Consumer confidence, as reported by The Conference Board, declined sharply in June but recovered in July. The Conference Board measure of consumer confidence is quite a volatile indicator, therefore we prefer to smooth the data with a moving average to reduce monthly variability. The composite value of consumer confidence in July was 135.7, up from […]
By CRU Principal Analyst Josh Spoores Sheet prices in the U.S. have continued to rise as both buyers and sellers have reported higher transactions. Overall volume reported has been steady over the past few weeks and near 2019 average levels. The overall price range remains wide, around $50 /s.ton. We anticipate that prices will continue […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations made by […]
The long-awaited rebound in steel prices was the biggest story of the month in July. Steel Market Update’s Price Momentum Indicator was pointing firmly upward by the end of the month following three $40 price increase announcements by flat rolled steel producers. The benchmark price of hot rolled steel hit $580 per ton in July, […]
The Chicago Business Barometer recorded a second month in contraction, falling to 44.4 in July from 49.7 in June and the weakest third-quarter start since 2009. Production was at a 10-year low, falling 22 percent on the month. Further contraction of new orders indicated subdued demand resulting in trimming of workforce. The employment indicator was […]
Manufacturing conditions continued to deteriorate around the globe in July as trade disputes and tension took a toll on national economies. The J.P. Morgan Global Manufacturing PMI registered 49.3 in July, slipping slightly from 49.4 in June and remaining in contraction for a third month. Nineteen of 30 nations surveyed in July signaled downturns, said […]
A new bipartisan Senate bill on transportation infrastructure is getting the enthusiastic support of industry associations. The America’s Transportation Infrastructure Act of 2019 will authorize $287 billion over five years to improve the nation’s roads and bridges. The legislation includes provisions to improve road safety, accelerate project delivery, improve resiliency to disasters and reduce highway […]
The U.S. active rotary rig count, an indicator of oil country tubular goods demand, declined this week, according to oilfield services company Baker Hughes. The number of active U.S. rigs fell by 8 to 946, with oil rigs down 3, gas rigs down 5, and miscellaneous rigs unchanged. Compared to this time last year, the […]
Metalforming firms are concerned about business activity in the second half of this year, according to the July 2019 Precision Metalforming Association (PMA) Business Conditions Report. Sixty percent of participants expect no change in economic activity during the next three months (up from 59 percent in June), 16 percent predict an improvement in activity (compared […]
Trade actions have imposed new and increased burdens on both U.S. Customs and Border Protection and on importers, reported the American Institute of International Steel in a July 8 blog by AIIS Customs Committee Chairman and attorney Steven W. Baker. “Importers have recently been faced with many seldom used or new and unprecedented trade remedy […]
If you haven’t registered for the Premier Steel Conference in North America, then this is the time to do so. The Steel Market Update Events App, which all 900+ attendees have access to, was launched last week, meaning registered attendees are now busy organizing meetings with each other in advance to make the most of their time […]
If you haven’t registered for the Premier Steel Conference in North America, then this is the time to do so. The Steel Market Update Events App, which all 900+ attendees have access to, was launched last week, meaning registered attendees are now busy organizing meetings with each other in advance to make the most of their time […]
In second-quarter 2019, all nine regions of the U.S. had positive employment growth. Second-quarter regional employment data by state was released by the Bureau of Labor Statistics (BLS) on Friday. The state data follows and confirms the strong employment situation that we reported at the national level two weeks ago. In the second quarter, the […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
By CRU Principal Analyst Josh Spoores U.S. sheet prices continue to be supported by new mill price announcements as HR coil gained $5 /s.ton, rising to $553 /s.ton. This price assessment reflects transactions taking place last week. On Monday of this week, ArcelorMittal led the third round of increases since late June, signaling $630 /s.ton […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel Latest HR indexes have physical trading higher at around $555/ST to $560/ST, which appears to reflect the first of the three mill […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Lighter volume summer market conditions prevail in the HR futures market. After six consecutive price increases, in the HR index that the […]
Durable goods orders rose 2 percent in June after two months of declines, surprising economists who expected a much softer increase. Orders increased to $246 billion from $241 billion in May. The rise was due primarily to commercial aircraft orders, which jumped 75.5 percent after two months of dismal results related to issues with Boeing’s […]
SMU contributor Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in […]
In this report, we examine the change in currency values of the 16 preeminent global steel and iron ore trading nations. The currencies of these 16 don’t necessarily follow the Broad Index value of the U.S. dollar. In fact, at any given time, some are always moving in the opposite direction. The latest value of […]
Most indicators of manufacturing activity are still positive, but if trends continue, growth will become negative by late summer. This report summarizes 11 data streams that describe the state of U.S. manufacturing in general and the steel industry in particular. We have reported on most of these separately in our Steel Market Update publications, and […]
The Producer Price Index, inclusive of all commodities, has been relatively stable in 2019. In the last 12 months the prices of cold-rolled steel sheet and aluminum have declined in unison, according to an analysis of Bureau of Labor Statistics data performed by Steel market Update. This report is intended to provide subscribers with a […]
Economic activity continued to expand at a modest pace from mid-May through early July, although manufacturing production was generally flat, reported the Federal Reserve in its July 17 Beige Book. The Fed’s periodic survey of the market found businesses have a generally positive outlook for the coming months, with expectations of continued modest growth despite […]
Manufacturing conditions improved in New York State in July, says the Federal Reserve Bank of New York. The latest Empire State Manufacturing Survey general business index rebounded from contraction to gain 13 points and register 4.3. Shipments increased during the month while new orders were essentially flat. Indices for unfilled orders and inventories moved lower […]
The United Steelworkers have a new leader as of today. Thomas M. Conway was installed as the eighth international president, replacing Leo Gerard, who has retired. “I’ve known Tom for 25 years. He’s earned my admiration, demonstrating a special toughness and a willingness to take on the most difficult jobs and negotiations,” Gerard said. “He […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
The U.S. active rotary rig count, an indicator of oil country tubular goods demand, declined this week, according to oilfield services company Baker Hughes. The number of active U.S. rigs fell by 5 to 958, with oil rigs down 4, gas rigs down 2, and miscellaneous rigs up 1. Compared to this time last year, […]
The rate of job creation in the U.S. in 2019 is slowing, according to Steel Market Update’s analysis of the latest Bureau of Labor Statistics data. The recent employment reports provide mixed signals. Job openings are high, unemployment is low, but the rate of job creation is slowing. This is probably due to […]
In the last 12 months the rate of job creation in the primary metals industries has been slower than in manufacturing as a whole, according to Steel Market Update’s analysis of Bureau of Labor Statistics (BLS) data. In June, 191,000 jobs were created in the private sector and government gained 33,000 positions. Table 1 breaks […]
Demand for long products is very strong, driven by the construction industry. Demand for sheet products is declining. This analysis by Steel Market Update is based on steel mill shipment data from the American Iron and Steel Institute (AISI) and imports/export data from the U.S. Department of Commerce (DoC). The analysis summarizes total steel supply […]