Orders for manufactured durable goods jumped 3.1 percent in February, beating economists’ estimates by nearly double. The latest report from the Department of Commerce showed core capital goods (non-defense capital goods minus aircraft) rebounded 1.8 percent last month after two consecutive months of decline. The category is seen as a proxy for business spending. […]
The value of the U.S. dollar has strengthened in the last six weeks, though it remains down for the year. So far in 2018, the dollar has weakened by 8.1 percent, after a turnaround of 2.9 percent from Feb. 2 to March 16. Please see the end of this report for an explanation of data […]
The dollar has been trading in a range for eight weeks and on April 13 had the same value as it did on Feb. 14. Since its recent peak on Jan. 3, 2017, the dollar has weakened by 8.9 percent and in 2018 is down by 1.0 percent through April 13. Please see the end […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Billings slowed slightly at architecture firms in February, reported the American Institute of Architects. AIA’s Architecture Billings Index (ABI) registered 52.0, down from 54.7 in January. February’s reading above 50 marked the fifth consecutive month of growth for billings. Inquiries into new projects and the value of new signed design contracts both increased in February, […]
Steel shipments by Canadian service centers in February totaled 383,300 net tons, down 6.5 percent from January’s high, but up 4.8 percent from February 2017, reports the Metals Service Center Institute (MSCI). On a daily basis, total shipments were 19,200 tons per day in February (a 20-day month), up from 18,600 tons per day in […]
When steel prices rise, so does the credit and inventory risk for mills and service centers. When steel prices rise by 40 percent, as they have in the past year, the risk puts smaller players at a big disadvantage. Service centers have been cozying up to their bankers to get extended lines of credit, some […]
The Bureau of Labor Statistics released another excellent employment report for February and revised the two previous months upward. February’s net creation of 313,000 jobs as reported by the BLS on March 9 was the best monthly result since July last year. To make the recent results even better, December was revised up by 15,000 […]
Net job creation in March, as reported by the Bureau of Labor Statistics (BLS) on Friday, dropped by 64 percent from February, but this was not as bad as it first looks. Figure 1 shows the 3MMA of the number of jobs created monthly since 2000 as the brown bars and the total number employed […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA ports) and domestic (USA) 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 […]
Business activity grew robustly in New York State, according to firms responding to the March Empire State Manufacturing Survey. The general business conditions index climbed more than nine points to 22.5 from 13.1 in February. A level above 0.0 indicates improving conditions, below indicates worsening conditions. Orders and shipments in the region saw strong growth […]
President Trump wants the NAFTA talks concluded before upcoming elections in Mexico and the U.S., as he told Canadian Prime Minister Justin Trudeau in a phone call on Monday. Trudeau has been meeting with Canadian steel and aluminum workers this week with stops planned at Stelco and ArcelorMittal Dofasco on Tuesday. The call came on […]
Legal experts say President Trump’s efforts to use the Section 232 steel tariffs as a bargaining chip with NAFTA and other trade negotiations could make the U.S. position more difficult to defend before the World Trade Organization and the courts. An importer hit with the tariff could claim the president had exceeded his authority under […]
Fabricators and Manufacturers Association (FMA) Chief Economist Chris Kuehl believes Section 232 tariffs will not create a trade war and that most of what is happening now is nothing more than posturing. Although he told SMU that “trade wars are not unusual as countries try to protect their domestic products.” Kuehl was critical of how […]
Canadian steel mills like Algoma and Stelco are getting a reprieve from steel and aluminum tariffs, at least for now. The Section 232 tariffs imposed by President Trump will not affect Canada or Mexico provided they can complete a NAFTA agreement quickly and on U.S. terms. “For now, Canada and Mexico will be excluded from […]
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 HR futures prices have moved up. POTUS has been keeping the HR futures market hopping this week. The plethora of news […]
Economic indicators of manufacturing activity remain strong and continue pointing to good demand for steel at least through mid-year. 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 therefore will be brief […]
The threats of Section 232 tariffs and the possible withdrawal of the United States from NAFTA have not swayed ArcelorMittal from its commitment to invest $1 billion in its Mexican operations. In a statement reported on Friday, a spokesman for the integrated steelmaker said the company has no intention of changing its plans for Mexico, […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA ports) and domestic (USA) 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 […]
Global manufacturing expanded at a solid pace in February, according to the J.P.Morgan Global Manufacturing PMI. The composite PMI inched downward for the second month to 54.2, indicating solid but slower growth. Industrial nations saw growth rates decelerate somewhat in February including the U.S., Eurozone, Japan and the UK. Improvement of manufacturing conditions was brisker […]
Union Partners has acquired Lamination Specialties Corp., a manufacturer of electrical steel laminations with three Chicago-area locations. The company also operates a full-service electrical steel service center. It anticipates no disruption of services as it transitions to new ownership. Lamination Specialties is the latest to join the Union Partners family, which includes Mapes & Sprowl, […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
There were no surprises in this month’s data as our SMU Price Momentum continued to reflect higher steel prices, and that expectation continues over the next 30 to 60 days. Our SMU Steel Buyers Sentiment Index is at, or very near, all-time highs for our index. Buyers and sellers of flat rolled steel are optimistic […]
Manufacturing expanded for the 18th consecutive month in February, according to the latest Manufacturing ISM Report on Business. The PMI rose 1.7 percentage points to 60.8 percent in February. Any reading above 50 indicates expansion. New orders continued to expand last month, although softening 1.2 percentage points to 65.4 percent. Production dipped 2.5 points to […]
The MNI Chicago Business Barometer fell in February to its lowest level since August 2017. The barometer slipped 3.8 points from January’s reading to 61.9. Compared to a year ago, the index was up 8 percent and was above the 2017 average of 60.8 New orders were at a six-month low and production was at […]
Global steel production grew by 2.7 percent in the three months through January, though the pace of growth continued to be slowed by pollution control restrictions in China. Excluding China, the pace of growth for world steel production was 4.8 percent, according to the latest Steel Market Update analysis of World Steel Association data. On […]
The decline in value of the U.S. dollar on the international exchange markets has slowed in the last 30 days, according to Steel Market Update’s latest analysis of currencies. Please see the end of this report for an explanation of data sources. The analysis of currency trends is a highly technical undertaking. Therefore, in this […]
Durable goods orders fell 3.7 percent in January to $239.7 billion, according to Commerce Department data. January’s decline follows two months of increases and is the biggest decline since July 2017. Analysts expected a decline of 2.0 percent or less. Durable goods are manufactured items that are expected to last three years or more. The […]
The SMU Steel Summit Conference is THE fastest growing steel conference in North America and THE one conference manufacturing, distribution, suppliers to the industry and steel mills want to attend. Details about the agenda, speakers, location and costs, as well as how to register, can be found on our website: www.SteelMarketUpdate.com/Events/Steel-Summit or you can contact […]