Metalforming firms are expecting business conditions and order activity to remain unchanged during the next three months, said the Precision Metalforming Association in its December 2020 Business Conditions Report. “Metalforming manufacturers are showing resiliency during the COVID-19 pandemic, but finding workers continues to be a challenge despite the high unemployment rate,” said PMA President David […]
President-elect Joe Biden will hit the ground running due to his past experience in Washington and the depth of experience of his Cabinet choices, said Omar Nashashibi, founding partner of the Franklin Partnership, during a FABTECH webinar last week. Expect to see a flurry of executive orders and memorandums from the new executive office regarding […]
There was no reprieve in November for architecture firms that have seen billings shrink for the past nine months. The American Institute of Architects reports the Architecture Billings Index slid to 46.3 in November, down from October. Although inquiries into new work have risen, albeit at a slower pace, the value of new design contracts […]
U.S and Canadian active rotary drill rig counts were mixed this week, according to updated 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 U.S. rigs rose by 8 this week […]
Steel Market Update is please to share this Premium content with Executive members. For more information on upgrading to a Premium level subscription, email Info@SteelMarketUpdate.com. The Energy Information Administration’s Dec. 8 Short-Term Energy Outlook remains subject to heightened levels of uncertainty because responses to COVID-19 continue to evolve. Reduced economic activity from the pandemic has […]
Flat Rolled = 40.0 Shipping Days of Supply Plate = 45.7 Shipping Days of Supply Flat Rolled Service center flat rolled steel inventories continue to reach new lows. At the end of November, service centers carried 40 shipping days of supply, down from 43.1 days in October. November had 19 shipping days, compared to October’s […]
After reaching bottom in June, due largely to the global pandemic, mill shipments and supply of sheet products have since maintained a slow but steady upward trajectory. This analysis is based on steel mill shipment data from the American Iron and Steel Institute (AISI) and import-export data from the U.S. Department of Commerce. The analysis […]
The December Empire State Manufacturing Index indicated a loss of momentum in the New York region. The headline General Business Conditions index fell to 4.9 from November’s reading of 6.3. “Like the prior month, manufacturing activity in New York State expanded only to a small degree in December,” said the Federal Reserve Bank of New […]
Data from the World Steel Association through October shows how much global crude steel production has recovered from the worst of the pandemic earlier in the year. Figure 1 shows annualized monthly global steel production on a three-month moving average (3MMA) basis and capacity utilization since January 2000 based on capacity data from the OECD. […]
Downstream steel product shipments continue to improve, though slower than the overall manufacturing economy. The fallout driven by the first wave of the global pandemic back in April is still evident in the data despite the steady rebound. The Census Bureau provides monthly data on inventories, shipments and new orders for total U.S. manufacturing and […]
Manufacturing has continued to reshore back to the United States this year, despite the challenges presented by COVID-19. Reshoring will continue to be an essential part of the recovery of the U.S. economy in 2021 and beyond, said Harry Moser, founder of the Reshoring Initiative, an advocacy group he formed in 2010 to bring manufacturing […]
The November employment report released Friday by the Bureau of Labor Statistics showed a net gain of 245,000 jobs, a positive move but only half of economists’ consensus expectations. The gain was down from October’s 610,000 new jobs. In the November data, September was revised up by 39,000 and October was revised down by 28,000. […]
Employment gains have slowed each month since June, with a disappointing result in November, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics data. The net change in employed persons in November was 245,000. Employment gains have slowed each month since June when 4.8 million jobs were recovered. The base line against […]
U.S and Canadian active rotary drill rig counts were steady to up this week, according to updated 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 U.S. rigs rose by 3 […]
U.S. industrial production, manufacturing and durable goods orders continue to improve from the coronavirus pandemic downturn earlier this year. The health of the manufacturing economy has a direct bearing on the health of the steel industry. The Industrial Production Index The IP index is a gauge of output from factories, mines and utilities. Industrial production […]
Economic expansion in November was characterized as “modest or moderate” by the Federal Reserve in its latest Beige Book. Activity slowed in Philadelphia and three Midwest districts as COVID-infection rates surged at the beginning of the month. Higher than average growth was reported for manufacturing, distribution and logistics, homebuilding, and existing home sales. Some sectors […]
Steel prices continued to climb in November on strong demand and tight steel supplies. Steel Market Update’s hot rolled price index reached $770 per ton by the end of November, up 10 percent from the beginning of the month. The SMU Pricing Momentum Indicator remained at Higher, indicating prices are expected to rise further over […]
Kevin Dempsey has been named president and CEO of the American Iron and Steel Institute by the AISI Board of Directors. Dempsey has been serving as interim president and CEO since the retirement of Thomas Gibson in June. “Kevin Dempsey has been a driving force for the steel industry’s advocacy on our key priorities for […]
Global manufacturing had its best month of the year in November, expanding for the fifth consecutive month. The J.P. Morgan Global Manufacturing PMI posted a 33-month high of 53.7 with growth in all three industry sectors: consumer, intermediate and investment. Nineteen of 30 territories reported expansion last month, led by higher output in China and […]
The ISM Manufacturing PMI dipped 1.8 points in November to register 57.5, remaining in positive territory but indicating concerns related to the latest surge of COVID-19. “Manufacturing performed well for the sixth straight month, with demand, consumption and inputs registering growth, but at slower rates compared to October,” said Timothy Fiore, chairman of the Institute […]
Industry sentiment inched even higher in the past two weeks now that the presidential election is in the rearview mirror and a COVID vaccine is in sight in the months ahead. The COVID pandemic remains a weight on Future Sentiment, however. Every two weeks, SMU asks steel buyers how they view their company’s chances for […]
Steel buyers continue to feel solidly optimistic about their prospects in the weeks and months ahead, though the limited availability of steel is causing widespread concern. As one service center exec commented this week: “The tightness in supply is what will hinder us from being successful. We can’t make a sale if we can’t get […]
The Chicago Business Barometer slipped 3.6 points to 58.2 in November for its lowest level since August. New orders fell 5 points and production 1.2 points. Orders remained below pre-crisis levels, but demand varied, with some companies reporting an uptick while others saw stagnant conditions, said MNI Indicators. The backlog index rose 0.9 points, remaining […]
Orders for manufactured durable goods gained 1.3 percent in October, said the Commerce Department last week, marking the sixth consecutive month of growth. Orders totaled $240.8 billion following a 2.1 percent gain in September. Transportation orders, up five of the last six months, grew 1.2 percent to $77.1 billion. Orders for commercial aircraft and parts […]
How much further can lead times extend? We’ll let you know. But there is no sign yet that they have peaked. Lead times for delivery of spot orders continue to stretch with hot rolled now averaging nearly seven weeks and coated steel orders nearly nine and a half weeks. Lead times are an indicator of […]
Lead times for spot orders of hot rolled steel have extended by another half-week as demand persistently outpaces supplies. Lead times for steel deliveries continue to stretch with hot rolled now averaging nearly seven and a half weeks and coated steel orders around nine and a half weeks. Lead times are an indicator of steel demand—longer […]
In a market where supplies of various products are so tight that some buyers say they would be willing to pay almost any price just to get material, there is very little negotiation going on between the mills and their spot market customers. The mills have no reason to bargain when demand is so far […]
There is very little negotiation going on between the mills and their spot market customers as supplies remain extremely tight and buyers are happy just to find available material, even if they have to pay a substantial premium. It has been a seller’s market since September, with the mills enjoying most of the leverage, and […]
The drill rig counts in the U.S and Canada were mixed this week, according to updated data released by oilfield services company Baker Hughes. The active drill rigs count is important to the steel industry because it is a leading indicator of oil country tubular goods demand. The number of active U.S. rigs fell by […]
Architecture firms report that project planning in October remained weak for the eighth consecutive month. The Architecture Billings Index rose slightly to 47.5 from September’s reading of 47.0, but any number below 50 indicates a decline in billings. The project inquiries index was a more promising sign for future business conditions, climbing to its highest […]