Billings at architecture firms slowed in March but remained in expansion territory at an Architecture Billings Index score of 51.0, down one point from February. Inquiries and value of new design contracts remained generally strong overall, reported the American Institute of Architects, although firms reported concern about planned U.S. tariffs on steel and aluminum. The […]
The International Monetary Fund has made an upward revision to its forecast for global GDP growth in 2018 and 2019. The IMF updates its World Economic Outlook (WEO) in April and October each year. The IMF blog last Tuesday stated: “The world economy continues to show broad-based momentum. Against that positive backdrop, the prospect of […]
Last month, Steel Market Update forecast flat rolled steel shipments from U.S. service centers would remain steady at 109,565 tons per day in February to 109,594 tons per day in March. The Metals Service Center Institute (MSCI) reported last week that sheet distributors shipped 107,314 tons per day, a decrease over February. Our shipment forecast […]
Oil prices are firm, and the drill rig count continues to increase, which is positive news for suppliers to the energy sector. The spot price of West Texas Intermediate (WTI) has remained above $60 per barrel since Feb. 14 and on April 10 closed at $65.48 per barrel. The total number of operating rigs exploring […]
Once each quarter, Steel Market Update publishes the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. Many analysts don’t believe these self-serving Party figures, but we include them in our reports because of the importance of China in the global steel scene, and these numbers are all that’s available. […]
Is your company at risk due to the impact of the Section 232 tariffs? Industry executives responding to Steel Market Update’s April 16 flat rolled market trends questionnaire are almost evenly split on whether the Trump administration tariffs will help or hurt their businesses. Fifty-two percent say their business is not at risk, while 48 […]
According to manufacturing companies, as well as steel service centers, the steady trend for higher flat rolled steel spot prices out of the distributors is changing. For the past four months, at least 74 percent of distributors and their manufacturing customers have been reporting spot flat rolled prices as rising. The 46 percent of the […]
There’s a distinctive noise of metal on metal floating through the halls of Oak Forest High School, and it’s music to the ears of Daniel Brown, the school’s industrial technology teacher. Brown has been supervising the Welding Works Explorer post in the Chicago suburb since fall 2016. He has been teaching welding for 17 years […]
We have been struggling with the decision as to when we should make an adjustment to the SMU Price Momentum Indicator. The issue that has been holding us back for the last week or two is the role the government is playing in the steel market, which muddies the water. We have made the decision […]
Both current and future sentiment among flat rolled steel buyers remain at optimistic levels, though buyers’ confidence appears to have seen some erosion as measured by the three-month moving averages in Steel Market Update’s Steel Buyers Sentiment Index. The index is designed to measure changes in buyers’ attitudes, which offers insight into their likely decision-making. […]
Based on responses to this week’s Steel Market Update flat rolled market trends questionnaire, mill lead times remain extended, but appear to have stabilized a bit in the past month. Mill lead time, which is the amount of time it takes for the domestic mills to produce a new order taken this week, is one […]
Are steel mills willing to negotiate spot prices on new orders in the current market conditions? For the most part mills are holding firm, but there may be some initials signs of a loosening in price negotiations, according to respondents to this week’s Steel Market Update market trends questionnaire. Every two weeks, in a proprietary […]
Economic activity continued to expand at a modest to moderate pace across the 12 Federal Reserve Districts in March and early April. Outlooks remained positive, but contacts in various sectors including manufacturing, agriculture and transportation expressed concern about the newly imposed or proposed tariffs on steel and aluminum. The Fed’s latest Beige Book released on […]
Manufacturing in New York State continued to expand in April, but at a slower pace, according to the Empire State Manufacturing Survey conducted by the Federal Reserve Bank of New York. Survey participants expressed apprehension about future business conditions. The general business conditions index fell seven points from its March reading to register 15.8. New […]
The U.S. rig count, an indicator of oil country tubular goods demand, rose this week, according to April 13 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs rose by 5 to 1,008 rigs, with oil rigs up 7 to 815 rigs, gas rigs down 2 to 192 rigs, and […]
As Steel Market Update analyzed the inventory data received from flat rolled steel distributors, we found the number of months of supply that steel service centers are carrying was lower at the end of March than what we reported at the end of February. With 96 percent of our data providers reporting, the number of […]
Since the beginning of the New Year, manufacturing companies and steel service centers have been reporting service center spot pricing to their end customers as rising. Just a few weeks ago, 100 percent of the manufacturers responding to our mid-March flat rolled steel market trends questionnaire reported distributor prices as rising. Last week, Steel Market […]
U.S. demand for steel sheet products expanded slowly through February, according to Steel Market Update’s analysis of data from the American Iron and Steel Institute (AISI) and the U.S. Department of Commerce. Apparent supply is a proxy for market demand. Demand momentum for sheet products in total was negative in the three months through February, […]
Steel Market Update’s new analysis of sheet, plate, long and tubular product imports and their 18 subcategories is still a work in progress, but it offers a timely means to examine the effects of the Section 232 legislation on the market. Table 1 shows total supply to the market in three months through February and […]
“Compared to one month ago, demand is declining, but to a more normal level,” commented one respondent to Steel Market Update’s market trends questionnaire last week, expressing a common view. There has been a surge in demand in recent weeks due to the Section 232 tariff decision by President Trump. Many buyers have been buying […]
Bay State Wind, a 50-50 partnership between offshore wind company Orsted and transmission builder Eversource, will partner with international steel pipe producer EEW to manufacture components for offshore wind projects at a new facility to be built in Massachusetts. EEW will collaborate with U.S.-based Gulf Island Fabrication, a fabricator of offshore and onshore steel structures […]
EPA Administrator Scott Pruitt announced last week that the agency plans to roll back the Obama-era standards for fuel efficiency and greenhouse gas emissions. The Obama administration’s goals “don’t comport with reality and are too high,” Pruitt said. Offering no details of the plan, he added, “The EPA will set a national standard for greenhouse […]
The following report was originally published last week for our Premium level members. The SMU service center inventories months of supply index began in July 2017 and we continue to add flat rolled and plate steel distributors to our confidential data provider list. If you would like to be added to our data provider list […]
The U.S. Environmental Protection Agency announced April 2 that it plans to lower the standards for vehicle tailpipe emissions, making it easier for automakers to achieve federal environmental targets. Based on information from the recently completed midterm evaluation of standards for cars and light trucks in model years 2022-25, EPA Administrator Scott Pruitt said the […]
Economists consider recessions to be a necessary evil to clear out distortions that have arisen in the economy. At Steel Market Update, we track several leading indicators of economic activity. Viewed individually, they offer limited insight on economic expansion or contraction. Viewed collectively, they give subscribers a composite view of present and future business activity. […]
Both current and future sentiment among flat rolled steel buyers saw little change in the past two weeks as the market paused to see how the maneuvering on the trade front plays out. In general, buyers’ attitudes remain at optimistic levels but are below year-ago levels, which SMU finds concerning. We are finding a growing […]
Based on the latest SMU Flat Rolled and Plate Steel Market Trends Survey, mill lead times on flat rolled steel remain highly extended, close to the levels measured by Steel Market Update in mid-2016, as mills scramble to fill orders on strong demand. Mill lead times, which are the amount of time it takes for […]
Steel Market Update conducted our early April survey earlier this week. One of the key proprietary products produced is how buyers and sellers of flat rolled represent the mill negotiation position. Are steel mills willing to negotiate spot prices on new orders at this time? Buyers responding to this week’s SMU market trends questionnaire reported […]
Global manufacturing growth in March slowed to its lowest level since October 2017. The J.P. Morgan Global Manufacturing PMI posted 53.4, down from 54.1 in February. Rates of expansion fell in the consumer and intermediate goods sectors, while the investment goods PMI rose to its highest level so far this year. Manufacturing growth eased in […]
Manufacturing activity expanded in March, though at a slower rate than February, reports the Institute for Supply Management. ISM’s March PMI registered 59.3 percent, down from 60.8 percent in the February survey of corporate purchasing managers. Any reading above 50 indicates growth. New orders continued to expand in March, although slowing 2.3 percentage points from […]