Toyota North America has slashed its April production by an estimated 47,000 vehicles, with more reductions in May still possible due to the prolonged global microchip and parts shortage, a company spokesperson told Steel Market Update (SMU). “Toyota’s North American plants continue to face intermittent production delays due to supply chain disruptions,” she said. “We […]
Flat Rolled = 52 Shipping Days of Supply Plate = 44.4 Shipping Days of Supply Flat Rolled US service center flat rolled inventories edged down further in March. Inventories did not fall as much as expected, as attitudes about inventory changed with the reversal of pricing trends. At the end of March, service centers carried […]
North American auto assemblies grew by 18.1% in March, expanding for the third straight month despite ongoing supply hurdles. Though North American production has improved since last December, March’s recovery was just 1% higher year on year. And it’s still 13.5% below the pre-pandemic period of March 2019. At the onset of 2022, the global auto […]
US light vehicle sales fell to 1.26 million units in March, down 22% year on year. The annualized selling rate declined to 13.332 million units from 14.071 million units the month prior, the US Bureau of Economic Analysis (BEA) reported. Interest rates are rising. But that’s probably not what’s holding sales back. It is supply rather […]
I shouldn’t say put a fork in this market and call it done. It’s probably too early for that. But some of the anecdotal indicators I mentioned last week are increasingly showing up in the data we and others collect. Take a look at today’s issue: Lead times are still rising, for the most part. […]
Steel mill lead times appear to be steadying this week for four of the five sheet and plate products we track. They are also rising at a slower rate compared to the big gains seen in March. Steel Market Update’s latest check of the market indicates sheet lead times increased by an average of 0.2 weeks […]
The firm grip mills have held on price negotiations remains but may be softening, according to buyers polled in our latest market survey. Every two weeks, SMU asks respondents: Are you finding domestic mills willing to negotiate spot pricing on new orders placed this week? On average this week, three out of four steel buyers reported that mills are […]
The prices contractors pay for construction materials and services – chiefly for new nonresidential construction – jumped by more than 21% in March versus the same year-ago period, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. The association has called for relief from tariffs, urging the Biden administration […]
Sheet and plate prices are flat or modestly down. I didn’t expect to write that this week. But the data we collected and our methodology indicated that it was the right decision. I’ve had a lot of experience with pricing over the years. And in my experience, that data often moves before the words. In […]
If you’re feeling whiplash from the current market, I’d take some comfort in the fact that you’re not alone. I remember attending Great Designs in Steel, one of my favorite events, in Livonia, Mich., back in May 2018. My absolute favorite part of GDIS is seeing the latest vehicle models dissected – and all the […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. US construction spending in February totaled $1.704 trillion at a seasonally adjusted annual rate, rising less than expected as an increase in outlays on private projects was partially offset by a decline […]
Construction employment exceeded pre-pandemic levels in nearly 60% of US metro areas through February, according Associated General Contractors of America (AGC) figures. AGC also said it is getting harder to find workers and urged officials to invest more in career training and education programs for the construction sector. “The rebound in construction employment in most […]
US heating and cooling equipment shipments in February rose 0.8% from January to 1.84 million units, up 9.2% from levels one year prior, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). The highest monthly shipment rate on record was recorded last June, when 2.32 million units were shipped in a single month. […]
My car was sideswiped recently – a parked car is hard to avoid, apparently – and I thought a silver lining might be that I could do my little part to keep North America’s scrap reservoir full. A quarter panel, maybe even a door. Instead, I am still driving around in that scrap (and probably […]
The US construction sector added 19,000 new workers to payrolls in March, while spending on construction projects rose for the 12th straight month through February, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. Despite repeated gains, the AGC urged US trade officials to end tariffs on key materials […]
The Dodge Momentum Index moved 4% higher in March, maintaining the growth seen the month prior, according to data and analytics from the Dodge Construction Network. The index registered 166.9 last month, up from February’s revised reading of 160.3. In March, planning for commercial projects drove the index’s overall reading upward, expanding by 7% while […]
I gave the keynote address at The FABRICATOR’s Manufacturers & Suppliers Event in Schaumburg – just outside of Chicago – earlier today. And I want to thank the organizers who invited me, everyone who attended and especially those who asked questions. My presentation focused on the factors we’ve all been following closely over the last […]
We are now 140 days away, and I am getting very excited about this year’s SMU Steel Summit Conference. The agenda is coming together nicely, we have several new speakers, and I continue to work on a few special projects that I think you will enjoy. The conference dates are August 22-24, and the conference will be […]
The global microchip shortage and snarled supply chains continue to trouble North American automakers nearly two years after these issues first resulted in widespread production outages. The list of carmakers impacted this week is extensive, including the Detroit-area “Big Three” – GM, Ford, and Stellantis (formerly Chrysler) – as well as Honda and Toyota. General […]
SMU’s Steel Buyers Sentiment Index moved 3 points higher this week, following an 11 point surge in mid-March. Theses jumps in sentiment correlate with the unexpected rebound in steel prices caused by the Ukraine-Russia war. Steel Market Update’s latest check of the market pegged the benchmark price for hot rolled coil at $1,435 per ton […]
I decided to take a break from prices and survey data today to check in with a few trusted mill and service center executives. Each had their own take on the market. But there were a couple of common threads. First, the war in Ukraine is still driving the steel and metals markets – even […]
Steel mill lead times continue to extend, but they are rising at a more moderate pace compared to early March. Steel Market Update’s latest check of the market indicates that lead times for sheet and plate increased by an average of 0.6 weeks, compared to an average jump of 1.2 weeks two weeks prior. Buyers surveyed […]
Mills are increasingly holding firm on higher prices. The result: the buyer’s market we saw at the beginning of the year is offically over. Every two weeks, Steel Market Update asks buyers: Are you finding domestic mills willing to negotiate spot pricing on new orders placed this week? The overwhelming majority of steel buyers polled this […]
When I first started writing Steel Market Update back in 2004, its purpose was to assist my steel buying clients by supplying information necessary for them to be proactive in their decision-making process in a volatile steel market. Its purpose did not change in 2008 when I started the newsletter as a publication for a […]
Sales of new single-family homes tumbled 2% in February compared to the month prior on a lack of existing home inventory as well as rising mortgage rates and construction costs. The seasonally adjusted rate in February was 772,000 units, down an even steeper 6.2% compared to February 2021, the U.S. Department of Housing and Urban Development […]
While February construction employment exceeded pre-pandemic levels in nearly two-thirds of US states, the Associated General Contractors of America (AGC) cautions further gains could be undermined if skyrocketing materials costs and delayed shipments postpone or cancel projects. “Construction is doing well at the moment in most states, but fast-rising costs may cause some owners to […]
The market has worked itself into a frenzy about rising costs: for fuel, for labor, and for raw materials. All that translates into sharply higher prices for steel. There is a good case to be made that these factors – especially when it comes to fuel and raw materials – won’t go away anytime soon […]
General Motors will pause part of its Chevrolet Silverado and GMC Sierra production for two weeks in April because of the ongoing microchip shortage, a company spokesperson told Steel Market Update (SMU). The Detroit-based automaker’s Fort Wayne, Ind., assembly plant will take downtime the weeks of April 4 and April 11, the company’s first chip-related […]
I find myself looking backwards this week, which is something I try never to do. Onward and upward is my motto. But on the occasion of one’s retirement, it seems compulsory to reflect on the past. In a way, I owe my career to Richard Nixon. When I graduated from Wheaton Central High School in […]
On Friday, March 25, 2022, Steel Market Update will be saying goodbye to Tim Triplett as he retires from a long and successful career writing about the steel industry. I started Steel Market Update in 2008. As the company grew, and as I got older, it became apparent that I needed to bring someone onboard […]