Steel
Overview
The price indices in our Argus Ferrous Markets and Argus Global Steel services are widely used by companies in physical supply contracts around the world – for iron ore, coking coal, hot-rolled coil (HRC) and ferrous scrap.
Many of them are used as the settlement prices for cash-settled futures contracts launched by exchanges to allow users of the derivatives who also transact in the physical market to minimize basis risk while hedging. These cash-settled monthly futures contracts are settled against the arithmetic mean of all the published Argus prices during each calendar month.
Using indices allows companies to trade material on an index-linked basis, not only via fixed-prices sales. This offers significant advantages when prices are volatile, yet the modern finished steel market remains primarily transacted on a fixed price basis. The addition of futures markets offers opportunities to enhance supply chain resilience further.
Latest steel news
US October layoff plans highest since 2003: Challenger
US October layoff plans highest since 2003: Challenger
Houston, 6 November (Argus) — US-based employers in October announced the highest level of monthly job cuts since 2003, according to job outplacement firm Challenger, Gray and Christmas. Employers announced 153,074 job cuts in October due to slowing consumer and corporate spending, adoption of artificial intelligence (AI), belt-tightening and hiring freezes tied to the federal government shut down. The October announcements are up by more than 180pc from September job cuts announcements as well as October 2024 levels. "This is the highest total for October in over 20 years, and the highest total for a single month in the fourth quarter since 2008," said Challenger. "Like in 2003, a disruptive technology is changing the landscape. At a time when job creation is at its lowest point in years, the optics of announcing layoffs in the fourth quarter are particularly unfavorable." Federal blackout, slowing job creation The monthly Challenger report comes as federal government data has largely been unavailable due to the shutdown, leaving the Federal Reserve, government and corporate planners mainly with private data to rely on for their hiring and investment planning. The last official US employment report before the shutdown showed only 22,000 jobs added in August, with a revision showing 13,000 jobs lost in July. Job growth averaged 128,000/month for the 12 months through August. Year-to-date October announced jobs cuts reported by Challenger totaled nearly 2mn, the highest for the period since 2020, when 2.3mn cuts were announced in the first 10 months of the year, when Covid-19 struck and shut down large swaths of the economy. Year-to-date October hiring plans dropped to 488,077 hires from 750,333 announced during the same period last year, according to Challenger. It is the lowest year-to-date October total since 2011. The leading reason for job cuts so far in 2025 was attributed to the "DOGE impact," a reference to the Elon Musk-led Department of Government Efficiency (DOGE), cited for 293,753 planned layoffs, including direct reductions to the federal workforce and its contractors. DOGE Downstream Impacts, reflecting the loss of federal funding to private and non-profit entities, accounted for 20,976 planned layoffs. "Like in 2003, a disruptive technology is changing the landscape," said Challenger. Cost cutting was the top reason employers cited for layoffs — 50,437 in October alone. AI was the second-most cited monthly factor, leading to 31,039 cuts as companies restructure and automate, with 48,414 cited year to date. Market and economic conditions accounted for another 21,104 cuts in October, bringing the year to date total to 229,331. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Preliminary ETS benchmark hints at strict CBAM
Preliminary ETS benchmark hints at strict CBAM
London, 6 November (Argus) — Preliminary EU emissions trading scheme (ETS) benchmarks used internally by the European Commission's directorate-general for climate action (DG Clima) suggest CBAM benchmarks for steel imports could be strict. The next ETS benchmark for hot metal will be 6pc lower than the 1.328t benchmark in phase 3 of the ETS, in 2013-18, meaning domestic producers will have a benchmark of 1.24t, according to an internal DGClima document seen by Argus . This represents a 3pc drop against the 2021-25 benchmark, in addition to a 2.5pc phase-out of allowances set to occur in 2026. Should this benchmark be used for CBAM — as most expect — it would mean blast furnace-based material with an emissions intensity of 2.1t would incur an additional cost of more than €70/t ($80/t), assuming a carbon price of €80/t. The benchmark is preliminary and may not be accurate once the revision actually takes place, but there is a "high" probability of these benchmarks, according to the document seen by Argus . The ETS benchmark for electric arc furnace carbon steel could drop by 50pc from phase 3, to 0.142t, the document said. This would mean an additional cost of around €50/t for electric arc furnace imports, assuming a carbon content of around 750-800kg and an ETS cost of €80/t. Market participants have increased their expectations for future carbon costs in the steel market this week. Previously, most factored in a carbon cost of around €50/t, with some predicting as low as €30/t, but the range has increased to €50-70/t across north Europe and Italy. Domestic producers suggest more buyers are transferring purchases to local material and away from imports, although the EU's proposed post-safeguard mechanism will also be driving this. The commission is due to announce provisional CBAM benchmarks this quarter, although the actual figures will not be released until the first quarter. By Colin Richardson and Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Recent deep-sea and short-sea cfr Turkey scrap deals
Recent deep-sea and short-sea cfr Turkey scrap deals
London, 5 November (Argus) — A summary of the most recent deep-sea and short-sea cfr Turkey ferrous scrap deals seen by Argus. Ferrous scrap short-sea trades (average composition price, cif Marmara) Date Volume, t Price, $ Shipment Buyer Seller Composition Index relevant 31-Oct 3,000 346 (90:10) November Izmir Romania HMS 1/2 90:10 Y 21-Oct 5,000 333 (80:20) October Izmir Romania HMS 1/2 80:20 Y Ferrous scrap deep-sea trades (average composition price, cfr Turkey) Date Volume, t Price, $ Shipment Buyer Seller Composition Index relevant 5-Nov 30,000 355.5 (80:20) December Iskenderun USA HMS 1/2 80:20, bonus Y 31-Oct 15,000 349 (80:20) November/December Marmara Cont. Europe HMS 1/2 80:20 Y 31-Oct 10,000 350 (80:20) December Marmara Cont. Europe HMS 1/2 80:20 Y 31-Oct 30,000 345.50 (80:20) December Marmara Cont. Europe HMS 1/2 80:20 Y 23-Oct 30,000 348 (80:20) November/December Marmara Baltics/Scan HMS 1/2 80:20 Y 23-Oct 30,000 348 (80:20) November/December Izmir Baltics/Scan HMS 1/2 80:20 Y Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US services sector returns to expansion in Oct: ISM
US services sector returns to expansion in Oct: ISM
Houston, 5 November (Argus) — The US services sector renewed its expansion in October as output and new orders grew while the labor market showed signs of easing contraction, signaling the overall economy is largely weathering the government shutdown and the administration's tariff wars. The services purchasing managers' index (PMI) rose to 52.4 in October from 50 in September, the Institute for Supply Management (ISM) reported Wednesday. It marked an eighth month of expansion this year for the largest segment of the economy and the strongest growth since February. The threshold between growth and contraction is 50. "The stronger reading in October provides some support for the notion that the government shutdown is having a limited impact on the broader economy," Pantheon Macroeconomics said in a note. "We retain our view that a weak labor market and resulting downward pressure on core services inflation mean further Fed easing is likely in the coming quarters." The business activity/production index rose to 54.3 in October from 49.9 in September. The new orders index rose to 56.2 last month from 50.4. New export orders rose to 47.8, while imports slid to 43.7, both in contraction. The employment index was at 48.2, showing an easing rate of contraction from 47.2 the prior month. The survey from the private ISM is one of the few economic surveys or reports that provide a window into the state of the US economy since most government data went dark with the beginning of the partial government shutdown beginning 1 October. ISM's factory survey, reported on 3 November, showed manufacturing at 48.7, an eighth month of contraction. Wednesday's services prices index rose to 70 in October, the first time at or above that threshold since October 2022. "Tariffs likely are raising costs for some services companies, but imported goods are a relatively small share of total costs for most," Pantheon Macroeconomics said. Survey respondents continued "to mention the impact of tariffs on prices paid," ISM said. "There was no indication of widespread layoffs or reductions in force, but the federal government shutdown was mentioned several times as impacting business activity and generating concerns for future layoffs." A separate report Wednesday from ADP payroll services showed the US added 42,000 private sector jobs in October, the first gains since July, as initially reported. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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