Gross domestic product grew in every region except the Plains States in Q1 2017. The Bureau of Economic Analysis (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 Q1 2017. Even though we might consider this to […]
U.S. Trade Representative Robert Lighthizer offered a stern assessment of the United States’ goals for an updated trade agreement with Canada and Mexico as talks began Wednesday to renegotiate NAFTA. Canadian Foreign Affairs Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo Villarreal joined Lighthizer in Washington for negotiations on the North American Free Trade […]
Manufacturing activity jumped sharply in New York State in August. The general business index of the Empire State Manufacturing Survey leapt 15.4 points to 25.2, its highest reading since September 2014. The new orders index rose seven points to 20.6 and shipments gained nearly two points for a reading of 12.4. Delivery times increased slightly, […]
Like in the United States, steelmakers in the European Union are using their trade laws to fight back against steel imports that are unfairly subsidized by the governments in China and other countries. On Aug. 9, the European Union imposed provisional import duties of up to 28.5 percent on certain Chinese corrosion-resistant steels. The eight-month […]
The Trump administration’s effort to renegotiate the North American Free Trade Agreement and secure “a better deal for America” begins this week with talks between Canada, Mexico and the United States. The opening round will be in Washington on Aug. 16-20. The second round will take place in Mexico City around Sept. 10. Canada will […]
Steel Market Update received the following letter to the editor which was in response to comments made in a recent article by an un-named steel mill executive: I read your report “U.S. Steelmakers: We’re Not Protectionist” with interest, but also with a little bit of a smile. Since the mid-1960s, the U.S. steel industry has […]
In their pursuit of free and fair trade, U.S. steelmakers are often called protectionist—a label they increasingly resent. Steel industry trade groups, including the American Iron and Steel Institute and the Steel Manufacturers Association, have urged the Trump administration to take a harder stance on steel imports. Trade action, including new tariffs or quotas under […]
As a monthly average, prices on all flat rolled steel products recovered in July following a dip in June. The month of July ended with SMU’s Price Momentum Indicator continuing to point higher as the market waits to see if and when the Trump administration will act on Section 232 trade measures that could further […]
Manufacturing activity in the U.S. expanded in July, though the PMI declined 1.5 percentage points to a reading of 56.3, reports the Institute for Supply Management in its latest Manufacturing ISM Report On Business. The PMI has remained above the neutral 50.0 point for 11 consecutive months indicating growth in manufacturing. Although still at robust […]
The Chicago Business Barometer dropped nearly 7 points in July, falling to 58.9 from 65.7 in June and ending a run of five consecutive increases. All components of the indicator receded, but remained above 12-month averages. The July Barometer “should be viewed in the context of the underlying, upward trend in business sentiment witnessed since […]
The JP Morgan Global Manufacturing PMI registered 52.7 in July indicating continued manufacturing growth across the globe. During the last four months, manufacturing expansion has remained steady at 52.6 in June and May, and 52.7 in April. Growth in June was again led by European nations with eight of the ten best-performing countries in Europe. […]
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, therefore we’ll be brief in this summary. We don’t expect these data sources to all point in the same direction. Our intention in summarizing them in […]
The Bureau of Labor Statistics reports that job creation has been positive in all regions of the country since Q3 2016, in the second-quarter data it released on Friday. Economy.com summarizes as follows: “The country’s labor market ended the second quarter on a strong note, with job growth in June that was stronger and more […]
Consumers are feeling better about the present economic environment and their expectations for the future, according to data from The Conference Board, which conducts a monthly Consumer Confidence Survey. Consumer confidence is the driver of consumer spending, which is the largest component of GDP and ultimately drives a large portion of steel consumption. The composite […]
Orders for durable goods jumped 6.5 percent in June for the largest increase since July 2014, said the Commerce Department on Thursday. Most of the gain, however, was due to a 131.2 percent surge in orders for commercial aircraft. Excluding aircraft and transportation, orders rose a more modest 0.2 percent. Core capital goods, which exclude […]
Metalforming companies in the U.S. and Canada are expecting steady business conditions during the next three months, but expressed concerns about potential Section 232 tariffs. The PMA Business Conditions Report, prepared by the Precision Metalforming Association, showed most members are not anticipating any changes in general economic activity or incoming orders in the coming months. […]
A mild recession will impact residential and nonresidential construction in 2019, predicts the HARDI/ITR July quarterly report. Steel Market Update is a member of an association connected to the construction industry called the Heating, Air-conditioning & Refrigeration Distributors International. HARDI and ITR Economics, an economic forecasting company, work together to gather economic data to provide […]
Architectural firms report that billings for design services increased in June despite higher construction costs for the industry and a shortage of qualified labor. The June Architecture Billings Index, published by the American Institute of Architects, registered 54.2 following a score of 53.0 in May. Billings have been on a generally upward trajectory over the […]
U.S. industrial production is in Phase B, accelerating growth, but the latest HARDI/ITR quarterly construction forecast warns that the next phase of the cycle, slower growth, is on the horizon. Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. […]
The value of the U.S. dollar is in free fall on the international foreign exchange markets. Through July 18, the Broad Index value of the U.S. dollar had depreciated by 7 percent since January 3. Comparing on a rolling three-month basis, the index has declined every single day since January 20. (Please see the end […]
China’s economic performance through the second quarter continued to be impressive. Chinese growth of steel production lagged the rest of the world in the first months of 2017, but the June output could indicate an unwelcome change. Once each quarter, we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed […]
The following is excerpted from an article written in February 2014 by SMU Publisher John Packard and supply chain consultant Mario Briccetti of Briccetti Associates. Buyers and sellers of steel are often exposed to ethical questions in their everyday activities. Some of the issues that arise are fairly easy to discern as ethical or unethical, […]
The Empire State Manufacturing Index fell 10 points to 9.8 in July, after hitting a two-year high in June. New orders and shipments continued to grow but at a slower pace in New York State, dropping 4.8 points and 11.8 points, respectively. Delivery times were reported as longer in the July survey and inventory levels […]
Apparent supply is a proxy for market demand, and for hot rolled coil has been growing strongly this year. Imports continue to be an increasing factor in the sheet markets. There is a major difference in import market share for the four major sheet products. This report summarizes total steel supply from 2003 through May […]
The United States has called for a special meeting with South Korean trade officials to discuss modifying the U.S.-Korea Free Trade Agreement (KORUS). In a July 12 letter to the Korean trade minister, U.S. Trade Representative Robert Lighthizer requested a special session in Washington to address problems with the agreement, including market access in Korea […]
John Packard, Publisher, Steel Market Update Today I spent a good portion of my time wandering around the United States and Canada soliciting information about flat rolled steel pricing, lead times, Section 232 and anything else steel buyers wanted to talk about. I thought the quote of the day was from a manufacturing company who […]
The European steel market and economy improved in the first half of 2017, but the EU is concerned that increasing protectionist policies may lead to “disastrous trade flow distortions.” Apparent steel consumption grew 3.1 percent year-over-year in the European Union during the first quarter of 2017, according to a new report by the European Steel […]
The U.S. employment situation continues to be good. Net job creation in June, including revisions for April and May, was 269,000, and the latest number of job openings was the highest on record. The Bureau of Labor Statistics (BLS) net job creation report released on Friday exceeded economists’ expectations and was another example of why […]
President Trump heads to Hamburg, Germany, today for the G20 summit with trade deficits and steel dumping on his mind. Trump is expected to receive strong opposition on any attempt to use the Section 232 steel investigation as leverage to influence trade talks. G20 leaders have been critical of the White House’s casting of national […]
The Manufacturing ISM Report on Business exceeded expectations in June with a PMI reading of 57.8 percent. The composite index jumped 2.9 points for its strongest reading since August 2014, said the Institute for Supply Management, Tempe, Ariz. A reading above 50 indicates growth. The new orders index strengthened with a 4 point increase to […]