New York manufacturers had a robust month in April with new orders and shipments accelerating. The Empire State Manufacturing general business index rose 9 points to 26.3, its highest level in more than two years. New orders soared nearly 18 points to 26.9 and the shipments index climbed to 25.0. Delivery times continued to lengthen, […]
Flat Rolled = 41.4 Shipping Days of Supply Plate = 43 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories remained very lean in March, as shipments were strong, but mills continued to run late on deliveries. At the end of March, U.S. service centers had 41.4 shipping days of supply of […]
Steel Market Update’s latest analysis of the monthly Key Market Indicators shows that our Present Situation markers have seen little change when compared to the month prior, while the Trend change saw a visible shift upward during the same period. Overall, the marketplace continues to recover from the pandemic as key metrics show further improvement. […]
Mill shipments of steel products fell 9.8% month on month in February, while apparent supply was down by 12.5% during the same period. This is the first noticeable decrease in both apparent supply and shipments of steel since the market reached bottom back in May 2020. Mill shipments were down by 13.1% year on year, […]
Spring has sprung including a bounce in economic activity, according to the latest Federal Reserve Beige Book. The April survey of federal districts showed a moderate increase in activity from auto sales to tourism, along with heightened optimism. Spring break, vaccine rollout and stimulus payments gave the tourism industry a boost from late February to […]
Usinas Siderurgicas de Minas Gerais (Usiminas) is set to bring an idled blast furnace back online in June at their Ipatinga plant in Brazil’s southeastern state of Minas Gerais, according to Steel Market Update sources. Back in April 2020, Usiminas idled the #1 and #2 blast furnaces due to lower demand resulting from widespread closures and […]
Talking to workers about the life-saving potential of COVID-19 vaccinations has turned into a personal mission for one mill executive (who asked not to be identified). “I spend at least one hour per day, every day, on COVID stuff. It’s frustrating there’s so much resistance.” Nearly all the individuals in his corporate suite have gotten their […]
The number of active U.S. rotary drill rigs continued to increase this past week, while the Canadian rig count declined, according to data released 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 demand. The number of active […]
The Energy Information Administration’s April Short-Term Energy Outlook remains subject to heightened levels of uncertainty as responses to COVID-19 continue to evolve. Reduced economic activity from the pandemic caused a decline in 2020 energy demand and supply. As of April 6, the EIA expects oil demand to strengthen, as COVID-19 vaccination rates and global economic […]
The U.S. economy added 916,000 jobs in March, posting increases for a second consecutive month and pushing well ahead of early estimates, reported the Bureau of Labor Statistics (BLS). Gains were strongest in leisure and hospitality, while construction jumped by 126,000. Following a depressing close to 2020 and a loss of 447,000 jobs in January, total […]
The U.S. labor market saw a strong surge in employment to closed out the first quarter. The U.S. Bureau of Labor Statistics (BLS) reported that employers added 916,000 to their payrolls in March, more than doubling the 379,000 jobs added in February. Following a dismal close to 2020 and a slow start in January, total […]
Producer prices continue to register solid monthly increases from the losses suffered during the early days of the COVID-19 pandemic. The composite Producer Price Index (PPI) of all commodities from the Bureau of Labor Statistics (BLS) showed an increase of 2.1% in February versus the prior month, and a 6.0% increase year on year, seasonally adjusted. […]
Producer prices continue to rebound from the losses suffered during the early days of the COVID-19 pandemic last year. Since the decreases in March and April of 2020, the composite Producer Price Index (PPI) of all commodities from the Bureau of Labor Statistics (BLS) has seen consistent month-on-month increases. March’s index registered a 3.7% increase versus the prior […]
U.S. Secretary of Commerce Gina Raimondo announced two new initiatives the Biden administration is taking to advance its clean energy goals. They consist of offshore wind power generation and a data-sharing agreement between the National Oceanic and Atmospheric Administration (NOAA) and Ørsted Wind Power North America LLC, an offshore wind developer. The administration’s renewable resource […]
For the seventh consecutive month, steel prices rose throughout March, fueled by a continuation of strong demand and limited supply. Hot rolled steel prices averaged $1,300 per ton by the middle of the month, far exceeding any historical price record, and reached $1,330 by the last week of March. The SMU Price Momentum Indicator has […]
U.S. gross domestic product (GDP) finished 2020 with annualized growth of 4.3% in the fourth quarter, a slight upward adjustment based on the third estimate from the Bureau of Economic Analysis (BEA). The third estimate included upward revisions to private inventory investment that was partly offset by a downward revision to nonresidential fixed investment. An annualized […]
U.S. consumer confidence took a major leap forward in March, according to the latest data from The Conference Board. “Consumer confidence increased to its highest level since the onset of the pandemic in March 2020,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions and their short-term […]
U.S. consumer confidence saw major gains in April, according to the latest data from The Conference Board. April’s index rose by about 13.0 points month on month, following a nearly 18.6-point increase in March. “Consumer confidence has rebounded sharply over the last two months and is now at its highest level since February 2020,” said Lynn […]
Rising costs and supply-chain disruptions remained headwinds for manufacturers across the globe in March. Despite the challenges, the J.P. Morgan Global Manufacturing PMI reached a 10-year high of 55.0. Manufacturing output expanded at the strongest rate in a decade as demand strengthened domestically and in international trade. Growth was reported in 23 of 27 nations […]
The CRU Group has developed a web-based tool to help users understand emissions at the company and asset level to make better decisions in pursuit of lowering the carbon released into the atmosphere. CRU’s Emissions Analysis Tool uses standardized data and methodologies, calibrated to existing schemes such as the EU emissions trading system (EU ETS), International […]
The Biden administration’s ambitious American Jobs Plan, which calls for an historic investment in the nation’s infrastructure, offers enormous promise for the U.S. economy and steel demand, but it faces pushback on several fronts. President Biden addressed the nation from Pittsburgh yesterday afternoon to pitch his vision for an eight-year, $2-trillion infrastructure spending plan that […]
U.S. manufacturing is on a solid path to recovery, according to the latest report from the Institute for Supply Management. The March 2021 Manufacturing ISM Report on Business posted a PMI of 64.7, a gain of 3.9 points from February. Expanding demand resulted in new orders, production and employment growing at a faster rate in […]
The prevailing sentiment among steel buyers remains as steadfastly positive as steel prices are steadfastly high. Steel Market Update’s Steel Buyers Sentiment Index saw only minor changes since SMU’s last check of the market. Every two weeks, SMU asks buyers how they view their company’s chances for success in the current environment, as well as […]
Buyers continue to express frustration over the hugely extended lead times for delivery of steel from the mills. One respondent to Steel Market Update’s questionnaire this week described lead times as “late, late and late. That goes for imports, too.” Added another: “Lead time is not the issue. If they deliver 2-6 weeks late, the […]
Steel Market Update’s lead times data has seen only small changes from week to week since early March. Average lead times for hot rolled steel remain highly extended at just under nine weeks, while deliveries of cold rolled and coated products now take nearly 11 weeks. Lead times are an indicator of steel demand—the longer the […]
Steel Market Update’s latest lead times data shows a significant increase in delivery times for spot orders of flat rolled and plate from the mills. The average lead time for hot rolled is now nearly 10 weeks and coated products around 12 weeks—an increase of a week or more from the last survey in mid-April. […]
It’s hard to believe that lead times could get much longer, but that appears to be the case. Steel Market Update’s latest survey data shows that flat rolled delivery times have stretched by an additional one to two weeks over the past month. Lead times are an indicator of steel demand—the longer the average lead […]
No change to report in the latest Steel Market Update negotiations data. The dynamic between buyers and sellers remains virtually the same. “The mills don’t negotiate at all, and I don’t blame them one bit. Why should they negotiate when there isn’t enough tonnage to go around?” commented one respondent to SMU’s questionnaire this week. […]
The Chicago Business Barometer reached its highest level since July 2018, soaring to 66.3 in March from 59.5 in February, reports MNI indicators. For the first quarter of 2021, the index gained 4.4 points for a reading of 63.2, the best result since Q3 2018. The production index soared 10.1 points to 72.0 in March […]
Global crude steel production totaled 150.2 million metric tons in February, up 4.1% from the same month last year, reported the World Steel Association. Despite the positive year-over-year result, February’s total was down 7.8% from January and was the lowest output since July 2020 when monthly production was 155.5 million metric tons. February’s data is […]