On July 22nd the Ternium Guerrero plant suffered an explosion during maintenance at the electric arc furnace (EAF) which resulted in the deaths of 11 employees. Late last week Paulo Rocca, Ternium CEO, announced the company was investing $225 million on plant safety, environmental measures, maintenance and remodeling of the Guerrero facilities. In a […]
ISM Manufacturing Index (PMI) Expands for 3rd Consecutive Month Tempe, Arizona) — Economic activity in the manufacturing sector expanded in August for the third consecutive month, and the overall economy grew for the 51st consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business. The report was issued today by […]
Financial Markets: Since last week’s writing the SP 500 has since rallied to test the old support above at 1670 to then fail and drop to 1627 before rebounding in the last two days to 1642. As I mentioned, we are likely in a retracement move down to the 1550 target before we can find […]
The Conference Board composite measure of consumer confidence increased slightly in August and the 3MMA improved from 79.1 also to 81.5 the highest value since February 2008 and up by 18.4 year over year. The view of both the present situation and expectations improved on a 3MMA basis. The consumer’s view of the present situation […]
New orders for manufactured durable goods declined by 7.3 percent in July from the very strong June result and following three consecutive monthly increases. The decline in civil aircraft orders was the main reason for the month on month decline. The three month moving average in July rose by 0.5 percent month on month to […]
The European economy finally seems to be on the road to recovery. In figures released by the European Commission, GDP in the second quarter rose by 0.3 percent in the Eurozone—a small but positive indicator of growth. The growth was led by Germany and France where GDP improved by 0.7 percent and 0.5 percent, respectively. […]
Ternium, Tenaris and Tecpetrol will jointly build and operate a natural-gas fired combined cycle electric power plant in the Pesqueria area of the State of Neuvo Leon, Mexico. The joint venture, named Techgen, S.A. de C.V., will be owned 30 percent by Tecpetrol, 22 percent by Tenaris and 48 percent by Ternium. The power […]
Manufacturing activity is improving in the Tenth Federal District that includes the western third of Missouri, Kansas, Colorado, Nebraska, Oklahoma, Wyoming and the northern half of New Mexico. The summary from the Federal Reserve Bank of Kansas City follows: Tenth District manufacturing activity improved further in August, and producers’ expectations also edged higher after easing […]
Every so often it is interesting to just review the comments made to Steel Market Update (SMU) during our steel market survey. Occasionally we can catch a raw gem. In the comment below a large Midwest based service center discusses their service center spot business (supplying steel from one service center to another): “Lean […]
Written by Sandy Williams The Steel Manufacturers Association (SMA) has asked U.S. Trade Representative Michael Froman to protect domestic steel plate from an onslaught of imports from Europe. “We urge USTR to undertake a diplomatic initiative targeted at the European countries that are rapidly increasing their shipments of CTL plate and other products to the […]
According to Baker Hughes data from March 22nd, 2013, the U.S rig count for this week is 1,746 rigs exploring for or developing oil or natural gas. This number represents a decrease of 30 rigs from last week. Compared to last year the 1,746 count is a decrease of 222 rigs. Canadian rigs decreased by […]
This week, the SMU Fair Value HRC (hot rolled coil) Model has spot HRC pricing below Fair Value for the sixth consecutive week after briefly rising above the Fair Value price in the week of February 8th. This is due to the SMU average spot HRC index decreasing $5 per ton last week to $610 […]
The following table is of the Chinese trade data for the month of February 2013. Tonnage shown is in thousands of metric tons.
Based on the results from our steel survey conducted this past week, service center inventories dropped to 2.09 months and have been declining over the past couple of months. Steel Market Update does not weigh larger service center results any differently than smaller service centers. We defer to the MSCI data as being more complete. […]
House Subcommittee Presentations The American Iron and Steel Institute made its presence known last week on Capitol Hill. Top steel executives encouraged members of the House Energy and Commerce subcommittee on Commerce, Manufacturing and Trade to remedy government policies on tax, energy, infrastructure, environment and trade to strengthen American jobs in steel and other manufacturing […]
Nucor pushes back at potential competitor Written by: Sandy Williams Arkansas lawmakers are still delving into the feasibility of offering Big River Steel a $125 million incentive package. IHS Global Analysis was hired by the State of Arkansas to provide a third-party review of the Arkansas Economic Development Commission (AEDC) cost-benefit analysis for the proposed […]
We had a mixed bag this past week as the CRU indices went higher while SMU and Platts moved lower. Stuck in the middle was Steel Orbis which didn’t do anything and SteelBenchmarker which did not report new numbers last week. The benchmark hot rolled index is in a fairly tight range from $610 (SMU/Steel […]
Industrial Production and Manufacturing Capacity Utilization – February 2013 Federal Reserve statistics for February 2013 indicate that manufacturing is in a “Warm” growth mode which confirms the Institute of Supply Management’s manufacturing index, orders for durable goods and the rate of growth of manufacturing employment. In three months through February IP grew 2.6% year over […]
Washington, D.C. – March 20, 2013 – With increasing demand for design services, the Architecture Billings Index (ABI) is continuing to strengthen. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the […]
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Prices Drop as an April Pullback Looks Likely After prices for March settled up $40+ the market for April already is starting to shape up significantly weaker. Dealers succeeded in pushing up prices last month but currently it looks like April will be down at least $20 t […]
Written by: Sandy Williams The JP Morgan Global Manufacturing PMI slipped to 50.8 from 51.4 in January indicating a slowing in manufacturing. Global manufacturing output rose for the fourth month in a row with the U.S. leading the upward momentum. India, Mexico and Brazil also saw acceleration in production. China showed slowing in February while […]
Written by: Sandy Williams General Motors nearly doubled its fourth quarter earnings while posting big losses in Europe. GM reported fourth quarter earnings of $898 million, up from $468 million in the same period in 2012 due in part to a variety of gains from special items. A number of one-time accounting gains and losses […]
Written by: Sandy Williams ThyssenKrupp announced it will reduce its European workforce by 2000 employees with a possible 1800 dismissals to follow. The reduction is part of its “Best in Class—reloaded” (BiC) optimization program aimed at saving $670 million by the next fiscal year and improving competitiveness in the European market. The program includes restructuring […]