The market was shocked when President Trump revoked the exclusions and implemented tariffs on steel and aluminum imports from the United States’ closest trading partners Canada, Mexico and the EU. In this week’s canvass of the market, Steel Market Update asked industry executives if they expect any direct impact on their businesses as a result. […]
In the last 12 months, manufacturing employment has grown by 2.1 percent and construction employment by 4.1 percent, according to Bureau of Labor Statistics data—both positive indicators of future steel sales. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. Most of the goods-producing employees work […]
Net job creation in May hit 223,000 seasonally adjusted. Year over year, 2,363,000 jobs have been created, an increase of 1.6 percent, according to Bureau of Labor Statistics employment data. Rising employment and wages are the basis of GDP growth because personal consumption accounts for almost 70 percent of GDP. Steel consumption is related to […]
The U.S. packaging industry, which relies on imports of tinplate, is among the many concerned about the effects of President Trump’s tariffs on steel and aluminum imports. The Can Manufacturers Institute estimates that 42 percent of tinplate steel needs to be imported to manufacture food cans for American consumers. More than 60 percent of primary aluminum […]
With the Trump administration eliminating the Section 232 tariff exclusions for Canada, Mexico and the European Union, it is our opinion that the squeeze on supply coupled with higher prices due to the tariff will provide cover for the domestic steel mills to raise flat rolled and plate steel prices. SMU last moved our Price […]
The U.S. rig count, an indicator of oil country tubular goods demand, rose this week, according to June 1 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs rose by 1 to 1,060 rigs, with oil rigs up 2 to 861 rigs, gas rigs down 1 to 197 rigs, and […]
Supply executives polled for the Manufacturing ISM Report on Business reported strong business conditions in May. The PMI rose 1.4 points to 58.7 percent as new orders, production and employment continued to expand. Inventories are struggling to keep pace with demand. Longer supplier lead times and freight uncertainty is impacting inventory levels, said Timothy R. […]
Global manufacturing was at a nine-month low in May, according to data from J.P. Morgan and IHS Markit, in association with ISM and IFPSM. The composite Global Manufacturing PMI dipped to 53.1 from 53.5 in April. The second-quarter PMI average shows “mild growth deceleration” compared to the first quarter, said J.P. Morgan. The U.S. outperformed […]
Steel Market Update adjusted its price momentum indicator from neutral to higher in late May. Across the month, hot rolled steel prices averaged $886 per ton (up $13 over April), while cold rolled was at $1,007 (up $1), galvanized at $1,100 (unchanged), Galvalume at $1,322 (up $6), and plate at $966 (down $8). The SMU […]
In the table below, Steel Market Update provides a snapshot of flat rolled steel pricing, commodities that affected steel prices, and economic data of importance to the flat rolled steel industry in June. Looking back at the past month, SMU’s Pricing Momentum Indicator continued to point higher as the domestic mills reacted to the Trump […]
The MNI Chicago Business Barometer gained 5.1 points in May, jumping to 62.7 and its highest level since January. Output and orders drove the increase for manufacturers, although all five Barometer components rose this month. The production index was at a three-month high and new orders at a four-month high. The backlog index was at […]
The American iron and steel industry supports nearly two million jobs and contributes more than $520 billion to the U.S. economy, when considering the direct, indirect (supplier) and induced impacts of related commerce, claims a study released last week by the research firm John Dunham & Associates. The study also shows that the iron and […]
In May, consumer confidence improved to the highest level since December 2000, according to the latest findings from The Conference Board’s Consumer Confidence Survey. The composite value of consumer confidence in May was 128.0, up from 125.6 in April. While consumer confidence increased in May from April’s downwardly revised result, the three-month moving average (3MMA) […]
Manufacturing activity in the U.S. remains robust and economic indicators continue to point to a strong 2018, according to Steel Market Update’s latest analysis. This report summarizes seven data sources that describe the state of manufacturing in the United States. We have reported on most of these separately in our Steel Market Update publications, and […]
U.S. gross domestic product grew in every region of the country in last year’s second and fourth quarters, according to Bureau of Economic Analysis data. The BEA introduced a new data set for GDP by state and region in 2014 and backdated it to Q1 2005. This week, the data was updated through Q4 2017. […]
Global steel production was at an all-time high in March and declined only slightly in April. Production declined by 0.07 percent in April month over month and grew by 4.0 percent in three months through April year over year, according to the latest Steel Market Update analysis of World Steel Association data. China grew by […]
The steel market is waiting anxiously to see what happens June 1 when the tariff exclusions are set to expire for Canada, Mexico and the European Union. Some expect the exclusions to be extended as trade negotiations continue. Most expect steel prices to remain steady or move higher, based on an informal canvass of Steel […]
Orders for manufactured goods fell 1.7 percent in April to $248.5 billion, according to the latest Commerce Department data. Transportation equipment drove the decrease, declining $5.6 billion, or 6.1 percent, to $87.1 billion. Orders for commercial jets plummeted 29 percent in April after soaring 61 percent in March. Excluding transportation orders, the index rose 0.9 […]
Chinese steel trade data was recently released for the month of April 2018, providing updated data on iron ore imports, scrap imports and flat rolled imports and exports. Chinese imports of iron ore in April totaled 82,920,000 metric tons, a decrease of 3.3 percent from the previous month, but an increase of 0.8 percent from […]
Last month, Steel Market Update reported that the dollar had been trading in a narrow range for eight weeks and on April 13 had the same value as on Feb. 14. In the four weeks leading up to May 18, the situation completely changed as the dollar strengthened by 4.1 percent. (See the end of […]
What are the potential long-term implications of the Trump administration steel tariffs, in particular their effects on rerollers in the United States? Steel Market Update canvassed steel executives this week for their views on current market conditions, and the impact of the tariffs on pricing and availability clearly remains a source of concern. “I buy […]
The Architecture Billings Index rose modestly in April posting a score of 52.0, indicating a seventh consecutive month of growth and a one point gain from March. New project inquiries, an indicator for future billings, fell to 56.7 from the March score of 58.1, reported the American Institute of Architects. Labor shortages, higher prices for […]
Steel Market Update canvassed the market on May 22 to gather steel executives’ views on supply, demand and pricing in the current environment. Some also shared their thoughts on their biggest challenges today. Below are some of their more insightful comments: Q: Are you seeing any signs that steel prices are going to “break out” […]
With the price of oil now above $70 per barrel, the prospects appear positive for oil country tubular goods. But economic and political tensions on a global scale will keep energy prices uncertain. The spot price of West Texas Intermediate (WTI) broke through $70 on May 7 for the first time since Nov. 27, 2014. […]
Service centers held essentially the same number of months of supply of flat rolled steel inventories at the end of April as they did as of the end of March 2018. SMU Service Center Months of Supply Index for flat rolled (sheet) steel is 2.7 months based on responses from 95 percent of the steel […]
Steel demand has remained surprisingly strong in 2018, even as prices have escalated and trade disputes have made purchasing riskier. But Steel Market Update data suggests that demand may be weakening. SMU canvasses the flat rolled steel market every two weeks. A clear majority (62 percent) of the respondents to the May 14 questionnaire indicated […]
Despite all the uncertainty on the trade front, demand has stayed strong, and buyers and sellers of flat rolled steel remain optimistic about their chances for success in current and near-term market conditions. The SMU Steel Buyers Sentiment Index, which measures how buyers and sellers of flat rolled and plate steels feel about their companies’ […]
Mill lead times, which had been stretching for much of the year, may have turned the corner. Flat rolled lead times are still extended, but appear to be stabilizing, according to Steel Market Update’s latest market trends data. Lead times for hot rolled now average about five and a half weeks, cold rolled about seven […]
Steel mills appear slightly more willing to negotiate spot prices on hot rolled, cold rolled and coated steel than a month ago, according to respondents to this week’s Steel Market Update market trends questionnaire. “They will negotiate, but from a high number,” commented on service center executive. “It depends on the mill, but most are […]
March was a strong month for both steel mill shipments and demand for rolled steel products, but this was partly a seasonal effect. This conclusion is based on Steel Market Update’s analysis of data from the American Iron and Steel Institute (AISI) and the U.S. Department of Commerce. March was a good month for both […]