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Each week, Majestic Steel USA [majesticsteel.com], a steel service center that distributes prime, flat-rolled galvanized steel sheets and coils to industries across the United States, compiles the Core Report. The Report is “an in-depth look at key indicators and trends driving the steel market. Market volatility demands your attention about what’s driving prices, when and why.”
Majestic Steel has granted Rollforming Magazine permission to publish information excerpted from the Report for its readers.
Scrap Pricing
The Prime Scrap report dated May 15, states prime scrap stayed flat for the third consecutive month.
May prime scrap pricing held steady at $445/gt. It held steady despite broader market softness, with strong domestic steel pricing and improving mill demand helping to offset weaker conditions.
Rising imported pig iron prices are also expected to support the scrap market going forward. Shredded scrap pricing settled flat as well, holding at $425/gt.
Spot Iron Ore
The Platts, Spot Iron Ore report for the week ending May 15 reports that pricing Spot iron ore increased again for the week, now up eight out of the last nine weeks.
Spot iron ore pricing ended the week at $111.20/mt, up from $110.83/mt a week ago. This is now the highest price for iron ore since the Fall of 2024.
Steady restocking and seasonal steel demand continue to provide support, along with cost pressures stemming from volatile freight rates related to the conflict in the Middle East.
Domestic Steel Production
According to the American Iron & Steel Institute, Weekly Domestic Steel Production report dated May 12, domestic raw steel production Domestic steel production increased sharply again the previous week, now up seven out of the last eight weeks.
U.S. mills produced an estimated 1,880k tons at an 81.4% utilization rate, up from 1,856k tons and an 80.4% utilization rate previously.
This remained the highest weekly output since November 2021.
Production rose in four of the five regions, with the largest increase (in tons) coming from the Great Lakes region. Production in the Great Lakes region increased from 511k tons to 522k tons.
Year-to-date production is now up 7.8% compared to the same time frame last year.
Zinc Price & Inventory
According to the London Metal Exchange, Weekly Zinc Price and Inventory Report and the Shanghai Futures Exchange, Weekly Zinc Inventory Report, both dated May 15, zinc pricing increased sharply during this week, now up six out of the last seven weeks.
Zinc pricing ended the week at $3,526.50/mt ($1.600/lb), up from $3,415/mt ($1.549/lb) previously.
Chinese economic data came in above expectations during the week, helping to drive pricing higher, while elevated energy costs continue to disrupt supply.
The recent rise in zinc pricing has led domestic producers to increase coating extras beginning with July production.
Global zinc inventory increased for the second consecutive week.
LME warehouse inventory rebounded from 94,425 metric tons to 110,875 metric tons.
Shanghai warehouse inventory increased as well, climbing from 146,766 metric tons to 151,084 metric tons.
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