Durable goods orders rose 2.4 percent in December supported by a surge in defense spending. Defense capital goods increased 90.2 percent last month primarily due to orders for defense aircraft, the Census Bureau reported. The uptick in December orders follows a sharp decline in November of 3.1 percent, revised downward from 2.1 percent. Excluding the […]
U.S. gross domestic product had positive growth in every region of the country in each of the first three quarters of 2019, according to Bureau of Economic Analysis data. The BEA reports GDP by state and region on a quarterly basis. This data is released several weeks after the national report. The latest data was […]
The South Central region of the U.S. created the most jobs in the fourth quarter of 2019, with the Pacific in second place, based on government employment data. Fourth-quarter regional employment data by state was released by the Bureau of Labor Statistics (BLS) on Friday. The state data follows and confirms the employment situation that […]
Steel buyers sentiment continued to improve through mid-January with Steel Market Update’s Current Sentiment Index registering +63, its highest reading since November 2018. Sentiment has been on the rise since October when it hit a low of +26, its most pessimistic reading since June 2013. (Historical low was in March 2009 when it hit -85.) […]
The benchmark price for hot rolled steel dipped by about $20 last week to an average price of $590 per ton, according to Steel Market Update data. Despite the small decline, most of the steel buyers responding to SMU’s latest market trends questionnaire believe prices still have upward momentum. Let’s look at the data for […]
Lead times for hot rolled and cold rolled steel have flattened out, seeing little change in the past month, as measured by Steel Market Update. Lead times for steel delivery are an indicator of demand at the mill level. The longer the lead time, the busier the mill. Lead times in general are about a […]
Negotiations between steelmakers and steel buyers on new spot orders appear to have loosened slightly on hot rolled and cold rolled, but not to levels we saw in late 3rd quarter 2019. In the hot rolled segment, the majority of buyers (58 percent) said the mills are now more willing to negotiate prices on HR, […]
The Architecture Billings Index rose for the third month in a row reaching 52.5 in December, according to the latest report by the American Institute of Architects. A reading above 50 indicates an increase in design services by architecture firms. Indices for new project inquiries and design contracts were positive, at 58.7 and 53.4, respectively. […]
Import/export steel prices lead the market higher, reported CRU experts in a webinar recorded on Jan. 17 as part of the monthly webcast series within CRU’s Global Steel Trade Service. The 25-minute presentation can be viewed any time by clicking the link below. Overview Matt Watkins discusses developments at the global level in the internationally […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Based on Steel Market Update’s analysis of 10 indicators in January, the decline in U.S. manufacturing continues. This report summarizes 10 data streams that describe the state of U.S. […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Crude oil production set another all-time record in the U.S. in October, but the rig count continues to decline. On Jan. 3, oil prices surged briefly on news of […]
U.S and Canadian active rig counts increased 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 rose by 15 to 796, with oil rigs up […]
Steel Market Update’s analysis of flat rolled and plate inventories and shipments for the month of December: Flat Rolled = 62.9 Shipping Days of Supply Plate Steels = 60.4 Shipping Days of Supply Flat Rolled Service center flat rolled steel inventories increased 5.7 percent month on month while shipments fell 10.1 percent, according to adjusted […]
In January, we have replaced the British pound in this report with the Vietnamese dong in recognition that Vietnam is now a much bigger player in the global steel market than is the UK. The U.S. dollar has strengthened against 13 of the 16 steel trading nation currencies in the last three months. In this […]
The composite producer price index of commodities peaked in October 2018, then through December 2019 declined by 2.6 percent. This Steel Market Update report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of the competitive position of sheet steel, aluminum, plastic and wood. The analysis […]
The official economic statistics out of China show a decline in GDP to a level slightly lower than the depths of the global recession in 2009. China’s share of global steel production was 54.3 percent in November. Once each quarter we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed […]
By CRU Senior Cost Economist Ross Cunningham, from CRU’s Global Steel Trade Service The oil market in 2020 started with a bang—multiple in fact, over the skies of Baghdad. On Jan. 3, U.S. missiles killed Iranian Major General Qasem Soleimani and four others. Iran vowed “severe revenge” and on Jan. 8 fired missiles at air […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium-level subcription, email Info@SteelMarketUpdate.com. This month we have expanded our report on steel product downstream shipments and inventories to include total manufacturing. We are (but shouldn’t be) surprised by the result, which confirms […]
The wind energy industry received a boost from a U.S. spending bill approved in December. The bill extends energy tax credits for wind, solar and other green energy projects to 2024. Due to the extension, IHS Markit is now expecting a boom rather than a decline for the industry in 2020. The extension increased the […]
Manufacturing in New York State expanded modestly in January. The Empire State Manufacturing Survey’s general business conditions index gained 1.5 points to post 4.8 for the month. Shipments posted 8.6, down one point from December, but new orders gained 4.9 points to post 8.6. Unfilled orders continued to decline, delivery times were shorter, and inventories […]
American business is facing a year of opportunity and uncertainty, says U.S. Chamber of Commerce CEO Thomas Donohue. In an address on the State of American Business, Donahue points to a “patchwork” of state rules and regulations that will stifle the free flow of goods and services if left unchecked. Data privacy is one example […]
Using U.S. International Trade Commission (USITC) data, Steel Market Update has taken the import tonnage of cold rolled sheet and broken it down into coil and leveled, then our report breaks out four thickness ranges and identifies how much was full hard, annealed and high strength. Through November 2019, of the total cold rolled sheet […]
The number of jobs created in December declined from the excellent November result on a seasonally adjusted basis. Net job creation in December declined to 145,000 from November’s exceptional result of 256,000. October and November were both revised down by 10,000. Rising employment and wages are the main contributors to GDP growth because personal consumption […]
Job creation decline by 21.3 percent in 2019, compared with 2018, according to Bureau of Labor Statistics data. The December employment reports were delayed by a week due to the holidays. In December, 20,000 jobs were created in construction and 12,000 jobs were lost in manufacturing. The private sector gained 139,000 jobs in December as […]
Indicators of economic activity through Jan. 10 data do not predict an imminent U.S. recession. In this report, we have identified eight indicators that have some predictive ability about the short-term likelihood of a recession (definition below). Viewed individually, these don’t offer much insight into the future, but viewed collectively they give subscribers a better […]
As the laws of economics have proven time and again, supply and demand will determine whether steel prices continue to rise in 2020. Demand is set by the marketplace; supply can be controlled by producers. Steel Market Update canvassed the market this week, asking readers: Has enough flat rolled capacity been removed to keep prices […]
Lead times for coated steels and steel plate have extended a bit, but lead times for orders of hot rolled and cold rolled have seen little change in the past few weeks. Lead times for steel delivery are a measure of demand at the mill level. The longer the lead time, the busier the mill. […]
Negotiations between steelmakers and steel buyers were mixed in early January, depending on the product. Responses to Steel Market Update’s market trends questionnaire this week indicate that talks over price have tightened considerably for plate, while loosening slightly for hot rolled and cold rolled orders. In the hot rolled segment, the majority of buyers (56 […]
Written by: John Packard, President & CEO Steel Market Update Your customer will tell you what you need to know. The key is to listen. The key is to suppress your temptation to dominate the conversation. Brian Buckalew, Vice President of Business Development, Majestic Steel, recently wrote in a LinkedIn post: “People that are not […]
Steel buyers sentiment has seen a notable improvement as business conditions appear favorable to start the new year. Both the Current and Future Sentiment indexes had readings above +60 this week. The goal of SMU’s index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current […]