The Chicago Business Barometer dropped to a five-month low in September, sliding down 3.2 points to 60.4. Production and new orders continued solid growth in September, but softened to a six-month low for production and a five-month low for orders. Output and weaker demand was noted by some firms, although many continue to outperform their […]
U.S. Steel is not opening eight new steel plants. No matter how many times President Trump claims that they are. In a wide-ranging press conference this week in advance of the hearing of Supreme Court nominee Brett Kavanaugh, President Trump commented on a number of issues including the economy and his steel tariffs. Once again, […]
Aircraft and defense drove a 4.5 percent increase in new orders for durable goods in August, exceeding economists’ expectations. Aircraft orders jumped 69.1 percent and defense orders surged 44.4 percent last month. Orders for autos and parts, however, fell 1.0 percent. When removing transportation from the mix, orders rose a much softer 0.1 percent. Core […]
PTC Alliance has reached a new four-year labor agreement with union workers at its Alliance, Ohio, plant. PTC Alliance manufactures welded and cold drawn mechanical steel tubing. The company employs about 220 workers covered by the Steelworkers contract, signed Sept. 23. Terms of the pact were not disclosed. The company’s relations with the union have […]
I am a new subscriber to your newsletter, but I’m not new to manufacturing. Most of my career was spent working at a medium-sized machining company located in the Southeast, which specialized in production machining mainly to support automotive companies and other assembly plants in the United States. Over the past three decades, I have […]
Support for the Trump administration tariffs on Chinese imports extends across party lines to a majority of voters, according to a recent survey sponsored by the Alliance for American Manufacturing, a non-partisan partnership between American manufacturers and the United Steelworkers. The poll of 1,200 likely voters in the November election showed that 63 percent support […]
The following Trade Policy & Economic Briefing was authored by CRU Principal Economist Lisa Morrison Since March 2018, there has been a broad strengthening of the U.S. dollar. This has developed because of rising U.S. interest rates and strong U.S. economic growth, which is in relative contrast to continued, historically low Eurozone interest rates […]
In the last month, eight of the 16 currencies that Steel Market Update tracks were down against the dollar and eight were up. This was a dramatic change from the May-August period when few of the 16 appreciated against the dollar (just one in May, two in June, three in July and two in August). […]
The SMU Steel Buyers Sentiment Index has been treading water, albeit at optimistic levels, for the past six months. However, the attitudes of buyers and sellers about conditions in the steel market might be described as anywhere from cautious to tepid, judging by the comments provided in Steel Market Update’s latest Steel Buyers Sentiment Index […]
The following article is regularly published for our Premium users, but we decided to share it with our entire readership this month. If you are interested in upgrading to a Premium subscription, contact us at info@SteelMarketUpdate.com or 800-432-3475. Oil and gas prices have stabilized, oil inventories are declining and the number of operating rigs exploring […]
Steel Market Update is sharing this Premium-level content with all readers this month. For more information on how to upgrade to a Premium subscription, email info@SteelMarketUpdate.com. Oil production in the U.S. hit another all-time high in July, but the number of operating rigs exploring for oil and gas has not changed much in 3½ months. […]
Oil production in the U.S. set another all-time record in August and stocks are increasing. In the last month, the price of oil has dropped by $16/barrel. Wall Street Breakfast had this to say on Nov. 9: “Oil fell below the $60 level overnight, a day after slipping into a bear market. That means U.S. […]
Lead times for most flat rolled steel products are about a week shorter than they were two months ago. Shorter lead times suggest that steel demand is easing. Lead times for steel delivery are a measure of demand at the mill level—the shorter the lead time, the less busy the mill. Lead times for hot […]
The pendulum has definitely swung back in buyers’ favor when it comes to negotiating steel prices with the mills. Steel Market Update tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. More than nine out of 10 buyers report that mills are willing to negotiate spot prices on hot rolled […]
Global economic expansion may have reached its peak as trade tensions pressure markets, says a new report by the Organization for Economic Cooperation and Development. OECD is projecting global GDP growth will settle at 3.7 percent in 2018 in its Interim Economic Outlook. “Amidst rising trade tensions and heightened trade policy uncertainty, global trade growth […]
The Empire State Manufacturing Index slid seven points in September from its 10-month high in August. The general business conditions index showed a slower pace of growth with a reading of 19.0 for the month, below economists’ expectations of 23. New orders and shipments continued to expand but at a softer rate, falling 0.6 points […]
The following analysis is from the SMU Service Center Inventories Index. This index is a proprietary product produced through data collection and interaction with a large number of flat rolled and plate service centers across the United States. This index is normally shared only with data providers and our Premium level members. If you would […]
This article is regularly published for our Premium users, but we decided to share it with our entire readership this month. If you are interested in upgrading to a Premium subscription, contact us at info@SteelMarketUpdate.com or 800-432-3475. Carbon steel tubular products have a rate of price escalation much higher than plastic products. This is also […]
The U.S. active rig count, an indicator of oil country tubular goods demand, increased this week, according to oilfield services company Baker Hughes. The number of active U.S. rigs rose by 7 to 1,055, with oil rigs up 7 to 867 rigs, gas rigs unchanged at 186 rigs, and miscellaneous rigs unchanged at 2 rigs. […]
The U.S. economy created 201,000 net jobs in August on a seasonally adjusted basis, up from 147,000 in July, according to Bureau of Labor Statistics (BLS) data. This is the last employment report before the next FOMC meeting on Sept. 26 when the Feds are expected to raise interest rates for the third time this […]
Each month, Steel Market Update produces an import analysis by region for two of the six flat rolled product groups (HRC, CRC, HGD, OMC, CTL plate and coiled plate). This month, we are focusing on plate products. The intent of these regional updates is to bridge the gap between our monthly licensed data summaries and […]
Each month, Steel Market Update produces an import analysis by region for two of the six flat rolled product groups (HRC, CRC, HGD, OMC, CTL plate and coiled plate). This month, we are focusing on plate products. The intent of these regional updates is to bridge the gap between our monthly licensed data summaries and […]
Net job creation in August totaled 201,000 positions. Manufacturing took a small step back, but year to date the results are good, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics (BLS) data. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. Most […]
U.S. steel mills shipped 7,911,228 net tons in July, a 5.8 percent increase from the 7,480,241 net tons shipped in July 2017, but a 1.0 percent decrease from shipments in the previous month, reports the American Iron and Steel Institute in Washington. Shipments year-to-date in 2018 totaled 55,215,285 net tons, a 4.3 percent increase vs. […]
The Commerce Department has developed a new tool that makes it easier to track steel trade flows. The Global Steel Trade Monitor, available here, provides extensive and timely steel trade data for the top 20 global steel importing countries and top 20 global steel exporting countries. “Timely detailed data in user-friendly formats are essential both […]
Steel demand and prices are seeing some softening, but perhaps not enough to trigger a big inventory correction yet, report respondents to Steel Market Update’s flat rolled market trends questionnaire this past week. About 27 percent of the steel buyers who responded believe demand for their products is declining. However, the majority, 58 percent, report […]
Future Sentiment, measured as both a single data point and as a three-month moving average (3MMA), is near its low point of the year as conflict on the trade front keeps buyers guessing. Future Sentiment registered +55 in Steel Market Update’s latest Steel Buyers Sentiment Index, down from +67 in mid-August. Current Sentiment registered +63, […]
Lead times on most flat rolled steel products continue to shorten, according to Steel Market Update’s latest market trends data. Lead times for steel delivery are a measure of demand at the mill level—the longer the lead time the busier the mill. Shortening lead times suggest steel demand is easing. Lead times for hot rolled […]
Steel buyers appear to have considerably more leverage in mill negotiations than at any other point this year. Twice per month, in a proprietary poll, Steel Market Update tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. Most buyers report that mills are willing to negotiate spot prices today. According […]
Editor’s note: Normally a Premium offering, we are sharing this article with our Executive members. For more information about Premium-level membership, click here. Steel mill shipments are up while the shipment-to-inventory ratio is down, according to Steel Market Update’s latest analysis of Census Bureau data. This is an alternative data source for steel product shipments […]