Construction is among the industries suffering the most from a shortage of skilled labor, yet the Trump administration excluded construction from its proposal to expand apprenticeship programs, angering the Associated General Contractors of America. “At a time when the vast majority of construction firms report having a hard time finding qualified workers to hire, it […]
Steel Market Update’s analysis of the Key Market Indicators shows a slight improvement in both our view of the present situation and in the trend of the indicators in June. This report is designed to be a big picture summary of data on which we have reported in detail during the month. In it we […]
This week I will be working with steel buyers (and steel mills) to see how the price increase on flat rolled is being received. As is normal when lead times are short and price announcements are made, many mills held pricing through the end of last week for those who had outstanding quotes or needed […]
Home price gains continued to weaken in April, according to the latest S&P CoreLogic Case-Shiller Indices. The National Home Price NSA index gained 3.5 percent year-over-year compared to 3.7 percent the previous month. The 20-City composite was nearly flat with March, down 0.1 percent to post a 2.5 percent gain. Annual growth has slowed in […]
I am being asked for my opinion regarding the price increase announcements, and specifically if the increases will “stick”? The announcements are not a surprise to me as some of our data was showing service center spot pricing in the area of “capitulation” (more than 75 percent of the service centers dropping spot prices to […]
Sales of new single-family homes in May slipped 7.8 percent from April to a seasonally adjusted annual rate of 626,000. Sales were down 3.7 percent from May 2018, said the latest report from Commerce. The median price for new homes sold last month was $308,000 and the average price $377,200. Inventory, estimated at 333,000 homes […]
The day started slow, but it seems to have picked up steam after the Nucor announcement. As expected, most of the mills have followed the Nucor lead with NLMK putting specific base prices into the market. The guidance being given in the NLMK announcement is hot rolled at a $560 per ton ($28.00/cwt) minimum base […]
Industry optimism, as measured by Steel Market Update’s Steel Buyers Sentiment Index, remains in tepid territory despite slight upticks in both the Current and Future Index readings this week. This is the first time since early April that the indexes have not shown another decline, perhaps signaling some sort of emotional bottom. But weak steel […]
One thing is certain in this crazy steel market, service centers are taking their spot prices lower and lower as each week passes. Manufacturing companies are almost unanimous in their view that flat rolled steel distributors are decreasing their spot offers. We saw 93 percent of the manufacturing companies responding to last week’s SMU flat […]
Construction employment increased in 31 states and the District of Columbia from April to May, according to an analysis of Labor Department data by the Associated General Contractors of America. In the 12 months to May 2019, 39 states and D.C. added construction jobs. “Construction demand remains strong, and contractors increased their workforce in most […]
Existing home sales rebounded in May, according to the National Association of Realtors. Sales increased for the first time in two months, jumping 2.5 percent from April to a seasonally adjusted annual rate of 5.34 million. Sales compared to May 2018 slipped 1.1 percent. NAR Chief Economist Lawrence Yun said consumers are eager to take […]
We are starting to receive nominations for the 1st SMU NexGen Leadership Award. We will accept nominations through Aug. 1. Remember, we are looking for those amongst you who have been innovative, creative problem solvers, perhaps creating new systems or leading through troubled times. There are an unlimited number of reasons to nominate one of […]
Steel price negotiations have been wide open for the past two months and there is no sign of that changing in Steel Market Update’s latest data. More than nine out of 10 steel buyers responding to SMU’s market trends questionnaire this week reported that the mills are still willing to negotiate on flat rolled and […]
The market is keeping a close eye on mill lead times, hoping for some sign they are extending and perhaps signaling a pickup in order activity at the mills. Steel Market Update’s latest numbers, which show little change in lead times, are sure to disappoint. Lead times for steel delivery are a measure of demand […]
There were many questions raised earlier this week about the announced new steelmaking and rolling capacities and whether those projects would indeed continue through completion. The questions came during various steel meetings held by analysts, steel mills, CRU and others in New York City. I participated in three events and found the question brought up […]
Housing starts dipped slightly in May, inching down 0.9 percent from April’s revised rate to a seasonally adjusted annual rate of 1,269,000. Starts were 4.7 percent below the May 2018 rate. Single-family starts led the decline, falling 6.4 percent from April to a SAAR of 820,000, while housing of five units or more jumped 13.8 […]
I have been in New York City where one of the competitors of Steel Market Update was conducting a steel conference. There were a number of satellite mini-conferences surrounding the NYC event. I attended three of them: the CRU Steel Briefing, which attracted about 100-150 executives; the Bank of America Merrill Lynch dinner drawing a […]
Heating and cooling equipment shipments totaled 1.75 million units in April, down 0.1 percent compared to one year ago, according to data recently released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). This is the first month that total monthly equipment shipments have declined on a year-over-year basis since September 2018. Residential and commercial storage […]
Happy Father’s Day to all of the fathers reading tonight’s issue. I will be in New York City participating in the CRU Steel Briefing, which will be held at the Sheraton Hotel in Manhattan on Monday afternoon. Later that evening I will be attending the Bank of America Merrill Lynch steel dinner hosted by Timna […]
Our website has been updated with the correct complete agenda and speakers, and we have added more detailed information about the SMU NexGen Leadership Award. We have also updated the sponsors and exhibitors logos for the 2019 SMU Steel Summit Conference on our website. We have updated the names of the companies attending (those showing […]
A higher percentage of manufacturing companies and flat rolled steel service centers are reporting distributors as continuing to lower spot pricing to their customers. We have now passed through the mythical “capitulation” level and we will explain what that means in a moment. First, we saw 79 percent of the manufacturing companies responding to our […]
Private construction contracted in three months through April, but state and locally funded work, including infrastructure, is booming, according to Steel Market Update’s analysis of Commerce Department data The Construction Put in Place (CPIP) expenditures data for April was released on June 3. Through April, total construction has had negative momentum every month this year […]
Orders for metal cutting machines and metalforming and fabricating machines saw their lowest April rate since 2016. The Association for Manufacturing Technology reports manufacturing technology orders totaled $344.6 million in April, a decline of 16.5 percent from March and 17.6 percent year-over-year. For the first four months of this year, orders were down 11.6 percent […]
Imported steel prices are no longer competitive with domestic steel mill pricing – even on light gauge galvanized and other specialty products that normally have gone to trading companies. Lead times are short, but as one steel executive put it to me this afternoon, “It’s not that the mills have no business. [For this time […]
Steel Market Update data supports the widespread view that steel demand is unusually sluggish for this time of year. Nine out of 10 steel buyers responding to Steel Market Update’s market trends questionnaire this past week characterized demand as flat or declining. Only a small single-digit percentage see improving demand. About 35 percent of the […]
The Dodge Momentum Index, a monthly measure of the initial report for nonresidential buildings in planning, slipped 1.4 percent in May to a reading of 141.0 from a revised reading of 142.4 in April. The commercial component of the index dropped 6.9 percent while the institutional component rose 8.1 percent. On a year-over-year basis, the […]
Job growth in two industries vital to the steel industry, manufacturing and construction, showed signs of slowing in May. The U.S. added a total of just 75,000 jobs in May, well below the 180,000 to 185,000 jobs forecast by economists. In addition, the Labor Department revised employment levels downward for March and April. The March […]
Lordstown will not be getting another General Motors vehicle, says CEO Mary Barra. And no, it is not a “PR stunt” by the company. The Ohio manufacturing facility was one of five North American plants included in a global restructuring of the company. During an interview with Reuters in Washington last week, Barra defended plans […]
This coming week will be a full week when I will be in my office. I am ecstatic. As with most weeks, this coming one will be spent trying to figure out what will cause this market to turn around. On Tuesday, I will publish our analysis of service center spot pricing to their end […]
Industry sentiment has continued to erode this month as the attitudes of steel executives appear to be suffering from the relentless uncertainty over steel pricing, demand and Trump administration trade policies. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current […]