Dealers are predicting (positioning?) that ferrous scrap prices will move sideways as we move into the month of February. We have been told Turkey is not buying much scrap as they have scaled back production levels to about 70 percent. The current market is a supply driven market (as opposed to demand from the steel […] The post Final Thoughts appeared first on Steel Market Update.
Steel Dynamics’ struggling recycling segment widened the company’s net loss to $253 million in fourth quarter 2015. It was determined that the book value of the metals recycling segment recorded $435 million in non-cash goodwill and other related asset impairment charge. Excluding the metals recycling charges, adjusted net income was $22 million on net sales […] The post SDI Reports Continued Growth in Construction, HR Weakest Product appeared first on Steel Market Update.
On Thursday evening’s issue of Steel Market Update we published an article about raw material prices. In the article, Peter Wright, a metallurgist, marketing specialist, contributing writer and Steel 101 instructor for Steel Market Update, referenced the relationship between WTI oil and scrap pricing. He said, “There is a close non causal relationship between the […] The post Oil vs. Scrap Correlation – An Explanation appeared first on Steel Market Update.
Often with steel related economic statistics it’s useful to compare a given data stream with others which may or may not be causally related. This usually puts the steel data into context and shows whether a direction change is for real. In this piece we are comparing the price of Chicago shredded scrap with the […] The post The Relationship Between the Price of Scrap & 3 Useful Benchmarks appeared first on Steel Market Update.
The last couple of days have been hectic as we worked through the articles seen in tonight’s newsletter as well as numerous articles that we are working on various topics. The two headline articles are, of course, the next round of flat rolled price increases. The Nucor $20 hot rolled and $30 cold rolled and […] The post Final Thoughts appeared first on Steel Market Update.
We are pleased to have Philip Hoffman, Chairman & CEO of Hoffman Iron & Steel provide us his unique insights on both the domestic and international scrap markets as well as his forecast for where international and domestic scrap prices will be headed in the next month or two (and why). As most are aware, […] The post Ferrous Scrap Wrap Up First Week of January 2016 appeared first on Steel Market Update.
In the first eleven months of 2015 bulk scrap exports were 11,762,000 tonnes for an annual rate of 12,831,000 tonnes, down by 17.5 percent from the first eleven months of 2014. The tonnages shown in Figure 1 are based on three month moving averages (3MMA) for 2015 and on the annual monthly average for previous […] The post Ferrous Scrap Exports through November Down 17.5% YOY appeared first on Steel Market Update.
I will be in our home office all week this week (a rarity lately). Next week we will be in Starkville, Mississippi to conduct our Steel 101 workshop. Thank you again to Steel Dynamics Columbus for working with SMU and allowing our group to tour the Columbus facility. We remind everyone who has been thinking […] The post Final Thoughts appeared first on Steel Market Update.
The scrap markets are still sorting themselves out as the domestic steel mills and dealers jostle for position with the dealers looking like they will be the victors in this go-around for January deliveries. We are hearing early trades in Chicago as being done at up $20 per ton with one of our sources telling […] The post Steel Mills Need to Buy Ferrous Scrap Pushing Prices Higher by $5-$20 appeared first on Steel Market Update.
The following article is by contributing writer Damon Sun of Daido International. The Asian markets were anticipating the elimination of China’s export tax rebate, which has not happened yet. Likely, it will not happen. Anticipation of the elimination of China’s export tax rebate would have an impact of 9-13 percent increase in China’s exports of […] The post Asian Scrap Markets Waiting for Chinese Export Tax Rebate Change appeared first on Steel Market Update.