When we reported steel prices on Tuesday, we noted that for the first time in a year we saw mixed results with some prices rising, one remaining the same and one dropping. We did not change our Price Momentum Indicator. However, we noted that we were carefully watching the markets to see when we would move from Higher to Neutral or Lower. We are not yet ready to make a definitive move, but we caution our readers to remain vigilant as we anticipate there could be instability in market prices as we approach the peak. (Whether we are at the peak or $100 per ton away from the peak is not something we are forecasting. We leave that up to others.).
Steel prices can’t go up forever and could correct downward from their historic highs later this year, steelmaker Evraz said.
“Steel prices look unsustainable at current levels and there is a possibility of a gradual price decline in the coming months,” the company said in outlook commentary released with earnings data on Thursday, Aug. 5.
As scrap prices for August were settling today, obsolete grades generally traded down $20/GT, while prime grades traded sideways, sources tell Steel Market Update. Late reports indicated busheling may be down $10 in the South. Ferrous scrap prices factor into the mills' costs and how much they charge for finished steel products.
Cleveland-Cliffs Inc. has reached agreement on a new three-year labor agreement with United Auto Workers (UAW) Local 600, which represents 1,000 workers at the steelmaker’s Dearborn Works near Detroit. The new contract is retroactively effective from Aug. 1, 2021, through July 31, 2024.
General Motors has extended downtime at some auto assembly plants into September because of the ongoing semiconductor shortage.
And the Detroit-based automaker said some of its truck plants would continue to see chip-related outages - a development that is notable because pickup trucks are among GM’s most profitable and in-demand vehicles.