Economy
'Twas a Challenging Year for Steel...a Poem
Written by Tim Triplett
December 6, 2019
In the spirit of the season, Keith Gunter of McElroy Metal offers the following poetic look back at the year in steel:
‘Twas almost Christmas and all through the land,
Steel increases were announced but will they all stand?
Buyers are wary as steel mills try to pounce,
Is this for real, or just another dead cat bounce?
We all started the year with high inventory to chew,
Due to the 2018 panic of Section 232.
Devaluing this really hurt the bottom line,
Most everyone suffered this profit decline.
Demand was pretty good and imports were less,
But prices keep going down causing some stress.
So, some capacity was shuttered, some may not come back,
The mills had to do something to get back on track.
Some questioned the indexes, if they reflected what’s real,
They have typically been accurate with what they reveal.
More discipline needed with volumes and timing of orders accepted,
Very likely the reason why folks were adversely affected.
Next year will be interesting with upcoming presidential election,
There is a lot to consider as we make our selection.
Leading up to this we should move forward with decisions,
And not wait for the outcome to influence our vision.
One thing is for sure, our industry will continue to be strong,
There are always ups and downs and challenges to come along.
The future for steel still looks to be bright,
Merry Christmas to all, and to all a goodnight.
Tim Triplett
Read more from Tim TriplettLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.