Flat rolled steel prices are on the way up following two recent rounds of price increases. Steel Market Update has been anticipating the turnaround in prices as the market has been near the point of “capitulation” for several weeks. Capitulation is the point when 75 percent or more of our service center survey respondents are […]
As flat rolled steel prices move higher, we need to remember that prior to the price increases there was an abnormally large spread between hot rolled based prices and those of cold rolled and coated. Instead of being $100-$140 per ton, they had been running as high as $180-$200 per ton. The spread was created […]
Although too early to be called a trend, the latest readings in Steel Market Update’s Steel Buyer’s Sentiment Index show a slight uptick in optimism following recent price increase announcements by the mills. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful […]
Not surprisingly following the mills’ $40 price increase announcements Oct. 24-25, negotiations between steelmakers and steel buyers have tightened somewhat. What is surprising is that roughly two out of three buyers still report mills actively negotiating spot prices on hot rolled, cold rolled and galvanized, as well as plate. In the hot rolled segment, 62 […]
Mill lead times for spot orders of flat rolled showed early signs of lengthening in the first week of November following the $40 per ton price increase announcements Oct. 24-25. Lead times for steel delivery are a measure of demand at the mill level. Thus, this data suggests the mills are getting busier as buyers […]
September heating and cooling equipment shipments came in at 1.58 million units, down 0.4 percent from the same month one year ago, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Residential and commercial storage water heater shipments rose 2.2 percent year over year to a combined 674,144 units; 654,894 units were […]
The domestic steel mills announced new $40 per ton ($2.00/cwt) price increases on flat rolled this past week. This is the second price increase on flat rolled over the past two months. The domestic mills, led by ArcelorMittal USA, announced $40 per ton spot base price increases on Oct. 24-25 and were able to collect […]
The day was bubbling with rumors as I was actively speaking with both plate and flat rolled steel buyers. They were telling me to expect a price increase announcement on both products. The plate guys were much less confident that any increase would “stick,” but it is worth trying. On the flat rolled side, mill […]
The last few weeks have been busy ones for the U.S. auto industry. A 40-day strike by the United Auto Workers at General Motors ended with ratification of a new four-year labor agreement, allowing negotiations to move forward at Ford. Ford negotiations wrapped up in just three days with a tentative agreement now ready to […]
Commerce Department Construction Put in Place (CPIP) data for September confirms the contraction that began in June 2019. CPIP expenditures data for September was released on Nov 1. Through September, total construction had negative momentum every month since October last year. In the period June through September, total construction declined each month on a year-over-year […]
I have noticed many articles in the mainline press over the past few days slamming the Trump administration’s Section 232 tariffs as not helping the steel industry. Most of the articles point to the recent loss announced by U.S. Steel as proof, along with minimal to no job gains in the industry. I don’t think […]
The Associated General Contractors of America maintains that trade fights with China, the EU and other countries are undermining demand for private sector construction projects. “The best way to make sure our economy continues to expand is to quickly resolve a series of trade disputes that have contributed to business uncertainty and likely held back […]
John Packard is traveling… Eddie Lehner, Ryerson president and CEO, is optimistic that carbon steel prices will bottom in the fourth quarter. “Given where prices are now, the recent price increases have a better chance of sticking than the ones that were announced in Q2 and Q3,” he commented during the company’s third-quarter conference call […]
FCA and Peugeot announced a $48 billion merger on Thursday that will make the combined company the fourth largest automaker in the world. The 50/50 merger will have combined revenues of nearly $190 billion and annual unit sales of about 8.6 million vehicles. Together the company will employ roughly 410,000 employees. Peugeot parent PSA Group […]
This report is designed to be a big picture summary of data we have reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for steel buyers and sellers. See the end of this piece for an explanation of the Key Indicators […]
The United Auto Workers and Ford Motor Co. have announced a tentative agreement just three days after talks began in “earnest” on Monday. “Our national negotiators elected by their local unions have voted to recommend to the UAW-Ford National Council the proposed tentative agreement,” said UAW Vice President Rory Gamble. “Our negotiating team worked diligently […]
The Associated General Contractors of America are calling for comprehensive immigration reform and additional workforce funding to address a shortage of qualified labor. Despite the widespread job gains, AGC’s latest survey found 80 percent of contractors say hourly craftworker positions remain difficult to fill. Construction employment grew in 244, or 68 percent, out of 358 […]
Home prices rose in August but at a slowing pace, says S&P Dow Jones Indices. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 3.2 percent annual gain compared to 3.1 percent in July. An annual gain of 1.5 percent was reported for the 10-City Composite compared to 1.6 percent in July. […]
London, Brexit, new election, split country. As I was standing in line to enter the House of Lords, the gentleman to my left began discussing how Brexit has severed parties and even families. No longer can British families talk about their government openly. I heard the theme on many occasions as I traveled about London […]
United Auto Workers have moved on to negotiations with Ford now that a new labor agreement has been approved at General Motors. Preliminary negotiations have been ongoing since July 15, but talks have now ramped up as the UAW-Ford team puts together a final contract for the 55,000 Ford union workers. Rory Gamble, UAW-Ford vice […]
John Packard is traveling… While it’s too early to tell how the market will fully react to last week’s price increase announcements by the flat rolled mills, change is clearly afoot, based on the findings from SMU’s canvass of the market over the past two days. How high will prices go, and for how long? […]
Steel Market Update’s Current and Future Buyers Sentiment Indexes inched up a few points this week, but remain near their lowest levels in six years. The goal of SMU’s Buyers Sentiment Index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current Sentiment Index), as well […]
Steel Market Update’s negotiations data showed just a hint of tightening in price talks between the mills and their customers this past week, perhaps in anticipation of the $40 price increase on flat rolled steel announced by the mills on Thursday and Friday. The data, gathered by SMU prior to the price increase announcements, shows […]
Mill lead times for flat rolled products continued to shorten slightly over the past few weeks. The average lead time for hot rolled is now down to three and a half weeks, cold rolled is less than five and a half weeks and coated steels are just six weeks. Plate lead times remain around four […]
United Auto Workers at General Motors approved a labor deal on Friday ending a 40-day strike that disrupted operations for GM and its suppliers. About 57 percent of GM’s 49,000 union workers voted in favor of ratifying the new four-year agreement. “General Motors members have spoken,” said Terry Dittes, UAW Vice President and Director of […]
John Packard is traveling… To almost no one’s surprise, the mills raised flat rolled prices by $40 a ton on Thursday and Friday in the hope of reversing the slide that has taken hot rolled as low as $470 a ton. Seven out of 10 steel buyers responding to SMU’s questionnaire last week said they […]
ArcelorMittal USA announced a $40 per ton ($2.00/cwt) price increase today, which is in line with our expectations that an increase was inevitable based on comments from service centers and manufacturing companies responding to our flat rolled steel market trends questionnaires over the past few weeks. By the end of the day, NLMK USA had […]
Total North American light vehicle assemblies were down by 3.0 percent year over year in three months through August. This report is based on data from LMC Automotive for automotive assemblies in the U.S., Canada and Mexico. The breakdown of assemblies is “Personal” (cars for personal use) and “Commercial” (light vehicles less than 6.0 tonnes […]
New home sales remained relatively stable in September, slipping only 0.7 percent to a seasonally adjusted annual rate of 701,000. The August rate was revised downward to 706,000. “New home sales inched down in September, but the ongoing trend remains positive as builders increase their production,” said Greg Ugalde, chairman of the National Association of […]
The official economic statistics out of China show a decline in GDP to a level slightly lower than the depths of the global recession in 2009. China’s share of global steel production was 55.9 percent in August. Once each quarter we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed […]