News on the spread of the coronavirus changes by the hour, which effects the outlook of steel buyers. But as of early this past week, based on Steel Market Update’s canvass of the market, the steel sector appears to have weathered the worst of the bad news so far. Steel Prices Most executives responding to […]
By CRU Senior Analyst Helen O’Cleary, from CRU’s Zinc Monitor The LME is preparing to move from trading in the ring to electronic settlement pricing as the UK ramps up Covid-19 restrictions on all but essential activities and LME prices continue to take a hammering. While Chinese demand is gradually recovering from the Q1 shock of […]
Zinc spot prices have been falling steadily over the past two months, dropping nearly a quarter since late-January. According to Kitco.com, the spot price was $0.8987 per pound as of Friday. This drop in zinc prices may prompt a change in mill galvanized coating extras. In August/September 2019, many mills adjusted their coating extras when […]
Is it me, or has the world become much more complicated recently? The NBA has suspended games indefinitely. The NCAA “March Madness” basketball tournament will be played in empty stadiums. Princess Cruises just announced they are cancelling cruises for the next 60 days. Europeans will not be allowed to fly to the United States for […]
Key Market Indicators show that the improvement in market trends in December and January translated to a jump in the present situation in February. This report is designed to be a big picture summary of data on which we have reported in detail during the month. In it we summarize 36 data streams that describe […]
Raw materials prices have been negatively impacted by the coronavirus outbreak in China. Table 1 summarizes the price changes through Feb. 19 of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 months changes on a percentage basis. In the last 30 days, the prices of iron […]
By CRU Senior Analyst Helen O’Cleary, from CRU’s Zinc Monitor Disruption caused by the Covid-19 outbreak has cut Chinese demand and visible stocks have risen sharply, placing downward pressure on prices. In Hubei, where restrictions on the movement of goods and people was due to be lifted tomorrow, the local government has just announced today […]
While business activity remains fairly strong in February, distributors of galvanized products to the HVAC industry are waiting and watching for some indication of which way steel prices will move. Steel Market Update is, too. SMU has moved its Price Momentum Indicator to Neutral until the market establishes a clear direction. Steel prices have softened […]
By CRU Senior Analysts Dina Yu and Helen O’Cleary, from CRU’s Zinc Monitor The outbreak of novel coronavirus (2019-nCoV) in Wuhan has delayed the post-New Year restart in most Chinese mainland provinces, with the exception of Tibet, Xinjiang and Gansu. Sadly, the death toll and infection rate continue to rise, so restrictions remain in place […]
Key Market Indicators show that the improvement in market trends that occurred in December continued into January. This report is designed to be a big picture summary of data SMU has reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for […]
Prices of all five of the raw materials considered in this report advanced in the last month. Table 1 summarizes the price changes through Jan. 22 of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 months changes on a percentage basis. All five materials had a […]
By Peter Ghilchik, Head of CRU Multi Commodity Analysis and Production, from CRU’s Global Steel Trade Service CRU expects a return to commodity demand growth in 2020, albeit a weak recovery, as industrial production growth recovers to 2.2 percent; however, risk is heavily weighted to the downside. Economic uncertainty, weak demand and an increasing focus on […]
By CRU Analyst Sam Grant, from CRU’s Zinc Monitor The North American market (U.S., Canada and Mexico) accounts for approximately 9.6 percent of global refined zinc demand. This year, we have seen a sharp slowdown in both global trade and industrial production, with the North American region experiencing its slowest rate of IP growth since […]
In Steel Market Update’s latest raw materials report, Table 1 summarizes the price changes through Dec. 18 of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 months changes on a percentage basis. Four of the five materials under consideration had a positive price movement in December. […]
In the last month, the prices of three of the five raw materials tracked by Steel Market Update in this report declined, one advanced and one was unchanged. Table 1 summarizes the price changes through Nov. 20 of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 […]
Compared to three months ago, all five of the raw materials prices considered in this report declined in October. Compared to September, there was a recovery in the prices of coking coal and zinc. Table 1 summarizes the price changes through Oct. 16 of the five materials considered in this analysis. It reports the month/month, […]
By CRU Analyst Sam Grant Looking at our North American zinc market forecasts for 2020, there are clear arguments for either a rollover or slight decline in contract premia as we head into negotiations during the final quarter of this year. In this article, we present an overview of the North American refined market fundamentals […]
The net situation changed little from August but the Treasury 10/2 yield spread became slightly positive on Sept. 27 and the SMU Steel Buyers Sentiment Index suffered a serious setback on Sept. 15. This report is designed to be a big picture summary of data on which we have reported in detail during the month. […]
Raw materials prices were erratic in September with four of the five considered here experiencing price reversals since August. Table 1 summarizes the price changes through Sept. 25 of the five materials considered in this analysis. It reports the month / month, 3 months / 3 months and 12 months / 12 months changes on […]
By CRU Senior Analyst Helen O’Cleary August ended on a bearish note as weak economic data from the USA signaled that the U.S. economy had slipped into contraction territory and European manufacturing data confirmed ongoing contraction. These data, coupled with ongoing rmb weakness, heightened concerns over metal demand going forward and helped push zinc’s price to […]
On Friday, Sept. 6, USS-POSCO Industries advised customers: “USS-POSCO Industries (UPI) has revised the published Galvanized coating extras. The new extras will apply on all new orders effective immediately. The new price book for the extras can be found on the attachment as well as on our website. Please contact your UPI Sales Representative with […]
Despite slight upward momentum in steel pricing in August, steel buyers’ sentiment languished in the +40s on SMU’s index. This tepid optimism likely reflects widespread concerns in the market about steel demand in the second half and the staying power of steel prices following the recent increases announced by the mills. The average price for […]
Ferrous scrap prices are starting to settle as of today. Initial checks with some of our scrap sources found prime grades down $40 and obsolete grades down $30 in portions of the Midwest. We learned the Cleveland area mills bought busheling down $20 to $300/gross ton. We also learned of a purchase of HMS at […]
By CRU Senior Analyst Paul Wiggers de Vries Lessons learned from the mining boom saw zinc miners cut back site costs over 2015, 2016 and 2017 in the face of lower zinc prices. However, in 2018, cost controls were relaxed and cost inflation returned. In 2019, cost inflation will remain, but miners will reduce site […]
On Thursday, Aug. 29, the Nucor Sheet Mill Group advised customers: “Consistent with our practice to monitor the cost of zinc, we have revised our galvanized coating weight extras effective with orders acknowledged for week ending Oct. 5, 2019. Price extras can be accessed under the ‘Sheet’ tab at www.nucornow.com/announcements. Please contact your Nucor District […]
The price of iron ore corrected in August with a $32 per dry metric ton decline, while the four-month-long decline in the price of scrap reversed slightly. Table 1 summarizes the price changes through Aug. 21 of the five materials considered in this analysis. It reports the month / month, 3 months / 3 months […]
By CRU Senior Analyst Helen O’Cleary Zinc’s price has been testing long-term support in the low $2,220s in recent days and has come under pressure on both the LME and ShFE. Zinc’s price on the LME hit a year-to-date low of $2,248.5/t on Aug. 12 and has lost 24 percent of its value since the […]
The surge in the price of iron ore and the decline in the price of scrap continued through mid-July, benefiting the EAF producers in the U.S. over the integrated mills Table 1 summarizes the price changes through July of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 […]
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. The price of iron ore has surged as scrap has declined benefiting the EAF producers in the U.S. over the integrated mills. Table 1 summarizes the price changes through June […]
By CRU Senior Analyst Helen O’Cleary All eyes are on this month’s G20 summit in Osaka for a resolution to ongoing trade tensions between the USA and China, and markets are braced for U.S. tariffs on a further $300 billion of Chinese goods if negotiations do not progress to the USA’s satisfaction. News that Trump […]