Twice per month, Steel Market Update conducts a detailed analysis of the trends impacting the flat rolled steel markets. We issue over 670 invitations to people associated with manufacturing, distribution, steel mills, trading companies and toll processors to assist us in our analysis. We finished conducting our early March research on Thursday of this past […]
Optimism reigns supreme within the steel community and those responsible for buying and selling flat rolled steel products. The SMU Steel Buyers Sentiment Index set new record highs for both Current and Future Sentiment indices. Buyers and sellers of flat rolled steel set a new record high for a single data point at +77 for […]
Hot rolled average lead times remain extended at 4.38 weeks compared to the 3.79 weeks SMU was reporting one year ago. Cold rolled, galvanized and Galvalume lead times were running close to or just below last year’s reported average. Lead time is the average amount of time it takes for a new order of a […]
Flat rolled steel mills have become less enthusiastic about negotiating prices for new orders of hot rolled, cold rolled, galvanized and Galvalume steels. Based on the results of the flat rolled steel market trends analysis coming out of the survey we have been conducting over the past four days. We found 33 percent of the […]
The Bureau of Economic Analysis (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 2016. Even though we might consider this to be historically “old,” we think it’s worth reporting because it is a foundation for […]
The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States remained in positive territory for the second consecutive week after briefly dipping into negative territory two weeks ago. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the previous […]
We at Steel Market Update (SMU) have been upbeat on the steel market for many weeks. We thought sharing our Key Market Indicators (KMI) with our readers would help everyone to understand our reading on the market and from where we get our core optimism. An explanation of the Key Indicators concept is given at […]
Global manufacturing is expanding at the fastest rate in almost six years, according to the latest JP Morgan Global Manufacturing report. The PMI rose to 52.9 in February from 52.7 in January for its highest reading since May 2011. IHS Markit said February’s expansion is continuing a trend it began a year ago and indicates […]
The World Trade Organization General Council announced that Roberto Azevêdo has been appointed for a second term as Director-General. The four-year term will begin on September 1, 2017. Azevêdo, in his thank you remarks, said he believed the WTO was on the right path. He also asked members to show their support for the WTO. […]
The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States moved back into positive territory this week following a brief negative dip last week. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the previous 12-week average price as […]
According to Baker Hughes data from March 3, 2017, the U.S rig count for the week was 756 rigs exploring for or developing oil or natural gas. This is up 2 rigs compared to last week, with oil rigs up 7 to 609 rigs, gas rigs down 5 to 146 rigs, and miscellaneous rigs unchanged […]
Steel organizations were pleased by the first address by President Donald Trump to the joint session of Congress on Tuesday evening. Steel associations welcomed promises of trade enforcement, infrastructure spending and tax reform. Here is a sampling of comments following the President’s address. Thomas J. Gibson, president and CEO of American Iron and Steel Institute […]
New U.S. Secretary of Commerce Wilbur L. Ross met with Department of Commerce employees on Wednesday. Ross began his speech by praising President Trump’s address to Congress on Tuesday night. “I thought it was one of the most inspiring speeches I’ve ever heard, and I think it augers well for the new administration. President Trump […]
The February ISM Report on Business indicates manufacturing activity expanded in February with the overall economy in a 93rd month of consecutive growth. The PMI was 57.7 percent, up from 56 percent in January. Looking at it from a 3 month moving average, February showed growth at 56.1, up from 54.7. Production at 62.9 gained […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. This will explain the difference between our view of the present situation which is subjective and our analysis of trends which is based on the latest facts available. During February our view […]
Once each quarter we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. Currently available GDP data is through the fourth quarter, other data included here is through December or January. Many analysts don’t believe these Party self-serving figures but we include them in our reports because of […]
Members of the Precision Metalforming Association are expecting continued strong business conditions during the next three months. The monthly survey of 115 metalforming companies in the U.S. and Canada indicates economic activity will be steady with a slight increase in incoming orders. Average daily shipping levels were improved in February with 38 percent of participants […]
Steel Market Update (SMU) has adjusted our Price Momentum Indicator to reference spot prices as moving higher from this point over the next 30 days. Our decision to move our indicator is due to the continued high prices for steel mill inputs, such as 62% Fe iron ore fines in China being sold at $91.50/dmt […]
As the month of February comes to a close our SMU Price Momentum Indicator reverted to “Higher” from “Neutral.” However, we should be aware that the vast majority of the month saw our Price Momentum Indicator at “Neutral.” The SMU Steel Buyers Sentiment Index continued to show strength both as single data points as well […]
The source of this data is the Conference Board with analysis by Steel Market Update. Please see the end of this piece for an explanation of the indicator. The February report made up the January decline and then some, the three month moving average (3MMA) has improved for nine consecutive months and was the strongest […]
The February Chicago Business Barometer reached its highest reading since January 2016. The Barometer rose 7.1 points to 57.4 buoyed by optimism and gains in new orders and production. Four of the five components of the Barometer increased in February. New orders rose 10.1 points after slipping below the 50 neutral mark in January. Production […]
The World Trade Organization’s Trade Facilitation Agreement went into effect on February 22, 2017. The agreement seeks to reduce the “red tape” for traders involved in moving goods across borders. The agreement, as summarized by the WTO, includes “improvements to the availability and publication of information about cross-border procedures and practices, improved appeal rights for […]
Durable goods orders grew 1.8 percent in January, according to data from the U.S. Census Bureau. The increase was due mostly to a jump in orders for commercial and military aircraft, up 70 percent and 60 percent, respectively. Core capital goods (non-military goods excluding aircraft) fell 0.4 percent after a larger than expected gain of […]
The following article was written by Mario Briccetti, one of our Steel 101 workshop instructors and the director of the consulting firm: Briccetti & Associates. Mario has written other articles about the costs associated with coating galvanized and Galvalume steels. Those articles can be found in our website in the “Steel Buyers Basics” section of […]
The number of oil and natural gas rigs is moving higher and this is good news for the North American steel industry. According to Baker Hughes data from February 24, 2017, the U.S rig count for the week was 754 rigs exploring for or developing oil or natural gas. This is up 3 rigs compared […]
This report summarized seven data sources that describe the state of manufacturing in the US. We have reported on most of these separately in our Steel Market Update publications therefore will be brief in this summary. We don’t expect these data sources to all point in the same direction but our intention in summarizing them […]
Please see the end of this report for an explanation of data sources. The Broad Index value of the US $ is reported several days in arrears by the Federal Reserve, the latest value published was dated February 17th (Figure 1). The dollar had a recent peak of 128.963 on January 3rd which was the […]
Market segments tend to run in cycles and rarely are all segments clicking at the same time. A good example is during the Great Recession, which crushed most steel consuming market segments, we learned through Priefert Manufacturing that farm, ranch and rodeo equipment were quite strong. As the economy improved cycles shifted and over the […]
The Architecture Billings Index slipped into negative territory in January with a score of 49.5, down from 55.6 in December. A score above 50 indicates an increase in billings. The new projects inquiry rose to 60.0 from 57.6. “This small decrease in activity, taking into consideration strong readings in project inquiries and new design contracts, […]
The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States turned negative this week, following a long 14 week positive streak. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the previous 12-week average price as a percentage. A positive […]