I just can’t understand how a quote by Richard Chriss (president of the American Institute for International Steel), which is outdated and clearly wrong can make it into a story. There seemed to be no balance to the story. How can this sentence be left to stand?–“With other nations already indicating that they will retaliate […]
The Chicago Business Barometer dropped to a one-year low in March. The indicator of U.S. economic activity slid 4.5 points to register 57.4. While a reading above 50 still indicates growth, three of the five components of the barometer declined. The production index was at its lowest level since October, and the new orders index […]
The metals market in the United States is ripe for mergers and acquisitions in 2018 and 2019, reported investment banker Vincent Pappalardo, managing director of Brown Gibbons Lang & Co., who spoke at the S&P Global Platts steel conference March 20 in Chicago. Valuations are up across the board. Family-owned firms that missed the opportunity […]
Global steel production grew by 3.8 percent in the three months through February. Excluding China, the pace of growth for world steel production was 3.2 percent, according to the latest Steel Market Update analysis of World Steel Association data. In 2017, total global steel production hit 1.687 billion metric tons, up by 5.2 percent from […]
The world’s scrap trade continues to expand as the growth of global GDP accelerates. Steel Market Update performs this analysis quarterly to help readers understand the gyrations of the global scrap market. This data is a quarter in arrears because some nations are slow to report. In the 12 months of 2017, U.S. scrap exports increased […]
Economic indicators of manufacturing activity in the United States remain strong and portend well for the first half of 2018. This report summarizes seven data sources that describe the state of manufacturing in the U.S. We have reported on most of these separately in our Steel Market Update publications, and therefore will be brief […]
Orders for manufactured durable goods jumped 3.1 percent in February, beating economists’ estimates by nearly double. The latest report from the Department of Commerce showed core capital goods (non-defense capital goods minus aircraft) rebounded 1.8 percent last month after two consecutive months of decline. The category is seen as a proxy for business spending. […]
The value of the U.S. dollar has strengthened in the last six weeks, though it remains down for the year. So far in 2018, the dollar has weakened by 8.1 percent, after a turnaround of 2.9 percent from Feb. 2 to March 16. Please see the end of this report for an explanation of data […]
The dollar has been trading in a range for eight weeks and on April 13 had the same value as it did on Feb. 14. Since its recent peak on Jan. 3, 2017, the dollar has weakened by 8.9 percent and in 2018 is down by 1.0 percent through April 13. Please see the end […]
Billings slowed slightly at architecture firms in February, reported the American Institute of Architects. AIA’s Architecture Billings Index (ABI) registered 52.0, down from 54.7 in January. February’s reading above 50 marked the fifth consecutive month of growth for billings. Inquiries into new projects and the value of new signed design contracts both increased in February, […]
When steel prices rise, so does the credit and inventory risk for mills and service centers. When steel prices rise by 40 percent, as they have in the past year, the risk puts smaller players at a big disadvantage. Service centers have been cozying up to their bankers to get extended lines of credit, some […]
The Bureau of Labor Statistics released another excellent employment report for February and revised the two previous months upward. February’s net creation of 313,000 jobs as reported by the BLS on March 9 was the best monthly result since July last year. To make the recent results even better, December was revised up by 15,000 […]
Net job creation in March, as reported by the Bureau of Labor Statistics (BLS) on Friday, dropped by 64 percent from February, but this was not as bad as it first looks. Figure 1 shows the 3MMA of the number of jobs created monthly since 2000 as the brown bars and the total number employed […]
Business activity grew robustly in New York State, according to firms responding to the March Empire State Manufacturing Survey. The general business conditions index climbed more than nine points to 22.5 from 13.1 in February. A level above 0.0 indicates improving conditions, below indicates worsening conditions. Orders and shipments in the region saw strong growth […]
Legal experts say President Trump’s efforts to use the Section 232 steel tariffs as a bargaining chip with NAFTA and other trade negotiations could make the U.S. position more difficult to defend before the World Trade Organization and the courts. An importer hit with the tariff could claim the president had exceeded his authority under […]
Fabricators and Manufacturers Association (FMA) Chief Economist Chris Kuehl believes Section 232 tariffs will not create a trade war and that most of what is happening now is nothing more than posturing. Although he told SMU that “trade wars are not unusual as countries try to protect their domestic products.” Kuehl was critical of how […]
Economic indicators of manufacturing activity remain strong and continue pointing to good demand for steel at least through mid-year. 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 therefore will be brief […]
Global manufacturing expanded at a solid pace in February, according to the J.P.Morgan Global Manufacturing PMI. The composite PMI inched downward for the second month to 54.2, indicating solid but slower growth. Industrial nations saw growth rates decelerate somewhat in February including the U.S., Eurozone, Japan and the UK. Improvement of manufacturing conditions was brisker […]
Union Partners has acquired Lamination Specialties Corp., a manufacturer of electrical steel laminations with three Chicago-area locations. The company also operates a full-service electrical steel service center. It anticipates no disruption of services as it transitions to new ownership. Lamination Specialties is the latest to join the Union Partners family, which includes Mapes & Sprowl, […]
There were no surprises in this month’s data as our SMU Price Momentum continued to reflect higher steel prices, and that expectation continues over the next 30 to 60 days. Our SMU Steel Buyers Sentiment Index is at, or very near, all-time highs for our index. Buyers and sellers of flat rolled steel are optimistic […]
Manufacturing expanded for the 18th consecutive month in February, according to the latest Manufacturing ISM Report on Business. The PMI rose 1.7 percentage points to 60.8 percent in February. Any reading above 50 indicates expansion. New orders continued to expand last month, although softening 1.2 percentage points to 65.4 percent. Production dipped 2.5 points to […]
The MNI Chicago Business Barometer fell in February to its lowest level since August 2017. The barometer slipped 3.8 points from January’s reading to 61.9. Compared to a year ago, the index was up 8 percent and was above the 2017 average of 60.8 New orders were at a six-month low and production was at […]
Global steel production grew by 2.7 percent in the three months through January, though the pace of growth continued to be slowed by pollution control restrictions in China. Excluding China, the pace of growth for world steel production was 4.8 percent, according to the latest Steel Market Update analysis of World Steel Association data. On […]
The decline in value of the U.S. dollar on the international exchange markets has slowed in the last 30 days, according to Steel Market Update’s latest analysis of currencies. Please see the end of this report for an explanation of data sources. The analysis of currency trends is a highly technical undertaking. Therefore, in this […]
Durable goods orders fell 3.7 percent in January to $239.7 billion, according to Commerce Department data. January’s decline follows two months of increases and is the biggest decline since July 2017. Analysts expected a decline of 2.0 percent or less. Durable goods are manufactured items that are expected to last three years or more. The […]
New rules requiring electronic logging devices (ELDs) to monitor drivers’ hours behind the wheel are having the predicted effect on the market, disrupting trucking operations, igniting fierce competition for trucking capacity and sharply raising freight rates. Under the complicated hours of service regulations that took effect Dec. 18, drivers can work no more than a […]
U.S. gross domestic product grew in every region of the country in last year’s second and third 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 Q3 2017. […]
A majority of metalforming companies surveyed in the February Precision Metalforming Association Business Conditions Report expect improvement in economic activity during the next three months. The latest report showed 97 percent anticipate better conditions going forward. “The Trump administration has shown strong leadership on important policy initiatives like tax reform and infrastructure, which give confidence […]
Manufacturing activity continued to expand in New York State, but at a slower pace in February. The Empire State Manufacturing Survey general business index dipped five points to 13.1. A slight increase in new orders was offset by a similar decrease in shipments. Unfilled orders increased slightly and delivery times lengthened. Input prices jumped in […]
The employment picture looks attractive so far for 2018, particularly for construction and manufacturing. The Bureau of Labor Statistics (BLS) reported on Friday that the economy created 200,000 new nonfarm jobs in January. The BLS data included revisions for previous years, which we have incorporated into this update. There were increases in the total number […]