By CRU Research Manager Charlie Durant and Peter Ghilchik, CRU Head of Multi-Commodity Analysis 2021 is shaping up to be a year of economic recovery. CRU is forecasting the fastest annual growth in the world economy for 40 years, underpinned by successful vaccination programs and supportive fiscal and monetary policy. 3+1 Macro Themes In January, we […]
Orders for durable goods—products expected to last three years or more—recovered partially in March, increasing 0.5% after dipping 0.9% in February, said the Commerce Department on Monday. Orders for the month totaled $256.3 billion, increasing for the 10th time in the last 11 months, but at a much lower rate than the 2%-plus uplift expected by […]
Metalforming companies are optimistic about business conditions for the next three months, but are concerned about longer lead times for steel and other materials. In the April 2021 Business Conditions Report by the Precision Metalforming Association, 56% of participants expect improvement in economic activity in the next three months compared to 50% in March. Only […]
U.S. steel product shipments slipped in February by 1.7%, the first decrease since bottoming out in April 2020 when COVID nearly brought the economy to a standstill. Despite the decrease month on month, which may be due to seasonal factors, steel shipments have recovered to pre-pandemic volumes and posted an increase of 5.5% compared to February […]
The World Steel Association was cautiously optimistic in its April 2021 Short-Range Outlook published last week. The association expects steel demand to grow 5.8% this year, reaching 1.874 billion metric tons, after declining 0.2% during the pandemic in 2020. “Despite the disastrous impact of the pandemic on lives and livelihoods, the global steel industry was […]
The Steel Manufacturers Association applauds the Congressional Steel Caucus for their bi-partisan support of Buy America policies to fix America’s infrastructure. Said SMA President Philip Bell, “Yesterday, a bipartisan group of over 50 members of Congress affirmed that Buy America procurement policies that promote using steel made in America by Americans is a trade-compliant approach […]
New York manufacturers had a robust month in April with new orders and shipments accelerating. The Empire State Manufacturing general business index rose 9 points to 26.3, its highest level in more than two years. New orders soared nearly 18 points to 26.9 and the shipments index climbed to 25.0. Delivery times continued to lengthen, […]
Mill shipments of steel products fell 9.8% month on month in February, while apparent supply was down by 12.5% during the same period. This is the first noticeable decrease in both apparent supply and shipments of steel since the market reached bottom back in May 2020. Mill shipments were down by 13.1% year on year, […]
Spring has sprung including a bounce in economic activity, according to the latest Federal Reserve Beige Book. The April survey of federal districts showed a moderate increase in activity from auto sales to tourism, along with heightened optimism. Spring break, vaccine rollout and stimulus payments gave the tourism industry a boost from late February to […]
Usinas Siderurgicas de Minas Gerais (Usiminas) is set to bring an idled blast furnace back online in June at their Ipatinga plant in Brazil’s southeastern state of Minas Gerais, according to Steel Market Update sources. Back in April 2020, Usiminas idled the #1 and #2 blast furnaces due to lower demand resulting from widespread closures and […]
Talking to workers about the life-saving potential of COVID-19 vaccinations has turned into a personal mission for one mill executive (who asked not to be identified). “I spend at least one hour per day, every day, on COVID stuff. It’s frustrating there’s so much resistance.” Nearly all the individuals in his corporate suite have gotten their […]
The U.S. economy added 916,000 jobs in March, posting increases for a second consecutive month and pushing well ahead of early estimates, reported the Bureau of Labor Statistics (BLS). Gains were strongest in leisure and hospitality, while construction jumped by 126,000. Following a depressing close to 2020 and a loss of 447,000 jobs in January, total […]
The U.S. labor market saw a strong surge in employment to closed out the first quarter. The U.S. Bureau of Labor Statistics (BLS) reported that employers added 916,000 to their payrolls in March, more than doubling the 379,000 jobs added in February. Following a dismal close to 2020 and a slow start in January, total […]
Producer prices continue to register solid monthly increases from the losses suffered during the early days of the COVID-19 pandemic. The composite Producer Price Index (PPI) of all commodities from the Bureau of Labor Statistics (BLS) showed an increase of 2.1% in February versus the prior month, and a 6.0% increase year on year, seasonally adjusted. […]
Producer prices continue to rebound from the losses suffered during the early days of the COVID-19 pandemic last year. Since the decreases in March and April of 2020, the composite Producer Price Index (PPI) of all commodities from the Bureau of Labor Statistics (BLS) has seen consistent month-on-month increases. March’s index registered a 3.7% increase versus the prior […]
For the seventh consecutive month, steel prices rose throughout March, fueled by a continuation of strong demand and limited supply. Hot rolled steel prices averaged $1,300 per ton by the middle of the month, far exceeding any historical price record, and reached $1,330 by the last week of March. The SMU Price Momentum Indicator has […]
U.S. gross domestic product (GDP) finished 2020 with annualized growth of 4.3% in the fourth quarter, a slight upward adjustment based on the third estimate from the Bureau of Economic Analysis (BEA). The third estimate included upward revisions to private inventory investment that was partly offset by a downward revision to nonresidential fixed investment. An annualized […]
U.S. consumer confidence took a major leap forward in March, according to the latest data from The Conference Board. “Consumer confidence increased to its highest level since the onset of the pandemic in March 2020,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions and their short-term […]
U.S. consumer confidence saw major gains in April, according to the latest data from The Conference Board. April’s index rose by about 13.0 points month on month, following a nearly 18.6-point increase in March. “Consumer confidence has rebounded sharply over the last two months and is now at its highest level since February 2020,” said Lynn […]
Rising costs and supply-chain disruptions remained headwinds for manufacturers across the globe in March. Despite the challenges, the J.P. Morgan Global Manufacturing PMI reached a 10-year high of 55.0. Manufacturing output expanded at the strongest rate in a decade as demand strengthened domestically and in international trade. Growth was reported in 23 of 27 nations […]
The CRU Group has developed a web-based tool to help users understand emissions at the company and asset level to make better decisions in pursuit of lowering the carbon released into the atmosphere. CRU’s Emissions Analysis Tool uses standardized data and methodologies, calibrated to existing schemes such as the EU emissions trading system (EU ETS), International […]
The Biden administration’s ambitious American Jobs Plan, which calls for an historic investment in the nation’s infrastructure, offers enormous promise for the U.S. economy and steel demand, but it faces pushback on several fronts. President Biden addressed the nation from Pittsburgh yesterday afternoon to pitch his vision for an eight-year, $2-trillion infrastructure spending plan that […]
U.S. manufacturing is on a solid path to recovery, according to the latest report from the Institute for Supply Management. The March 2021 Manufacturing ISM Report on Business posted a PMI of 64.7, a gain of 3.9 points from February. Expanding demand resulted in new orders, production and employment growing at a faster rate in […]
The Chicago Business Barometer reached its highest level since July 2018, soaring to 66.3 in March from 59.5 in February, reports MNI indicators. For the first quarter of 2021, the index gained 4.4 points for a reading of 63.2, the best result since Q3 2018. The production index soared 10.1 points to 72.0 in March […]
Global crude steel production totaled 150.2 million metric tons in February, up 4.1% from the same month last year, reported the World Steel Association. Despite the positive year-over-year result, February’s total was down 7.8% from January and was the lowest output since July 2020 when monthly production was 155.5 million metric tons. February’s data is […]
As the world continues to work itself back from the doldrums of the COVID health pandemic, global crude steel production seems to be hitting its stride as it strives to catch up with rising demand. Except for Brazil, which saw no change in crude steel production month on month, all the top 10 global producers and regions […]
World crude steel production, at 150.2 million metric tons, was 4.1% higher in February than in the same month last year, reported the World Steel Association. February’s data is significant in that it’s the last month that year-over-year figures can be compared pre-pandemic without being skewed by COVID, which hit in March last year. February’s […]
The Architecture Billings Index rose eight points in February to 53.3, returning to positive territory for the first time in a year, said the American Institute of Architects. New inquiries improved last month, climbing above 50 for the first time in almost two years, along with a return to growth in value of new contracts […]
After nine months of gains, orders for durable goods surprised economists with a 1.1% decline in February to $254 billion. The U.S. Census Bureau report on Wednesday indicated core capital goods–non-defense orders minus aircraft and a measure of future investment–dipped 0.8% after gaining 0.6% in January. The decline in new orders was led by a […]
Ken Simonson, chief economist at the Associated General Contractors of America, will be the featured speaker at the next SMU Community Chat beginning at 11 a.m. ET on Wednesday, March 31. Simonson will speak to the status of the residential, commercial and industrial construction markets and forecasts for construction in the coming months. He will also cover […]