It will be interesting to see how AK Steel and Steel Dynamics (SDI) interact with the newly purchased Dearborn and Columbus steel mills. One SDI customer told us today that the mill tends to be very deliberate in their decision making process and they did not expect radical changes for a number of weeks if […]
Spot prices remained stable this week as steel buyers wait to see how the absorption of Severstal by AK Steel and Steel Dynamics will affect the marketplace. It is anticipated that it could take 3-4 weeks before we get a clear indication as to how the commercial departments for each mill will integrate the former […]
The following article was produced by Peter Wright, contributing writer and Steel 101 instructor for Steel Market Update. Economy.com reported as follows on the August U.S. vehicles sales volume: the year-to-date pace of 16.4 million units SAAR is the best since 2006, when it was 16.55 million. The strong recovery of the U.S. auto industry […]
For those of you who are new to Steel Market Update (SMU) the Final Thoughts segment of the newsletter is reserved for me (John Packard, Founder and Publisher) to basically spout off on a wide variety of topics. This is the space I reserve for my opinions as well as in your face marketing (sorry, […]
Below is the latest press release issued by the The Air-Conditioning, Heating, and Refrigeration Institute (AHRI) on residential and commercial heating and cooling equipment shipments through July 2014. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for July 2014 increased 7.5 […]
According to Baker Hughes data from September 12th 2014, the U.S rig count for this week is 1,931 rigs exploring for or developing oil or natural gas. This count is an increase of 6 rigs when compared to last week, with oil rigs up 8 to 1,592 rigs, gas rigs down 2 to 338 rigs, […]
With iron ore approaching $80 per dry metric ton for spot 62% Fe fines in China (according to our Asian iron ore trading source as well as The Steel Index), I asked John Eckstein, retired metallurgist last with Severstal Sparrows Point and one of our Steel 101 instructors, to comment on the changes the price […]
I am hearing that the closing date for both AK Steel and Steel Dynamics (SDI) on the Severstal Dearborn and Columbus assets could come as soon as next Monday, September 15, 2014. We have two articles in tonight’s edition of SMU regarding imports, One from Peter Wright’s perspective and one that I worked on most […]
Canada building permit values were up 11.8 percent from June to July to a value of $9.2 billion. On a year-over year basis, building permits increased 13.3 percent. Multi-family dwellings and institutional buildings led the increase. Residential building permit values rose 5.2 percent month over month to a record $4.2 billion. Permits were authorized for […]
General Electric is selling its GE Appliance business to AB Electrolux of Sweden for $3.3 billion. Electrolux, the parent company of US brands Electrolux and Frigadaire, expects the sale to generate annual cost synergies of approximately $300 million and enhance its position as a global player in home appliances. “The acquisition, which is our largest […]
The new coating extras are creating a bit of a bumpy ride for some mills/customers while others are adapting and moving forward. This is something we will need to watch over the next few weeks as we transition to the new extras. Our sources are advising us that some mills are making adjustments to base […]
After setting a record optimistic high of +68 at the beginning of August 2014, SMU Steel Buyers Sentiment Index has now declined for the second time and stands at +53. The most recent measurement is still well within the optimistic parameters for our index. Even so, we are concerned with the 15 point dip that […]
Flat rolled steel mill Lead times remained relatively stable compared to those reported during the middle of August. However, when compared to the lead times reported in early September 2013 we are finding the latest lead times to be slightly extended. Hot rolled lead times are averaging 4.37 weeks based on the responses received in […]
Steel Market Update conducted one of our flat rolled steel market surveys this past week. One of the key questions asked during the survey process is regarding the willingness of the domestic flat rolled steel mills to negotiate spot pricing. In last week’s survey our respondents reported a jump in the percentage reporting the steel […]
US automotive sales topped 1.58 million vehicles in March, an increase of 5.4 percent compared to August 2013 and the highest total since August 2003. Sales on a seasonally adjusted annual rate rose to 17.45 million units, according to WardsAuto, beating analyst estimates of 16.6 million. It was the first time the seasonally adjusted annual […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data on the first working day covering activity two months earlier. July data was released on September 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In effect the […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered at present is thirty five, the Chicago Fed Mid-West Manufacturing Index is still on hold to enable the staff to complete a major re-vamp of the […]
On Tuesday we will do a complete review of the new zinc coating extras. The last report we provided mistakenly identified the Dofasco extras as those of ArcelorMittal USA. There is a difference in their extras due to the value of the Canadian currency against the U.S. dollar. We already have information on our website […]
The following is a recap of the data compiled during the month of August 2014. For the second month in a row our SMU Price Momentum Indicator remained at Neutral as steel prices have been relatively stable with the $673 average up $6 from the July average. However, by the end of the month our […]
The following is a press release by the Associated General Contractors of America: ACG, Sept 2, 2014 — Growing demand for construction services comes as new study finds one-in-four construction firms turning down work because of growing labor shortages for the industry. All major categories of construction spending increased in July and total construction reached […]
Ford has begun transforming its Dearborn plant for production of the all new aluminum-bodied F-150 pickup. The last steel-bodied F-150 left the line on August 23rd and the plant was closed to start replacing the old machinery with new. The conversion will cost Ford $359 million and idle production until September 22. Ford employees, approximately […]
Ford has begun transforming its Dearborn plant for production of the all new aluminum-bodied F-150 pickup. The last steel-bodied F-150 left the line on August 23rd and the plant was closed to start replacing the old machinery with new. The conversion will cost Ford $359 million and idle production until September 22. Ford employees, approximately […]
According to Baker Hughes data from August 29th 2014, the U.S rig count for this week is 1,914 rigs exploring for or developing oil or natural gas. This count is an increase of 18 rigs when compared to last week, with oil rigs up 11 to 1,575 rigs, gas rigs up 8 to 338 rigs, […]
We’ve gone well past hectic as we are literally within a few hours of kicking off our 4th Steel Summit Conference in Atlanta. We exceeded our registration goals and we had to expand both of the rooms we are using at the Georgia International Convention Center to accommodate the extra people. The place is set […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. turned negative this week after being in positive territory for the previous four weeks. MoMo, a trailing indicator, is measured as a percentage and shows the relation of the current hot rolled coil (HRC) price movements against the previous 12-week average […]
Due to the Labor Day Holiday, Steel Market Update will not publish our newsletter on Sunday evening. We will publish again on Tuesday evening which is the night prior to the opening of our conference. Thursday we are not planning on producing a newsletter – or, if we do it will be a limited issue […]
Home price gains slowed in June according to the S&P/Case-Shiller Home Price Indices. The monthly national index increased just 0.9 percent in June and the 10-City and 20-City Composites increased 1.0 percent. The index shows a sustained slowdown in the 12 months ending June 2014. “Home price gains continue to ease as they have since […]
Sales of new single family homes slipped 2.4 percent in July according to the most recent Department of Commerce estimates. Sales were down for the second month in a row at a seasonally adjusted annual rate of 412,000, but still 12.3 percent above the July 2013 estimate of 367,000. The July sales rate was below […]
This week will be the last week we will use the old USS extras in our .060″ G90 galvanized index and cost calculations. The extra is changing from $3.00/cwt to $3.45/cwt. Please make a note of this. Before the end of this week we will revise our Price Estimator on the website to incorporate the […]
U.S. light vehicle sales declined slightly from June’s high level but, at a seasonally adjusted annual rate (SAAR) of 16.5 million units, were still very strong. Sales have now exceeded 16.0 million units SAAR for five straight months. Sales in July of autos and light trucks were 8.0 and 8.5 million units, respectively. Autos declined […]