The US economy shrank in the first quarter of 2022 at a slightly worse rate than expected, with gross domestic production declining at a -1.6% annualized pace, according to the third and final estimate from the US Commerce Department’s Bureau of Economic Analysis (BEA). The third review for Q1 was a slight downward revision from […]
US consumer confidence fell to a 16-month low in June, falling for the second straight month. The consumer expectation index, meanwhile, hit its lowest mark in nearly a decade. An onslaught of grim economic news continues to erode Americans’ view of their present and future prospects, The Conference Board reported. Rising inflation, a key driver of […]
Nextracker LLC, a global utility-scale solar tracker manufacturer, and BCI Steel, a Pittsburgh-based steel fabricator, will breathe new life into the abandoned Bethlehem Steel manufacturing facility in Leetsdale, Pa. The historic factory – once a part of one of the world’s largest steel-producing and shipbuilding companies of the 20th century, and where steel for US […]
The steel industry’s push to decrease CO2 emissions in steelmaking will require an increase in high-grade iron ore production and improved beneficiation techniques, according to a report from The Institute for Energy Economics and Financial Analysis (IEEFA). To reach net-zero emissions by 2050, not only will steelmakers need to switch production methods from coal-consuming blast […]
New orders for US manufactured durable goods rose more than expected in May, suggesting business investment remains resilient even in the face of deteriorating business and consumer sentiment as well as heightened fears of a recession. Last month’s bookings for durable goods rose 0.7% following a revised 0.4% decline a month earlier, according to the […]
Most respondents to SMU’s latest survey think that hot-rolled coil prices will be below $1,000 per ton ($50 per cwt) two months from now. That’s a big change from earlier this month, when we did our last full survey and when those who thoughts tags would dip below the $1,000-per-ton threshold this summer were in […]
Steel Market Update’s Steel Buyers Sentiment Index fell 11 points to an 18-month low last week, the largest survey-to-survey decline since April 2020. Our Future Sentiment Index also declined significantly last week, following another large decline four weeks prior. SMU surveys steel buyers every other week and asks how they view their chances of success […]
By CRU Research Managers Sarah Macnaughton and Paul Butterworth, and contribution from CRU Sustainability Analysts Zsombor Garzo International trade is an essential part of the global steel industry, with over 20% of steel production traded today. However, as the world moves towards decarbonization, CRU finds that established trade flows are at risk. The green transition […]
The number of total active drilling rigs in the US increased again this week, while Canadian rigs decreased after multiple weekly increases, 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 oil […]
World crude steel production rose in May, gaining ground for a third consecutive month and reaching its second-highest mark on record. Global output was estimated at 169.5 million metric tons in May. Steelmakers around the world increased production by an estimated 6.8 million metric tons, or 4.2%, from April, according to World Steel Association (worldsteel) data. […]
Steel Market Update’s latest market check revealed that steel mill lead times continue to inch down for sheet and plate products as they move closer to historical norms. On average, lead times declined by 0.2 weeks compared to our early June figures and are down 0.4 weeks compared to one month ago. Lead times over […]
Approximately 84% of steel buyers report that mills are willing to talk price to secure an order, according to executives polled in our latest steel market survey. The rate of willingness to negotiate has remained over 50% in each of our market checks since early May and is now at the highest level since early […]
Demand for design services from architecture firms in the US continued to expand in May, though the score was down three points month-on-month (MoM). May marked the 16th consecutive month of growth following the pandemic-induced downturn in 2020. The May AIA Architecture Billings Index registered 53.5, down slightly from April’s score of 56.5, according to […]
Global crude steel production was estimated at 169.5 million metric tons in May as steelmakers around the world expanded output by 6.8 million metric tons, or 4.2%, 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 had steadily waned […]
By CRU Economist Veronika Akhmadieva, from CRU’s Global Economic Outlook With a higher-than-expected headline CPI inflation reading of 8.6% in May, the Fed opted for an even more aggressive monetary tightening. After a 50 bps increase in the federal funds rate in May – which is the highest increase since 2000 – the Fed raised […]
The Energy Information Administration’s June Short-Term Energy Outlook (STEO) remains subject to a high level of uncertainty due to factors such as sanctions affecting Russia’s oil production, the production decisions of OPEC (Organization of the Petroleum Exporting Countries), and the rate at which US producers increase drilling. Due to these uncertainties, the EIA continues to […]
By CRU Senior China Economist Henry Hao, from CRU’s Global Economic Outlook and China Macro Monthly In May, overall economic activity in China has improved marginally as the relaxation of Covid-19 restrictions led to the resumption of production in late May. Export and infrastructure investment have regained momentum. However, prospects for construction remain weak. While the contraction […]
Editor’s note: Steel Market Update is please to share this abbreviated Premium content with our Executive members. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. If you are part of a service center company and interested in becoming a data provider, please contact Estelle.Tran@CRUGroup.com. Flat Rolled = 54.7 Shipping Days of Supply […]
Business activity in the state of New York was little changed in June, following a surprising fall in May, 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 – rose 10.4 points in June but remained at […]
Total mill shipments of steel products slipped in April following a slight uptick the month prior. April’s mill shipments totaled 8.12 million tons, 2.6% decline from March’s 8.34 million tons. Apparent supply also fell in April, down 4.7% versus the prior month. This analysis is based on steel mill shipment data from the American Iron and Steel […]
Flat Rolled = 54.7 Shipping Days of Supply Plate = 55.2 Shipping Days of Supply Flat Rolled US service center flat rolled inventories rose in May as many service centers reported signs of slowing demand. At the end of May, service centers carried 54.7 shipping days of supply on an adjusted basis, according to SMU […]
The European Union is adjusting its steel safeguard measures, according to a document filed at the World Trade Organization. The EU’s safeguard instrument is entering its fifth year of application. The liberalization rate, which is meant to progressively allow more import competition into the market while the domestic industry adjusts to it, had previously been […]
A growing number of steel market participants think that hot-rolled coil (HRC) prices will fall below $1,000 per ton ($50 per cwt). An increasing number also think that prices won’t hit bottom until the third quarter at the earliest. Check out the charts below. SMU’s HRC price was at $1,190 per ton ($59.50 per cwt) […]
Steel Market Update just conducted one of our flat rolled and plate steel market surveys. The data collected consisted of responses from service centers (46% of respondents), manufacturing companies (32%), steel mills (10%), trading companies (8%), suppliers to the steel industry (4%), and toll processors (2%). We intentionally weight the number toward distributors and manufacturing […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook Energy costs for consumers – in the form of utility bills and the cost of filling a car – have risen sharply, but not as sharply as the cost of crude oil and natural gas. But this doesn’t necessarily mean a lot more pain […]
Steel Market Update’s Steel Buyers Sentiment Index remained unchanged last week, holding steady at the third-lowest level seen in the past 13 months. Our Future Sentiment Index also remains unchanged compared to our late-May reading (which was the largest survey-to-survey decline since March 2020). SMU surveys steel buyers every other week and asks how they view their chances of success […]
Steel Market Update’s latest market check indicates steel mill lead times continue to decline for sheet products as they move closer to historical norms. Plate lead times have been relatively flat since mid-May. Lead times over the past two weeks have been roughly in line with what we were seeing in the early weeks of […]
Three out of four buyers report that mills are willing to talk price to secure an order, according to executives polled in our latest steel market survey. Mills’ willingness to negotiate has remained over 50% in each of our market checks over the last four weeks. Every other week, SMU asks survey respondents: Are you […]
May was a good month for market participants surveyed by SMU, most of whom reported meeting or beating expectations then. Approximately 55% of survey respondents said they met their business forecasts last month, 25% said they exceeded them, and only 20% said they missed forecast. The big question will be June, which has seen steel price […]
The US labor market added 390,000 jobs in May, a robust figure but a slower pace of hiring versus the upwardly revised 436,000 additional payrolls in April. The result kept the unemployment rate unchanged month on month (MoM) at the pandemic-era low of 3.6%, the Bureau of Labor Statistics reported. Payroll gains were better than […]