US manufacturing activity saw a sharp improvement in March driven by big increases in output and new orders. Both domestic and foreign client demand ticked higher, according to the latest US Manufacturing PMI data from S&P Global. The overall upturn was aided by a sharper expansion in production at the end of the first quarter. Indeed, […]
Steel mill lead times continue to extend, but they are rising at a more moderate pace compared to early March. Steel Market Update’s latest check of the market indicates that lead times for sheet and plate increased by an average of 0.6 weeks, compared to an average jump of 1.2 weeks two weeks prior. Buyers surveyed […]
Mills are increasingly holding firm on higher prices. The result: the buyer’s market we saw at the beginning of the year is offically over. Every two weeks, Steel Market Update asks buyers: Are you finding domestic mills willing to negotiate spot pricing on new orders placed this week? The overwhelming majority of steel buyers polled this […]
The Chicago Business Barometer showed a much bigger than expected increase in March after falling to an 18-month low the month prior, according to the latest indicators from Market News International (MNI) and the Institute for Supply Management (ISM). MNI Indicators said the business barometer jumped to 62.9 in March from 56.3 in February and […]
World crude steel production fell in February, declining for the second straight month. Global output was estimated at 142.7 million metric tons last month, as steelmakers around the world cut production by 12.3 million metric tons, or 7.9%, from January, according to World Steel Association (worldsteel) data. After hitting an all-time high of 174.4 million […]
The US economy closed out 2021 by expanding at an annual pace of 6.9% from October through December, a slight downgrade from previous estimates, according to the US Commerce Department’s Bureau of Economic Analysis (BEA). This agency’s third and final review showed the nation’s gross domestic product (GDP) up 5.7% in the fourth quarter, the […]
US consumer confidence bounced back slightly from a one-year low in March on labor market optimism. But confidence could slip as the Federal Reserve raises interest rates to tamp down inflation, The Conference Board reported. Sentiment about current business and labor market conditions recovered in March after falling in the prior two months. Americans’ outlook for the […]
Global crude steel production was estimated at 142.7 million metric tons in February as steelmakers around the world cut output by 12.3 million metric tons, or 7.9%, from the prior month, the World Steel Association (worldsteel) reported. Since reaching an all-time high of 174.4 million metric tons last May, global steel output has waned in […]
New orders for US manufactured durable goods fell 2.2%, or $6.0 billion, in February, snapping a four-month rally, according to the Commerce Department. Orders at domestic factories for long-lasting goods fell more than expected last month, while business investment fell for the first time in a year. February’s outcome suggests high inflation and ongoing supply […]
Demand for design services from architecture firms in the US rose moderately in February. The gain marked the 13th consecutive month of growth following the pandemic-induced downturn in 2020. February’s AIA’s Architecture Billings Index registered 51.3, according to the latest report from the American Institute of Architects. The ABI is an advanced economic indicator for nonresidential […]
The number of active oil and gas drill rigs in the U.S. increased this week, while Canadian rigs declined, according to recent data released by oilfield services company Baker Hughes. The active drill rig count is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand. The […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook, March 21 Russia’s invasion of Ukraine has sent shockwaves through the world economy. What does war mean for the world economy? We outlined three scenarios in terms of severity of impact from the war itself, but most crucially from sanctions and the response to those […]
Producer prices rose moderately in February, maintaining a sustained 23-month growth run. Last month the headline index grew by just 0.8%, seasonally adjusted, but was a gain of 10% when compared to the same year-ago period, reports the U.S. Labor Department. Wholesale prices accelerated as steady consumer demand and pandemic-related supply-chain snarls continued to fuel […]
SMU’s Steel Buyers Sentiment Index surged 11 points this week, the largest change from one survey to the next in 17 months. The surprising jump in sentiment correlates with the unexpected rebound in steel prices caused by the conflict in Ukraine. Steel Market Update’s check of the market this week pegged the benchmark price for […]
Steel mill lead times appear to be extending again. Steel Market Update’s check of the market this week shows lead times for orders of flat rolled and plate products increasing by an average of 1.2 weeks. Buyers polled this week by SMU reported mill lead times ranging from 4-8 weeks for hot rolled, 5-8 weeks […]
Business activity in the state of New York waned in March, declining for the first time since the onset of the global pandemic nearly two years ago, according to the Empire State Manufacturing Survey. The headline general business conditions index is now at -11.8 (above the neutral mark of 0), falling 15 points from February’s 3.1, and […]
The Energy Information Administration’s March Short-Term Energy Outlook (STEO) is subject to an even higher level of uncertainty than usual due to Russia’s invasion of Ukraine. As EIA’s latest report explains, “supply uncertainty results from the conflict in Ukraine, the production decisions of OPEC+, and the rate at which U.S. oil and natural gas producers […]
Flat Rolled = 54.4 Shipping Days of Supply Plate = 51.1 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories continued to recede in February, indicating that inventories may be near balance. At the end of February, U.S. service centers carried 54.4 shipping days of supply on an adjusted basis, according to […]
Total mill shipments of steel products fell in January to 8.153 million tons, a 9.4% decline from December’s 8.995 million tons, 2021’s strongest monthly performance. Apparent supply also fell in January, down 7.6% versus the prior month, and unable to keep the upward trajectory seen during the final quarter of 2021. This analysis is based on steel […]
President Biden strengthened “Buy American” provisions for government procurement with his signature Friday on new rules that will increase the threshold for the value of products to be considered American-made from the current 55% to 65% by 2024 and 75% by 2029. Proponents consider this a positive development for manufacturing and job-creation in the U.S., […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. The value of U.S. steel product shipments was virtually unchanged in January at $12.320 billion or 0.1% above December’s total. Though negligible, the increase follows declines over the prior two months after […]
SMU’s Steel Buyers Sentiment Index continues to inch downward from its late-2021 peak, with the latest three-month moving average sliding to the lowest level seen in nearly 10 months. Although down, sentiment remains at very optimistic levels on the 100-point scale. Steel Market Update surveys buyers every two weeks and asks how they view their […]
In comments on Russia’s invasion of Ukraine, industry trade representatives said they expect limited impact on their members in the U.S., while expressing sympathy for Ukrainian citizens. “As we monitor the crisis in Ukraine to address any potential impacts to our industry, the safety of the Ukrainian people remains foremost in our minds,” said Kevin […]
Europe will suffer substantial economic consequences from Russia’s invasion of Ukraine, while the Russian economy will be hurt by the array of sanctions imposed by the West. But the United States should emerge relatively unscathed from the “economic mayhem” caused by Russia’s aggression in Eastern Europe, unless the war escalates dramatically, predict the experts at […]
Despite war in Ukraine, rising inflation, and uncertainty around steel prices, more than 80% of buyers responding to Steel Market Update’s survey this week still described themselves as optimistic about their prospects for the first half of this year. Their generally positive outlook – reflected in the comments below – point to healthy steel demand […]
U.S. job growth accelerated in February, as falling Omicron cases brought customers back to business and workers back off the sidelines. Employers added 678,000 jobs last month, topping economists’ forecasts for a second straight month and bringing the unemployment rate down to 3.8%, according to the Labor Department. Job openings are near a record high, […]
The U.S. labor market exceeded expectations in February, adding 678,000 new jobs last month. It was the best month for job growth since last July, the Bureau of Labor Statistics reported Friday. The U.S. still has 2.1 million jobs to go before hitting the February 2020 level and recouping all positions lost in the pandemic. […]
The number of active oil and gas drill rigs in the U.S. and Canada was flat or fell this week after gains in prior weeks, according to recent data released by oilfield services company Baker Hughes. The active drill rig count is important to the steel industry because it is a leading indicator of oil […]
The U.S. economy has expanded at a modest pace since mid-January, the Federal Reserve said in its latest Beige Book report. Overall growth was constrained by a surge in Omicron, forcing firms to deal with heightened absenteeism and continued supply-chain bottlenecks. Consumer spending was weaker, with auto sales largely mixed and manufacturing activity expanding at […]
Steel mill lead times remain short, but yielded minor upward movements this week for most products, based on Steel Market Update’s latest check of the market. SMU’s data on mill negotiations shows buyers still have the upper hand. Buyers polled this week by SMU reported mill lead times ranging from 2-6 weeks for hot rolled, […]