Editor’s note: The Chinese government currently bars exports of ferrous scrap to other parts of the world to assure China of an adequate domestic supply. As this analysis by CRU Principal Analyst Chris Asgill points out, China’s economy will eventually generate a scrap supply that far exceeds its scrap consumption, opening up the doors to […] The post CRU: Chinese Scrap Supply Surge Will be Utilized appeared first on Steel Market Update.
Following on a small $20 increase in August, ferrous scrap prices for September are down $30 to $40 per ton as U.S. mills adjusted to lower demand and planned for upcoming fall shutdowns. “Prices fell this month amid a confluence of factors including ample supply, a weakening export market and mill outages,” reported CRU North […] The post Ferrous Scrap Drops $30-40 Per Ton in September appeared first on Steel Market Update.
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 […] The post August at a Glance appeared first on Steel Market Update.
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 […] The post Raw Materials Prices: Iron Ore, Coking Coal, Pig Iron, Scrap, Zinc appeared first on Steel Market Update.
The steel price increases announced by the major mills have not had much effect on the HVAC sector yet, but members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) are hopeful the market has bottomed and the value of their inventories has stabilized. “There hasn’t been much change in behavior on the street […] The post HARDI: “We Feel the Floor Has Been Hit” appeared first on Steel Market Update.
Last night, Steel Market Update participated in the annual Bank of America Merrill Lynch dinner hosted by metals and mining analyst Timna Tanners. We also spoke at the CRU Steel Briefing a little earlier in the day. Here are some of the key takeaways from those meetings. Mill Lead Times Short Flat rolled steel mill […] The post Notes From New York City Steel Meetings appeared first on Steel Market Update.
By CRU Principal Analyst Chris Asgill Scrap supply has continued to outpace demand in most of the key scrap supply markets and CRU’s metallics price indicator (CRUmpi) has fallen a further 4.2 percent m/m to 231.2 (see chart). This is the lowest level for the indicator since June 2017. The depth of U.S. scrap price weakness surprised the […] The post CRU: Softer Steel Markets Weaken Metallics Demand appeared first on Steel Market Update.
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations made by […] The post HRC Futures: There Looks to be a Rally on the Horizon, Might Be Time to Get Opportunistic appeared first on Steel Market Update.
With prime steel prices continuing to slide, market conditions for distributors of secondary steel are a bit discouraging. The cheaper the prime products, the less incentive for buyers to seek out deals on nonprime material. Nonprime or secondary steel includes coils that are rejected because they failed to meet the specifications for their original use, […] The post Margins Tight in a “Sluggish” Secondary Steel Market appeared first on Steel Market Update.
Ferrous scrap prices are down again in May by roughly $30 for obsolete grades and $40 for prime grades, report Steel Market Update sources. May marks the fourth month this year that has seen scrap prices decline. With the mills reportedly cranking out steel at over 80 percent of their capacity, the apparent weakness in […] The post Ferrous Scrap Prices Drop Again in May appeared first on Steel Market Update.