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 […]
As the world continues to work itself back from the doldrums of the COVID health pandemic, global crude steel production seems to be hitting its stride as it strives to catch up with rising demand. Except for Brazil, which saw no change in crude steel production month on month, all the top 10 global producers and regions […]
World crude steel production, at 150.2 million metric tons, was 4.1% higher in February than in the same month last year, reported the World Steel Association. February’s data is significant in that it’s the last month that year-over-year figures can be compared pre-pandemic without being skewed by COVID, which hit in March last year. February’s […]
The Architecture Billings Index rose eight points in February to 53.3, returning to positive territory for the first time in a year, said the American Institute of Architects. New inquiries improved last month, climbing above 50 for the first time in almost two years, along with a return to growth in value of new contracts […]
After nine months of gains, orders for durable goods surprised economists with a 1.1% decline in February to $254 billion. The U.S. Census Bureau report on Wednesday indicated core capital goods–non-defense orders minus aircraft and a measure of future investment–dipped 0.8% after gaining 0.6% in January. The decline in new orders was led by a […]
Ken Simonson, chief economist at the Associated General Contractors of America, will be the featured speaker at the next SMU Community Chat beginning at 11 a.m. ET on Wednesday, March 31. Simonson will speak to the status of the residential, commercial and industrial construction markets and forecasts for construction in the coming months. He will also cover […]
Lead times for steel and other materials continued to lengthen in March, said 60% of metalforming firms in the latest Precision Metalforming Association Business Conditions Report. Lead times have lengthened each month since September 2020 when 16% of PMA members reported longer lead times. “Metalforming manufacturers are seeing an uptick in business, but their ability […]
Steel product shipments continued to improve through January this year, maintaining a month-on-month growth trend since bottoming in April 2020 when COVID shook the economy. Steel shipments have recovered to pre-pandemic volumes and posted an increase of 2.7% compared to January 2020 levels, according to Census Bureau data on inventories, shipments and new orders for total […]
A railway network spanning Canada, the U.S. and Mexico is in the planning by Canadian Pacific and Kansas City Southern Railways. The two companies have entered into a merger agreement in which CP will acquire KCS for $29 billion and assume $3.8 billion of KCS debt. If approved by the Surface Transportation Board, it will […]
The number of active U.S. rotary drill rigs increased 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 U.S. rigs […]
By CRU Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service The strength and longevity of the current uptrend in steel prices has surprised many market participants, and mill maintenance outages are expected to keep lead times extended. The latest lead time survey on March 15-17 from Steel Market Update, which is part of […]
The Philadelphia Fed Manufacturing Index surprised the markets with a massive increase in March, reaching its highest level in nearly 50 years. The index shot up nearly 29 points to 51.8 in March from 23.1 in February. Market economists were expecting a reading between 22 and 24.5. An increase in business activity was reported by […]
The temptation to purchase hot rolled steel imports over steel produced domestically continues to grow, as more U.S. buyers place orders for foreign material despite long lead times for delivery. As domestic prices soar higher, foreign prices hold potential discounts of 11% to 27%, according to Steel Market Update’s latest foreign versus domestic hot rolled […]
By CRU Economist Anissa Chabib and Principal Economist Alex Tuckett The Fed’s Jerome Powell has continued to strike a dovish tone, emphasizing that the Fed will continue to support the economy until “substantial progress has been made.” However, he stopped short of any attempt to directly push back against recent rises in bond yields. Furthermore, […]
By CRU Economist Ippolito Tarabini and Principal Economist Alex Tuckett, from CRU’s Exchange Rate Outlook Q1 2021 The latest foreign exchange market developments have shown the resilience of the dollar. Since the start of the year, the single most important driver of dollar strength has been U.S. fiscal policy, which has boosted expectations of U.S. […]
By CRU Principal Economist Alex Tuckett and CRU Chief Economist Jumana Saleheen, from CRU’s March Global Economic Outlook In March, we received good news on the outlook for the world’s two largest economies: the U.S. stimulus package was larger than expected, and economic growth in China is stronger. We expect a temporary rise in inflation in […]
By CRU Analyst Atul Kulkarni, from CRU’s Steel Sheet Products Monitor The U.S. manufacturing PMI rose to a 38-year high during March as the Biden government’s $1.9 trillion stimulus package improved sentiment. U.S. vehicle production and durable goods new orders stayed strong during February. Although U.S. crude steel capacity utilization increased during March, sheet supply […]
By CRU Principal Analyst Josh Spoores, and Gregor Spilker, CME Group By early 2021 Q2, HRC prices in the U.S. Midwest market had tripled from the trough reached in August 2020. As prices rose from $437 /s.ton to a record high of over $1,300 /s.ton, CME Group’s U.S. Midwest HRC contract settled on CRU surged […]
By CRU Principal Analyst Matt Watkins from CRU’s Global Steel Trade Service International prices have rebounded in March from a dip that happened in February (see chart 1). Larger m/m gains have occurred in flats than in longs, which have been more impacted by a pullback in scrap costs, but almost all prices are up […]
By CRU Analyst George Pearson, from CRU’s Steel Sheet Products Monitor Details of China’s Tangshan emission control policy that circulated in the last week have provided a further boost to Chinese steel prices but have weighed on prices for iron ore. The high cost of freight is still reducing the competitiveness of sheet imports in […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor The current global sheet market cycle is one which continues to reflect a strong demand rebound from the lows associated with various lockdowns in 2020 H1. It seems that in one market after the other, sheet production has failed to catch up with […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Sheet Products Monitor 21 Sheet prices in China and the Vietnamese import market paused this week as buyers slowed their pace of restocking. European prices continued to rise very sharply by historical standards, particularly for CR and HDG coil, for which the material shortage has become worse. In the USA prices are […]
By CRU Senior Analyst Helen O’Cleary from CRU’s Zinc Monitor After a month of sideways trading in April, zinc’s price has entered ever more overbought territory in recent weeks, following copper’s price higher and benefiting from booming ex. China steel demand and the news this week of output cuts at zinc smelters in China’s Yunnan […]
By CRU Analyst George Pearson, from CRU’s Steel Monitor Chinese prices continued to buck the global trend this week as further government meetings about preventing higher steel prices being passed on to consumers were taken seriously by the market and trading activity reduced. Prices in Europe and the U.S. are still rising, with U.S. plate […]
By CRU Analyst George Pearson, from CRU’s Steel Sheet Products Monitor The seasonal slowdown in the physical Chinese sheet market is ongoing, with inventories rising and demand falling w/w. However, concerns about limited supply during the 100th anniversary of the Chinese Communist Party continue to boost the Chinese HR coil futures market. Prices are still edging […]
By CRU Analyst George Pearson from CRU’s Steel Sheet Products Monitor Sheet prices fell significantly in China and the Vietnamese import market in the last week and there were also smaller decreases in India. U.S. and European sheet prices continued to rise overall, although European trading activity was slower, and increases were smaller than we […]
Business activity in New York State grew significantly in March, according to the New York Fed’s Empire State Manufacturing Survey. The general business index rose five points to 17.4, its highest level since July 2020. New orders increased slightly during the month, but shipments soared 17 points to an index reading of 21.1. Inventories were […]
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. Mill shipments of steel products rose 6.9% month on month in January, while apparent supply was up by nearly 13.5% during the same period. Despite the continued growth month over month since […]
Ternium plans to start up its new hot-strip mill in Pesquería, outside of Monterrey, Mexico, in early June, according to market participants. The development has allowed the Latin American steelmaker to take June orders for customers in the U.S, sources said. Those tons from will be rolled from Ternium’s existing hot-strip mills, something that is […]
At least two U.S. tube mills plan to increase prices for non-energy tubulars by $125 per ton ($62.50/cwt) effective immediately, according to letters to customers. North of the border, meanwhile, Welded Tube of Canada aims to increase prices on hollow structural sections (HSS) and mechanical tubing by $160 per ton CAD, also effective immediately. Atlas […]