Business activity in the state of New York was little changed in February following an abrupt decline the month prior, according to the Empire State Manufacturing Survey. The headline general business conditions index is now at 3.1 (above the neutral mark of 0), moving up four points versus the -0.7-mark seen the month prior when the index […]
Flat Rolled = 56.1 Shipping Days of Supply Plate = 56 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories fell from their December highs, though the seasonal pick-up in demand in January was weaker than expected. At the end of January, service centers carried 56.1 shipping days of supply on an […]
2022 is shaping up to be a good year for energy tubulars. With the U.S. economy near pre-pandemic levels, demand is up for oil and gas – and the oil country tubular goods (OCTG) and line pipe needed to deliver them. Rising energy prices are spurring increased drilling, while declining steel prices are lowering the […]
By CRU Economist Veronika Akhmadieva and CRU Senior China Economist Henry Hao from CRU’s Global Economic Outlook, Feb. 14 The last day of 2021 marked the end of the two-year period during which China agreed to increase imports of certain goods and services from the U.S. by a combined $200 billion. These targets have been […]
Total mill shipments of steel products rebounded in December to 8.985 million tons, a 7.8% increase over November’s 8.334 million tons, and the highest monthly total for 2021. Apparent supply saw a 5.0% boost in December, rising for the second straight month following repeated decreases in September and October. This analysis is based on steel mill shipment […]
The Energy Information Administration’s February Short-Term Energy Outlook (STEO) continues to predict a wide range of potential outcomes for future global energy consumption, due to the ongoing pandemic recovery and evolving effects of consumer behavior. EIA forecasts oil prices to remain near current levels in the coming months, while natural gas prices could experience volatility as winter temperatures drive demand and prices. Spot […]
The number of active oil and gas drill rigs continued to recover in both the U.S. and Canada this past week, according to data released Friday by oilfield services company Baker Hughes. The rig count is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand. The […]
Steel Buyers Sentiment, as measured by Steel Market Update, has inched downward since the beginning of the year and may finally be reflecting the market’s concerns about sharply declining steel prices. While sentiment readings in the 60s are the lowest they have been since last spring, they remain at very optimistic levels on the 100-point […]
Steel mill lead times have shortened to what is considered nearly normal by historical standards, with hot rolled lead times below four weeks and cold rolled and coated around six weeks, plus or minus. In other words, the time it takes the mills to make steel and process orders can’t get much shorter. But the […]
With steel prices continuing to plunge, buyers clearly hold the upper hand in price negotiations with the mills – a position they have enjoyed for the past two months as seen in the upward slope of the green bars in the chart below. Every two weeks, Steel Market Update asks readers: Are you finding the […]
The U.S. labor market performed surprisingly well in January, adding 467,000 new jobs in the New Year, well ahead of the expected 150,000. The payroll boost was met by a marginally higher unemployment rate at 4.0%, up from 3.9% in December. The latest data from the U.S. Bureau of Labor Statistics showed that U.S. payrolls […]
U.S. job growth saw an unexpectedly rapid expansion in January, outperforming expectations and nearly tripling early estimates. January payrolls rose by 467,000, well above the 150,000 anticipated by economists and a strong start to 2022 despite a new COVID-19 variant. Strong hiring aside, the unemployment rate rose slightly to 4.0%, a 0.1 percentage point increase despite rising labor […]
Sentiment among purchasing managers surveyed by the Institute for Supply Management remains strongly optimistic despite a small dip in the January Manufacturing PMI to a reading of 57.6%. The index reading above 50% indicates growth in the manufacturing sector for the 20th consecutive month since the COVID-related contraction in April and May 2020. “The U.S. manufacturing […]
While the United States and the European Union have been working to resolve their dispute over punitive tariffs on steel and aluminum and re-establish historical transatlantic trade flows, their focus has shifted away from Section 232 duties and towards a carbon-based sectoral arrangement. The plan: to negotiate a global agreement to address carbon intensity and steel […]
Steel buyers remain a surprisingly bullish bunch despite rapidly declining steel prices as well as worries about COVID and the broader economy, . Steel Market Update’s survey this week asked service center and manufacturing executives if they are optimistic or pessimistic about their prospects in the first half of 2022. About 64% considered themselves optimists versus […]
SMU continues to hear that domestic HR prices are moving lower, in particular for large orders. Are mills trying to keep lead times above three weeks, are we going back to a cost plus model on the EAF side, or is it something else entirely? This isn’t 2008-09 or even 2014-15. The music hasn’t stopped […]
January marked the fifth consecutive month of declining steel prices, following a year-long streak of continuous price increases. Hot rolled prices declined $200 per ton throughout the month, with the SMU index averaging $1,335 per ton ($66.75 per cwt) as of Tuesday, Jan. 25. The SMU Price Momentum Indicator for sheet products remains at Lower since its mid-October adjustment. January […]
Craig Yarde, founder of Yarde Metals in Southington, Conn., died Jan. 25 at the age of 71. Yarde was known for his “out-of-the-box business philosophy” and entrepreneurial approach to managing the metal distribution and processing company he founded out of his home in Bristol, Conn., in 1976. After the service center was sold to Reliance […]
When it comes to international trade policy regarding steel tariffs, it’s not one-size-fits-all, Steel Manufacturers Association (SMA) President Philip Bell said. As the U.S. government seeks to sunset the 25% steel tariff levied on imports in 2018 by the Trump administration through Section 232, deals should be individualized and specific to each nation’s steel industry, Bell […]
The next three months look favorable for metalforming companies, according to the January 2022 Precision Metalforming Business Conditions Report. Only 7% of companies predict a decrease in economic activity during the period, down from 16% in December. The report shows that 37% of metalforming companies anticipate an increase in activity, up from 27% in the […]
Durable goods orders took a slight tumble in December, slipping for the first time in three months and suggesting a pause in capital investment as the fourth quarter ended. The decline in December – down 0.9% versus the prior month – reflected a drop in orders for commercial aircraft (transportation) and communications equipment, compounded by […]
U.S. gross domestic product (GDP) expanded at a much better than expected pace to close out 2021. At an annual 6.9% rate in the fourth quarter, growth was driven by sizeable boosts in inventories and consumer spending, according to the Bureau of Economic Analysis (BEA) advanced estimate. Despite signs that the acceleration may have tailed […]
Global steel production expanded last year as steelmakers around the world produced an estimated 1.905 billion metric tons, according to 2021 data from the World Steel Association (worldsteel). The total was 3.9% or 71.4 million tons above 2020’s COVID-stricken year. Last year’s total also outperformed the pre-pandemic sum from 2019 by 3.5% or 63.6 million […]
World crude steel production grew in December, expanding for only the second time in seven months. Steelmakers around the world produced an estimated 158.7 million metric tons of crude steel in December, surging 10.7% or 15.4 million tons from the prior month, according to World Steel Association (worldsteel) data. Steel production had been trending down […]
Industry veteran Chris Shipp has joined Reibus, the online metals marketplace, as Vice President of Strategic Partnerships. Shipp most recently served as Vice President of Supply Chain at Priefert Manufacturing in Mt. Pleasant, Texas. “As an incredible industry leader, it is fantastic that Chris is coming to Reibus to help us continue to build our strategic […]
U.S. consumer confidence fell in January, the first decline in four months, reported The Conference Board. The headline index lost momentum at the onset of 2022 after staging a small recovery during the fourth quarter, rebounding from a summer lull. Sentiment towards current business and labor market conditions was slightly improved in January even though […]
Reflecting higher energy prices, the number of active oil and gas drill rigs increased in both the U.S. and Canada this past week, according to data released Friday by oilfield services company Baker Hughes. The rig count is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) […]
Steel Buyers Sentiment, as measured by Steel Market Update, has seen little change in the past two months despite declining steel prices and concerns about the economy and COVID heading into 2022. SMU surveys buyers every two weeks and asks how they view their chances of success in the near and longer term. SMU’s Current […]
Philip Bell, president of the Steel Manufacturers Association, has been selected as chairman of the National Association of Manufacturers’ Council of Manufacturing Associations for 2022. Made up of 260 industry-specific manufacturing associations representing 130,000 companies worldwide, the CMA creates powerful partnerships across the industry and ensures manufacturers have the strongest possible voice, NAM said. “Steelmakers and […]
Steel mill lead times – a leading indicator of prices – continue to trend downward and are approaching what used to be considered “normal.” If lead times are nearing a point at which they may soon level off, what might that say about steel prices? Steel Market Update’s check of the market this week puts […]