Scrap Sources: Automotive

Steel Dynamics reported higher flat rolled prices resulted in an 11 percent increase in earnings in the third quarter. Net earnings were $284 million on net sales of $2.1 billion. Adjusted net income, including a $5 million litigation settlement charge, was $157 million for the quarter. SDI steel production was at 85 percent capacity in […] The post SDI Believes Weaker Demand is Seasonal, Not Structural appeared first on Steel Market Update.

The conversation has begun regarding when flat rolled steel prices will end their slide and reverse course. Flat rolled steel prices have been in a steep decline since mid-June 2016 when benchmark hot rolled prices peaked at $635 per ton ($31.75/cwt, SMU index average) FOB domestic mill. Since then steel prices have retreated $145 per […] The post Are Flat Rolled Steel Prices Poised to Move Higher? appeared first on Steel Market Update.

Steel Dynamics expects stronger profits in third quarter due to meaningful metal spread expansion. In the company’s third quarter guidance, SDI said higher steel pricing in Q3 will more than offset higher scrap prices, however, improved margins will be impacted by lower steel shipments across the product platform. Higher earnings for third quarter are driven […] The post SDI Flat Roll Operations Drive Stronger Profits for Q3 appeared first on Steel Market Update.

The uncertainty in the market (called the “blahs” by a number of our steel sources) is affecting both buyers and sellers of steel. Steel mills have been doing all that they can in an attempt to keep flat rolled steel prices from slipping too far. One of our mill sources had a sense of humor […] The post Steel Mills Battle Market Blahs appeared first on Steel Market Update.

Steel Dynamics announced second quarter 2016 net income of $142 million on net sales of $2.0 billion. In comparison, net sales in Q1 totaled $1.7 billion with net income of $63 million and year ago sales were $2.0 billion with adjusted net income of $53 million. A decline in imports of flat rolled steel and […] The post Steel Dynamics Sees Stability in the Market appeared first on Steel Market Update.

We purposely did not begin this article on where our sources are seeing ferrous scrap prices with an attention grabbing headline as we think readers would be confused. The confusion comes from the pressure the domestic steel mills are expected to put on obsolete grades, like shredded scrap and HMS (heavy melt scrap). Those of […] The post SMU Expectations for Ferrous Scrap Pricing for July appeared first on Steel Market Update.

Here are some of the comments made to SMU over the past few days both in New York City and upon our return to our offices. Regarding scrap prices, one of our sources was telling us that the domestic steel mills are making a mistake by attempting to push ferrous scrap prices lower, especially when […] The post New York City Bits ‘N Pieces appeared first on Steel Market Update.

SMU scrap sources on Friday divulged that negotiations have been slow with many mills not yet having bought as of this past Friday.  Price indicators are running from sideways on prime grades (busheling/bundles) to down $10, $20, $30 in the Ohio Valley, Midwest and Southeast. The east coast was referenced as being down by even […] The post Ferrous Scrap Prices Drop on All but Prime Grades appeared first on Steel Market Update.

“U.S. Steel Sinks as Another Wave of Cheap Imports Predicted” was the headline in Bloomberg on Friday morning. The article cites Axiom Capital Research analyst Gordon Johnson who wrote to his clients, “A boat load of imports are likely on the way.”  This opinion permeates the financial community and the pessimism is, in our opinion, […] The post SMU Outlines Two Scenarios for Steel Price Cycle Change appeared first on Steel Market Update.

Steel Dynamics announced a strong quarter with net income of $63 million on net sales of $1.7 billion for first quarter 2016. Steel operating income increased 104 percent to $136 million from fourth quarter due to a 17 percent improvement in shipments which totaled 2.12 million tons. Average steel selling price dropped $40 from Q4 […] The post Steel Dynamics Flat Rolled Division Operating at 88 Percent appeared first on Steel Market Update.