By CRU Senior Analyst Helen O’Cleary Zinc’s price shed more than $1,000/t from its 2018 high in the mid-$3,500s in February to its year-to-date low of $2,311 in September, driven down by a combination of factors both in its own market fundamentals and in the broader political and economic landscape. The warranting of 78,950t in […]
By CRU Senior Analyst Helen O’Cleary The global transition towards sustainable energy sources is set to accelerate over the coming decades as some of the world’s largest consumers of energy look to reduce carbon emissions, with the USA and EU targeting net zero emissions by 2050 and China by 2060. In this Insight, we bring […]
JSW Ohio (former Mingo Junction mill) has been struggling to get their existing electric arc furnace (EAF) up and running. It was supposed to have fired up last week, but we were told there is an issue with the oxygen, and the new ETA first heat date is Monday or Tuesday of this week. I […]
By the CRU Zinc Analysis Team After reaching a 3-month high above $2,700/t on Oct. 24, zinc’s price shed $200/t in a matter of days as a tech stock rout caused shares to plunge in Asia and the USA, compounded by concerns over the outlook for global trade and economic growth. The tide briefly turned […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Table 1 summarizes the October prices of the five materials considered in this report and the month/month, three months/three months and year/year change. Price changes have been mixed. In the last three months, coking coal and iron ore have trended up as pig iron, scrap and zinc have trended down. This was the same pattern […]
In the last 12 months, the price of coking coal and scrap have continuously trended up, zinc has continuously trended down, and iron ore and pig iron have been erratic. Table 1 summarizes the price changes through November of the five materials considered in this Steel Market Update report. It includes the month/month, 3 months/3 […]
With the market sending mixed signals, distributors of HVAC products are keeping inventories lean as they wait to see if the price increase just announced by the steel mills gains any traction. “You can make a case for prices to go either way,” said one member of the Heating, Air-conditioning and Refrigeration Distributors International (HARDI) […]
The month of September saw steel prices continue a steady decline that began in August. Steel Market Update data in the table below shows the benchmark hot rolled price slid from more than $900 per ton in the summer to the current price around $854. The same for cold rolled, which went from $1,000 a […]
Over the past few weeks, a number of domestic steel mills have announced new zinc coating extras for galvanized steel. The reason behind the adjustment has been due to the price of zinc moving lower on the LME spot market. Steel buyers should not assume that all of the steel mills are using the same […]
August saw our SMU Price Momentum Indicator move from Neutral to Lower indicating our expectation that we will see prices drop over the next 30-60 days. The last couple of weeks of August and into early September has seen prices dropping and the trend does not appear ready to abate quite yet. Our Sentiment Index […]
The Nucor Sheet Mill Group and USS-POSCO Industries have notified customers of changes in their coating extras as a result of lower zinc prices. The announcements follow on a similar letter to customers from California Steel Industries (CSI) last week. Nucor’s Aug. 30 letter stated: “Consistent with our practice to monitor the cost of zinc, […]
Nucor and USS/POSCO announced new coating extras today, and SMU learned U.S. Steel will provide their new extras in about a week and Steel Dynamics will announce their numbers within the next few days. Coating extras have dropped due to lower zinc costs on the LME over the past few months. SMU expects all of […]
Table 1 summarizes the August prices of the five materials considered in this report and the month/month, three months/three months and year/year change. In the last month, coking coal FOB Australia’s East Coast eked out a small gain as the other four experienced price declines. At the Jackson Hole meeting of the Fed on Friday, […]
Recent price changes have been mixed for steelmaking commodities. In the last three months, coking coal and iron ore have trended up as pig iron, scrap and zinc have trended down. Table 1 summarizes the September prices of the five materials considered in this report and the month/month, three months/three months and year/year change. Iron […]
California Steel Industries was the first mill to announce a change to its coating extras this week. Steel Market Update’s comparison of the new rates with the previous rates that took effect one year ago, on Oct. 1, 2017, shows an average reduction of 14.1 percent, with no change in the width/thickness extras. Buyers of […]
Editor’s note: The following was contributed by Analyst Ryan Cochrane of the CRU Group. Global concentrate inventories first reached critical levels in 2017 Q1, leading to Chinese smelter utilization rates falling below 90 percent and remaining at depressed levels since. Without much buffer concentrate stock remaining, the relationship between mine supply and Chinese smelter output […]
CRU zinc analyst Helen O’Cleary reported late last week on what was causing the short-term movement of zinc pricing: “Zinc’s price has been pressured lower again in recent days on a combination of risk-averse investor sentiment, U.S. dollar strength and a sizeable delivery of warrants into the LME’s New Orleans warehouses. It breached support at […]
By CRU Group’s Zinc Analysis Team Despite lower-than-expected smelter output in China last year, which contributed to record refined deficits, 2018 marked the turning point for zinc’s price, reports CRU Group’s Zinc Analysis Team. Despite a still-tight refined market with stocks at critical levels, zinc’s price has had a shaky start to 2019, trading at […]
A couple of months ago, Steel Market Update was speaking in front of a group from the financial community. We were asked, “What do you look for as a sign when prices are about to change direction?” Our answer was a mill price increase announcement. Earlier this week, ArcelorMittal USA announced a $30 per ton […]
Boom, zinc has collapsed taking a big hit on Wednesday when it dropped to $1.05 per pound. At the beginning of 2018, zinc was trading over $1.60 per pound. The $1.05 per pound level was last seen in late fourth-quarter 2016. Yesterday, during the HARDI steel conference call, coating extras for galvanized steel were discussed. […]
Steel Market Update expects to welcome nearly 900 executives to our Steel Summit Conference in Atlanta Aug. 27-29. There is still time to sign up if you would like to be one of them. To register, visit: www.SteelMarketUpdate.com/Events/Steel-Summit or by contacting our office at 772-932-7538. See the full conference program below: Making Sense Out of […]
Mills historically have enjoyed a healthy price premium for cold rolled and galvanized products over hot rolled, at times reaching as high as $220 per ton. More recently, due to the tight supplies of hot rolled, the differential has dipped as low as $80 per ton, prompting at least one mill to act. ArcelorMittal USA […]
ArcelorMittal USA probably surprised some customers with their announcement of a $30 per ton price increase on cold rolled and coated products. My opinion is ArcelorMittal is trying to increase the spread between the hot rolled base price and that of cold rolled and coated products. I also think they are trying to boost base […]
Steel Market Update’s latest look at commodity prices shows pig iron up, iron ore and zinc down, and coking coal and scrap stable in recent trading. Table 1 summarizes the current prices of the five materials considered in this report and the year-over-year change. Iron Ore The price of 62% fines delivered North China was […]
Zinc prices were trading at $1.18 per pound this afternoon. Earlier this week, the metal traded as low as $1.13 per pound, but has since rallied off those one-year lows. Even so, the $1.18 per pound level is lower than at any point over the past 12 months (see graphic below). Does SMU expect galvanized […]
Is buying foreign steel today a big opportunity, in light of the wide spread between foreign and domestic pricing, or a big risk, in light of the tenuous trade situation in Washington? Steel Market Update canvassed the market and received widely varying views. For some, placing foreign orders is “a no-brainer.” For others, concerned about […]
The 2018 SMU Steel Summit Conference is on pace to become the largest conference we have ever hosted. Our conference will be the premium networking event for manufacturers, fabricators, steel distributors, steel mills, trading companies and toll processors, as well as the industries that supply those groups. Based on the current registration rate, we anticipate […]
With the price of zinc down considerably from recent highs, buyers of galvanized steel are wondering if the mills will reduce their coating extras anytime soon. The price of zinc on the London Metal Exchange was about $1.33 per pound on June 28. The average for the month of June was around $1.40, down from […]
I spent all day on Wednesday of this week in the Pittsburgh offices of the CRU Group. I was impressed with the people working out of Pittsburgh and was even more impressed with the size and scope of the company here in the United States and across the world. The company indexes all kinds of […]