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
According to Prime Scrap Price, Market Conversations for the week ending February 14: After improving in January for the first time in seven months, prime scrap pricing jumped sharply in February. Prime scrap is now up $65/gt (17%) over the past two months and is now at its highest level since February 2024.
Several factors contributed to the sharp uptick, including tight scrap supply, improved demand, rising hot rolled pricing, and uncertainty surrounding potential tariffs on Canada and Mexico.
Shredded scrap pricing increased sharply, as well, climbing $40/gt to $420/gt.
Spot Iron Ore
The Platts, Spot Iron Ore report dated February 14 reports that pricing increased for the fifth consecutive week: Spot iron ore pricing settled at 106.77/mt, up slightly from the week prior. This is up 6% over the last five weeks to a four-month high.
Concerns around supply disruptions from Western Australia increased as Cyclone Zelia has intensified into a Category 5 system, the first Category 5 hurricane to hit the iron ore region since 2007.
Domestic Steel Production
According to the American Iron & Steel Institute, Weekly Domestic Steel Production report dated February 14, domestic raw steel production rose sharply the week before, now up for the second consecutive week. US mills produced an estimated 1,675k tons at a 75.2% utilization rate. This was up from 1,656k tons and a 74.4% rate previously.
Production increased in four of the five regions with the largest increase (in tons) coming from the Midwest region. Production from the Midwest region climbed from 233k tons to 250k tons.
Year-to-date production is now up 2.3% compared to the same time period from 2024.
Zinc Price & Inventory
Based on the London Metal Exchange, Weekly Zinc Price and Inventory Report and the Shanghai Futures Exchange, Weekly Zinc Inventory Report, dated February 14:
Zinc pricing increased for the second consecutive week. Zinc pricing ended the week at $2,843/mt ($1.290/lb), up from $2,815.50/mt ($1.277/lb) previously.
Global zinc inventory rebounded for the second consecutive week due to a surge in Shanghai warehouse inventory. LME warehouse inventory slipped for the 10th consecutive week, dropping from 172,475 mt to 2163,425 mt. Shanghai warehouse inventory climbed sharply from 39,592 mt to 67,503 mt.
Dodge Momentum Index
The Dodge Momentum Index (DMI) is a leading indicator for nonresidential construction spending 9-12 months into the future. According to the January 2025 Index: The January DMI came in at 225.7, up from an upwardly revised 213.6 reading in December. The index is up 23.3% from last January and is a new record high for the index.
Planning increased for both commercial and institutional projects, climbing 4.2% and 8.7%, respectively. On the commercial side, data centers, office buildings, and warehouses led the increases. Education and healthcare projects led the way for institutional projects.
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