Diana and I leave for Atlanta first thing on Wednesday morning. It’s an eleven-hour trip, so I will be checking emails and answering texts. The weather forecast for Atlanta on Aug. 27-29 looks very promising with high temperatures in the upper 80s and lows around 70 degrees. There is only a small possibility for rain, […]
Premium subscribers to Steel Market Update receive reports on imports broken down into district of entry and source nation. This new report from SMU takes the analysis to the product detail level. Our rationale is that the more information steel buyers have about the fine detail of what is coming into their region, the better […]
We are now one week away from the start of the 2018 SMU Steel Summit Conference. We are continuing to accept registrations, and we expect the conference to be completely full when we kick off at 1 p.m. on Monday, Aug. 27. If you would like to register, you can do so on our website […]
A couple of months ago, Steel Market Update was speaking in front of a group from the financial community. We were asked, “What do you look for as a sign when prices are about to change direction?” Our answer was a mill price increase announcement. Earlier this week, ArcelorMittal USA announced a $30 per ton […]
Housing data was mostly flat in July with housing starts up just 0.9 percent to a seasonally adjusted annual rate of 1,168,000 units. Data from HUD and Commerce show single-family housing starts increasing 0.9 percent and multifamily housing 3.1 percent. Regionally, housing starts fared better in the Midwest and South, increasing 11.6 percent and 10.4 […]
On Friday morning I will be speaking with John Ferriola, Nucor’s CEO, going over some of the topics we will discuss during our one-on-one on stage at this year’s SMU Steel Summit Conference. I would like to offer our readers an opportunity to send me your thoughts on what you would like to learn from […]
ArcelorMittal USA probably surprised some customers with their announcement of a $30 per ton price increase on cold rolled and coated products. My opinion is ArcelorMittal is trying to increase the spread between the hot rolled base price and that of cold rolled and coated products. I also think they are trying to boost base […]
Flat rolled and plate steel distributors, as well as the manufacturers who purchase spot material from the distributors and wholesalers, are reporting a softening of spot pricing. That is the spot pricing service centers are offering their manufacturing customers. Last week, Steel Market Update conducted our early August flat rolled and plate steel market analysis. […]
Steel pricing is the product of a complex interplay between supply and demand, along with other factors such as ferrous scrap prices, imports and government trade actions. Steel Market Update canvasses steel executives twice each month with its market trends questionnaire to take the pulse of the industry. The current prevailing view shows supplies tightening, […]
What would ultimately be best for the environment: strict fuel efficiency standards that will dramatically reduce the tailpipe emissions from new vehicles or more achievable standards that will add less cost to each vehicle and allow more drivers to upgrade and get older gas guzzlers off the road? Over the strong objections of environmental groups […]
Once again, the President of the United States has inserted himself into the free trade of steel as he has announced the doubling of tariffs on Turkey. When I spoke to traders on Friday, they did not know how quickly the new tariffs would go into place. Trade attorney Lewis Leibowitz answered some of the […]
Data from Steel Market Update’s latest market trends questionnaire shows industry sentiment—while still high by historical standards—wobbling a bit, mostly likely over concerns about the uncertain trade situation in the U.S. SMU’s Current Steel Buyers Sentiment Index measures how buyers and sellers of flat rolled and plate steel feel about their company’s ability to be […]
Lead times for steel delivery are a measure of demand at the mill level. Lead times on most flat rolled steel products continue to shorten, according to Steel Market Update’s latest market trends data, suggesting that the mills are not as busy as they were earlier in the year and may be more open to […]
Negotiations between steel mills and buyers have loosened considerably as the mills appear significantly more willing to negotiate spot prices than at any other point this year. Every two weeks, in a proprietary poll, SMU tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. According to respondents to this week’s […]
Emission standards set by the Obama administration in 2012 are now on the chopping block by the Trump administration. Last week the Environmental Protection Agency and Department of Transportation submitted a proposal to roll-back emission standards that are set to take effect after 2020 and freeze them at the pre-2020 levels. “We are delivering on […]
Caterpillar says it will raise prices due to U.S. tariff measures despite expecting a stronger profit outlook for the year. The major exporter of construction, mining and energy-related equipment estimates recently imposed tariffs will cost the company $100 million to $200 million in the second half of 2018—about 3 percent of its full-year profits. Strong […]
Nonresidential construction projects continued to enter the pipeline in July, according to Dodge Data & Analytics. The Dodge Momentum Index, a measure of nonresidential building projects in planning, rose 1.4 percent in July to a reading of 169.8 from a revised June reading of 167.3 Commercial project planning led the rise with a gain of […]
The following report is normally provided to data providers and Premium level members of Steel Market Update: Steel Market Update began collecting flat rolled and plate inventories information from our participating service centers beginning on Monday of this week. The following is our “Flash” report, which is derived from at least 50 percent of the […]
With 58 percent of the service center data providers reporting, Steel Market Update is seeing inventories trending lower. Our “flash” report has inventories at 2.5 months of supply–down from 2.7 months of supply reported at the end of July. Of those reporting, 43 percent said their inventories are lower than the previous month. About 35 […]
The next workshop we have scheduled after the SMU Steel Summit Conference is our new Steel 201: Introduction to Advanced High Strength & Other New Steels. This will be a unique workshop in many ways. We will have two tours, one of the Research and Innovation Center (RIC) at AK Steel (which is also where […]
Most steel buyers are keeping inventory levels steady or even lower believing that, with steel prices so high, the risk is to the downside for the rest of this year. As one steel executive commented: “We are running inventories lean based on the elevated cost and our opinion that there is a greater chance for […]
In June 2018, 12,751,000 people were employed in manufacturing and 7,242,000 in construction. Construction employment has grown by 4.4 percent in the last 12 months, while jobs in manufacturing have increased by 2.6 percent. In the last three months, however, manufacturing employment has gained almost twice the number of jobs as construction, according to Steel […]
As many of you are aware, I receive numerous questions on the steel, steelmaking and commodity markets on an almost daily basis. I endeavor to answer the questions that I am able as quickly as I can. Those questions asked that fall outside of my wheelhouse, I will try to locate someone who can help. […]
Heating and cooling equipment shipments were up 7.8 percent in June compared to one year ago, according to data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) on Friday. This is the highest total equipment shipment level in the institute’s 10+ year history at 2.27 million units shipped, topping the previous record of 2.10 […]
Steel Market Update has a NEW steel training workshop that is meant for both those new to the industry as well as those who have been in the industry for some time and would like a deeper pool of knowledge about the industry. The workshop is called Steel 201: Introduction to Advanced High Strength & […]
Construction is on a roll with expenditures in June at an all-time high, according to Steel Market Update’s latest analysis of Commerce Department data. In the Aug. 1 data release, which reported expenditures through June, the growth of total construction on a rolling 12-month basis year over year increased from 2.1 percent in January to […]
Most automakers reported a drop in U.S. vehicle sales in July and analysts are predicting more pain to come in the second half of the year. “Every year there is a clunker of a month,” Mike Jackson, chief executive of AutoNation Inc., told Reuters. “I think July will be that month from a retail point […]
A reminder that Steel Market Update readers, as well as those who have attended a past SMU Steel Summit or a training workshop, have a unique opportunity to participate in a webinar about the North American steel market conducted by our parent company, CRU. The webinar entitled, “Mid-Year Update on the North American Steel Market,” […]
Home price gains are starting to lose momentum, but an inventory shortage kept prices strong in May despite slower sales. The S&P CoreLogic Case-Shiller National Home Price NSA Index rose 6.4 percent in May, matching the year-over-year-increase reported in April. The 20-city composite posted a 6.5 percent gain year-over-year, compared to 6.7 percent in April. […]
Some quick comments I received as I moved around the market today talking about steel prices: JSW Ohio (Acero Junction mill) just got in 50,000 tons of slabs and is in the market. Credit issues are becoming an issue for companies as their customers are reaching their limits sooner due to the high cost of […]