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 […]
Flat rolled steel prices have been on the rise since October. Judging by steel demand, that trend is likely to continue. About 41 percent of all the respondents to last week’s Steel Market Update market trends questionnaire reported improving demand for their products. Another 53 percent said demand remained the same. Only 6 percent felt […]
Durable goods orders fell 3.7 percent in January to $239.7 billion, according to Commerce Department data. January’s decline follows two months of increases and is the biggest decline since July 2017. Analysts expected a decline of 2.0 percent or less. Durable goods are manufactured items that are expected to last three years or more. The […]
In 2017, the domestic steel market contracted by 0.5 percent, but domestic shipments were up while imports were down. Table 1 shows 11 years of history of total steel supply to the U.S. market broken down into shipments from domestic mills and imports, excluding semi-finished. The hot rolled steel market totaled 106.4 million tons in […]
President Trump has made no official announcement about his plans for Section 232, leaving the steel market to speculate on last week’s Commerce Department recommendations. The majority of respondents to this week’s Steel Market Update market trends questionnaire are guessing he will come up with his own solution to combat unfair imports. The Commerce recommendations […]
Mill lead times on flat rolled steel orders continue to stretch as buyers replenish inventories in the first quarter. 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 9 percent of respondents to this week’s […]
Steel prices have been on the rise for the past four months, so it’s no surprise that steel buyers are reporting mills less willing to negotiate. More than 60 percent of respondents to Steel Market Update’s latest market trends questionnaire say mills are holding firm in price negotiations. About 10 percent say they still find […]
New rules requiring electronic logging devices (ELDs) to monitor drivers’ hours behind the wheel are having the predicted effect on the market, disrupting trucking operations, igniting fierce competition for trucking capacity and sharply raising freight rates. Under the complicated hours of service regulations that took effect Dec. 18, drivers can work no more than a […]
Current and future sentiment among flat rolled steel buyers showed a slight dip this month, due in part to the uncertainty over possible government trade action against imports. Viewed as a three-month moving average, however, industry optimism remains near record highs, according to the latest Steel Market Update Steel Buyers Sentiment Index. The index measures […]
U.S. gross domestic product grew in every region of the country in last year’s second and third quarters, 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 Q3 2017. […]
January service center intake rose 12 percent month over month but was flat compared to the seasonal norms and was down 2.7 percent compared to January 2017 intake. Daily shipments in January were 31.1 percent higher than in December and were 4.3 percent higher than January 2017. According to Steel Market Update’s latest analysis of […]
Premium subscribers to Steel Market Update receive reports on imports with macro data broken down by product on the national level. SMU also provides reports that detail the import tonnage received by district of entry and source nation. This new report from SMU takes the analysis even further. Using U.S. International Trade Commission (USITC) data, […]
A majority of metalforming companies surveyed in the February Precision Metalforming Association Business Conditions Report expect improvement in economic activity during the next three months. The latest report showed 97 percent anticipate better conditions going forward. “The Trump administration has shown strong leadership on important policy initiatives like tax reform and infrastructure, which give confidence […]