Building permit values jumped 13.8 percent in Canada in May, totaling $6.9 billion and exceeding expectations for the month. The increase was due to higher construction intentions for commercial buildings in Ontario and Manitoba as well as multi-family dwellings in British Columbia, said Statistics Canada. Residential permit values rose 9.5 percent to $4.1 billion. Building […]
Chinese steel trade data for May 2014 was released late last week, providing updated data on iron ore imports, steel scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in May were 77,382,000 metric tons, a decrease of 7.2 percent from the previous month but an increase of 12.9 percent from […]
Steel price inputs were mixed during the month of June. Shredded and heavy melt scrap prices declined $8 and $4 per ton respectively while busheling scrap prices increased by $3 per ton. Iron Ore prices increased for 62% Fe grades but decreased for 58% Fe. Zinc and Aluminum prices showed a slight increase of $0.0437 […]
Hot rolled prices eroded during the month of June with the month ending at $660 per ton ($33.00/cwt) and our June monthly average $666 per ton. At the end of May our average was $680 per ton so we are down $14 per ton based on the monthly averages. The CRU hot rolled coil futures […]
We are including this article because it puts the Fed’s post-recession activities into perspective. Our recollection is that the European central bankers scoffed at the Federal Reserve quantitative easing and TARP programs when they were initiated in 2008. The European Central bank, (ECB) has taken the single currency block into uncharted waters by sending the […]
The HRC futures market has been stuck in a rut over the past couple of weeks in terms of both volumes and price volatility. The market remains backwardated with the spot price now at 670 and the July futures value around 650, Q3 630 and Q4 630. While prices in the physical market have softened […]
The Institute of Supply Management released their June report on July 1st. The June PMI registered 55.3 percent, down slightly from 55.4 percent in May. Any number > 50 indicates expansion and this was the thirteenth straight month for which this was the case. The three month moving average (3MMA) advanced for the third consecutive […]
Hot rolled prices eroded during the month of June with the month ending at $660 per ton ($33.00/cwt) and our June monthly average $666 per ton. At the end of May our average was $680 per ton so we are down $14 per ton based on the monthly averages. The CRU hot rolled coil futures […]
The Institute of Supply Management released their June report on July 1st. The June PMI registered 55.3 percent, down slightly from 55.4 percent in May. Any number > 50 indicates expansion and this was the thirteenth straight month for which this was the case. The three month moving average (3MMA) advanced for the third consecutive […]
The JP Morgan Global Manufacturing PMI rose moderately to 52.7 in June from 52.1 in May, an expansion of the manufacturing sector for the 19th month. Production increased at the fastest rate since February due to a flow of new orders. International trade volumes were subdued in June reported JP Morgan and Markit. The June […]
US auto sales slowed a bit in June but still made gains for most automakers. Sales exceeded analyst expectations totaling 1.4 million in June. WardsAuto’s currently estimates the seasonally adjusted annual rate for light vehicles in 2014 at 16.98 million, in line with industry forecasts of 17 million. Chrysler had the best showing of the […]
The Chicago Business Barometer slipped 2.9 points to 62.6 in June, but the Institute for Supply Management (ISM) and MNI Indicators says the barometer continues to be high and “consistent with a bounceback in Q2 GDP.” The barometer gained momentum in Q2 to an average reading of 63.7, staying above 60 for three months in […]
The Bureau of Economic Analysis (BEA) estimate of US GDP growth was a shocker at negative 2.9 percent, this came after the first estimate which was positive 0.1 percent and the second estimate at negative 1.0 percent. This raises the question of whether early estimates are worth considering. The first estimate for the second quarter […]
“USW members and non-union workers alike know firsthand the pain inflicted by foreign predatory, protectionist and unfair trade practices,” said Leo W. Gerard, International President, United Steelworkers (USW) before the U.S. Senate Committee on Finance on June 25. Gerard told Senate members that the only way the USW wins at its efforts to counter unfair […]
Durable Goods, a measure of the health of the steel industry and economy, saw new orders fall 1 percent after three months of increases. Shipments, Unfilled Orders, and Inventories all increased 1 percent or less. Capital goods orders for non-defense and defense items decreased in May. The Commerce Department’s GDP report showed a decline of […]
The following is an abridged version of the Chicago Federal Reserve statement plus our own graphical analysis. The Chicago Federal Reserve National Activity Index (CFNAI) is an excellent reality check for much of the economic analysis that we routinely provide in The Steel Market Update. An explanation of the Index is provided at the end […]
Each month the Bureau of Labor Statistics, (BLS) puts out its series of producer price indexes, for thousands of goods and materials. The latest release on Friday reported May results. These statistics are a useful way to evaluate any changes in the competitive position of steel against competing materials and this month for the first […]
Home prices on an annual basis slowed more than expected in April according to the S&P/Case Shiller Home Price Indices. Indices for both the 10 and 20-city composites showed an annual gain of 10.8 percent, down from 12.4 percent in March and lower than economist expectations of 11.4 percent. Annual gains were lower in 19 […]
Dr. Chris Kuehl, one of our Steel Summit keynote speakers and Managing Director of Armada Corporate Intelligence, provides a monthly overview of economic and global risks facing the U.S. economy and the steel industry. Armada’s June summary is as follows: 1. GDP growth expectation has dropped to 2.1% for the full year, but… The IMF, […]
ILWU/PMA contract negotiations are continuing on the West Coast. Armada Corporate Intelligence calls the negotiations “eerily silent” and says whether a strike will occur is unclear. The contract for the ILWU is set to expire June 30. According to Armada, the Pacific Maritime Association (PMA) is facing increased competition from the Panama Canal expansion. Enlarging […]
We have two markets developing for flat rolled steel imports: hot rolled imports are expected to actually begin to shrink from here as the offers out of Russia and Turkey for hot rolled pricing are approximately $600 per ton or higher. Since most foreign steel buyers tend to be buyers of large tonnage and thus […]
The HRC futures market has been stuck in a rut over the past couple of weeks in terms of both volumes and price volatility. The market remains backwardated with the spot price now at 670 and the July futures value around 650, Q3 630 and Q4 630. While prices in the physical market have softened […]
Design service demand picked up in May according to the American Institute of Architects. The Architecture Billings Index (ABI) picked up 3 points to register 52.6 after two months of contraction. The new projects inquiry index moved up 4.1 points to 63.2. (A reading below 50 indicates contraction and a reading above 50 indicates an […]
The Canadian government approved a controversial oil pipeline project that will extend 732 miles from the oil sands in Alberta to British Columbia. The Enbridge Northern Gateway project is expected to carry 525,000 barrels of crude oil to the Pacific coast for shipment to Asia. The $6.5 billion project took on a new urgency with […]
Builder confidence in the new built, single-family housing market rose in June. The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) registered 49, just a point below the reading of 50 that indicates good building conditions. “After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign […]
A downturn in business conditions is coming, said participants in the Precision Metalforming Association (PMA) Business Conditions Report for June. Fewer participants are expecting conditions to improve in the next three months (31 percent, down from 33 percent) and more are expecting that economic activity will decline (15 percent, up from 7 percent). PMA president […]
An increase in manufacturing activity in New York took analysts by surprise in June. The Federal Reserve Bank of New York reported the general business index in the Empire State Manufacturing Survey posted a reading of 19.28, up from 19.01 in May. Economists were expecting the index to decline to 15.0 in June. The new […]
The following steel pricing information is from one of our trading sources located in Asia. Steel Market Update requested price status for new offers on flat rolled steel and other products and this is what we received earlier today: For what it is worth.. Hot rolled coil (HRC) 2.00mm (20% max.) of any order in […]
The Broad Index value of the US $ has been gradually strengthening for 18 months, (Figure 1) which favors imports to the US and depresses exports. See explanation at the end of this piece. The currencies of the steel trading nations have been fairly stable over the last month. Table 1 shows the number of […]
Andre Marshall, CEO of Crunchrisk and our Managing Price Risk I & II workshops instructor writes about the financial and futures markets, including hot rolled futures and busheling scrap futures trading over the past week. You will also be able to see Andre speak at our Steel Summit Conference in September (3 & 4) in […]