Sectors closely associated with the steel industry have generally reacted favorably to the tax reform legislation passed on Wednesday. The Steel Manufacturers Association hopes the bill will “result in significant economic growth that improves the fiscal situation for individuals, small business and corporations.” SMA President Philip Bell said it is now time to turn to […]
On Nov. 3, the spot price of West Texas Intermediate (WTI) closed above $55 per barrel and hasn’t fallen below that level through the latest data on Dec. 11. The total number of operating rigs exploring for oil and gas increased every week from Nov. 10 through Dec. 8, though at a declining rate, and […]
Business activity in New York State continued to expand in December. The Empire State General Business Conditions Index registered a healthy 18.0, down slightly from 19.4 in November. The new orders index posted 19.5 and shipments rose four points to a reading of 22.4, indicating solid growth. Unfilled orders declined and delivery times lengthened during […]
Service centers continue to hold flat rolled inventories steady at 2.89 months of supply at the end of November, according to the proprietary Steel Market Update Service Center Inventories Index (SSII). This is now the third consecutive month we have found flat rolled steel distributors’ inventories close to the three months of supply level. Contrast […]
Both flat rolled and plate steel distributors saw only a very modest drop in inventories as of the end of July. Inventories continue to be “balanced” at 2.7 months of supply on flat rolled and 2.1 months of supply on plate, according to Steel Market Update’s proprietary inventory data. Flat Rolled Spread Tightens Although our […]
The latest Steel Market Update news briefs: • Olympic Steel has signed a new $400 million credit agreement that gives the service center additional resources for future growth. “The increased borrowing capacity and more favorable terms provided by this agreement underscore the confidence our lenders have in our business. The low-cost capital structure enhances our […]
Domestic mills are in the driver’s seat and steel prices have nowhere to go but up, agreed most respondents to Steel Market Update’s flat roll market trends questionnaire this week. SMU contacts steel buyers twice each month to monitor their views on market conditions. Asked for their opinion on the current direction of steel prices, […]
The weekly U.S. rig count increased this week, according to Dec. 8 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs increased by 2 to 931 rigs, with oil rigs up 2 to 751 rigs, gas rigs unchanged at 180 rigs, and miscellaneous rigs unchanged at 0 rigs. Compared to […]
Current and future sentiment among flat rolled steel buyers ticked up a bit in the past two weeks, according to the Steel Market Update Steel Buyers Sentiment Index. The same pattern started to appear at this time last year, leading into a strong first quarter. The SMU Steel Buyers Sentiment Index measures changes in buyers’ […]
Economist Alan Beaulieu of ITR Economics spoke at the HARDI annual meeting where he advised HARDI wholesalers to expect good results during the first half of 2018. After that, there will be a slowing in the rate of growth that will continue into 2019. He told the group that 2019 could be a test year […]
Mill lead times have seen little change in the past month, according to the latest data from Steel Market Update’s flat roll market questionnaire, despite the price hikes announced by the mills two weeks ago. One of the key indicators tracked by SMU, lead times reflect the activity at the mills and the order levels […]
Buyers of flat rolled steel report that domestic steel mills are tightening up negotiations a bit on spot pricing, especially on cold rolled and coated products, as would be expected following the price increases announced two weeks ago. But the majority report that mills are still generally open to price discussions as the year comes […]
An Ohio-based company is taking the lead on a possible new multi-billion dollar steel mill proposed in Shiawassee County, Michigan, according to a Dec. 4 report in Crain’s Detroit Business. New Steel International reportedly is seeking a $7 billion federal loan through the U.S. Department of Energy to place a steelmaking plant in Durand, Mich., […]
Steel Market Update adjusted our Price Momentum Indicator to Higher from Neutral earlier today. It is our opinion that flat rolled steel prices will rise over the next 30 to 60 days. We last adjusted Momentum on Oct. 18, 2017, when we moved from “Lower” to “Neutral.” We are hearing from buyers and sellers of […]
The ferrous scrap market is heading higher. In a surprise to scrap experts (and probably the mills), prices are rising with some early deals done at +$20 per gross ton on prime grades and +$30 per gross ton on everything else. That is where Detroit settled earlier this week. Steel buyers need to be aware […]
Dan DiMicco, former CEO of Nucor Corp., has been appointed to a four-year term as a member of President Trump’s Advisory Committee for Trade Policy and Negotiations, the White House announced in a Dec. 4 release. DiMicco, who retired from Nucor, is a former trade advisor to the Trump campaign and serves as chairman of […]
Steel Market Update’s steel market indicators show improved trends in the November data. In our examination of data released in November, our view of the present situation is that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance is within the band of historically normal. The total of […]
Recent price increases on prime steel have pulled secondary steel prices up along with them, challenging distributors to pass the added cost along to their customers. Secondary steel products include coils that have defects or otherwise fail to meet the specs of the original buyer, but may be suitable for other uses. “Our volume has […]
The November ISM PMI registered 58.2 percent, a decrease of 0.5 percentage point from the October reading of 58.7 percent. “This indicates growth in manufacturing for the 15th consecutive month led by expansion in new orders and production, offset by supplier delivery improvement and declines in raw material inventory,” said Timothy R. Fiore, chairman of […]
The U.S. employment situation in November was excellent, according to the Bureau of Labor Statistics’ (BLS) net job creation report released on Friday. While employment was down by 14,000 jobs from October, it was still the third best month of the year and in agreement with the other data streams tracked by Steel Market Update. […]
Global manufacturing accelerated to an 80-month high in November, according to the latest J.P. Morgan Global Manufacturing PMI. Output, new orders and employment were at multi-year highs. Demand led to capacity pressure and a resulting increase in employment. The PMI, produced by J.P. Morgan and IHS Markit in association with ISM and IFPSM, posted 54.0 […]
Flat rolled steel Price Momentum ended the month as it began, pointing to a sideways or “mixed” market. Our flat rolled steel price indices averages over the past three months show very little movement in steel prices. Benchmark hot rolled averaged $610 per ton, which is actually lower than the $620 average we saw at […]
The Chicago Business Barometer retreated 2.3 points in November to 63.9, its lowest level in three months. Any number above 50, however, is an indicator of growth. The decrease followed October’s six-and-a-half year high, and economists expect the Barometer to finish the year continuing its 21 straight months of expansion. Output was robust in November, […]
The broad index value of the U.S. dollar has strengthened since Sept. 8, but in the last month the dollar has weakened against 13 of the 16 steel trading nations’ currencies. From Jan. 3 through Sept. 8, 2017, the Broad Index value of the U.S. dollar depreciated by 9.3 percent. The value rebounded by 2.9 […]
Economic indicators of manufacturing activity are still healthy overall and suggest conditions should remain positive for the balance of this year and into the first quarter of 2018. This report summarizes seven data sources that describe the state of manufacturing in the U.S. We have reported on most of these separately in our Steel Market […]
Metalforming manufacturers continue to be cautious in their three-month outlook as members watch NAFTA negotiations and trade actions with trepidation. The November Precision Metalforming Association (PMA) Business Conditions Report showed 30 percent of participants expecting improvement in economic activity in the next three months—the same percentage as October. Little change is expected in incoming orders […]
Consumer confidence increased for a fifth consecutive month and remains at at an extremely high level, reports The Conference Board. The composite value of consumer confidence in November was 129.5 up from 126.2 in October. The last nine months have each been better than at any time since 2001. The three-month moving average (3MMA) increased […]
The price of West Texas Intermediate oil has been above $55 per barrel for all of November. On Nov. 3, the spot price of West Texas Intermediate (WTI) closed above $55 per barrel where it stayed through the latest data on Nov. 22. The number of operating rigs exploring for both oil and natural gas […]
New orders for manufactured durable goods declined 1.2 percent in October to $236.0 billion, according to the latest data from the U.S. Census Bureau. The decline was due mostly to plummeting orders for commercial aircraft, which fell 18.6 percent last month. Core capital goods (non-defense capital goods minus aircraft) declined 0.5 percent last month. Reuters […]
Gross domestic product grew in every region of the United States in the second quarter of 2017, according to Bureau of Economic Analysis data. The BEA introduced a new data set for GDP by state and region in 2014 and backdated it to Q1 2005. This week, the data was updated through Q2 2017. Even […]