World crude steel production recovered slightly month-on-moth (MoM) in August but remained down roughly 4% versus the same period last year. August’s output gained marginal grown when compared to July, up 0.9%, recovering for the first time in three months, according to World Steel Association (worldsteel) data. Global output was estimated at 150.6 million metric […]
US consumer confidence expanded again in September, extending a rebound in sentiment that began with a strong jump in August and reaching its highest level since April, The Conference Board reported. Results in September were better than expected, measuring 108 points and building on the 103.6 reading in August. The repeated gain and steady month-on-month […]
The US economy was balanced between “slight to modest” growth and softening in early July but is headed for “generally weak” in the next six to 12 months, the Federal Reserve said in its latest Beige Book report. The latest temperature check by the Fed on the state of the economy said the outlook for […]
Global crude steel production was estimated at 150.6 million metric tons in August as steelmakers around the world cut back on output by 6.2 million metric tons, or 4%, from the same period last year, the World Steel Association (worldsteel) reported. Last month’s estimated production was up sequentially, though, edging up by 0.9%, or 1.3 […]
The number of active drilling rigs increased in both the US and Canada this week, according to data from oilfield services company Baker Hughes. The number of oil and gas rigs in operation is important to the steel industry because it is a leading indicator of demand for oil country tubular goods (OCTG). The number […]
Steel Market Update is pleased to share this new, Premium content — an index comparing lead time and demand data — with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. Apparent demand for flat-rolled steel in the US saw its sharpest decline since our early July reading when the index fell seven […]
Demand for design services from US architecture firms continued to grow in August, with the pace of growth inching upward month-on-month. The August AIA Architecture Billings Index (ABI) score was up for the first time in five months. The development also marked the 19th consecutive month of growth following the pandemic-induced downturn in 2020. Recall […]
By CRU Senior China Economist Henry Hao, from CRU’s Global Economic Outlook and China Macro Monthly China’s economy showed resilience in August, with growth in industrial production, investment, and retail sales shoring up the recovery from the effects of Covid lockdowns and heatwaves. The worsening property slump, however, continues to drag on the economy and threaten the […]
Total mill shipments of steel products were largely sideways in July, up marginally when compared to June. Mill shipments have been fluctuating up and down all year with little consistency. July’s mill shipments totaled 8.11 million tons, a 0.3% increase from June’s 8.09 million tons. Apparent supply also saw a slight gain in July, up just 1.1% […]
Steel Market Update’s (SMU) Steel Buyers Sentiment Index saw double-digit declines last week, falling to the second-lowest level seen in the past two years. Our Future Steel Buyers Sentiment Index also declined, now tied for the third-lowest reading in that same time frame. Buyers attribute their weaking optimism to profitability concerns on high-cost inventory as […]
Growth is on the horizon for Commercial Metals Company (CMC). The Irving, Texas-based metals provider and recycler announced its acquisition of Advanced Steel Recovery LLC (ASR) in a press release on Sept. 15. In addition to supplying recycled ferrous metals, Rancho Cucamonga, Calif-.based ASR possesses processing and brokering capabilities with which they can procure material […]
A group of European steel companies and nongovernmental agencies, members of the Austrian non-profit organization ResponsibleSteel, have come together to create international standards for greenhouse gas emissions as the industry works to decarbonize across the supply chain. The ResponsibleSteel International Standard V2.0 will allow steel companies to clearly show how they are driving down GHG […]
Business activity in the state of New York improved in September, remaining in negative territory, though, following a sharp decline the month prior, according to the Empire State Manufacturing Survey. The New York Fed’s Empire State headline general business conditions index—a gauge of manufacturing activity in the state—recovered by 29.8 points in September to a […]
Flat Rolled = 53.9 Shipping Days of Supply Plate = 59.4 Shipping Days of Supply Flat Rolled US service center flat rolled inventories edged down month on month in August, though the amount of material on order spiked, according to Steel Market Update data. At the end of August, service centers had 53.9 shipping days […]
The Energy Information Administration’s August Short-Term Energy Outlook (STEO) was released earlier this month, forecasting spot prices and production for crude oil and natural gas. Crude oil prices are expected to remain at heightened levels for the remainder of this year, rising slightly into 2023. Natural gas prices are forecast to remain near recent highs […]
To stimulate the development of low-carbon, made-in-America materials, the Biden administration has announced new activities under the Federal Buy Clean Initiative. An announcement made by the White House on Sept. 15 in Toledo, Ohio, noted that the Federal Government will prioritize the purchase of essential low-carbon construction materials, covering 98% of materials purchased by the […]
Steel mill lead times were overall flat this week, with the processing time for some orders slightly extending and others shrinking. Hot rolled and Galvalume lead times increased compared to our previous market check, while cold rolled, galvanized, and plate lead times slightly declined. On average this week, lead times were unchanged compared to two […]
The percentage of buyers reporting that mills are negotiable on new order pricing grew this week. According to our latest steel market survey this week, the majority of the steel executives polled reported that mills are willing to talk price to secure an order. A high willingness to negotiate has been evident in each of […]
The American Iron and Steel Institute (AISI) called on Congress to intervene in the ongoing nationwide rail negotiations to ensure a successful resolution is reached. In a Sept. 14 letter on behalf of the American steel producers AISI represents, Kevin Dempsey, the association’s president and CEO expressed concerns about “the state of ongoing labor negotiations in […]
A potential nationwide rail strike could wreak havoc on the steel industry, association executives warned, negatively impacting the shipment of finished and semi-finished steel products as well as steelmaking raw materials. “Our supply chains are stressed and any disruption in freight rail service will hurt our economy by adding costs and delays to a rail […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook The rise in inflation has been a major headwind for the global economy. It has squeezed household incomes and led to a tightening of monetary policy across dozens of countries. Although the price environment in Europe remains red hot, there are tentative signs that […]
The number of active drilling rigs declined in both the US and Canada this week, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of demand for oil country tubular goods (OCTG). […]
The S&P Global US manufacturing PMI – another measure of manufacturing – slipped to 51.5 in August, contracting for a second straight month and its lowest level in two years, as output and new sales fell further last month. August’s results are down slightly from 52.2 in July, broadly in line with the earlier released […]
US manufacturing activity grew in August, expanding for the second straight month amid stronger order growth and employment, according to the Institute for Supply Management (ISM). Supply bottlenecks and price pressures eased, while domestic factory activity grew steadily last month. August’s Manufacturing PMI held at 52.8%, the same reading recorded in July. This is the […]
Steel prices eased overall throughout August, following declines seen in the three previous months. Hot rolled prices were $805 per ton ($40.25 per cwt) the first week of August, falling to a low of $770 per ton in the middle of the month, and rising to $785 per ton as of last Tuesday. The SMU […]
Steel Market Update’s (SMU) Steel Buyers Sentiment Index inched up through the end of August data, while our Future Steel Buyers Sentiment Index slightly declined. The latest Sentiment Index is in line with our two previous readings over the last month. Future Sentiment is now at the fourth lowest level of the year, just behind […]
World crude steel production tumbled in July, down 11.1% versus the same period last year. July’s output was also down 5.6% when compared to June, declining for the second straight month, but just the third time this year, according to World Steel Association (worldsteel) data. Global output was estimated at 149.3 million metric tons in […]
The US economy shrank at a revised -0.6% in the second quarter of 2022, declining for the second straight quarter. Gross domestic production in Q2 contracted at a more moderate pace than initially though, according to the second estimate from the US Commerce Department’s Bureau of Economic Analysis (BEA). The result was a slight improvement […]
US consumer confidence grew in August, rebounding more than expected after shrinking for three straight months, The Conference Board reported. Results in August were better than expected, measuring 103.2 points and ahead of the 97.7 estimates. The nice month-on-month (MoM) bump in consumer confidence runs parallel to the lower oil prices and is congruent with […]
After contracting in mid-August, the percentage of buyers reporting that mills’ prices are negotiable grew this week. All but 15% of the steel executives polled this week reported that mills are willing to talk price to secure an order, according to our steel market surveys. A high willingness to negotiate has been evident in each […]