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, […]
The war in Eastern Europe is hitting close to home for some steel buyers. Steel Market Update’s survey this week asked readers: How might the Russian invasion of Ukraine impact your business? Roughly three out of four of the service center and manufacturing executives who responded said they fear at least some fallout from the […]
February marked month six of declining steel prices, following a 12-month streak of continuous price increases. Hot rolled prices declined $215 per ton throughout the month, with the SMU index averaging $1,020 per ton at the end of February (recall our HR average this week declined another $20 to $1,000 per ton). The SMU Price Momentum Indicator for sheet products was […]
U.S. manufacturing activity grew in February amid stronger demand and easing supply disruptions, according to the latest U.S. Manufacturing PMI data from IHS Markit. The report noted that the strong improvement in operating conditions was driven by the sharpest expansion in new orders since last October. Stronger new sales growth spurred manufacturers to increase staffing […]
Sentiment among purchasing managers surveyed by the Institute for Supply Management remains strongly optimistic, showing growth last month following a small dip in January. February’s Manufacturing PMI edged up to a reading of 58.6% versus 57.6% the month prior. The index reading above 50% indicates growth in the manufacturing sector, thus February’s measure marks the […]
The Chicago Business Barometer fell last month for the first time since last November, according to the latest indicators from Market News International (MNI) and the Institute for Supply Management (ISM). February’s Purchasing Managers Index (PMI) reading was 56.3, down 8.9 points from January, as almost a quarter of the firms surveyed reported New Orders […]
New orders for U.S. manufactured durable goods rose 1.6% in January, doubling earlier estimates of 0.8%, according to the Commerce Department’s report. The surprising gain came following an upward revision in December’s totals to a 1.2% gain from the prior estimate of 0.7% and represents an increase in eight of the last nine months. The […]
The next three months remain favorable for metalforming companies, though widespread supply shortages and other challenges continue, according to the February 2022 Precision Metalforming Business Conditions Report. There was little change in this month’s forecast for business conditions. Only 10% of companies predict a decrease in economic activity during the period, up slightly from 7% […]
U.S. consumer confidence slipped again in February following a downward revision in January, reported The Conference Board. The slight erosion in the headline index was the second straight decline following a small recovery in late 2021 that saw gains from September through December. Though results are mixed, the shift in momentum is worth noting. Sentiment towards […]
World crude steel production fell in January, unable to maintain the growth seen the month prior. Global output was estimated at 155 million metric tons last month, as steelmakers around the world cut production by 6.7 million metric tons or 2.3% from December, according to World Steel Association (worldsteel) data. After hitting an all-time high […]
U.S. gross domestic product (GDP) expanded at a 7% annualized rate in the fourth quarter as businesses stepped up their restocking of supplies, according to the Bureau of Economic Analysis (BEA) advanced estimate. This second review and upward revision to fourth-quarter GDP growth by the BEA reflected more business spending on nonresidential structures and investment […]
Demand for design services from architecture firms in the U.S. strengthened for the 12th straight month in January, with AIA’s Architecture Billings Index registering 51.0, according to the latest report from the American Institute of Architects. The ABI is an advance economic indicator for nonresidential construction activity with a lead time of 9-12 months. A score […]
Global crude steel production was estimated at 155 million metric tons in January as steelmakers around the world cut output by 6.7 million metric tons, or 2.3%, 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 […]
The number of active oil and gas drill rigs continues to recover in both the U.S. and Canada, 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 number […]
Despite the fact that steel prices have plunged since last fall, industry sentiment has not fallen nearly as sharply and remains at a highly optimistic level – a positive sign for the first half of the year. Steel Market Update surveys buyers every two weeks and asks how they view their chances of success in […]
Steel mill lead times, which have shortened to near historical averages, are about as low as they will go and now register only minor movements up or down from week to week, based on Steel Market Update’s surveys of the market. Likewise, SMU’s data on negotiations between mills and buyers has reached a similar steady […]
Monthly Key Market Indicators improved slightly through January, showing promising signs of progress, according to the latest analysis by Steel Market Update. Following a more uncertain close to 2021, both neutral and positive indicators expanded, while negative indicators continued to ease. Though economic dynamics remain in flux, with supply-chain bottlenecks and rising inflation and producer […]
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 […]