This past week I unexpectantly lost someone I called a friend within the steel industry. I learned late last week that Keith Gunter, Vice President of Purchasing for McElroy Metals, lost his brief battle with cancer. He was 62 years old. Keith was one of the purchasing people I trusted to challenge me, and to […]
Lead times for spot orders of hot rolled steel have shortened a bit in the past month, which is somewhat unexpected, while delivery times for other flat rolled products have seen small ups and downs as the market searches for a stable footing. Hot rolled lead times now average 3.59 weeks, down from 3.73 two […]
Steel demand is slowly improving as the economy moves on from the coronavirus shutdowns, but the environment remains very competitive, and buyers report that most mills are willing to negotiate on price to win orders of flat rolled steel. Steel prices have moved up erratically since hot rolled bottomed at $460 per ton in late […]
Reinventing Our Lives. As I have mentioned before, the COVID-19 pandemic is a health issue, not a political issue. Social distancing and the wearing of a mask are appropriate health decisions being made to protect those around you. Your protection comes from those around you also wearing a mask and being aware of how close […]
Sales of new and existing homes reflect different impacts of the COVID-19 crisis, but analysts expect both categories to contribute to a rebound for the economy. New Home Sales Rise in May New home sales rose 16.6 percent in May to a seasonally adjusted annual rate of 676,000 and were 12.7 percent higher than a […]
Why leave your employees in the dark? Last week we had one of our member companies upgrade to an Enterprise membership, and they added 429 of their employees to their account. Today, we had a steel mill ask to add another 100 people onto their existing account. From our inception, the goal of Steel Market […]
Construction employment rebounded in May in 45 states and D.C., according to an analysis of government data by the Associated General Contractors of America. The jump in employment follows the loss of nearly one million jobs in April, but may be short-lived, said AGC officials. “The widespread uptick in construction employment in May is welcome […]
Happy Father’s Day to all the dads out there. I hope you got to enjoy some quality time with your kids earlier today. There has been a call on the Commerce Department to review exports of steel and aluminum from Canada and Mexico. There is a question if exports of these products have “surged” since […]
Flat rolled steel price momentum, for spot pricing out of the domestic mills, continues to be in transition, and the SMU Price Momentum Indicator is at Neutral. Neutral means spot mill pricing could go in either direction over the next 30 days. However, SMU and our parent company CRU have both been reporting lower spot […]
Construction activity is returning to pre-coronavirus levels in many parts of the country and some firms are adding workers, report the Associated General Contractors of America and construction technology firm Procore, based on just-completed research. The new economic data, however, also shows some future projects are being canceled and many others are being delayed by […]
Housing starts rose 4.3 percent in May to a seasonally adjusted annual rate of 974,000. Starts were 23.2 percent below the May 2019 rate of 1.27 million. Single-family starts were flat, increasing just 0.1 percent last month. Construction of housing with five units or more, however, jumped 16.9 percent. Regionally and on a year-over-year basis, […]
I know I speak on this subject a great deal because it is a challenge and an opportunity for the steel industry, and I love challenges. I am counting on you recognizing the opportunities…. When it comes to the SMU Steel Summit Conference there are two keys to our success: 1) quality content and 2) […]
The U.S. auto industry is facing a slew of challenges as it emerges from the COVID-19 crisis and plunges into preparations to meet USMCA compliance on July 1. The Center for Automotive Research presented a discussion with Gov. Matt Blunt, president of the American Automotive Policy Council and former governor of Missouri, on the state […]
Flat Rolled = 67.6 Shipping Days of Supply Plate = 61.0 Shipping Days of Supply Flat Rolled Service center flat roll inventories edged down in May, which was consistent with lower on-order volumes seen in April as well as higher shipments in May. Service centers carried 67.6 shipping days of supply at the end of […]
Flat Rolled = 62.5 Shipping Days of Supply Plate = 58.7 Shipping Days of Supply Flat Rolled Service centers reduced their flat rolled supply to 62.5 shipping days of supply at the end of June, from 67.6, according to adjusted data. In terms of months on hand, June inventories represented 2.84 months of supply, down […]
Builder confidence is increasing as the economy recovers from the COVID-19 pandemic. The National Association of Home Builders/Wells Fargo Housing Market Index jumped 21 points in June to a score of 58, returning to positive market conditions. Any score above 50 indicates that builders view conditions as good as opposed to bad. “As the nation […]
My understanding from industry sources is that JSW Mingo Junction has returned their EAF and hot strip mill back to production this week. The mill was idled in April with JSW doing some work on the equipment. This will put some cheaper hot rolled coil into the market (one mill commercial officer telling me they […]
Steel buyers’ attitudes, as measured by Steel Market Update’s Sentiment Indexes, have improved steadily since their low point in the first week of April and are now approaching pre-coronavirus levels once again. Industry executives are clearly feeling more positive about their prospects as the economy begins to normalize. Current Sentiment has improved by 40 points […]
Steel demand is on the upswing three months after being decimated by government orders to shut down nonessential businesses and stop the spread of COVID-19. The majority of steel buyers (53 percent) responding to Steel Market update’s market trends questionnaire this past week said they are seeing improvement in demand for their products. Another 38 […]
Every other week Steel Market Update conducts an analysis of the flat rolled and plate steel market trends. This is done via a comprehensive questionnaire, invitations for which are sent to more than 600 individuals representing more than 550 companies. We intentionally weight the invitations heavily to individuals from manufacturing and steel service centers. Combined […]
Lead times for spot orders of flat rolled and plate steels have extended in the past four weeks as demand has picked up and mill production has come down. In response to the COVID-19 shutdowns of nonessential businesses in March, steel producers idled furnaces to sync their output with demand. Lengthening lead times this week […]
After a brief period in which the mills tried to hold the line following their price increase announcements in May, negotiations have swung once again in buyers’ favor. Seven out of 10 buyers responding to Steel Market Update’s questionnaire this week said the mills are willing to negotiate on price to win orders of hot […]
We had an exceptional SMU Community Chat on Wednesday with James Banker, Jr., of NLMK USA. Banker was candid, forthcoming (except when asked about steel pricing) and provided solid information for those who were on the webinar. The recording is available as are the PowerPoint slides used during the webinar. You can find both by […]
John Packard is working on another project. Steel prices have been on an upward trajectory, albeit a gradual one, since bottoming out in late April when the benchmark price of hot rolled hit a low of $460 per ton. The market plunged by $120 per ton in just six weeks from its mid-March high of […]
Construction employment declined in nine out of ten metro areas from March to April, during a season when the industry normally sees employment levels climb, said the Associated General Contractors of America in an analysis of new government data. “Today’s employment report shows how few areas were left unscathed by April’s unprecedented job losses,” said […]
The Dodge Momentum Index was nearly unchanged at 129.2 in May compared to 129.4 in April. The commercial component of the index rose 1.0 percent while the institutional component dropped 1.9 percent. The Index is a significant predictor of future construction. The monthly index is a measure of the first report for nonresidential building projects […]
The House has proposed an infrastructure bill that would provide $494 billion over the next five years to improve the nation’s highways, rails and transit systems. The INVEST in America Act includes $319 billion for highway investment, $105 billion for transit agencies, $10 billion for motor vehicle safety and $60 billion for rail investment. The […]
April heating and cooling equipment shipments totaled 1.44 million units, down 17.5 percent from the same month one year ago, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). This is the largest year-over-year decline seen in nearly 11 years, going back to June 2009. As a three-month moving average, total heating […]
There is much to discuss, much to learn… As trade attorney Lewis Leibowitz lays out in his article/opinion piece this evening, there are no easy solutions to issues built over decades. International manufacturing companies need to review their supply chains to ensure they are not doing business in countries potentially hostile to the United States. […]
Total U.S. construction declined by 2.9 percent in April, compared with March, on a seasonally adjusted basis. On a non-adjusted basis, data for April had a positive growth of 2.3 percent, which was unusually low for this time of year. Normally April expenditures are about 8 percent higher than March. On a year-over-year basis and […]