Behlen Mfg. Co. is among many manufacturers who report strong demand for their products despite all the trade conflict making headlines in Washington. Based in Columbus, Neb., Behlen makes grain storage equipment, building systems and other fabricated metal parts. Behlen President and CEO Phil Raimondo is pleased with his company’s performance, but his pleasure is […]
Metalforming companies are expecting a decline in business conditions due to high steel prices and tariffs, according the latest survey by the Precision Metalforming Association. In a sample of 109 metalforming companies in the U.S. and Canada in June, 23 percent of members said they expect a decline in economic activity during the next three […]
U.S. steel mills shipped 7,798,326 net tons in April, a 6.0 percent decrease from the 8,299,418 net tons shipped in the previous month, and a 5.0 percent increase from the 7,428,080 net tons shipped in April 2017, reported the American Iron and Steel Institute in Washington. Shipments in the first four months of 2018 totaled […]
Manufacturing in New York State expanded in June at a faster pace than April. The Empire State Manufacturing Index jumping 4.9 points to 25.0 and its highest reading since October, said the Federal Reserve Bank of New York on Friday. New orders and shipments made solid gains, driving increases to backlogs and delivery times. The […]
Steel Market Update canvassed industry executives this week to gauge their expectations for steel prices and to see if they have felt any effects yet from the Trump administration’s tariffs on steel from Canada and Mexico. Most anticipate fallout from the tariffs in the coming weeks and months, including upward pressure on prices. Following are […]
Many of you are already customers of CRU but for those who don’t know us as well, John thought it would be useful to say a little about what we do. CRU has been growing our services since we were formed in 1969 in London, and we now have about 260 employees in 12 countries […]
Net job creation in May hit 223,000 seasonally adjusted. Year over year, 2,363,000 jobs have been created, an increase of 1.6 percent, according to Bureau of Labor Statistics employment data. Rising employment and wages are the basis of GDP growth because personal consumption accounts for almost 70 percent of GDP. Steel consumption is related to […]
The U.S. packaging industry, which relies on imports of tinplate, is among the many concerned about the effects of President Trump’s tariffs on steel and aluminum imports. The Can Manufacturers Institute estimates that 42 percent of tinplate steel needs to be imported to manufacture food cans for American consumers. More than 60 percent of primary aluminum […]
Supply executives polled for the Manufacturing ISM Report on Business reported strong business conditions in May. The PMI rose 1.4 points to 58.7 percent as new orders, production and employment continued to expand. Inventories are struggling to keep pace with demand. Longer supplier lead times and freight uncertainty is impacting inventory levels, said Timothy R. […]
Global manufacturing was at a nine-month low in May, according to data from J.P. Morgan and IHS Markit, in association with ISM and IFPSM. The composite Global Manufacturing PMI dipped to 53.1 from 53.5 in April. The second-quarter PMI average shows “mild growth deceleration” compared to the first quarter, said J.P. Morgan. The U.S. outperformed […]
Steel Market Update adjusted its price momentum indicator from neutral to higher in late May. Across the month, hot rolled steel prices averaged $886 per ton (up $13 over April), while cold rolled was at $1,007 (up $1), galvanized at $1,100 (unchanged), Galvalume at $1,322 (up $6), and plate at $966 (down $8). The SMU […]
In the table below, Steel Market Update provides a snapshot of flat rolled steel pricing, commodities that affected steel prices, and economic data of importance to the flat rolled steel industry in June. Looking back at the past month, SMU’s Pricing Momentum Indicator continued to point higher as the domestic mills reacted to the Trump […]
The MNI Chicago Business Barometer gained 5.1 points in May, jumping to 62.7 and its highest level since January. Output and orders drove the increase for manufacturers, although all five Barometer components rose this month. The production index was at a three-month high and new orders at a four-month high. The backlog index was at […]
The American iron and steel industry supports nearly two million jobs and contributes more than $520 billion to the U.S. economy, when considering the direct, indirect (supplier) and induced impacts of related commerce, claims a study released last week by the research firm John Dunham & Associates. The study also shows that the iron and […]
In May, consumer confidence improved to the highest level since December 2000, according to the latest findings from The Conference Board’s Consumer Confidence Survey. The composite value of consumer confidence in May was 128.0, up from 125.6 in April. While consumer confidence increased in May from April’s downwardly revised result, the three-month moving average (3MMA) […]
Manufacturing activity in the U.S. remains robust and economic indicators continue to point to a strong 2018, according to Steel Market Update’s latest analysis. This report summarizes seven data sources that describe the state of manufacturing in the United States. We have reported on most of these separately in our Steel Market Update publications, and […]
U.S. gross domestic product grew in every region of the country in last year’s second and fourth quarters, according to Bureau of Economic Analysis data. The BEA introduced a new data set for GDP by state and region in 2014 and backdated it to Q1 2005. This week, the data was updated through Q4 2017. […]
Global steel production was at an all-time high in March and declined only slightly in April. Production declined by 0.07 percent in April month over month and grew by 4.0 percent in three months through April year over year, according to the latest Steel Market Update analysis of World Steel Association data. China grew by […]
The steel market is waiting anxiously to see what happens June 1 when the tariff exclusions are set to expire for Canada, Mexico and the European Union. Some expect the exclusions to be extended as trade negotiations continue. Most expect steel prices to remain steady or move higher, based on an informal canvass of Steel […]
Orders for manufactured goods fell 1.7 percent in April to $248.5 billion, according to the latest Commerce Department data. Transportation equipment drove the decrease, declining $5.6 billion, or 6.1 percent, to $87.1 billion. Orders for commercial jets plummeted 29 percent in April after soaring 61 percent in March. Excluding transportation orders, the index rose 0.9 […]
Chinese steel trade data was recently released for the month of April 2018, providing updated data on iron ore imports, scrap imports and flat rolled imports and exports. Chinese imports of iron ore in April totaled 82,920,000 metric tons, a decrease of 3.3 percent from the previous month, but an increase of 0.8 percent from […]
Last month, Steel Market Update reported that the dollar had been trading in a narrow range for eight weeks and on April 13 had the same value as on Feb. 14. In the four weeks leading up to May 18, the situation completely changed as the dollar strengthened by 4.1 percent. (See the end of […]
What are the potential long-term implications of the Trump administration steel tariffs, in particular their effects on rerollers in the United States? Steel Market Update canvassed steel executives this week for their views on current market conditions, and the impact of the tariffs on pricing and availability clearly remains a source of concern. “I buy […]
The Architecture Billings Index rose modestly in April posting a score of 52.0, indicating a seventh consecutive month of growth and a one point gain from March. New project inquiries, an indicator for future billings, fell to 56.7 from the March score of 58.1, reported the American Institute of Architects. Labor shortages, higher prices for […]
Steel Market Update canvassed the market on May 22 to gather steel executives’ views on supply, demand and pricing in the current environment. Some also shared their thoughts on their biggest challenges today. Below are some of their more insightful comments: Q: Are you seeing any signs that steel prices are going to “break out” […]
March was a strong month for both steel mill shipments and demand for rolled steel products, but this was partly a seasonal effect. This conclusion is based on Steel Market Update’s analysis of data from the American Iron and Steel Institute (AISI) and the U.S. Department of Commerce. March was a good month for both […]
Carbon steel prices have escalated at a lower rate than aluminum, but higher than plastic and wood. Truck transportation prices are rising faster than rail, according to the latest data from the Bureau of Labor Statistics. Last week, the BLS released its series of producer price indexes (PPIs) for more than 10,000 goods and materials […]
Manufacturing activity in New York State was strong in May, according to the latest Empire State Manufacturing Survey. The Federal Reserve Bank of New York reported the general business conditions index rose four points to 20.1 for a faster pace of growth than April. Forty percent of survey respondents said business conditions had improved during […]
For steel producers, there’s a strong correlation between capacity utilization and profits. Steel Market Update tracks capacity utilization for both flat and long products and both have been on the upswing since early 2018, at least in part due to the effects of the Trump administration’s plans to impose tariffs on steel imports. From January […]
Employment increases in manufacturing and construction are signposts for steel sales activity. 2018 is starting off well. Rising employment and wages are the basis of GDP growth because personal consumption accounts for almost 70 percent of GDP. Steel consumption is related to GDP; therefore, we need to be aware of changes to the employment picture. […]