Southwark Metal Manufacturing Co., maker of sheet metal duct and fittings, has opened a new manufacturing plant in Phoenix, Ariz. The new facility enhances Southwark’s presence, manufacturing capabilities, and customer support throughout the Southwest, allowing the company to service customers in all 50 states. The 75,780-square-foot facility is poised to service HVAC distributors in Arizona, […]
May 20 is the launch date for a new digital marketplace and online community that aspires to streamline the way steel is bought and sold. The new e-commerce site known as FeLUX.com (pronounced fee-lux) is a digital platform designed to allow users to connect, transact and manage their businesses with greater efficiency. Buyers and sellers […]
The growth of U.S. GDP in Q1 2019 increased to 3.2 percent and exceeded economists’ expectations. On Friday, the Bureau of Economic Analysis (BEA) released the first estimate of GDP growth in the first quarter of 2019 stating: “Real gross domestic product (GDP) increased 3.2 percent in the first quarter of 2019, according to the […]
Business activity unexpectedly declined in the Chicago area, according to the latest MNI Chicago Business Barometer survey. The Barometer, a survey of purchasing and supply management professionals in the Chicago area, lost 6.1 points, falling to 52.6 in April and to its lowest level since January 2017. “This was a disappointing start to the second […]
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 […]
Canada will keep safeguard tariffs on imports of heavy plate and stainless steel wire—only two products of the original seven provisional safeguards implemented in October. In April, the Canadian International Trade Tribunal found that imports of hot-rolled steel, pre-painted steel, energy tubular products, rebar and wire rod did not pose a threat of “serious injury” […]
The U.S. active rotary rig count, an indicator of oil country tubular goods demand, decreased this week, according to oilfield services company Baker Hughes. The number of active U.S. rigs fell by 21 to 991, with oil rigs down 20 and gas rigs down 1. Compared to this time last year, the 991 count is […]
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: Finally some follow through lower in both steel and scrap futures prices. Should flattish forward curves be a concern? Steel The latest […]
Durable goods orders jumped 2.7 percent in March for the fourth increase in five months. Transportation equipment led the increase, leaping 7.0 percent to $93.8 billion. Aircraft orders rose 31 percent, primarily for Boeing jets. Boeing reported 44 aircraft orders in March compared to five in February. None were for the grounded 737 Max aircraft […]
By CRU Chief Economist Jumana Saleheen The latest Chinese data surprised on the upside. It suggests that the China stimulus is working. But some of the strength is also likely due to one-off factors. As a result, we see the latest data as an indication that the economy is stabilizing rather than accelerating. Recent data […]
Steel Technologies is assessing the operational impact from a fire early Monday morning that knocked out power and damaged the pickle line and pickle bay at its Ghent, Ky., plant. No injuries were reported from the incident. State and local officials have confirmed that chemicals used in production were contained in designated storage vessels, the […]
Demand for long products and tubular goods has seen strong growth, but sheet products are declining. This analysis by SMU staff is based on data from the American Iron and Steel Institute (AISI) and the U.S. Department of Commerce (DoC). The analysis summarizes total steel supply by product from 2003 through February 2019 and year-on-year […]
In Q1 2019, all regions except the North Central had positive employment growth. First-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 first quarter, the […]
In the last three months, the dollar weakened against seven of the 16 steel trading currencies that Steel Market Update tracks and strengthened against the other nine. At the one-month level, the dollar weakened against five of the 16, and strengthened against the other 11. At the seven-day level, the dollar strengthened against 12 of […]
Economic indicators of manufacturing activity are strong, though the growth rate is slowing. 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 therefore will be brief in this […]
Most indicators of manufacturing activity are still positive, but evidence of a slowdown is indisputable. 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 therefore will be brief […]
The metalforming industry is expecting a dip in business conditions in the next three months, according to the April 2019 Precision Metalforming Association survey. “The Business Conditions Report reflects the growing concern of metalforming manufacturers that the Section 232 steel tariffs are creating a drag on the U.S. manufacturing sector,” said PMA President David Klotz. […]
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 […]
ArcelorMittal received approval from the European Commission to sell several of its European steelmaking assets to Liberty House Group. The sale is part of a divestment agreement made by ArcelorMittal with the Commission to acquire the Italian steel mill Ilva. Included in the transaction is ArcelorMittal Ostrava (Czech Republic), ArcelorMittal Galati (Romania), ArcelorMittal Skopje (Macedonia), […]
Global steel demand will top 1.75 billion metric tons by the end of next year, despite economic headwinds in many parts of the globe, predicts the World Steel Association in its April 2019 Short Range Outlook. Worldwide, steel demand will increase by 1.3 percent this year to 1,735 Mt, followed by further 1 percent growth […]
A six point increase to 10.1 in the general business index of the Empire State Manufacturing survey indicated a modest rise in manufacturing activity in April. New York manufacturers reported a slight rise in new orders and shipments. The new orders index rose to 7.5 from 3.0 in March, while the shipments index increased to […]
Net job creation in March totaled 196,000, an increase from an upwardly revised 33,000 in February. January was revised up by 1,000 to 312,000. Rising employment and wages are the main contributor to GDP growth because personal consumption accounts for almost 70 percent of GDP. Steel consumption is related to GDP; therefore, this is one […]
The International Monetary Fund has reduced its estimate of U.S. GDP growth for 2019, but increased it in each year 2020 through 2024. The IMF updates its World Economic Outlook (WEO) in April and October each year. On April 9, the following was published in the IMF blog: “After strong growth in 2017 and early […]
By CRU Principal Analyst Matthew Watkins. In the event of a no-deal Brexit, the key short-term impacts on the European steel market are likely to be increased delays for material crossing the UK-EU border as well as modifications to the EU safeguard system. Beyond short-term behavior such as stockpiling, there are possible longer-term effects, perhaps […]
US Midwest HRC price volatility has increased markedly in recent months as government policy and inelasticity of domestic supply have led to large variations in physical market price. Concurrently, volume and open interest on the CME’s HRC futures and options contracts, settled on CRU’s US Midwest HRC price (“The CRU”) has surged as physical market […]
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 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 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 […]
By CRU Chief Economist Jumana Saleheen The market had hoped that China would unveil a large stimulus package at the March NPC, but any expectation of a large boost to world growth and commodities demand has not come, yet. The current stimulus package is smaller, less potent and less positive for commodities demand than previous […]
Following a slower than expected first quarter, activity has begun to pick up in the nonprime/secondary steel market, report service center executives. “Maybe that’s good news for April going forward,” said Lisa Goldenberg, president of Delaware Steel of Pennsylvania, Fort Washington, Pa. Nonprime or secondary steel includes coils that are rejected because they failed to […]