Global manufacturing in June slowed close to a two-year low according to the JP Morgan Global Manufacturing PMI. The Index posted at 51.0 from 51.3 in May, but manufacturing output remained in expansion (above the neutral 50 point) for the 31st consecutive month. Manufacturing growth, on average, continued to grow in North America and Europe […]
June ended the same way it started with our SMU Price Momentum Indicator pointing toward higher flat rolled steel prices. This is now the second month in a row where our Momentum Indicator has been pointing up. Our Future Steel Buyers Sentiment Index averaged +61.5 for the month of June. However, the last report we […]
We have seen many of the indices either produced by or followed by Steel Market Update (SMU) were falling during the first few months of 2015 before stabilizing and beginning to rebound by the end of the first six months 2015. Not everything is reacting in unison so we thought we would point out a […]
The June Chicago Business Barometer gained back half of May’s losses but remained in contraction for the second consecutive month and the fourth so far this year. The Barometer rose 3.2 points to 49.4 from 46.2 in May. Overall, the barometer declined 1.2 points in second quarter, registering 49.3 from 50.5 in Q1, its lowest […]
The consumer confidence index as reported by the Conference Board jumped by 6.8 points in June, as May was revised down slightly. The composite value combines the view of the present situation and expectations and this month’s result is a perfect example of why not to get too carried away by one month’s result in […]
The Supreme Court blocked new EPA regulation on pollutants from coal-fired power plants in a 5-4 vote on Monday. The ruling will prevent the EPA from imposing new rules designed to reduce mercury and other toxic pollutants from power plants without first undertaking a cost-benefit analysis. Industries and 20 states complained that the EPA disregarded […]
The TAA legislation passed by the Senate and House last week contained a measure short-titled “American Trade Enforcement Effectiveness Act.” The act provides for improvements to antidumping and countervailing duty laws, including how material injury is defined. The Act is comprised of amendments are made to the Tariff Act of 1930 (19 USC 1677). SMU […]
Today (June 25, 2015), the House passed HR 1295 which includes extension of the African Growth and Opportunity Act and other trade preference programs, as well as the renewal of Trade Adjustment Assistance (TAA) and improved AD/CVD laws that will benefit the steel industry. The measure passed by a vote of 286-138. Today’s vote follows […]
The Department of Commerce said Wednesday that it will proceed on AD/CVD investigations of imports of corrosion-resistant steel products from China, India, Italy, Korea, and Taiwan. A petition to investigate the products was filed on June 3, 2015 by US Steel, Nucor, ArcelorMittal USA, AK Steel, Steel Dynamics, and California Steel Industries. The products covered […]
The Architecture Billings Index rose to 51.9 in May from 47.8 in April. The Index, which reflects the approximate nine to 12 month lead time between architecture billings and construction spending, showed an increase in demand for new schools, hospitals, cultural facilities and municipal buildings last month. The ABI, published monthly by the American Institute […]
The Bureau of Economic Analysis (BEA) released the third estimate of Q1 2015 Annual Revision of the National Income and Product Accounts on Wednesday. The annualized growth rate in the third estimate was -0.17 percent down from Q4 2014 which came in at 2.2 percent. GDP is measured and reported in chained 2009 dollars and […]
The following is the Chicago Federal Reserve statement followed by our own graphical analysis. The CFNAI is an excellent reality check for much of the economic analysis that we routinely provide in The Steel Market Update and is also a reasonably good predictor of steel demand with a six to nine month lead. For example […]
New orders for manufactured durable goods orders fell 1.8 percent or $4.1 billion or 1.8 percent to $228.9 billion in May, according the U.S. Census Bureau. Orders have decreased in three of the last four months, including a 1.5 percent decrease in April, and continue to be below the 2010-to-date trendline since late in 2014. […]
The big picture is as follows: from the 2015 Article IV Consultation with the United States of America Concluding Statement of the IMF Mission May 28, 2015 (heavily abridged by SMU). “At current levels of the real exchange rate, the U.S. dollar is assessed to be moderately overvalued. As a result, the current account deficit […]
Steel Market Update has been asked a number of times to define, or help our readers to understand, what is “injury” when it comes to the domestic steel industry. Last week we heard from trade attorney Larry Friedman at the Association of Steel Distributors Meeting in Chicago that injury was losing sales, the lowering of […]
Union workers at Hamilton and Lake Erie works have asked the Superior Court to order US Steel Canada to release the identity of potential bidders for the CCAA protected assets. The information on the 39 companies that have shown interest in buying all or part of USSC is crucial to the interests of workers said […]
Can Greece remain in the EU without a new bailout? The question has been hotly debated with many EU policymakers willing to kick financially struggling Greece out while others fear that it would set a precedent that might weaken the European Union. At issue is a €1.54 billion ($1.73 billion) bailout that Greece owes the […]
There has been some confusion over the customs bill that was passed by the House last week. The bill, HR 644 – Trade Facilitation and Trade Enforcement Act of 2015, was not part of the TAA/TPA package (HR 1314). Passage of the House bill will send it to committee where it will be reconciled with […]
Manufacturing conditions in the Philadelphia area improved in June, according to the June Manufacturing Business Outlook Survey published by the Federal Reserve Bank of Philadelphia. The survey’s indicators for general activity, new orders, and shipments all improved from their readings in May. The headline diffusion index for current activity increased to 15.2 in June from […]
Both these data points are reported in the Federal Reserve G17 data base. The IP index was reported as 105.102 for May, down by 0.18 from April and down from the all-time high of 106.309 in November last year. The three month moving average, (3MMA) in May was 105.40, down by 0.23 from April. January […]
Metalforming companies are expecting little change in business conditions in the next three months according to the June 2015 Precision Metalforming Association (PMA) Business Conditions Report. Just 23 percent of members surveyed (down from 24 percent in May) think economic activity will improve in the next three months; 60 percent expect no change. New orders […]
A joint statement by eight steel trade associations calls for immediate action in addressing steel overcapacity and the increase in subsidized exports from China. The statement below has been issued by the following organizations: AISI, SMA, CSPA, SSINA, CPTI, Canacero, Alacero, Eurofer and the Turkish Steel Producers Assn and Brazilian Steel Institute. “There is a […]
The Trade Promotion Authority (TPA) “fast track” was passed by the House in a 219-211 vote on Friday. The Trade Adjustment Act (TAA), however, suffered a crushing defeat in a 126 to 302 vote. TAA would extend a program providing assistance to workers who lose their jobs as a consequence of trade deals and add […]
The Empire State Manufacturing Survey headline index surprised economists by falling five points to -1.98 points in June. The consensus was for an increase of 6 points in the general business index, according to Bloomberg, and is the second negative reading in three months. The new orders index for New York manufacturers fell six points […]
Each month the Bureau of Labor Statistics (BLS) puts out its series of producer price indexes, for thousands of goods and materials. For an explanation of this program see the end of this piece. The latest release last Friday reported results through May. We run this analysis every three or four months to give readers […]
The Bureau of Labor Statistics (BLS) analysis of non-farm employment reported that 280,000 jobs were added in May and the March and April result was revised up by a total of 32,000. Economists had expected U.S. employers to add 220,000 jobs last month. The three month moving average, (3MMA) of gains through May was 207,000 […]
This report compares domestic mill shipments and total supply to the market to enable a side by side comparison and the degree to which imports have absorbed demand. Sources are the American Iron and Steel Institute and the Department of Commerce with analysis by SMU. Table 1 shows both supply and mill shipments of sheet […]
Earlier this week, World Steel Dynamics and their friends at AMM, hosted their Steel Success Strategies conference in New York City. Over the past 40 years the conference has become a magnet for those associated with the steel industry from around the world. Not everyone can afford to attend the conference which runs about $2300 […]
Myron J. Weiss, 83, partner at Mars Industries and Jame’ Roll Form Products passed away on Tuesday, June 9, 2015. Weiss co-founded the firm in 1975 and was a partner for the past 40 years. Mars Steel and Jame’ Roll Form Products, Inc. released the following message to colleagues and friends of Mr. Weiss: It […]
The steel world (which is not as large as it used to be) is in New York City this week to attend (lobby call) the Steel Success Strategies Conference hosted by World Steel Dynamics and their AMM partners. It is the one place (other than SMU Steel Summit Conference – hint, hint) where one can […]