HomeMy WebLinkAboutFYI 1Steel Market Update TampaBay t $l
Afeiels Ready for&rsincss�
Pricing riotiPcatk n.as of 03.07.22
The purpose of this notification is to inform you that the conflict between Russia and Ukraine,&
the associated sanctions have had an immediate impact on the global steel market, The
availability of raw steel materials and the rapidly increasing costs will both be factors. Now
rapidly these costs climb..&for what duration not yet known. Several factors worth noting are
the following;
* As of 3/1/22—Prime scrap was up;$10D f GI
• Pig Iron Is a key raw component of steel making, Russia&Ukraine supply 6056 of the
world's supply,
• Sheet mills kn US typkalty use~20.30%of pig iron in their rink,
+ Without supply from Ukraine&Russia,there will be a shortage pig iron.
• Sheet mills will buy more prime scrap to replace pig iron where they can,putting a
higher demand on scrap,and likely hiking the cost of scrap quickly,
• Nbn•Prime scrap—Turkey is a large consumer of scrap,and has lost normal avenues for
scrap(Black Sea area and will be looking to US for same.
• A major flat rolled mill made a big buy of prime scrap last week well above market price
and in addition,they also idled a flat-rolled mill.
its
• Plate mills and plate pricing are expected to be impacted as well. No pricing
tV announcements have been made to date,but that i5 expected to be forthcoming this
R week.
• All mill floor inventory is quickly becoming very scarce,
i + Mill rolling dates are moving further out due to an anticipated higher de mand.
+�, + We are expecting similar pricing movement on all products,including stainless steel and
aluminum.
We appreciate your business and will continue to keep you informed as this situation develops
and further affects the metals industry_
Please contact your sales representatives with any questions.
Best Regards
Bobby etirke
Sales Manager
59131 East 5t.h Avenue 4.Tampa, Florida 33819 .Phone(f}13)b21-47313 +Fax(8i3p 621.6775