Billings slowed slightly at architecture firms in February, reported the American Institute of Architects. AIA’s Architecture Billings Index (ABI) registered 52.0, down from 54.7 in January. February’s reading above 50 marked the fifth consecutive month of growth for billings. Inquiries into new projects and the value of new signed design contracts both increased in February, […]
Last week, the Energy Information Administration (EIA) announced that in the last two months of 2017, the U.S. pumped more crude oil than at any time in history. The spot price of West Texas Intermediate (WTI) broke through the $60 level on Dec. 29 for the first time since Dec. 18, 2014. It reached $64.22 […]
When steel prices rise, so does the credit and inventory risk for mills and service centers. When steel prices rise by 40 percent, as they have in the past year, the risk puts smaller players at a big disadvantage. Service centers have been cozying up to their bankers to get extended lines of credit, some […]
The competitive position of steel and steel products has improved in the last few months, according to Bureau of Labor Statistics (BLS) data. In the past, we have reported the producer price indexes of steel and some competing products on a quarterly basis. This month, we have revamped and expanded our report to provide subscribers […]
The Bureau of Labor Statistics released another excellent employment report for February and revised the two previous months upward. February’s net creation of 313,000 jobs as reported by the BLS on March 9 was the best monthly result since July last year. To make the recent results even better, December was revised up by 15,000 […]
Net job creation in March, as reported by the Bureau of Labor Statistics (BLS) on Friday, dropped by 64 percent from February, but this was not as bad as it first looks. Figure 1 shows the 3MMA of the number of jobs created monthly since 2000 as the brown bars and the total number employed […]
The following analysis of the number of months of supply being held by flat rolled steel distributors is intended for SMU Premium level members. We are sharing this report with all of our readers during the first year of the index, after which it will be available for Premium members only. Shortly after the month […]
Last week, Steel Market Update conducted an analysis of the flat rolled steel market trends. We reached out to 640 individuals representing more than 600 manufacturers, steel service centers and wholesalers, steel mills and toll processors and asked dozens of questions related to flat rolled and plate steel usage. One of the key areas of […]
Business activity grew robustly in New York State, according to firms responding to the March Empire State Manufacturing Survey. The general business conditions index climbed more than nine points to 22.5 from 13.1 in February. A level above 0.0 indicates improving conditions, below indicates worsening conditions. Orders and shipments in the region saw strong growth […]
President Trump’s 25 percent tariff on steel from countries around the world comes at what cost? The trade action by the Trump administration is unpopular among the majority of the executives who responded to Steel Market Update’s market trends questionnaire last week just before the president announced the tariffs, as expected. Nearly seven out of […]
Legal experts say President Trump’s efforts to use the Section 232 steel tariffs as a bargaining chip with NAFTA and other trade negotiations could make the U.S. position more difficult to defend before the World Trade Organization and the courts. An importer hit with the tariff could claim the president had exceeded his authority under […]
Is steel demand showing signs of weakening? The year got off to a strong start, but changes in the last three Steel Market Update queries hint at a subtle change in steel buyers’ attitudes. A bit over half of the respondents to the last three SMU market trends questionnaires reported demand staying about the same […]
Eight out of 10 respondents to Steel Market Update’s market trends questionnaire last week (just prior to President Trump’s announcement confirming the 25 percent tariff on steel imports) believe tariffs on foreign steel will weaken the steel and manufacturing base in the United States. Following are some reader comments, nearly all opposed to the Trump […]
Imports’ shares of the major steel product markets are all on the decline, reveals a new report on imports from Steel Market Update. The report examines the import share of sheet, plate, long and tubular products and 18 subcategories of these product groups. We think the introduction of this analysis is timely as a way […]
Fabricators and Manufacturers Association (FMA) Chief Economist Chris Kuehl believes Section 232 tariffs will not create a trade war and that most of what is happening now is nothing more than posturing. Although he told SMU that “trade wars are not unusual as countries try to protect their domestic products.” Kuehl was critical of how […]
Steel inventories are increasing as the inventory-to-shipment ratio is decreasing—a very healthy trend for the supply chain. To efficiently manage inventory, companies generally want to keep the ratio low. A rise in the inventory-to-shipment ratio indicates that shipments are falling or the operation is keeping too much inventory on hand. Each month, the Census Bureau […]
President Trump’s controversial decision to impose a steep tariff on steel imports has clearly unsettled the market and taken a toll on the attitude of many steel buyers. Both current and future sentiment among flat rolled steel buyers declined significantly in the last two weeks, according to the latest Steel Market Update Steel Buyers Sentiment […]
Mill lead times on flat rolled steel orders continue to extend as supplies tighten and buyers scramble to replenish inventories ahead of the next price increase. One of the key indicators tracked by Steel Market Update, lead times reflect the activity at the mills and the order levels they are seeing from their customers. About […]
With foreign steel offers largely on hold as the market awaits President Trump’s final decision on steel tariffs, domestic steel mills are in a strong bargaining position and are taking full advantage of it. Nine out of 10 steel buyers responding to Steel Market Update’s market trends questionnaire this week say the mills are unwilling […]
Steel Market Update forecast that flat rolled steel shipments from U.S. service centers would rise from 87,805 tons per day in December to 109,083 tons per day in January. The Metals Service Center Institute (MSCI) reported last week that sheet distributors shipped 105,109 tons per day. Our shipment forecast accuracy continues to be high, off […]
Economic indicators of manufacturing activity remain strong and continue pointing to good demand for steel at least through mid-year. This report summarizes seven data sources that describe the state of manufacturing in the United States. We have reported on most of these separately in our Steel Market Update publications, and therefore will be brief […]
Global manufacturing expanded at a solid pace in February, according to the J.P.Morgan Global Manufacturing PMI. The composite PMI inched downward for the second month to 54.2, indicating solid but slower growth. Industrial nations saw growth rates decelerate somewhat in February including the U.S., Eurozone, Japan and the UK. Improvement of manufacturing conditions was brisker […]
Union Partners has acquired Lamination Specialties Corp., a manufacturer of electrical steel laminations with three Chicago-area locations. The company also operates a full-service electrical steel service center. It anticipates no disruption of services as it transitions to new ownership. Lamination Specialties is the latest to join the Union Partners family, which includes Mapes & Sprowl, […]
The U.S. rig count, an indicator of oil country tubular goods demand, rose this week, according to March 2 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs rose by 3 to 981 rigs, with oil rigs up 1 to 800 rigs, gas rigs up 2 to 181 rigs, and […]
There were no surprises in this month’s data as our SMU Price Momentum continued to reflect higher steel prices, and that expectation continues over the next 30 to 60 days. Our SMU Steel Buyers Sentiment Index is at, or very near, all-time highs for our index. Buyers and sellers of flat rolled steel are optimistic […]
Manufacturing expanded for the 18th consecutive month in February, according to the latest Manufacturing ISM Report on Business. The PMI rose 1.7 percentage points to 60.8 percent in February. Any reading above 50 indicates expansion. New orders continued to expand last month, although softening 1.2 percentage points to 65.4 percent. Production dipped 2.5 points to […]
The MNI Chicago Business Barometer fell in February to its lowest level since August 2017. The barometer slipped 3.8 points from January’s reading to 61.9. Compared to a year ago, the index was up 8 percent and was above the 2017 average of 60.8 New orders were at a six-month low and production was at […]
Key market indicators, and the trends they reveal, are the best they have ever been in Steel Market Update’s analysis. Data released in February shows that 18 of the 36 indicators are historically positive with only six negative. The balance is within the band of historically normal. Trends improved with 32 of the indicators heading […]
Global steel production grew by 2.7 percent in the three months through January, though the pace of growth continued to be slowed by pollution control restrictions in China. Excluding China, the pace of growth for world steel production was 4.8 percent, according to the latest Steel Market Update analysis of World Steel Association data. On […]
The decline in value of the U.S. dollar on the international exchange markets has slowed in the last 30 days, according to Steel Market Update’s latest analysis of currencies. Please see the end of this report for an explanation of data sources. The analysis of currency trends is a highly technical undertaking. Therefore, in this […]