Steel Products

Popular Economist to Make Return Appearance at SMU Steel Summit
Written by Tim Triplett
January 22, 2019
Economist Alan Beaulieu, president of ITR Economics, will make another appearance as a keynote presenter for Steel Market Update’s premier event, the 2019 Steel Summit Conference, set for Aug. 26-28 at the Georgia International Convention Center in Atlanta. He will offer an insightful overview of U.S. economic trends and their implications for the steel industry. Following are his current observations on steel supply, demand and prices:
Steel prices, as measured by the Steel Scrap Producer Price Index, are expected to edge lower as demand wanes in the coming year. Producers are expected to trim prices as they seek to keep production—and profits—rolling.
The relationship between global steel production and the G7 Leading Indicator 1/12 is shown on the following chart:
The decline in the G7 Leading Indicator (blue line) is signaling that the decline in the World Industrial Production 12/12 will extend well into 2019. The U.S., China and other steel-producing nations will see their industrial production growth trends similarly muted, and in some cases actual declines will occur in the 12MMA trends. Worldwide industrial demand for steel will ease, and prices are expected to ease along with the demand.
Nonresidential construction, another large market for steel, is expected to improve in many countries, including the U.S., in 2019. Nonresidential construction lags industrial production, and thus often appears counter-cyclical. The nascent rate-of-change ascents in the various segments of nonresidential construction are expected to extend until late 2019, and that means an increased demand for steel in this segment of the economy. This demand will keep steel prices from cratering, but it is not expected to be strong enough to keep prices from generally moving lower this year. Readers should be wary of inventory buildups at today’s higher prices.
Registration is open for the 2019 event, SMU’s 9th Steel Summit Conference. We welcome anyone interested in the greater steel and manufacturing industries.
To learn more about Steel Summit 2019 and to register, visit www.SteelMarketUpdate.com/Events/Steel-Summit

Tim Triplett
Read more from Tim TriplettLatest in Steel Products

SMU Community Chat replay now available
The latest SMU Community Chat webinar reply is now available on our website to all members. After logging in at steelmarketupdate.com, visit the community tab and look under the “previous webinars” section of the dropdown menu. All past Community Chat webinars are also available under that selection. If you need help accessing the webinar replay, or if your company […]

SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant

Service centers: Mill orders retreat in March
SMU’s Mill Order Index declined in March after repeated gains at the start of the year, according to our latest service center inventories data.

Nucor maintains plate prices
Nucor aims to keep plate prices flat with the opening of its June order book.

US rig count up, Canada declines
Oil and gas drilling activity was mixed this week, according to Baker Hughes. US rig counts expanded for a second straight week, while Canadian activity continued its seasonal slowdown of eight consecutive weeks.