Industry sentiment, which was already at surprisingly optimistic levels, moved even higher in the past two weeks as steel prices continued to rise and the nation picked a new president. Every two weeks, SMU asks steel buyers how they view their company’s chances for success in the current environment as well as three to six […]
Steel Market Update’s check of the market this week shows that the flat rolled mills are extremely busy and operating near full capacity. More than 80 percent of the service center and OEM executives responding to SMU’s questionnaire said they are seeing late deliveries from their mill suppliers. More than 60 percent expect a shortage […]
Pathway to Low CO2: Insight into How the Steel Industry Can Decarbonize Join the next sessions in CRU’s emissions series at 9 a.m. EST on Wednesday, Nov. 11. Reducing emissions is among the top priorities of organizations around the world and presents special challenges and opportunities for the steel industry. CRU analysts will answer such […]
After declining drastically earlier in the year due to the onset of COVID-19, U.S. consumer confidence has improved, but still has a way to go. Following increases in August and September, the composite value of consumer confidence, as reported by The Conference Board, slipped slightly in October to 100.9, down from 101.8 the month prior. […]
By Tony Barnes and Andrew O. Callaghan Although the COVID-19 pandemic has caused companies in many industries to scale back various improvement projects and expansion plans, it does not appear to be slowing the adoption of advanced digital technology in the metals industry. Recent survey data, reinforced by extensive industry observation, suggests that many metals […]
The active U.S and Canadian drill rigs count continues to inch upwards, 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 increased by 4 […]
Steel prices continued to climb in October as demand rose further on hot rolled, cold rolled and galvanized products. Steel Market Update’s hot rolled price index averaged $665 per ton in October, up nearly $100 over the previous month and up over $200 compared to August. The SMU Pricing Momentum Indicator remained at Higher, indicating […]
By CRU China CEO John Johnson and Economist Yingrui Wang Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium level subscription, email Info@SteelMarketUpdate.com. China’s Five-Year Plan (FYP) is a key guide to the strategic direction of China. In this Insight we explain the significance […]
By CRU Principal Analyst James Campbell, from CRU’s Global Steel Trade Service The recent acceleration in news of a pre-approved vaccine has led us to bring forward the economic recovery to the first half of 2021. Confidence has returned and spending is resuming. An earlier-than-expected vaccine provides upside risks to our automotive and construction outlook. […]
By CRU Chief Economist Jumana Saleheen and Principal Economist Alex Tuckett, from CRU’s Steel Monitor In this Global Economic Outlook, we look ahead to 2021 and outline our top ten calls for the global economy. These include predictions on Covid-19 vaccines, world growth, the auto and construction sectors, the U.S. dollar, monetary and fiscal policy, […]
The ISM Manufacturing PMI exceeded expectations in October posting a score of 59.3 percent, a 3.9 percent increase from September and indicating factory growth for the fifth consecutive month. “The manufacturing economy continued its recovery in October,” said Timothy Fiore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee. “Survey committee members reported that […]
The J.P. Morgan Global Manufacturing PMI reached a 29-month high in October, posting a score of 53.0. Manufacturing output expanded across consumer, intermediate and investment goods industries with the weakest sector consumer goods. Twenty of 26 countries in the survey saw manufacturing activity increase, however activity in Japan, Greece, Malaysia, Indonesia and Russia contracted last […]
The Global Forum on Steel Excess Capacity has called for renewed action to address excess steel capacity during a time of economic crisis. The forum offered its analysis and recommendations in its 2020 GFSEC Ministerial Report. “The pandemic has led the world economy into its worst downturn in decades,” said Valdis Dombrovskis, executive vice-president if GSFEC […]
Editor’s note 11/3/20: Some of the data as originally published in Table 1 was incorrect due to a spreadsheet error (specifically the change in shipments 3M Y/Y column). The table has been updated with the correct information below. Mill shipments and supply of sheet products have turned, albeit slightly, since reaching bottom in […]
The October Energy Information Administration (EIA) Short Term Energy Outlook remains subject to heightened levels of uncertainty because mitigation and reopening efforts related to COVID-19 continue to evolve. Reduced economic activity from the pandemic has caused changes in 2020 energy demand and supply patterns and will continue to affect these patterns in the future. EIA […]
Industry sentiment has rebounded to levels exceeding those seen prior to the pandemic, and steel executives polled by Steel Market Update this week have a fairly optimistic outlook on their future as well despite concerns about a second wave of COVID-19. Every two weeks, SMU asks steel buyers how they view their company’s chances for […]
In most regions in Q2 2020, gross domestic product, as reported by the states, declined by more than the nationally reported number. The Bureau of Economic Analysis (BEA) reports GDP by state and region on a quarterly basis. This data is released several weeks after the national report, but the BEA has committed to getting […]
The Chicago Business Barometer marked its fourth consecutive month of expansion with a PMI of 61.1 in October. The headline index eased slightly from last month’s reading of 62.4 with only new orders advancing during October, gaining just 0.2 points. The production index fell 5.9 points and backlogs eased to a two-month low. The inventories […]
Lead times for spot orders of steel continue to extend with hot rolled delivery now averaging more than six and a half weeks and coated steel orders around eight and a half weeks. Lead times are an indicator of steel demand—longer lead times mean the mills have more orders to process and are less likely […]
Signaling that the mills remain busy, lead times for delivery of spot orders continue to lengthen with hot rolled now averaging more than six and a half weeks and coated steel orders around nine weeks. Lead times are an indicator of steel demand—longer lead times mean the mills have more orders to process and are […]
Mills continue to control negotiations over hot rolled, cold rolled and coated steel orders as they seek to collect higher prices in a market characterized by extended lead times and tight supplies. About 86 percent of the hot rolled steel buyers responding to Steel Market Update’s market trends questionnaire this week said the mills are […]
Mills continue to hold the upper hand in negotiations over hot rolled, cold rolled and coated steel orders as they work to collect higher prices in a tight market with extended lead times. Buyers report the mills will only negotiate on big tonnages to be delivered in 2021. About 86 percent of the steel buyers […]
GDP contraction in the second quarter of 2020 was the highest ever recorded at negative 31.4 percent. Growth in the third quarter was also the highest ever at positive 33.1 percent. GDP in Q3 was 2.9 percent below the first quarter result. On Oct. 29, the Bureau of Economic Analysis (BEA) released the first estimate […]
By CRU Chief Economist Jumana Saleheen and Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook In this Global Economic Outlook, we reflect on some of the most important risks to the forecast we discussed with clients during LME week. Three issues were foremost: risks to the recovery from the second Covid-19 wave, policy stimulus […]
The final outcome of next week’s presidential election may well boil down to the difference in turnout–in just a handful of counties in three pivotal swing states–among two key demographics: non-college-educated working class males for Trump vs. college-educated suburban women for Biden, predicts Dr. David Schultz, political analyst and professor of political science and legal […]
Orders for durable goods increased for the fifth straight month, up 1.9 percent to $237.1 billion and surpassing expectations. Transportation orders led the increase with a 4.1 percent gain. Automotive orders rose 1.5 percent in September on continued strong sales for SUV’s and light trucks. The commercial airline industry, showing losses through the pandemic, had […]
The number of active U.S and Canadian gas and oil rigs increased yet again this past week, according to 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 increased by […]
Steel associations from around the globe called on steel-producing economies to intensify their work in the Global Forum on Steel Excess Capacity. Recent increases in steel overcapacity have reversed a three-year declining trend and are of “tremendous concern” during a pandemic where steel demand is severely depressed. The associations urge participating countries in the Global […]
Economic activity grew at a slight to modest pace in early October with inconsistency among sectors, says the Federal Reserve’s latest Beige Book. Manufacturing activity growth was moderate and the sector added jobs across the country. Demand for new and existing homes kept residential construction robust, but interest in commercial real estate leasing deteriorated. Construction […]
ESG (Environmental, Social and Governance) and decarbonization are big concerns for corporate investors in the metals and mining sector, according to a recent survey by CRU. How prepared are global corporations to take on the changes needed to reach zero emissions? China is a leader in decarbonization, announcing in September a target of net zero emissions […]