The Bureau of Labor Statistics reports that job creation has been positive in all regions of the country since Q3 2016, in the second-quarter data it released on Friday. Economy.com summarizes as follows: “The country’s labor market ended the second quarter on a strong note, with job growth in June that was stronger and more […]
Consumers are feeling better about the present economic environment and their expectations for the future, according to data from The Conference Board, which conducts a monthly Consumer Confidence Survey. Consumer confidence is the driver of consumer spending, which is the largest component of GDP and ultimately drives a large portion of steel consumption. The composite […]
Orders for durable goods jumped 6.5 percent in June for the largest increase since July 2014, said the Commerce Department on Thursday. Most of the gain, however, was due to a 131.2 percent surge in orders for commercial aircraft. Excluding aircraft and transportation, orders rose a more modest 0.2 percent. Core capital goods, which exclude […]
Metalforming companies in the U.S. and Canada are expecting steady business conditions during the next three months, but expressed concerns about potential Section 232 tariffs. The PMA Business Conditions Report, prepared by the Precision Metalforming Association, showed most members are not anticipating any changes in general economic activity or incoming orders in the coming months. […]
A mild recession will impact residential and nonresidential construction in 2019, predicts the HARDI/ITR July quarterly report. Steel Market Update is a member of an association connected to the construction industry called the Heating, Air-conditioning & Refrigeration Distributors International. HARDI and ITR Economics, an economic forecasting company, work together to gather economic data to provide […]
Architectural firms report that billings for design services increased in June despite higher construction costs for the industry and a shortage of qualified labor. The June Architecture Billings Index, published by the American Institute of Architects, registered 54.2 following a score of 53.0 in May. Billings have been on a generally upward trajectory over the […]
The steel market is waiting anxiously to see if the Trump administration places additional tariffs or quotas on steel imports. Opponents of the proposed Section 232 trade action say it will be bad for the U.S. economy, in particular U.S. manufacturers that will have to pay more for raw materials, making them less competitive versus […]
U.S. industrial production is in Phase B, accelerating growth, but the latest HARDI/ITR quarterly construction forecast warns that the next phase of the cycle, slower growth, is on the horizon. Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. […]
Twice per month, Steel Market Update (SMU) conducts a detailed analysis of the flat rolled steel market. We invite 650 individuals representing approximately 625 different companies to participate by taking an online questionnaire. The questions cover a wide variety of topics that are germane to their unique industry segment. The two main groups asked to […]
Data from July 7, 2017, shows the U.S. rig count for the week was 950 rigs exploring for or developing oil or natural gas, reports oilfield services company Baker Hughes, Inc. This is down 2 rigs compared to last week, with oil rigs down 1 to 764 rigs, gas down 1 to 186 rigs, and […]
The SMU Steel Buyers Sentiment Index has seen some erosion since peaking at +77 around March 1. However, buyers and sellers of flat rolled steel continue to be optimistic about the potential for their company to be successful in both the existing market and three to six months into the future. Buyers and sellers of […]
Flat rolled lead times remain flat compared to what we reported for early July, as well as one month ago. Twice per month, Steel Market Update conducts an analysis of the flat rolled sheet and plate markets. This is done through the use of a comprehensive questionnaire focused on manufacturing companies and service centers, which […]
Despite the risks associated with Section 232 and the belief that flat rolled steel prices will rise prior to and immediately after the announcement of a Section 232 decision, mills appear somewhat more open to price discussions. Based on the responses received this week from our flat rolled market trends questionnaire, buyers and sellers of […]
After a careful analysis of the Metals Service Center Institute (MSCI) carbon flat rolled shipment and inventories data, and then applying that data to our proprietary Apparent Excess/Deficit inventories model, we have determined that distributor inventories improved during the month of June. At the end of May, based on the MSCI data, SMU calculates that […]
The value of the U.S. dollar is in free fall on the international foreign exchange markets. Through July 18, the Broad Index value of the U.S. dollar had depreciated by 7 percent since January 3. Comparing on a rolling three-month basis, the index has declined every single day since January 20. (Please see the end […]
China’s economic performance through the second quarter continued to be impressive. Chinese growth of steel production lagged the rest of the world in the first months of 2017, but the June output could indicate an unwelcome change. Once each quarter, we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed […]
The following is excerpted from an article written in February 2014 by SMU Publisher John Packard and supply chain consultant Mario Briccetti of Briccetti Associates. Buyers and sellers of steel are often exposed to ethical questions in their everyday activities. Some of the issues that arise are fairly easy to discern as ethical or unethical, […]
The Empire State Manufacturing Index fell 10 points to 9.8 in July, after hitting a two-year high in June. New orders and shipments continued to grow but at a slower pace in New York State, dropping 4.8 points and 11.8 points, respectively. Delivery times were reported as longer in the July survey and inventory levels […]
Is today’s contentious and acrimonious political climate having a negative effect on American business? Is the win-at-any-cost attitude in politics, so evident in everyday news reports, eroding ethical business practices in steel and other industries? Is it OK to bend the truth or to make up “fake news” to damage your competition? The desire to […]
Since our last report, the price of crude oil has continued to decline and the price of natural gas has been stable. The number of operating rigs exploring for both oil and gas has continued to increase. The prices of oil and natural gas drive the consumption of energy-related steel products including oil country tubular […]
Apparent supply is a proxy for market demand, and for hot rolled coil has been growing strongly this year. Imports continue to be an increasing factor in the sheet markets. There is a major difference in import market share for the four major sheet products. This report summarizes total steel supply from 2003 through May […]
The United States has called for a special meeting with South Korean trade officials to discuss modifying the U.S.-Korea Free Trade Agreement (KORUS). In a July 12 letter to the Korean trade minister, U.S. Trade Representative Robert Lighthizer requested a special session in Washington to address problems with the agreement, including market access in Korea […]
The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States remained positive this week for the second consecutive week, following a 10-week streak of being in negative territory. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the previous […]
John Packard, Publisher, Steel Market Update Today I spent a good portion of my time wandering around the United States and Canada soliciting information about flat rolled steel pricing, lead times, Section 232 and anything else steel buyers wanted to talk about. I thought the quote of the day was from a manufacturing company who […]
The European steel market and economy improved in the first half of 2017, but the EU is concerned that increasing protectionist policies may lead to “disastrous trade flow distortions.” Apparent steel consumption grew 3.1 percent year-over-year in the European Union during the first quarter of 2017, according to a new report by the European Steel […]
Flat roll lead times have remained within a narrow range over the past six months, according to the manufacturing companies and steel service centers responding to our flat rolled market trends analysis last week. Hot rolled lead times now average 4.41 weeks, which is the same as what we reported in mid-June, but still one-half […]
We saw steel mill lead times as being essentially the same to slightly higher than what we measured at the time of the last price increase announcements (week of June 5th). When the announcements were made, most steel mills were actively trying to collect increases. We saw the bottom of our price range rise, and […]
The U.S. employment situation continues to be good. Net job creation in June, including revisions for April and May, was 269,000, and the latest number of job openings was the highest on record. The Bureau of Labor Statistics (BLS) net job creation report released on Friday exceeded economists’ expectations and was another example of why […]
Data from July 7, 2017, shows the U.S. rig count for the week was 952 rigs exploring for or developing oil or natural gas. The last time U.S. rig counts were this high was in early 2015, reports oilfield services company Baker Hughes Inc. This is up 12 rigs compared to last week, with oil […]
SMU Steel Buyers Sentiment Index has come off historical highs set during the late first and early second quarters 2017. However, buyers and sellers of flat rolled steel continue to be optimistic about the potential for their company to be successful in both the existing market as well as three to six months into the […]