Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2018, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter of 2018, real GDP increased 4.2 percent. The growth in real GDP reflected increases in consumer spending, inventory investment, government spending and business investment. These […]
In third-quarter 2018, the Pacific region regained the lead as the engine of national job creation. Third-quarter employment data by state was released by the Bureau of Labor Statistics (BLS) on Friday. The state data follows the national figures that were published on Oct. 5 and confirm the strength of the labor market. The states […]
The following article was contributed by CRU North America Steel Analyst Ryan McKinley The trade dispute between the United States and Canada has caused inventories to build and put downward pressure on prices. The 25 percent duties on steel imports in place by Canada and the U.S. against one another is eroding profits and driving […]
Section 232 tariffs are coming under fire by representatives of Mexico and Canada, who say there will be no signing of the new U.S.-Mexico-Canada Agreement (USMCA) on trade in North America until the tariffs are lifted. “We need to solve that issue before the signing takes place,” said Juan Carlos Baker, Mexico undersecretary for foreign […]
Architecture firms report that billings slowed in September, but new projects are expected in the coming months. The AIA Architecture Billings Index score was 51.1 last month, down from 54.2 in August. “Similar to the strong conditions we’ve seen nationally, architecture firms located in the Midwest and Southern regions of the country continued to report […]
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 […]
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 […]
Trade measures by the U.S. are causing concern for the European steel market, according to a new report by the European Union steel association EUROFER. Steel imports are growing faster than domestic shipments by EU mills, according to the Economic and Steel Market Outlook 2018-2019. “Growth is stabilizing in EU steel markets, in line with […]
New orders rose 0.8 percent in September primarily due to an increase in defense spending. Defense aircraft and parts orders soared 119.1 percent for the largest gain for the sector in more three years. Stripping out the defense category, orders fell 0.6 percent for the month. Core capital goods, manufactured goods excluding defense and aircraft, […]
Ternium USA Inc. will invest $14.7 million to expand and upgrade its facility at The Port of Caddo-Bossier in Shreveport, La. Ternium will overhaul its galvanizing line and complete other capital upgrades to optimize plant operations and logistics. Upgrading the galvanizing line will yield an additional 42,000 metric tons per year of coated products. “In […]
Harry Moser, president of the Reshoring Initiative, is a big supporter of the Trump administration and its trade policies. But when it comes to the Section 232 tariffs on steel imports, which have dramatically raised steel prices in the U.S., domestic steelmakers have gained at the expense of steel-consuming manufacturers downstream. “Overall, I am delighted […]
In the last month, the U.S. dollar has weakened against seven of the 16 currencies that Steel Market Update tracks. This was close to the performance we reported last month, but a dramatic change from the period May through August when only a few of the 16 appreciated against the dollar (just one in May, […]
The U.S. dollar has on average been relatively stable in the last three months against the currencies of the other steel trading nations. In the last month, the dollar weakened against six of the 16 currencies that Steel Market Update tracks. This was close to the performance we reported in each of the previous two […]
JSW Steel USA broke ground Friday in Baytown, Texas, on what it claims will be the most technologically advanced electric arc furnace, slab caster and plate mill in the world. It will be the only melt and manufacture plate mill with a contiguous pipe mill in North America, the company said. Thanks to policies from […]
I will be in Houston, Texas, on Wednesday and Thursday of this week as I am speaking to two groups, the Industrial Packaging Alliance of North America (IPANA) and the Reusable Industrial Packaging Association (RIPA). Member companies are producers and re-conditioners of a wide range of industrial packaging including steel, plastic and fiber drums, as […]
United Steelworkers in Canada are rejecting any plan by the U.S. to impose quotas on Canadian steel and aluminum imports. “Canada’s government must emphatically stand up for the Canadian steel and aluminum industries and thousands of families whose livelihoods are at stake,” said USW National Director Ken Neumann. “There is no justification for Canada to […]
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 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 […]
Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this new role, he and his firm design and execute risk management strategy for clients along with providing process and analytical support. In Gaurav’s previous role, he was a Trader at Cargill spending time in Metal […]
I had an interesting conversation with James (Jim) Banker, Jr., who is the Executive Vice President of NLMK USA late this afternoon. We discussed a couple of topics. One I described in an earlier article about their Allegheny Technologies Inc. slab tolling arrangement announced this morning. The second topic was about why NLMK USA has […]
Manufacturing activity in New York State continues to be strong, according to the October 2018 Empire State Manufacturing Survey published by the Federal Reserve Bank of New York. The general business conditions index rose two points to 21.1 due to a jump in new orders and shipments. The new orders index leapt six points, while […]
Material Sciences Corporation has joined the North American Steel Alliance. MSC becomes the 121st member of NASA, a purchasing cooperative based in Chicago. MSC provides advanced solutions in metals, metal products and metal processing across a diverse array of end-use markets. Its specialties include electrogalvanizing, continuous coil-coating, laminating, acoustic composites and supply chain management. “One […]
Canada will implement provisional safeguard measures on steel imports effective Oct. 25. Tariffs of 25 percent will be applied when products exceed the current average import level. The action is in response to Section 232 tariffs and quotas imposed by the United States on steel and aluminum. Canada hopes to avoid becoming a dumping ground […]
ArcelorMittal announced a binding offer from Liberty House Group for the purchase of ArcelorMittal Ostrava (Czech Republic), ArcelorMittal Galati (Romania), ArcelorMittal Skopje (Macedonia) and ArcelorMittal Piombino (Italy). The transaction is part of a divestment package agreed to by ArcelorMittal with the European Commission for the €1.8 billion acquisition of Italian steel mill Ilva. The ArcelorMittal […]
The International Monetary Fund, which updates its World Economic Outlook each April and October, has made a downward revision to its forecast for global GDP growth in 2018 and 2019. On Oct. 9, the IMF published the following: “The latest World Economic Outlook report projects that global growth will remain steady over 2018–19 at last […]
Economic indicators of manufacturing activity remain strong. This report summarizes 10 data sources that describe the state of manufacturing in the United States. We have reported on most of these separately and therefore will be brief in this summary. We don’t expect these data sources to all point in the same direction. Our intent in […]
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 The mid-week spot price increase announcement by mills to $860/ST has curbed activity in the futures as participants try to digest the […]
Alro Steel has acquired two Missouri service centers, extending its reach further west. Alro has purchased the assets of Sedalia Steel Supply, Sedalia, Mo., and Camdenton Steel Supply, Camdenton, Mo. Established in 1976 by Wayne and Gayle Lamb, Sedalia Steel Supply distributes a complete line of steel products from a 107,000-square-foot facility in Sedalia and […]
Union Partners has acquired the assets of Xcel Steel’s pickling operations in Dearborn, Mich., effective Oct. 5. The division has joined Union Partners-owned Maksteel and will now operate under the name Maksteel Processing. As this transition occurs, there will be no interruption in service to customers, the company said. The Detroit location of Xcel Steel Processing will continue […]
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 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 […]
Prices for secondary steel have followed the downtrend with prime, but to a lesser degree, report distributors of nonprime material. Finding enough material to meet customers’ needs remains a challenge, they say. Secondary steel is nonprime or excess material that did not meet the specifications for its original intended use, but is acceptable to other […]