Steel Market News

  1. The number of active oil and gas drill rigs was unchanged in the U.S. this past week, while the Canadian rig count increased, according to data released Friday by oilfield services company Baker Hughes. The rig count is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand.

  2. Canadian distributor Russel Metals finalized its purchase of Boyd Metals, expanding its U.S. footprint. The deal for the Fort Smith, Ark.,-based service center cost $110 million and covers all of Boyd’s assets, the company said.

  3. Worthington Industries Inc. completed its acquisition of Tempel Steel Company, a manufacturer of precision motor and transformer laminations for the electrical steel market.

    The deal, originally valued around $255 million, expands the Columbus, Ohio-based manufacturer’s steel processing segment in the growing electric vehicle (EV) market.

  4. (Editor's note: This is a corrected version of Final Thoughts. The original misstated a hot rolled peak of $1,995 per ton, not $1,955.)

    In our questionnaire this week, we asked steel buyers: Do you sense that the market is changing, and in what ways? Not surprisingly, many referenced shortening mill lead times and declining steel prices. At an average of $1,770 per ton, hot rolled has dropped by about $185 or 10% from its early-September peak of $1,955. In a normal market, a $185 decline would be considered a disaster. In the current environment, some describe it as a “slow softening” or even “a trickle.”

  5. Nucor and Big River Steel have joined the ranks of sheet mills announcing new coating extras for 2022.

    “Consistent with our practice to monitor the cost of zinc, we have revised our galvanized coating weight extras,” Charlotte, N.C.-based Nucor said in a letter to customers on Wednesday, Dec. 1.