days. The domestic steel mills did not disappoint as they raised base price levels to $35.00/cwt on hot rolled and $40.50/cwt on cold rolled and coated (plus extras, FOB mill) for the mills […]
We communicated with one of our main Asian contacts over the past few days. We wanted to know what they have been seeing regarding new carbon sheet price offers out of China for their European customers (this source does not ship steel to the USA). We also wanted to learn more about iron ore prices […]
Last week I discussed how Steel Mills calculate thickness and width extras. This week we will look at Mill coating extras for Galvanized and Galvalume coated steel coil. I am going to refer again to US Steel’s published list of price extras which you can find on their website. Other mills tend to have similar […]