The following article on the hot rolled coil (HRC) and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel Interesting futures markets in steel lately. Today Q1’17 HR traded at $625/ST, 1,200 ST/mo. Also Jan/Feb’17 HR traded at $625/ST, 500 ST/mo. […] The post Hot Rolled Futures: Q1 ’17 Trades at $625 appeared first on Steel Market Update.
Steel Market Update went out to a couple of hundred steel buyers and executives today as we probe for information about flat rolled steel prices. At the same time we asked questions about price direction and demand. Tonight we will cover price direction (prior to AM increase announcement) and on Thursday we will cover their […] The post Service Centers/End Users Comment on Price Direction from Here appeared first on Steel Market Update.
The following article on the hot rolled coil (HRC) and financial futures markets was written by Andre and Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: The bearishness was so thick 1-2 months ago you could cut it with a knife! The steel futures were getting crushed, […] The post Hot Rolled Futures: Wow! What a Month Makes! Boom! appeared first on Steel Market Update.
I have had a number of conversations with steel mills and steel buyers regarding when the next flat rolled steel price increase would be announced by the domestic mills? My opinion is the mills will use the new ferrous scrap settlement prices combined with stronger order books as the reasons for going out after perhaps […] The post Final Thoughts appeared first on Steel Market Update.
Steel Market Update (SMU) is adjusting our Price Momentum Indicator to “Higher” from Neutral. It is our opinion that flat rolled steel prices in the United States and Canada will move higher over the next 30 to 60 days. There are a number of reasons why we have chosen to make this move now, here […] The post SMU Price Momentum Indicator Adjusted to “Higher” appeared first on Steel Market Update.
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.
Hot rolled coils settled September on the CME at $542 per ton while Platts ($539 average) and SMU ($530 average) saw market prices as being weaker. The SMU Price Momentum Index pointed toward lower prices throughout the month and ended the month suggesting prices will continue to slide as we move into the month of […] The post A Closer Look at September 2016 appeared first on Steel Market Update.
Nucor Corporation announced today that it has agreed to acquire Independence Tube Corporation (ITC), a leading independent manufacturer of hollow structural section (HSS) steel tubing, for $435 million, or approximately 6x average EBITDA over the 2013-2015 period. “Independence Tube is a natural fit with Nucor. Their business model is similar to ours with extremely efficient […] The post Nucor to Acquire Independence Tube Corp. appeared first on Steel Market Update.
The prices for flat rolled steel have dropped over the past few weeks which is creating a situation where the domestic steel mills want to recoup a portion (or all) of the reductions by negotiating lower ferrous scrap pricing. The mills are asking for $20 per gross ton across the board (HMS, shred, prime grades) […] The post September Scrap Has Mills Pressuring Prices with Mixed Results Expected appeared first on Steel Market Update.
SMU Sources are advising us that obsolete grades of ferrous scrap are trading sideways (prices remaining the same as last month) while prime grades move lower by $10 to $15 per gross ton in the Chicago, Ohio Valley, Detroit and Indiana markets. Prior to negotiations beginning, the expectation was for obsolete grades to remain intact […] The post Ferrous Scrap Trading Sideways on Obsolete to Down $10-$15 on Primes appeared first on Steel Market Update.