North American auto assemblies recovered in October after reaching the lowest monthly total year-to-date in September. October’s production total jumped 18.1% sequentially but was still down 24.6% year on year. The impact of the chip shortage and supply-chain disruptions is still constraining the automotive sector. Semiconductor scarcity and parts delays had further worsened through the […]
The House has finally passed a bipartisan infrastructure bill after months of wrangling not only among Republicans and Democrats but also among factions within the Democratic party. “American steel built this country, and the industry is now ready to get to work on rebuilding this country. Repairing and modernizing our national transportation system is essential […]
Production disruptions from the semiconductor chip shortage across the U.S. automotive landscape are little changed from Steel Market Update’s mid-October analysis. The widespread stoppages and assembly cuts were piling up through October and into November, but the latest feedback from automakers suggests the shortage may be easing. Last month Toyota announced plans to cut its […]
Mill executives have been front and center over the past couple weeks during their earnings calls and the annual gathering of AISI and SMA members in Washington. Below is a sampling of some of their more notable remarks: • Just because the U.S. and EU managed to negotiate a quota to replace the controversial Section […]
By CRU Principal Analyst Josh Spoores Trade representatives from the USA and Europe came to an agreement at the end of October in regard to the Section 232 tariffs on steel and aluminum. The Department of Commerce further announced on Oct. 31 that consultations regarding the trade of steel remain ongoing between the USA and […]
The U.S. construction sector slipped in September as spending faded for the second consecutive month following a downward revision in August’s results, the Commerce Department reported. The Census Bureau’s report on construction spending shows that the value of residential construction put in place in September was up 19% year on year but fell 0.4% month […]
By CRU Senior Analyst Ryan McKinley from CRU’s Steel Sheet Products Monitor Falling demand in most markets around the world has continued to weigh on steel sheet prices. Meanwhile, the announcement that the USA will remove Section 232 tariffs on steel and aluminum producers in the EU and replace them with a quota system means […]
Total construction spending declined in September for the first time since February, as both residential and nonresidential construction slipped, according to a new analysis of federal construction spending data by the Associated General Contractors of America. AGC continues to lobby for the House to complete work on the bipartisan infrastructure bill that the Senate passed […]
It goes without saying, the steel industry is in a dynamic, volatile market and the only thing that is certain is the volatility will continue as we move into calendar year 2022. It is not just price we need to watch over the coming months. There are many moving pieces to this puzzle. The agreement […]
We’re all on the same price roller coaster, and that’s true whether we’re talking steel, plastic or wood. But we’re not all on the same car – and so your impression of the market might be vastly different if you’re in the front car instead of the back one. That’s the impression I got while speaking […]
Despite all the uncertainty over the economy and steel prices as the year nears an end, sentiment among steel buyers remains extremely optimistic versus historical levels, as measured by Steel Market Update. But this week’s check of the market saw a small decline to the lowest sentiment reading since July. SMU surveys buyers every two […]
“Business is great! Why is Steel Market Update always spreading so much gloom and doom about falling steel prices?” That’s not an actual quote, but we hear comments to that effect nearly every week. As if folks believe it will be a self-fulfilling prophecy. Of course, if prices decline, it won’t be because of some […]
Gibraltar Industries Inc. reported net income of $27.9 million in its third quarter, down nearly 11.0% from the same period last year due to rising labor costs and supply-chain shortages, company executives said. The Buffalo, N.Y.-based manufacturer and distributor of building products reported a 24.5% increase in revenue to $369.4 million during the period. Sales […]
Lead times for orders of flat rolled and plate steel from the mills have shortened again compared to this time last month. About 60% of the buyers responding to Steel Market Update’s survey this week describe lead times as just “slightly longer than normal.” Only 15% still consider them “highly extended.” SMU’s check of the […]
Steel Market Update data suggests buyers continue to gain some leverage in price negotiations. SMU asks buyers every two weeks if the mills are willing to talk price on spot orders. Around 50% of hot rolled buyers responding to this week’s poll said some mills are now willing to bargain to secure an order. That’s […]
I thought I’d be writing today that Steel Market Update had switched all its steel pricing momentum indicators to lower. But what you think should happen and what reality serves up are sometimes very different things. Hot-rolled coil prices continued to fall – they’re down $25 per ton compared to last week. That’s not a surprise. […]
Do you sense the steel market is changing? “There is definitely a different tone to the market over the past few weeks,” said one of the many buyers responding to Steel Market Update’s questionnaire this week expressing similar views: “There are many more sellers than buyers now. Domestic pricing will slide soon.” “The market has […]
By CRU Analyst Helen O’Cleary, from CRU’s Zinc Monitor Zinc’s price started LME Week looking mildly bullish on short covering, with the 3-month official price settling at $3,246 /t on Oct. 12. By Oct. 15, it had reached $3,944 /t, turbocharged by news of smelter cutbacks in Europe due to soaring energy prices and the […]
In this year’s edition of CRU Breakfast – part of LME Week – we explored three key themes that shaped the commodities markets – the global economic and commodities outlook, the changing role of China, and Navigating ESG. All three themes have been central to many developments in the industry and remain equally crucial moving […]
By CRU Research Manager Eoin Dinsmore, from CRU’s January Zinc Monitor Buyers who are unfortunate enough to find themselves in the spot market are paying 18-23¢ /lb for SGH zinc. The most recent deals have all been at 20¢ /lb or higher. Buyers are fearful of being left short metal, while suppliers are either sold […]
The BMW Group has reported a deal to source low-carbon steel from H2 Green Steel (H2GS) beginning in 2025. The German automaker will source the green steel from the large-scale, hydrogen-based steel plant H2GS is building in Norrbotten in northern Sweden. At more than 95% lower gross CO2 emissions than conventional production methods, H2GS’s steel will […]
The impact of the pandemic on the domestic construction sector cannot be overstated, as more than two-thirds of U.S. states have struggled to add jobs since the onset of the global health crisis. Only 14 states and the District of Columbia have increased construction jobs since February 2020, reports the Associated General Contractors of America […]
I have received a few messages wishing me well on my retirement. I don’t want to disappoint anyone, but word of my retirement from Steel Market Update and the steel industry is a bit premature. I have transitioned from a full-time employee to that of a consultant to SMU. I will continue to speak to […]
Existing-home sales recovered in September after waning the month prior, reported the National Association of Realtors. All four of the major U.S. regions registered month-over-month gains, while the South was sideways. Annually, however, only the South held steady, while each of the remaining three regions reported declining sales versus the same year-ago period. September sales […]
Steel Market Update has adjusted our steel pricing momentum indicator for hot-rolled coil lower. That’s not something we’ve done since July 21, 2020 – and it’s not a decision we took lightly. But the evidence is hard to ignore. Our hot rolled coil price now stands at $1,910 per ton ($95.50 per cwt), down $10 per ton […]
Strong consumer demand helped push builder confidence higher in October despite growing affordability challenges stemming from rising material prices and shortages. Builder sentiment in the market for newly built single-family homes moved four points higher to 80 in October, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index. Despite the increase, […]
General Motors Co. will extend production downtime at its Orion Assembly through the end of the month, a company spokesperson confirmed to Steel Market Update. The automaker’s Lake Orion, Mich., assembly plant, down since Aug. 23 due to the semiconductor scarcity, will extend its downtime to include the weeks of Oct. 18 and Oct. 25. […]
Monthly Key Market Indicators, as analysed by Steel Market Update, softened again in the past month. A typical summer slowdown followed by a surge in COVID variant cases, compounded by a lackluster job market, reflects an uneasy economic landscape. Consumer confidence has dwindled, highlighted by decreases in key indicators across the marketplace. SMU’s Key Market Indicators […]
It’s hard for most service center executives to feel any urgent concern about declining steel prices as long as demand seems so strong. But there are signs in Steel Market Update’s survey data this week that suggest demand is moderating. With prices likely to follow. SMU asked: How are you seeing demand for your products? […]
By Stephen Williamson, CRU Research Manager, Aluminum Aluminum prices went through the $3,000 per metric ton mark on the LME this week. Fueled by energy constraints in China and tightening supply of alloy hardeners, the price broke through the $2,950 ceiling and ran up another $200. The price leveled at $3,150 as of this writing […]