Market Update | May 7, 2025

 

U.S. RAW STEEL PRODUCTION INCREASED AGAIN LAST WEEK

U.S. raw steel production is now up for the third time in the last four weeks. U.S. steelmakers produced 1.725 million tons at a 76.8% utilization rate: up from 1.706 million tons previously. This was the highest weekly output since mid-September. Despite the recent increase, YTD production is still down 1.0% from the same timeframe last year.

 

PRICE

Domestic flat rolled pricing continued to hold relatively steady this week as the headwinds negatively impacting the market are counterbalancing the tailwinds that helped jumpstart this upward pricing cycle.

  • General uncertainty about future pricing direction and demand has led to a pause in buying activity over the past few weeks and has led to the slowing of this upward pricing cycle.

 

Input Costs

Zinc pricing was slightly higher this week as global demand outlook improved slightly on the thought of easing trade tensions.

  • Pricing increased to $1.20/lb this week, slightly above the thirty-day average of $1.19/lb.

 

Spot iron ore pricing slipped slightly this week but remains in the very tight range we have seen for the past six weeks.

  • The current price is $1.07/mt, down from $1.08/mt reading last week.

 

Met coal pricing improved this week despite increased spot availability amid a weaker demand environment.

  • The current pricing of $190/mt is up 1.3% from last week and is now up 12.3% from this time last month.

 

SUPPLY

U.S. raw steel production increased again last week and is now up for the third time in the last four weeks.

  • U.S. steelmakers produced 1.725 million tons at a 76.8% utilization rate: up from 1.706 million tons previously.
    • This was the highest weekly output since mid-September.
    • Production is up 1.1% from last week and was up 0.9% from the same week last year.
  • Despite the recent increase, YTD production is still down 1.0% from the same timeframe last year.

 

DEMAND

The U.S. light vehicle inventory continued to decline throughout April and is now down in back-to-back months.

  • The U.S. light vehicle inventory ended April at 2.62 million units, down 2.6% from the end of March.
    • Inventory was down on a year-over-year basis as well, sliding 5.7% from 2.78 million units at the end of April 2024.
  • The current inventory, when combined with April’s sales pace, equates to 47 days of supply, up slightly from the 45 days at the end of March.
  • There was a rush of sales in late March/early April as buyers anticipated price increases due to tariffs, helping to push inventories lower.

 

 

 

This material, information and analyses (the “Content”) may include certain statements, estimates and projections prepared with respect to, among other things, historical data and anticipated performance.  Content may reflect various assumptions by Majestic Steel USA, Inc. concerning anticipated results that are inherently subject to significant economic, competitive and other uncertainties and contingencies and have been included for illustrative purposes. Content is provided AS-IS.