Sales of new single family homes rose 9.6 percent to a seasonally adjusted annual rate of 468,000 in January from a revised December rate of 427,000, according to data released by the US Census Bureau and US Department of Housing and Urban Development. The year-over-year increase of home sales was 2.2 percent above the January […]
Steel Market Update has been in constant contact with one of our Asian trading sources who is a trader of iron ore to Chinese steel mills and exporter of finished steel out of China around the world. We have been discussing the iron ore “bubble” which continues to inflate and our source believes it will […]
Chinese imports of iron ore in January were 86,830,000 metric tons (MT), an increase of 18.3 percent from the previous month and an increase of 32.5 percent from January 2012. Total iron ore imports for 2013 were adjusted to 819,410,000 MT. January imports of steel scrap were 160,000 MT, down 48.4 percent from December and […]
The Baker Hughes North American Rotary Rig Count is a weekly census of the number of drilling rigs actively exploring for or developing oil or natural gas in the United States and Canada. Rigs are considered active from the time they break ground until the time they reach their target depth and may be establishing […]
The hot rolled coil futures market took a leg down this week as offers down the curve became more aggressive. After weeks and months of a fairly static forward curve, this renewed downward pressure of the past few days has shaken up the market. The Q2 traded today as low as $623, the Q3-4 at […]
The Architecture Billings Index, an indicator of future construction activity, rose in January after contracting in previous consecutive months. The ABI reflects a nine to twelve month lead time between architectural billings and construction spending. The ABI press release from the American Institute of Architects (AIA) is reprinted in entirety below. For more information on […]
Latin America steel producer Ternium reports net sales of $2.1 billion on 2.23 million tons of steel shipments and 994,000 tons of iron ore shipments in the fourth quarter 2013. Steel shipments were down 3 percent from third quarter but up 3.0 percent from fourth quarter 2012. Net income was $171.1 million, up from $136 […]
General business conditions fell 8 points in the February 2014 Empire State Manufacturing Survey after rising 10 points in January, but remained positive at 4.5. New orders were flat for the month, declining 11 points to -0.2. The shipment index dropped 13 points to 2.1. The inventory index fell to -5.0 indicating a slight drop […]
The Precision Metalforming Association (PMA) reported metalforming companies surveyed in the February 2014 Business Conditions Report are expecting weaker business conditions during the next three months. Those who expect economic activity to improve during the period slipped from 46 percent in January to 32 percent in February. PMA members anticipate a modest decline in incoming orders […]
Winter weather has taken its toll on builder confidence in the single-family home market says the National Association of Homebuilders. Builders also expressed concern about labor shortage and scarcity of available lots. The NAHB/Wells Fargo Housing Market Index dropped 10 points to 46, with all three of the major components of the index falling in […]
Steel Market Update (SMU) received an email from one of our readers regarding his concerns as the iron ore spot prices drop in China and ore inventories rise. The writers belief is that United States flat rolled steel prices will be impacted eventually. This service center executive wondered what our Asian iron ore and steel […]
In the month since this analysis was last published, the US dollar has strengthened against 12 of the 16 nations that we consider to be major players in either the iron ore market or in steel product trade or both. Most notably, the Russian Rouble and the South African Rand have declined by 4.7 percent […]
The European Union was formed in 1992 with the signing of the Maastricht Treaty on European Union (TEU). In an effort to instill fiscal discipline and encourage trade and free flow of labor and capital without giving up sovereignty, member countries would participate in a monetary union while remaining fiscally independent. The caveat was countries […]
When I last wrote I mentioned we would test the S & P 1720-1750 zone before attempting a rebound. We reached a 1737 low and we are now in rebound mode these last two weeks with the market last at 1829 zone. We are headed back to test the highs at 1850 to see if […]
Andre Marshall of Crunch Risk, LLC shared the following information about iron ore and busheling futures trading for the past week. Iron Ore: As always traders make a big deal about the Chinese post New Year’s holiday making a big buying push upon their return, but it appears whatever buying has been done hasn’t been […]
POSCO announced the completion of a second continuous galvanizing line in Altamira, Tamauliapas, that will serve the flourishing automobile industry in Mexico. The new facility has an annual capacity of 500,000 tons and will produce galvanized steel sheet used in exterior panels of high end automobiles. Products from 2CGL will include ‘GI Ace’ and 780mPa […]
A recovery in non-residential construction is happening said research analyst Timna Tanners, in a report by Bank of America Merrill Lynch, but the upturn for the non-residential cycle has taken longer than expected and is “less pronounced” than usual. The last strong cycle for non-residential construction was in 2005-2007, supporting a booming housing market. The […]
Based strictly on our most recent flat rolled steel survey results, Steel Market Update is seeing modest improvements being reported in demand. As a group, our survey respondents have been becoming more optimistic as those reporting demand as in decline has shrunk from 17 percent in early December to 7 percent this past week. At […]
Steel analyst Charles Bradford of Bradford Research spoke at the Port of Tampa Steel Conference this past week. He presented a relatively upbeat analysis of the domestic steel industry. He began by referring to a recent McKinsey and Company report which basically said, “The steel industry has had it, it’s over. The industry doesn’t make […]
Friday’s report has been well publicized as disappointing at 113,000 jobs created especially following the December result at 76,000. Less well appreciated is that the January report made revisions to data on payrolls, the workweek and earnings going back to 2009. Revisions to this data, which is drawn from a survey of employers, showed 369,000 […]
Once a quarter the Federal Reserve surveys the senior loan officers of domestic banks and U.S. branches and agencies of foreign banks. Questions cover changes in the standards and terms of the banks’ lending and the state of business and household demand for loans. The January survey preamble was as follows: “The January 2014 Senior […]
The futures market has traded in a tight range over the past few weeks as the lack of volatility in the spot market has provided little direction for futures traders. The physical market remains stable, albeit a touch softer, while the looming threat of increased imports has continues to cast a long shadow over the […]
The busheling market started to take shape this week as buyers and dealers came into the market, with early indications to be in the mills favor. Initial reports are for scrap in the Midwest to be down $30-40 / ton depending on grade and location. It seems that weather constraints have had a more negative […]
Residential building permit authorizations in Canada for December declined for the second month, falling 14.2 percent to a seasonally adjusted annual rate of 186,780 units from 216,608 units in November. According to data released by Statistics Canada, multi-family dwelling authorizations led the decline, dropping 21.3 percent while single family dwellings inched down 0.1 percent. Value […]
Steel buyers in the ISM Steel Buyers Survey are expecting an increase in new orders in the next three months. Of those surveyed, 46.7 percent are expecting business to improve in the early months of 2014, up from only 18.2 percent in December. Backlogs in the next three months are expected to increase said 33.3 […]
The Empire State Manufacturing Index rose 10 points to 12.5, indicating acceleration in business activity and reaching its highest level since May 2012. Prices paid and prices received rose in double digits in January with prices paid soaring 21 points to 36.6 indicating higher input costs. The six month outlook is optimistic with orders up […]
The Institute for Supply Management Purchasing Manufacturers Index (PMI) registered 51.3 percent in January. Although the index slid 5.2 percentage points from December, it is still an indicator of growth in the manufacturing sector. Most of the indices that make up the PMI fell in January. The new orders index took a significant dive of […]
US automotive sales were mixed in January with automakers blaming winter weather on slipping sales. January is typically a soft month for the industry and will likely not affect forecasts for 16-16.5 million light vehicle sales for 2014. Ford Motor Co. reported sales fell 7.1 percent year-over-year to 155,644 vehicles. General Motors sales plunge 12 […]
The JPMorgan Global Manufacturing PMI registered 52.9 in January, almost unchanged from December’s high of 53.0 and signaling the fourteenth straight month of expansion. Production and new orders continued upward which helped increase employment levels. New export business slowed in January. Sharp discrepancies in growth were seen between developed and emerging markets. The UK, Japan […]
During the month of January Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. Benchmark hot rolled prices averaged $673 per ton ($33.65/cwt) according to the Steel Market Update index. CRU posted their monthly average at $676 per ton ($33.80/cwt). You can find the balance of our weekly and monthly averages […]