The consumer confidence index as reported by the Conference Board rose one point in May to 95.4 as April was revised downwards by one point. The composite value combines the view of the present situation and expectations. The view of the present situation rose from 105.1 to 108.1 as expectations fell slightly from 87.1 to […]
New orders for durable goods in April fell by $1.2 billion to $235.5 billion or 0.5 percent from March’s level. This was in line with analysts’ expectations. The three month moving average (3MMA) rose by 0.2 percent. There has been a sharp deviation of the 3MMA from its trend line in the last five months […]
The following is the Chicago Federal Reserve statement followed by our own graphical analysis. For the first time this month we have broken out the relationship between the CFNAI and flat rolled and long product apparent supply separately. The CFNAI is an excellent reality check for much of the economic analysis that we routinely provide […]
The American Institute for International Steel (AIIS), Eurometal, and the International Steel Trade Association have agreed to establish a global steel supply chain partnership. The purpose is outlined in a press release from AIIS below: The purpose of their agreement is to establish a Global Steel Supply Chain Partnership as a framework for collaboration among […]
The Association of Steel Distributors has announced its new slate of executive committee members for 2015. Brian Robbins, CEO of MidWest Materials, Inc., Perry, Ohio, will continue as president of ASD. Robbins has been an active member of the ASD Board of Directors since 2004. “I am honored to be chosen to lead an organization […]
The China Iron and Steel Association (CISA) says steel consumption in China will fall approximately 6 percent this year. The forecast is lower than was predicted by the Australia and New Zealand Banking Group (ANZ) which anticipates consumption to fall 4 percent this year, followed by 2 percent in 2016. Wang Liqun, vice chairman of […]
Architecture billings took a sharp dive in April. The Architecture Billings Index dropped for the second time this year to a score of 48.8 from 51.7 in March, indicating a decrease in design services. (A score above 50 indicates an increase in billings). The new projects inquiry index was 60.1 up from 58.2 the previous […]
The value of the U.S. dollar has been one of the main themes affecting commodities around the world, including steel prices. The Russian ruble collapses making their steel the cheapest in the world. They, in turn, put pressure on the Chinese (who already are having issues due to their massive over-capacity of steelmaking) who are […]
Business conditions improved for New York manufacturers in May but optimism faltered for future conditions. The May 2015 Empire State Manufacturing Survey general business index climbed four points to 3.1, indicating a slight improvement for the month but below forecasts by economists. The new orders index was in positive territory for the first time since […]
The piece below was published to our Premium level members earlier this week, but we would like to share it with our Executive level members as an example of what our Premium members have access to. This report goes into much more depth than our Apparent Steel Supply article published last Thursday. If you are […]
Metalforming companies are expecting softer business conditions during the next three months according to the May 2015 Precision Metalforming Association (PMA) Business Conditions Report. More participants surveyed thought economic conditions would remain the same (60 percent up from 58 percent) or decline (16 percent compared to 9 percent in April). Incoming orders are expected to […]
After remaining at 1.7 percent since January, Atlanta area firms surveyed in May are now expecting inflation to rise at a 1.9 percent rate in the coming year. Compared to this time last year unit costs are up 1.6 percent. The Business Inflation Survey conducted by the Federal Reserve Bank of Atlanta is monthly survey […]
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 […]
The Bureau of Labor Statistics (BLS) analysis of non-farm employment reported that 223,000 jobs were added in April but the March result was revised down by 41,000 to a mere 85,000. The three month moving average (3MMA) of gains through April was 191,000 and the combined result for March and April was the lowest since […]
The monthly value of the Federal Reserve Broad Index of the US $ against our major trading partners is reported about one month in arrears. In one month through about April 12th this index weakened by 1.9 percent which was a sharp reversal from the previous seven month trend. The monthly BI is a “Real” […]
The Q2 2015 February Senior Loan Officer Opinion Survey on Bank Lending Practices was released on May 4th. This survey addresses changes in the standards and terms on, and demand for, bank loans to businesses and households on a quarterly basis and is based on the responses from 76 domestic banks and 23 U.S. branches […]
The Dodge Momentum Index rose a slight 0.8 percent in April to a reading of 122.6, according to Dodge Data & Analytics. Construction planning activity has been up and down in early 2015 but is higher than a year ago. In comparison, the April Index is 8.5 percent higher than April 2014. Planning for the […]
CHICAGO, IL, May 6, 2015 – The Steel Tube Institute (STI) has announced the retirement of Executive Director Bill Wolfe after 13 years serving as head of the industry trade association. Joseph Anderson, who was named Hollow Structural Sections (HSS) Director last April, has been chosen as STI’s new Executive Director. Wolfe leaves behind a […]
Steel buyers in the April ISM Steel Buyers Survey are expecting general economic activity to remain the same during the next six months but were more optimistic regarding sales and production in their specific industry. Forty percent of buyers expect the trend for sales and production to improve, compared to 30 percent in March. Fifty […]
Global manufacturing fell to a 21 month low in April according to the JP Morgan Global Manufacturing PMI. The composite index registered 51.0, down from 51.7 in March. “The April PMI shows a loss of momentum in global factory output in April, with production and new orders both decelerating,” commented Joseph Lupton, Senior Economist at […]
The Institute of Supply Management released their April report on May 1st. An explanation of the ISM index is given at the end of this piece. After the October surprise on the upside, the index slid back to 55.1 in December to 53.5 in January, to 52.9 in February and to 51.5 in March it […]
Chinese steel trade data was recently released for the month of March 2015, providing updated data on iron ore imports, steel scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in March were 80,509,000 metric tons, an increase of 18.5 percent from the previous month and an increase of 8.9 percent […]
The states compile their employment numbers independently of the Feds then both are reported by the Bureau of Labor Statistics. The results are very close. In the last nine quarters since Q1 2013, the Feds reported total job creation of 5,992,000 and the states reported 5,895,000. Figure 1 and Figure 2 show the history of […]
The Bureau of Economic Analysis (BEA) released the first estimate of Q1 2015 Annual Revision of the National Income and Product Accounts on Thursday The annualized growth rate in the first estimate of Q1 GDP was 0.2 percent down from Q4 2014 which came in at 2.2 percent. GDP is measured and reported in chained […]
The Chicago Business Barometer rose 6 points to 52.3 in April, beating analyst expectations for a reading of 50. The index fell to a five and a half year low in February before bouncing up five points to 46.3 in March. The index grew in four of its five components in April with New Orders […]
The Trade Promotion Authority bill S.995, or “fast track bill” as it being called, passed the Senate Finance Committee last week by a vote of 20-6. The fast track portion gives the President the authority and guidelines to negotiate trade deals in exchange for a vote by Congress passing resulting trade agreements without amendment. The […]
The consumer confidence index as reported by the Conference Board fell sharply in April as March was revised upwards slightly. In April the composite value which combines the view of the present situation and expectations fell from 101.4 to 95.2. The view of the present situation fell from 109.5 to 106.8 but the big change […]
Eight steel organizations across the world have united to address Chinese steel exports and overcapacity. In a letter to China, industry associations from North America, Latin America and Europe offered comments on China’s draft Steel Industry Adjustment Policy (2015 Revision) . The Policy is intended to realign the Chinese steel industry to market demand but […]
Latin America is China’s second largest market for steel exports, receiving 8.3 million tons of steel in 2014. Alacero, the Latin American Steel Association, was one of eight steel organizations representing steel interests in North America, Latin America and Europe to express concern over China’s “Steel Adjustment Policy 2015.” SMU asked Alacero to comment on […]
EUROFER, the European Steel Association, is among the eight steel organizations that united to present comments to the Chinese government on its Steel Industry Adjustment Policy 2015. SMU asked the organization provide their view on the Policy and the impact of Chinese steel exports on the EU steel market and industry. The following comments are […]