Since the Chinese government put a stop to all exports of steel scrap, analyzing the global scrap trade has become a bit more complicated. Steel Market Update performs this analysis of the world scrap market each quarter to help readers understand the gyrations of the domestic scrap market and where the U.S. stands as a […]
In addition to the tax overhaul passed by the Republicans this week, President Trump has promised a trillion-dollar infrastructure overhaul. Given the possible $1.5 trillion cost of the tax cuts, will the public have the stomach for another big bill to fix the nation’s aging roads and bridges? Respondents to Steel Market Update’s market trends […]
Mill lead times have inched up slightly in the past two weeks following price hikes announced by the major mills earlier this month, according to the latest data from Steel Market Update’s flat roll market questionnaire. One of the key indicators tracked by SMU, lead times reflect the activity at the mills and the order […]
Buyers of flat rolled steel report that more mills are holding the line on pricing following the price increases announced earlier this month. Mill order books are firm and there’s no negotiating for a better price, according to 28 percent of respondents to SMU’s latest steel market questionnaire. About 22 percent say they still find […]
More than nine out of 10 respondents to Steel Market Update’s latest market trends questionnaire see steel prices heading higher in the first quarter. Seven percent say they see no clear direction for prices. Virtually no one expects prices to decline in the wake of price hike announcements by the major mills earlier this month. […]
The American Institute of Architects’ Architecture Billings Index (ABI) rose to 55.0 in December from a reading of 51.7 in November, reflecting an increase in design services provided by U.S. architecture firms. The new projects inquiry index was 61.1, up from a reading of 60.2 the previous month, while the new design contracts index rose […]
Following is an edited excerpt of a new monthly publication, “The GOES Chronicle,” from Steel-Insights. For further details, contact Becky E. Hites at becky.hites@steel-insights.com. Production of Grain Oriented Electrical Steel (GOES) has undergone a tectonic shift in the past decade. The market historically has been supplied through a controlled group of companies protected from outside […]
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, […]