Steel Products
ISM Manufacturing PMI rises to 50.7 for December
Written by Sandy Williams
January 4, 2013
The Institute for Supply Management increased its manufacturing purchasing managers’ index to 50.7 in December from 49.5 in November. A rating above 50 indicates an expansion in activity. The ISM uptick comes in tandem with Markit data, also released on Wednesday, that put the Markit US PMI rating at 54.0 in December—a jump from 52.8 in November.
The ISM reported new orders unchanged at 50.3 from November but still in a growth trend.
Production dropped 1.1 percent in December to 52.6 from November’s rating of 53.7, indicating growth for the third month in a row, although somewhat slower. The employment index was at 52.7 from 48.4 in November. Manufacturers’ inventories decreased from 45.0 in November to 43.0 in December while customer inventories grew 4.5 percent from 42.5 in November to 47.0 in December. Prices are on a 5 month trend of growth increasing 3 percent to 55.5 in December.
Exports and imports both show growth at 51.5, up from 47.0 and 48.0 in November, respectively.
“The election is over; unemployment is dropping; consumer confidence is increasing as are home sales prices. We seem to be turning the corner. New car sales are increasing, which affects our customers.” said a survey respondent from the fabricated metal products industry in ISM’s press release.
The average ISM PMI rating for the last 2012 months was 51.7, with a high of 54.8 in April and a low of 49.5 in June. A PMI that remains over 42.6 for a period of time indicates a general expansion of the overall economy, thus, December was the 43rd consecutive month of growth.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products
Tariffs, ample domestic supply cause importers to shift or cancel HR import orders
Subdued demand is causing importers to cancel hot-rolled (HR) coil orders and renegotiate the terms of shipments currently enroute to the US, importers say. An executive for a large overseas mill said customers might find it difficult to justify making imports buys after US President Donald Trump doubled the 25% Section 232 tariff on imported steel […]
Drilling activity slows in the US, grows in Canada
Oil and gas drilling activity was mixed this week, according to Baker Hughes. US totals slipped for a sixth straight week, while Canada saw a slight bump in activity.
Commerce finds no Korean OCTG shipments below market value
US Department of Commerce (Commerce) review found no South Korean oil country tubular goods (OCTG) exporters or producers sold products below market value
Drilling activity slows further in US and Canada
Oil and gas drilling activity declined again this week in both the US and Canada, according to Baker Hughes.
SMU Community Chat: Zekelman calls for more support for steel consumers
“Unless the administration actually gets serious about levelling the playing field… for consumers of steel, then everything they've done on the steel side is useless."