Housing starts plummeted 30.2 percent in April compared to March, falling to a seasonally adjusted annual rate of 891,000 and the lowest level since 2015. Compared to April 2019, starts tumbled 27.9 percent, said the U.S. Census Bureau and the Department of Housing and Urban Development. Building permit authorizations were at a SAAR of 1,074,000, […]
With the expectation of higher scrap prices coming for the month of June, on top of the steep rise in ferrous scrap this month, the mills’ margins may well be squeezed, which will impact negotiations and pricing over the next few weeks. Most steel buyers anticipate a new round of price increases by late May […]
Steel buyers’ attitudes have improved this month as coronavirus restrictions have eased in some areas and companies have begun to get back to business. Steel Market Update asked steel buyers how they view their company’s current prospects for success, as well as their chances for success three to six months in the future. The Current […]
The United States is beginning to go back to work. Automotive plants are scheduled to begin opening this week. The U.S. is working with Mexico to ensure automotive suppliers in Mexico are deemed “essential businesses” and return to work. From my perch here in Florida, traffic has returned to normal, restaurants are open (50 percent […]
We had to change the way we calculate the adjusted data, which will also change how we derive our analysis. Previously, we adjusted the data to mirror the exact mix of service centers that responded to the previous month’s survey. We saw a decrease in participation in the March survey, which we can understand given […]
Lead times for spot orders of flat rolled steel extended slightly this week after declining since mid-March when the government ordered the closing of nonessential businesses to stop the spread of the coronavirus. Lead times for steel delivery are a measure of demand at the mill level—the longer the lead time, the busier the mill. […]
Negotiations between producers and buyers of flat rolled steel have tightened somewhat following the price increase announcements by the mills earlier this month. Steel Market Update’s canvass of the market this week shows that mills are slightly less likely to negotiate on price than they were in April when competitors were scrambling to win orders […]
We had an exceptional SMU Community Chat Webinar with Dr. Chris Kuehl of Armada Corporate Intelligence on Wednesday morning. I am getting nothing but rave reviews of our free webinars, and I encourage you to inform your management and other teammates to register and then tune in at 11 AM ET every Wednesday. Next week […]
Pandemic is a public health issue, not a political issue. I watched just a few minutes of the Senate testimony today with Dr. Fauci, Dr. Redfield of the CDC, Dr. Hahn, commissioner of the Food and Drug Administration, and Admiral Giroir, the Assistant Secretary for Health. I thought one question and answer was interesting in […]
A new survey of construction firms by the Associated General Contractors of America shows that two-thirds of firms have reported project cancellations or delays due to concerns about the pandemic or future funding. Fewer construction projects equal more job losses; 43 percent of firms surveyed reported staff cuts between March and May. Construction employment fell […]
March heating and cooling equipment shipments totaled 1.94 million units, up 0.1 percent from the same month one year ago, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). As a three-month moving average, total heating and cooling shipments were down 0.3 percent. This is the fifth consecutive month total shipments have […]
The “new normal” is to reinvent oneself or the way you will do business going forward. As many of you are aware, I am no spring chicken. Yet I refuse to live in the past. I learned (the hard way – through unexpected career changes) that I needed to constantly keep myself relevant to my […]
The Dodge Momentum Index fell 6.0 percent in April to 135.9. The monthly index by Dodge Data & Analytics measures the first report for nonresidential building projects in planning, which has been shown to lead construction spending by a full year. The commercial component of the index fell 7.6 percent, while the institutional component slid […]
When I started Steel Market Update back in 2008, I knew I wanted to build something that would become a community centered on providing quality market information and a platform from which I could help educate and motivate those within the industry. On the Steel Market Update website, we describe our mission as follows: To […]
Auto sales were expected to be low in April and predictions were correct. Edmunds estimates U.S. sales fell 36.6 percent from March and 52.5 percent compared to April 2019. “April auto sales took the biggest hit we’ve seen in decades,” said Jessica Caldwell, Edmunds’ executive director of Insights. “These bleak figures aren’t just because consumers […]
I am back from my “stay-cation.” Is it just me or is time standing still? I don’t know about your neighborhood, but the landscaping in mine has improved over the past 45 days. I understand there are a lot of home projects ongoing. From a steel executive email to me earlier today, “I told a […]
Having lived through the difficult month of April, steel buyers remain pessimistic about current business conditions, but more hopeful about the future. Steel Market Update asked steel buyers how they view their company’s current prospects for success, as well as their chances for success three to six months in the future. The Current Sentiment reading […]
“Vacation: An extended period of recreating, especially one spent away from home or traveling.” Last week I took “vacation” time off, and unlike the definition above I did little recreating, rarely strayed from home, and did no traveling. How restful is that? The big news from last week was an apparent “firming” of steel prices. […]
Today, Steel Market Update adjusted our flat rolled Price Momentum Indicator to Neutral. We are of the opinion, based on intelligence we are gleaning from steel buyers, that steel prices are in transition. We no longer believe prices on hot rolled, cold rolled, galvanized and Galvalume will decline over the next 30 days. However, a […]
Lead times for spot orders of flat rolled and plate steels declined sharply in April. Lead times ranged from a half-week to a full week shorter at the end of the month than they did at the beginning, depending on the product, according to Steel Market Update’s latest market trends questionnaire. Lead times for steel […]
On Monday of this week, Steel Market Update began canvassing the markets as we conducted one of our flat rolled and plate steel market trends suveys. The vast majority of the responses were received early in the week and the results of those responses are presented below. However, SMU continued to speak directly to both […]
It was one of those days. Publishing a newsletter is like giving birth three times a week anyway, but the labor pains for the SMU staff were particularly acute today. John Packard was ostensibly taking the day off, but that did not stop him from writing a big story and sending untold emails. Keeping abreast […]
COVID-19-related shutdowns and project cancellations caused construction employment in March to decline in 99 out of 348 metro areas year-over-year, said the Associated General Contractors of America in an analysis of government data. In an April 20-23 survey conducted by AGC, 68 percent of construction firms reported projects canceled or delayed in the past two […]
Home prices continued to increase in February before the coronavirus shutdowns, gaining 4.2 percent annually, according to the latest S&P CoreLogic Case Shiller U.S. National Home Price NSA Index. The 20-city composite grew 0.4 points for a 3.5 percent year-over-year gain. Prices were strongest in the West and Southeast and comparatively weaker in the Midwest […]
John Packard is taking some time off. May could be a pivotal month for the U.S. economy and the steel industry. No reasonable person believes we will have the virus crisis behind us, but we should at least have more clarity on what lies ahead. States, to one degree or another, are loosening their restrictions […]
General Motors and Fiat Chrysler have proposed reopening in early May, but United Autoworkers are pushing back due to safety concerns. “At this point in time, the UAW does not believe the scientific data is conclusive that it is safe to have our members back in the workplace,” said UAW President Rory Gamble in an […]
Automotive assemblies in North America nosedived in March as vehicle manufacturers shut down their plants to protect their employees from the spread of the coronavirus. Most plants ceased operations in mid-March, so the data does not reflect a full month of shutdowns, thus the effect may be even more pronounced in April. Data from LMC […]
John Packard is taking some time off… We hope you are benefiting from our series of SMU Community Chats. The idea is to help us all feel connected by getting together once a week for a short visit with an industry expert—and in a way with each other. It’s a chance to learn something valuable […]
Companies are being affected to varying degrees by the coronavirus depending on their market and geography, so it’s no surprise their opinions range widely on how long it will take business to return to pre-COVID levels. Some hope for activity to rebound as soon as this summer, while others fear it won’t be until next […]
Sales of new and existing homes both fell during March as the COVID-19 virus took hold of America. New home sales in March plummeted 15.4 percent from February levels to a seasonally adjusted annual rate of 627,000, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. Sales were down 9.5 […]