May 15, 2023
May Market Minute 2023
Where is all the Aluminum?
According to the Aluminum Association, the estimated annual rate of U.S. primary aluminum production totaled 785,700 metric tons during April 2023. This is down 21.9% from April 2022 and down just slightly from March 2023 (786,000).
Lead times for aluminum domestic sheet products from the mills currently sit around 8-10 weeks.
Looking specifically at aluminum extrusions, total shipments of this product are down 9% this year compared to 2022. This is due partially to building and construction markets. Peeling back that data even further, rod and bar are down 20% and shapes are down 8.6%.
Mill lead times on extrusions is roughly six weeks.
Have Steel Prices Peaked?
Hot-roll coil prices are up more than $400/ton year-to-date, but some market experts believe we may be reaching a pricing peak.
As of early May, most steel products are down compared with April’s official totals:
Hot-rolled coil prices were down $74/ton (lead times 8-10 weeks)
Cold-rolled coil prices were down $39/ton (lead times 10-12 weeks)
Coated prices were down $43/ton (lead times 10-12 weeks)
Planned outages at various steel mills coupled with better-than-expected demand is causing some mills to struggle with production, but capacity is expected to improve in the second half of 2023.
In Celebration of Steelmark Month
Did you know that May is national Steelmark month? You know, that graphic that the Pittsburgh Steelers logo is based on (Go Cowboys and Texans!)
Officially, the logo belongs to the American Iron and Steel Institute, was created by the United States Steel Corporation, and contains three hypocycloids (diamond shapes), which stand for the phrase: steel lightens your work, brightens your leisure, and widens your world.
In honor of Steelmark month, check out some interesting steel facts from around the great state of Texas!
Flatbed Rates in Texas
According to DAT Freight & Analytics, at $2.35/mile, Texas flatbed rates are around $0.02/mile higher than in 2018. In Houston, outbound rates jumped by $0.8/mile to $2.48/mile after decreasing for three weeks. Loads moved between Houston and El Paso, the highest volume lane in the state, decreased by 3% last week, with rates down slightly to $2.75/mile, almost $1.00/mile lower than the previous year.