English
English
Español
Français

UP TO THE MINUTE

By Cotney Consulting Group. Working in the heat poses significant risks, ...
Watch our latest MetalTalk on June 20th @ 11 am ...
Read More
Western Colloid - Sidebar Ad - Need a Metal Roof Solution?
NFBA - Sidebar Ad - Accredited Builder
Metal-Era / Hickman - Sidebar Ad - Product Launch
New Tech Machinery - Sidebar Ad - Board & Batten
Malco Tools - Sidebar Ad - Metal Benders
CCS-OpenForBusiness-Sidebar
MetalCoffeeShop
English
English
Español
Français

Learn What’s Trending in Steel

Central States May 2023
August 25, 2023 at 3:00 a.m.

By Andrew Wilson, Central States Manufacturing. 

The steel market is more unpredictable than usual as pricing continues to rapidly rise and fall.  

Editor’s note: Andrew Wilson, vice president of supply chain for Central States Manufacturing and Metal Central shares his observations about steel trends from May 2023.  

Traditionally, the summer months have proven to be an active period for the steel markets. Although we are moving into months that are usually more lively compared to the rest of the year, the steel market continues to show rapid and unpredictable changes as prices rise and fall over and over.  

The small increases we have seen in lead-times across the supply chain are following their normal, seasonal trend as they begin to fall back towards historically normal levels – we are seeing this start to happen already.   

We have likely reached another inflection point in the mill PO pricing, after five consecutive months of increasing costs, we are seeing the first glimmers of correction returning to the market. Mill pricing for May is likely to show generally sideways, if not slightly downwards pricing.  Please remember any orders placed in May are for June production in the mills and will not show in the marketplace until July or August. This will flow through to the end-customer base in 60-90 days.   

Total steel production output continues to march slowly upwards. SDI Sinton continues to progress towards higher utilization and the imminent exit from AHMSA’s bankruptcy is causing some relaxation in the Mexican supply side. It’s unlikely that the AHMSA mills will be back to normal production levels before the end of Q3, but it seems that the material availability from Mexico has improved slightly. Overall, the utilization remains around the 75% mark, well below the dizzy heights of 2022 production levels.  

Steel futures are still bearish in their outlook, showing a return to the downward trend, albeit at a higher than historic baseline. The changes of the futures over time have reduced, indicating equilibrium has been reached.  

There are currently no significant areas of supply shortage, 24g has been a challenge recently due to exceeding the current monthly forecast by 80% and 29g Galvalume has seen a sharp increase in demand in the past month due to some specific market dynamics with a specific competitor. The relatively high cost of material over the past several months is likely to drive an increase in the market for another cycle before softening and reversing direction.  

In the wider economy, there are still many factors impacting the construction segment. The continuing increases in interest rates are expected to dampen the market, preventing existing homeowners (with attractive mortgage interest rates) from selling their existing property, this has somewhat counterintuitively increased the demand for new home construction which has seen something of an uptick. Commercial sectors have so far remained strong with demand continuing unabated. Animal confinement is starting to pick up some pace, with more projects being quoted. 

Original article source: Central States Manufacturing

Learn more about Central States Manufacturing Inc. in their Coffee Shop Directory or visit www.centralstatesco.com.



Recommended For You


Comments

There are currently no comments here.

Leave a Reply

Commenting is only accessible to RCS users.

Have an account? Login to leave a comment!


Sign In
SRS Roof Hub - Banner Ad - Spring 2024
English
English
Español
Français

UP TO THE MINUTE

By Cotney Consulting Group. Working in the heat poses significant risks, ...
Watch our latest MetalTalk on June 20th @ 11 am ...
Read More
CCS-OpenForBusiness-Sidebar
NFBA - Sidebar Ad - Accredited Builder
Project Map It - Side Bar - Digital Portfolio
Metal-Era / Hickman - Sidebar Ad - Product Launch
Cougar Paws - Steel Walker II- Sidebar Ad on MCS
Western Colloid - Sidebar Ad - Need a Metal Roof Solution?