The Architecture Billings Index dipped in December, falling to 50.4 from 54.7 in November, according to the latest report by the American Institute of Architects. Billings continued to be positive for the 15th consecutive month, scoring above the neutral reading of 50. Backlogs lengthened to an average of 6.4 months in December, a historical record […]
This article on the competitiveness of steel against other products was originally produced last week for Steel Market Update Premium members. We want our entire readership to review the analysis done by the Bureau of Labor Statistics and then analyzed by Peter Wright on our staff. If you would like information about upgrading to Premium […]
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 on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, 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 […]
Steel became less competitive in 2018 against aluminum, plastic and wood, according to Steel Market Update’s analysis of Bureau of Labor Statistics Producer Price Index data. The cost of carbon cold rolled sheet was up more than twice as much as aluminum sheet, and steel pipe was up by nine times as much as plastic […]
The U.S. dollar has retreated from the last Steel Market Update currency report when it had the highest value on the foreign exchange markets for over 16 years. In the last month, the dollar weakened against 13 of the 16 currencies that Steel Market Update tracks. This was a turnaround from November when it strengthened […]
With no end in sight for U.S.-imposed steel tariffs, United Steelworkers in Canada urge the federal government to keep safeguards in place to guard against foreign steel imports. “Our members themselves are appearing this month before the Canadian International Trade Tribunal (CITT) to make the case for extending safeguard measures beyond the original 200-day period […]
Sherwin-Williams has announced a 6 percent hike in the cost of paint effective in March, upsetting customers in the prepainted steel and aluminum market. “There is no justification for this paint increase,” said one coil coater. “Oil prices are at their lowest level in years.” Sherwin-Williams raised prices twice last year when oil prices were […]
Editor’s note: Steel Market Update’s source in China reports on recent remarks by Chinese economic expert Xiang Songzuo, who warned that the nation’s economy is showing signs of crashing. Xiang showed courage in being publicly critical of the government, which later banned his remarks from the internet. “You can look at the history: Only the […]
Manufacturing firms in New York State are less optimistic regarding future business conditions than they were in December. In the January 2019 Empire State Manufacturing Survey, the future business outlook index fell 13 points to 17.8. The indices for future new orders and new shipments plunged 15.3 points and 11.4 points, respectively. Overall business activity […]
When the public first learned the government was shutting down, many of us thought, “Glad I don’t work for Uncle Sam!” Now, as the shutdown extends its record as the longest in U.S. history, the effects are being felt well beyond the households of government employees. Even here at Steel Market Update. With government data […]
Indicators of economic activity in the U.S. do not predict an imminent recession, but the yield curve and housing permits should be on our radar screen. Recessions are defined by the National Bureau of Economic Research (NBER), the organization tasked with identifying when a recession starts and ends, as back-to-back quarters of negative economic growth. […]
Indicators of economic activity in the U.S. do not predict an imminent recession. This month we have revamped our recession monitor report to make it more time sensitive. The reason for steel people in particular to know where we are in the business cycle is that steel demand is related to GDP but is vastly […]
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 Since the beginning of the year, the forward curve in CME HR futures has shifted down roughly $25/ST on average for […]
With the partial government shutdown in its 20th day, the political standoff in Washington over President Trump’s border wall remains focused on his $5.7 billion budget request. The larger question is whether a construction project of the scale the president has proposed is even feasible, at any cost. From a steel industry standpoint, the project […]
U.S. tariffs on steel imports from Canada continue to put pressure on Canadian producers while goverment officials seek an ending to the trade measures. Algoma Steel, which recently emerged from bankruptcy protection, is one of the vulnerable steel producers affected by Section 232. The second largest mill in Canada is expected to receive up to […]
President Trump’s border wall could be made of three million tons of U.S. steel if he is able to get the funding for construction. In a bid to make his request more palatable to Democrats, Trump said the wall could be made of domestic steel from the companies he has made great again. “I’ll have […]
The U.S. labor market finished 2018 on a strong note. December was the first month ever for total nonfarm payrolls to exceed 150 million, according to the latest Bureau of Labor Statistics data. Unlike the Commerce Department and Bureau of Economic Analysis, the Bureau of Labor Statistics (BLS) remains funded under the current government shutdown. […]
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 […]
Perhaps it’s because the year started out with so much promise that the end of 2018 seemed so uninspiring. On balance, most in the steel business would call 2018 a good year, some even a great year. But few look forward to 2019 with the same optimism and confidence they felt a year ago at […]
Job growth in 2018 shattered expectations, adding 312,000 jobs to the economy in December and 2.6 million for the year. Wages increased 3.9 percent after years of marginal growth, due in part to the shrinking labor pool available to fill vacancies. The construction industry saw unemployment decrease to a historic low of 5.1 percent in […]
The Association of Women in the Metal Industries (AWMI) will have new leadership beginning in 2019. Sonya Malvick was elected president of AWMI at the organization’s annual conference in St. Petersburg, Fla., in November. Malvick is a 25-year veteran of the steel industry, beginning her career at Zalk Joseph Fabricators and later moving to the […]
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 Metal and […]
The year ended on a cautionary note with steel demand, prices and buyers’ sentiment showing downward momentum in December. Prices for flat rolled products continued their fourth-quarter declines with hot rolled dipping to $754, cold rolled to $865 and galvanized to $931 in December. Plate is the notable exception, holding steady around $1,000 per ton, […]
Manufacturing activity in the U.S. continued to expand in December, but at a much lower pace, according to the latest ISM Report on Business. The December PMI fell 5.2 percentage points to 54.1 with indexes for new orders slipping 11 points and production slipping 5.3 points from November. The average PMI score for 2018 was […]
Global manufacturing slid to its lowest level in 27 months, falling from a PMI of 52.0 in November to 51.5 in December, according to the latest J.P. Morgan Global Manufacturing Purchasing Managers Index (PMI). Manufacture of consumer goods was the only bright spot in December, growing to an eight-month high. Investment and intermediate goods were […]
Twas the night before Christmas 2017 Steel buyers were happy All nestled in their beds No thoughts of turmoil running about in their heads Little did they know Little did they dread 2018 was staring at them While dreams of sugar plums danced in their heads The last three months saw prices move […]
Editor’s note: Steel Market Update is sharing the following Premium content with all its readers in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. The U.S. has strengthened its position in the global scrap market since Q1 2016. This is an analysis that we perform quarterly. We believe […]
Editor’s note: Steel Market Update is sharing the following Premium content with all its readers in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. In three months through November year over year, China’s steel production grew 18 times faster than the rest of the world. (Not a typo!) […]
Editor’s note: Steel Market Update is sharing the following Premium content with all its readers in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. The growth of U.S. GDP in third-quarter 2018 came in at 3.36 percent, but the mix of contributors was concerning. On Friday, the Bureau […]