Steel Report

 

Synopsis:

US and EU steel prices continued their upward trajectory which began in Q1, gaining 34% and 7%, respectively.  Chinese prices faltered somewhat, falling 2% after a nearly 12-month long price rally on weaker demand and fears surrounding section 232.  Most of the focus in the steel industry has centered around the US’s section 232 investigation, which culminated with a sweeping 25% tariff on imported steel products and 10% tax on aluminum.  Although many exemptions were ultimately made, fears of an impending supply shortage were largely responsible for the explosive run up of US prices.

North America

  • US HR and Coated prices skyrocketed 34% and 23% in Q2, respectively, driven by fears of a supply shortage caused by section 232.  Although the exemptions have significantly diluted the effects of the tariffs, worries early in the quarter allowed mills to implement significant price hike

europe

  • EU HR and Coated prices rose 7% and 4%, respectively, driven by solid market fundamentals.  Strong auto demand, supplier consolidation and an exemption from US tariffs helped propel prices upwards throughout Q1

apac

  • China’s Flats prices fell 2% in Q1, which can partially be seen as a correction from an extended price rally that began in May of 2017.  The decrease in regional prices is also a result of slow activity during the Lunar Holiday period and worries about section 232 limiting export volumes

raw materials

  • Raw Material prices rose moderately in Q1, with iron ore and coking coal increasing 5% and 2%, respectively, although softening Chinese prices resulted in downward pressure towards the end of the quarter.  Scrap prices jumped 18%, with the US regional market experiencing the largest gains from the explosive increase in US flat steel prices
 All Applied Value Steel Report contains a Global Market Overview of steel commodities by region with forecasts built with over 20 years of industry knowledge and expertise.

All Applied Value Steel Report contains a Global Market Overview of steel commodities by region with forecasts built with over 20 years of industry knowledge and expertise.

 The AVG Steel Report also contains forecasts and analysis of the US, EU, and Chinese steel markets and their drivers. 

The AVG Steel Report also contains forecasts and analysis of the US, EU, and Chinese steel markets and their drivers. 

 Each quarter, the Applied Value Steel Team selects a topic for a special section highlighting the most important factors influencing steel in the past few months. In Q2 2018, this topic has been President's Trump's Section 232 tariffs. 

Each quarter, the Applied Value Steel Team selects a topic for a special section highlighting the most important factors influencing steel in the past few months. In Q2 2018, this topic has been President's Trump's Section 232 tariffs. 

 Raw material pricing trends are tracked each quarter to provide clients with industry leading expertise on future trends. 

Raw material pricing trends are tracked each quarter to provide clients with industry leading expertise on future trends. 

 Cost models for all major steel commodities are developed by region and updated quarterly with the most up to date raw material and process pricing. 

Cost models for all major steel commodities are developed by region and updated quarterly with the most up to date raw material and process pricing. 

 

Please fill out the form below to download our Steel Report. Applied Value publishes the report to our subscribing clients first, and later publishes it on the website. To subscribe and receive the latest steel report, please contact Donald Bly at donald.bly@appliedvalue.com. 

Q2 2018 Steel Report (April 11, 2018)

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