We hope this newsletter finds you well and informed. In this month's edition, we delve into the latest market trends that are shaping the steel and the scrap metal industry. Whether you're looking for opportunities or assessing potential risks, our insights aim to provide you with valuable perspectives to guide your decisions.
Navigating Current Market Trends Month over Month 📊
🐃 Bullish Indicators:
🏭 Hot roll coil steel futures show a significant increase, rising from $697 to $864 (+24.1%).
📈 January 2024 US Midwest Domestic HRC futures stand at $960.
🏭 Hot roll coil steel lead times have expanded from 5-6 weeks to 8 weeks.
🇺🇸 US steel imports declined from August to September.
🐻 Bearish Indicators:
📉 Dow Jones Industrial Average decreased, falling from 33,468 to 32,716 (-6.0%).
🛢️ Crude oil prices dropped from $90.77 to $84.17 (-7.3%).
🏭 Steel production rates dipped, showing a decrease of 75.7% to 74.1%.
♻️ Ferrous #1 HMS New York del export yard saw a decrease from $280 per gross ton to $267.50 (-2.9%).
📌 Noteworthy Insights:
🏢 Worthington Steel recently reported that "Pricing is on the rise; the minimum hot roll coil price is reported as $800 per ton, with some mills setting a minimum of $850 per ton. Availability continues to dominate the headlines, with lead times extending across the board. The automotive union's recent actions aimed at Stellantis and GM's most profitable vehicle plants have raised questions about the potential impact on lead times and demand. However, some experts speculate that this may be the final push before a deal is reached. It's worth considering how the market will evolve when the automotive sector is back to full operation."
January 2024 HRC and Busheling futures maintain their bullish outlook. Recent steel mill shutdowns have successfully stabilized HRC prices, and the demand for scrap is expected to rise as we head into the winter months. 💼🌐
Your success is our priority, and we are here to provide you with the insights you need to thrive in these challenging times. Should you have any questions or require further information, please do not hesitate to reach out.
Thank you for trusting us as your source for market intelligence. We look forward to keeping you informed in the months to come.
A Scrap Life's Bulls vs Bears Podcast will be out soon, check out the link below.