In three months through June, total construction expenditures had negative growth for the first time since November 2011. SMU Comment: Data in this report is not adjusted for seasonality. We remove this effect by considering only year-over-year data. Total construction contracted by 0.6 percent in June as a result of a 2.6 percent contraction in […]
Construction is slowing but still has positive growth driven by state and local building and infrastructure expenditures. Privately funded work is contracting. In August, construction expenditures were at an all-time high. Steel Market Update analyzes the Construction Put In Place (CPIP) data to provide a detailed description of activity that accounts for about 45 percent […]
Steel Market Update is celebrating our 12th birthday. I started the SMU publication officially in August 2008. Prior to that I had been giving it away to my former customers and friends within the industry. I knew at the time that the industry needed a publication coming from an industry perspective as opposed to a journalism […]
As if a pandemic wasn’t enough, now I have to muddle through a tropical storm (it was a hurricane but lost some of its punch overnight on Saturday). Fortunately, Florida residents consider tropical storms as nothing more than a nuisance. I have my fingers crossed that we don’t pick up a hurricane until after our […]
Two out of three steel buyers polled by Steel Market Update believe the coronavirus has permanently changed the way they do business. Sixty-five percent of the respondents to SMU’s questionnaire last week expect less travel and more working from home to become common practice, among other changes. Following are some of their comments: “There will […]
Construction employment decreased in 225 out of 358 metro areas, or 62 percent, between June 2019 and last month despite widespread increases from May to June, according to an analysis of new government data by the Associated General Contractors of America. The AGC urged government officials to enact liability reform, boost infrastructure investments and extend […]
I have been buried with the project of resurrecting our premiere event over the last few months. Out of the ashes of the pandemic rises the new virtual SMU Steel Summit Conference. As with any endeavor Steel Market Update tackles, this task has had some unusual challenges. As the project has gathered steam, we have found that […]
Home prices grew at a little slower rate in May, according to the latest S&P CoreLogic Case-Shiller Index. The National Home Price NSA Index posted an annual gain of 4.5 percent in May, down slightly from 4.6 percent in April. Data from the Detroit metro is unavailable for March, April and May due to COVID-19 […]
Watch the market closely. I am hearing rumors that at least one EAF mill is trying to get flat rolled numbers up. Right now, most (not all) data providers were not supportive of higher numbers. I am hearing integrated mills are not booking a lot of spot business, and thus are able to get slightly […]
Industry sentiment had been trending positive since bottoming out in the first week of April—until this week. Steel Market Update’s Steel Buyers Sentiment Indexes slid back from levels earlier in the month on continued uncertainty over the coronavirus and its effects on the economy and steel demand. SMU asks steel buyers how they view their […]
New home sales were robust in June, jumping 13.8 percent from May to a seasonally adjusted annual rate of 776,000, according to estimates by the U.S. Census Bureau and the Department of Housing and Urban Development. Sales were 6.9 percent higher than in June 2019 and at the highest rate since the Great Recession.. “While […]
The official opening of the SMU Virtual Steel Summit Conference is 29 days from today (Aug. 24-26). You will want to register early as we will be opening the platform during the prior week (probably Thursday and Friday) so people can get help as they practice using the platform, make appointments with other attendees and […]
Lead times for spot orders of flat rolled and plate steel have seen relatively little change over the past month, but remain about a half week shorter than this time last year as the market tries to come to grips with doing business in a pandemic. Lead times are an indicator of steel demand—shorter lead […]
Steel buyers clearly have the upper hand in negotiations with steel makers given the challenging market conditions from the virus, with overwhelming percentages of those responding to Steel Market Update’s questionnaire this week reporting that the mills are open to price negotiations to win orders. Nearly all the hot rolled buyers (96 percent) said the […]
Americans released from stay-at-home mandates were eager to purchase homes in June. Sales of existing homes rebounded from three months of decline by leaping 20.7 percent from May to a seasonally adjusted annual rate of 4.72 million in June. “The sales recovery is strong as buyers were eager to purchase homes and properties that they […]
NOTE: Steel Market Update will be moving to a new Azure server tomorrow. Most of the day our website will be down as we make the transition. The website should be back up on Saturday and we intend to publish on Sunday as usual, barring any technical difficulties. We are in an interesting time for […]
Steel prices are always unpredictable, but a confluence of recent events is making price prognostication more difficult than usual. Steel prices have plummeted along with demand ever since the coronavirus appeared in mid-March and undermined the economy. The benchmark base price for hot rolled steel is down to $460 per ton, based on SMU’s canvass […]
Housing starts in June jumped 17.3 percent from May to a seasonally adjusted annual rate of 1,186,000. Single-family starts jumped 17.2 percent and multi-family construction leapt 18.6 percent. Regionally, housing starts soared 114.3 percent in the Northeast and climbed 29.3 percent in the Midwest and 20.2 percent in the South. Housing starts declined by 7.4 […]
Construction employment rose in 31 states from May to June, but new data from construction technology firm Procore shows hours on the job slipping. “The widespread job gains in June follow even more universal increases in May,” said Associated General Contractors of America Chief Economist Ken Simonson. “But the government’s employment snapshot was based on […]
The coronavirus pandemic has crippled GDP growth and made the world economy smaller. It follows, then, that the same is in store for steel. “There is going to be a permanent reduction in the size of the steel market,” predicted veteran industry analyst John Lichtenstein, managing partner of the Swiss-based Research and Consulting Group AG […]
Today there was an explosion at the “D” furnace at ArcelorMittal Burns Harbor. Will there be some impact on the market? Will it be enough to put a bottom to the slide in prices? It’s too early to tell, but we will be watching developments closely in the coming days and weeks. Steel shipments between […]
May heating and cooling equipment shipments totaled 1.66 million units, down 17.7 percent from the same month one year ago, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). This is now the largest year-over-year decline since June 2009, surpassing last month. On a three-month moving average, total heating and cooling shipments […]
We are seeing further erosion in flat rolled steel pricing this week with the possible exception of Galvalume. Our sources are advising that hot rolled numbers are being offered in the low $400’s for tons. As capacity reopens at integrated mills, the possibility exists for HRC prices to breach the $400 per ton level for […]
Despite bad news on the coronavirus front, as authorities work to keep a surge in COVID-19 infections from derailing the economy once again, sentiment in the steel industry continues to trend positive. Steel Market Update’s Steel Buyers Sentiment Indexes are near levels comparable to this time last year, prior to the pandemic. Since early April […]
John Packard (who is traveling) says his sources are telling him that JSW’s flat roll mill in Mingo Junction, Ohio, may be shutting down (not taking orders) for an unknown amount of time. No confirmation or details yet from the company. John also reports that Steel Dynamics ran the first coil through the new #3 […]
Lead times for spot orders of flat rolled steel saw minor and inconsistent changes in the past two weeks, revealing no clear trend. Hot rolled lead times extended slightly, while lead times for cold rolled and galvanized were flat and plate lead times declined, according to Steel Market Update’s check of the market this week. Lead times […]
The vast majority of steel buyers responding to Steel Market Update’s market trends questionnaire this week report that mills are willing to compromise on price to win orders as the economy and steel demand continue to battle the effects of the coronavirus crisis. About 86 percent of hot rolled buyers said the mills are open […]
A measure of the initial report of nonresidential construction projects slipped in June after an upward revision for May. The Dodge Momentum Index posted at 121.5, a 6.6 percent decline from the May index of 130.1. Planning for institutional construction dropped 11.7 percent, while the commercial component fell 3.5 percent. “The Momentum Index has shifted […]
John Packard is traveling… This was the plan when we got word there was a mysterious virus headed our way from China back in March: We shut down the economy for a month or two, keep our distance from each other, then get back to work and enjoy a quick, V-shaped recovery. Wasn’t quite that […]
Construction expenditures continued to show a positive but slowing year-over-year growth in May of 1.4 percent, non-seasonally adjusted. Because of the momentum that exists in most construction projects, steel consumption is likely to decline more slowly in building than in manufacturing. Steel Market Update analyzes Commerce Department Construction Put In Place (CPIP) data to provide […]