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 […]
Driven primarily by construction in the developing world, growth in global steel production continues to surge, according to Steel Market Update’s latest analysis of World Steel Association data. Steel production in the month of October was 145,254,000 metric tons, up from 141,576,000 in September. Capacity utilization decreased from 73.5 percent to 72.9 percent. Production was […]
Keith Gunter, Vice President of Purchasing at McElroy Metal (and a part-time poet) shares his annual special holiday retrospective on the past year and his wishes for a prosperous 2018 for all. T’was soon to be Christmas, when all through the land, Pricing ought to be stable, wouldn’t that be so grand. During the fourth […]
Flat rolled steel service centers apparently do not have the luxury or ability to raise spot prices, even after two price increases by the domestic steel mills, according to the latest flat rolled steel market trends analysis by Steel Market Update (SMU). Last week, in SMU’s mid-November flat rolled analysis, one of the key areas […]
Flat rolled steel inventories ended the month of October in a balanced situation based on the Steel Market Update Apparent Excess/Deficit proprietary model, which is applied to the MSCI inventories and shipment data. U.S. steel service centers ended the month of September with +68,000 tons of excess inventories, based on the SMU model. Our forecast […]
Twice per month, Steel Market Update (SMU) conducts an analysis of the flat rolled steel market and the trends that affect pricing, demand, etc. Each analysis is conducted via an email invitation to complete a questionnaire. SMU invites approximately 650 individuals who are active participants in the manufacturing, distribution, toll processing, trading and steel mill […]
Were you surprised by the price increases announced this week by the major mills? If you were, don’t feel bad. You were among the majority of steel buyers who could foresee no clear direction for steel prices. On Monday, Steel Market Update sent its market trends questionnaire to 650 steel buyers asking, among other questions, […]
The weekly U.S. rig count increased this week, according to Nov. 17 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs increased by 8 to 915 rigs, with oil rigs unchanged at 738 rigs, gas rigs up 8 to 177 rigs, and miscellaneous rigs unchanged at 0 rigs. Compared to […]
Demand for architecture design services increased in October after contracting in September. The October Architecture Billings Index jumped to 51.7 from 49.1 the previous month, indicating a return to growth. The new projects index gained more than one point to 60.2, while new design contracts posted a reading of 52.9, compared to 52.8 in September. […]
Despite all the uncertainty regarding possible trade action and steel prices, the Steel Market Update Steel Buyers Sentiment Index is holding steady, and at a higher level than last year. Steel buyers’ sentiment appears to have bottomed out in October and November and, in Steel Market Update’s opinion, is poised to pick up along with […]
The latest lead time data based on the Steel Market Update flat rolled steel survey—largely unchanged from two weeks ago–offers no clear indication of whether this week’s price announcements by three of the flat rolled steel mills will be accepted by the marketplace. SMU began collecting responses from steel buyers on Monday of this week, […]
Buyers of flat rolled steel report that most domestic steel mills are open to negotiating spot prices, especially on cold rolled and coated products, even though the major mills announced price hikes this week. About half of the respondents to this week’s Steel Market Update market trends questionnaire reported a mixed market, with some mills […]
More than 100 trade organizations representing a cross-section of U.S. business and industry sent a letter to USTR Robert Lighthizer on Tuesday urging the U.S. to maintain, and even extend, trucking provisions in the new NAFTA agreement. The trade groups called for the U.S. to permit Mexican carriers to haul freight further into the United […]
Total rolled steel imports declined by 14.0 percent in the three months through October, compared to the three months through July. Sheet products were down by 12.6 percent on the same basis, based on final license data for October reported by of the U.S. Commerce Department on Nov. 7. The data is reported within the […]
Steel Market Update (SMU) has been working on developing and then expanding a new steel service center flat rolled steel inventories analysis. We are providing a sample of the analysis, which will be available initially to Premium level customers, as well as those service centers that participate by providing data to Steel Market Update. If […]
The Steel Market Development Institute has released “LEED v4 for Steel Products Used in Construction Applications,” a guide for the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) green building certification program. “A rapidly-evolving green building industry and increasing demand for sustainability have led to a number of updates and a more […]
Oil prices have topped $63 in recent weeks, up from $43 in June, but don’t expect a big uptrend in the price per barrel in 2018. Experts expect oil to continue trading in a tight range, keeping demand for oil country tubular goods in check at least through the first half next year. High energy […]
Have you ever seen the metal mushrooms that seem to be growing on Route 51 near Century III Mall in West Mifflin, Pa.? They are actually remnants of the Pittsburgh steel industry that dominated the industrial landscape in decades past. West Mifflin is the site of Brown’s Dump, a 410-acre slag dumping area used by […]
Chemcoaters and its Eco-Green Coatings subsidiary say they are winning over skeptics who doubt the company’s claims it can dramatically lower the cost of galvanized steel with its InterCoat ChemGuard coating. Mike Tieri, vice president of sales and marketing for the Gary, Ind., toll coater, says the product continues to gain converts. “There’s a Who’s […]
Speaking at the FABTECH Expo on Monday, Chris Kuehl of Armada Corporate Intelligence offered his unique perspective on the U.S. and global economies, including the following excerpts of his comments on jobs, trade issues and tax reform. Kuehl serves as the chief economist for the Fabricators and Manufacturers Association, International (FMA), a sponsor of the […]
U.S. job creation rebounded in October from the blow it suffered in September due to the hurricanes, reports the Bureau of Labor Statistics (BLS) in its employment report released on Friday. September hiring was severely affected by the Texas and Florida hurricanes, particularly in the hospitality industries in Florida. The October rebound was weaker than […]
Chinese steel production and consumption took a downturn in September, though they trended ahead of 2016 for the first three quarters of this year. China’s exports to the rest of the world are down considerably in 2017, however, according to data from the China Iron & Steel Association and Bradford Research. Year to date, China’s […]
Twice per month, Steel Market Update (SMU) conducts an analysis of the flat rolled steel markets and trends associated with those who buy and sell hot rolled, cold rolled, galvanized, Galvalume and steel plate. One of the key areas we review is how steel service centers are handling spot pricing to their end user customers. […]
Is another mill price hike likely? Nearly 60 percent of respondents to Steel Market Update’s market trends questionnaire earlier this week said they do expect the steel mills to make another price announcement this month before the Thanksgiving holiday on Nov. 23. The other 40 percent are doubtful. Following are some of their comments: · […]
House Republicans released details of their vision for tax reform on Thursday, raising many questions in constituents’ minds, the primary one being: What does this mean for us? The headline provisions of the bill—which its sponsors contend would simplify the tax code, provide tax relief to the middle class and spur economic growth—include cutting the […]
The real news coming out of this week’s flat rolled steel market trends analysis is the jump in the SMU Steel Buyers Sentiment Index when looking at the index as a single data point, as opposed to a three-month moving average, which is our preference. Measured as a single data point, the average among those […]
With the notable exception of AkzoNobel, leading suppliers of paint and coatings to the prepaint market have announced price hikes of 5-7 percent, effective in January. And some coil coaters and their customers are not happy about it. One prepaint buyer who closely tracks raw material costs questions whether the current hike is justified. “While […]
After price increase announcements, it is important to follow steel mill lead times (and other keys) as a way of seeing if the increases are being seriously considered by steel buyers. The farther and faster lead times move out, the more support for the price increases announced by the domestic steel mills. Steel Market Update […]