Home prices jumped 6.3 percent in December, according to the latest data from the S&P CoreLogic Case Shiller U.S. National Home Price NSA Index. The 10-city composite increase was 6.0 percent, unchanged from November. The 20-city composite posted a 6.3 percent year-over-year gain, compared to 6.4 percent the previous month. On a month-over-month basis, home […]
Sales of new single-family homes dropped in January to a seasonally adjusted annual rate of 593,000, according to the latest Department of Commerce data. January sales were 7.8 percent below December and 1 percent below the January 2017 rate. During the last three months, the average sales rate was 644,000. The median sales price was […]
The next few months are going to be a wild ride (in my opinion). There appears to be a cascading “Gray Swan” event in process prompted by Section 232 and expectations associated with 232, which now are for Trump to announce a 24 percent tariff on all steel products and let the chips fall where […]
In 2017, the domestic steel market contracted by 0.5 percent, but domestic shipments were up while imports were down. Table 1 shows 11 years of history of total steel supply to the U.S. market broken down into shipments from domestic mills and imports, excluding semi-finished. The hot rolled steel market totaled 106.4 million tons in […]
President Trump has made no official announcement about his plans for Section 232, leaving the steel market to speculate on last week’s Commerce Department recommendations. The majority of respondents to this week’s Steel Market Update market trends questionnaire are guessing he will come up with his own solution to combat unfair imports. The Commerce recommendations […]
Mill lead times on flat rolled steel orders continue to stretch as buyers replenish inventories in the first quarter. One of the key indicators tracked by Steel Market Update, lead times reflect the activity at the mills and the order levels they are seeing from their customers. About 9 percent of respondents to this week’s […]
Steel prices have been on the rise for the past four months, so it’s no surprise that steel buyers are reporting mills less willing to negotiate. More than 60 percent of respondents to Steel Market Update’s latest market trends questionnaire say mills are holding firm in price negotiations. About 10 percent say they still find […]
Diana and I will be traveling on Monday and Tuesday on business and will not be available in our offices and will have limited use of our cell phones. If you have an issue, please contact Brett Linton at 706-216-2140 or send emails to info@SteelMarketUpdate.com. I will be canvassing the market on Monday afternoon and […]
Current and future sentiment among flat rolled steel buyers showed a slight dip this month, due in part to the uncertainty over possible government trade action against imports. Viewed as a three-month moving average, however, industry optimism remains near record highs, according to the latest Steel Market Update Steel Buyers Sentiment Index. The index measures […]
The American Institute of Architects’ Architecture Billings Index (ABI) posted its highest January score since 2007. Considered a leading economic indicator of construction activity, the ABI registered 54.7 last month, up from 52.8 in December. Scores above 50 indicate growth in billings. “Healthy conditions continue across all sectors and regions except the Northeast, where firm […]
Existing home sales fell for the second consecutive month in January, dropping 3.2 percent to a seasonally adjusted annual rate of 5.38 million, according to data from the National Association of Realtors. Compared to a year ago sales are down 4.8 percent, the steepest decline since 5.5 percent in August 2014. Inventory rose 4.1 percent […]
January service center intake rose 12 percent month over month but was flat compared to the seasonal norms and was down 2.7 percent compared to January 2017 intake. Daily shipments in January were 31.1 percent higher than in December and were 4.3 percent higher than January 2017. According to Steel Market Update’s latest analysis of […]
Premium subscribers to Steel Market Update receive reports on imports with macro data broken down by product on the national level. SMU also provides reports that detail the import tonnage received by district of entry and source nation. This new report from SMU takes the analysis even further. Using U.S. International Trade Commission (USITC) data, […]
When the pressure begins, and the cooking surface gets “hot,” that is when you have to be at your best, most nimble and anticipate problems. USS/POSCO announced new prices late yesterday. We have not heard from California Steel Industries (CSI) on what they are going to do regarding pricing. We have heard from their customers […]
The first advice I have for steel buyers is don’t panic. Nothing has been announced on 232 yet. Someone mentioned to me this evening that in reality the president hasn’t made a bad decision yet (I am going to ignore Russia – just talking about business related issues). Section 232 may be the first, but […]
Housing starts in January jumped 9.7 percent from December to a seasonally adjusted annual rate of 1,326,000, according to data released by the Department of Commerce. Construction of homes of five units or more surged 19.7 percent, while single-family starts climbed 3.7 percent. Starts increased across three of the four U.S. regions, but dropped by […]
Last week ended with a bang. Steel Market Update received an invitation to participate in a press conference as Department of Commerce Secretary Wilbur Ross told the world that the DOC had found that imports of foreign steel negatively impact the steel and aluminum industries, which are necessary in the United States for national security […]
According to the Steel Market Update Service Center Flat Rolled Inventories Index, distributor inventories fell over the course of the month of January. Our index has distributors holding 2.8 months of supply as of the end of the month. This is 0.2 of a month’s supply lower than the 3 months of inventory held at […]
It appears that the market is being set for the next round of flat rolled price increases. With benchmark hot rolled averaging $745 per ton, which is essentially at the levels suggested by ArcelorMittal USA in their last announcement, then there is nothing to stop another increase. I heard from a buyer earlier this week […]
The White House released its infrastructure plan this week offering $200 billion in federal funds, far short of the $1 trillion promised during the Trump election campaign. The plan is to “stimulate” $1.5 trillion in investment over the next 10 years to be accomplished through a combination of incentives, asset divesture and reductions in regulations. […]
The release of President Trump’s infrastructure plan drew mixed responses from trade groups involved with the steel industry. Although all support the much-needed infrastructure work, several question the president’s plan to fund it. Thomas J. Gibson, president and CEO of the American Iron and Steel Institute supported the streamlining of permits proposed in the plan. […]
First, tomorrow (Wednesday) is Valentine’s Day. The heat is turning up on Section 232 discussions as trade groups, individual businesses and congressmen lean in and provide their opinions to President Trump. He still sounds like he is going to do something “disruptive,” but we just don’t know for sure. As you can see from tonight’s […]
Today is Feb. 11 and it has been one month since Secretary of Commerce Wilbur Ross sent his recommendation regarding Section 232 to the office of President Trump. Since then, there has been much speculation but nothing of substance as the industry waits for the president to remove the uncertainty. Over the past week, I […]
Current and future sentiment among flat rolled steel buyers remains at or near record highs, according to the latest Steel Market Update Steel Buyers Sentiment Index. The index measures changes in buyers’ optimism levels, which offers insight into their likely decision-making. Three out of four respondents to SMU’s flat rolled market trends questionnaire this week […]
Mill lead times on flat roll continue to extend as buyers order steel ahead of further price increases. The latest data from Steel Market Update’s market trends questionnaire indicates that the average lead time for hot roll has now topped five weeks, while lead times for cold roll, galvanized and Galvalume are now approximately seven […]
Suppliers of hot roll and galvanized products are less willing to talk price than they were in mid-January, reported steel buyers, as the mills seek to collect their latest price increases. Cold roll negotiations are unchanged, and Galvalume talks may have loosened a bit. Overall, about 40 percent of respondents to Steel Market Update’s latest […]
Nearly 90 percent of the respondents to Steel Market Update’s latest market trends questionnaire say they see flat roll prices heading even higher. The other 10 percent are uncertain and see no clear-cut price direction right now. Will steel prices keep rising? Following are some of respondents’ comments: “Hot roll yes, cold roll a slight […]
The Dodge Momentum Index fell 5.1 percent in January to 143.7 from December’s revised score of 151.5. On a year-over-year basis, the index gained 7.7 percent. The Dodge Momentum Index, published by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been […]
We are working on an article about what companies are doing with the tax windfall they will be receiving this year. We have noticed a couple of companies like Mill Steel that are giving their employees a bonus check. We would like to include your company in our article should you be doing something special […]
Flat rolled steel inventories being held on service center floors dropped as of the end of January, according to the Steel Market Update (SMU) Flash Report. SMU reached out to the companies registered to participate in our inventory analysis today to produce our initial “Flash Report.” This report provides early guidance on changes in inventory […]