Planning activity for nonresidential construction declined in August, according to the latest report issued by Dodge Data & Analytics. The Dodge Momentum Index slid 1.3 percent to 127.8 last month primarily due to a 16.6 percent decline in the institutional component that offset a 9.1 percent gain in the commercial component. The index is a […]
I am technically on vacation this week so my Final Thoughts will be brief, and I will rely on Senior Editor Tim Triplett to handle these duties for the balance of this week. I have heard from a number of buyers this week telling me that their business is slowing, and the interest by end […]
Employment gains fell short of expectations in August with only 130,000 new nonfarm jobs reported by the U.S. Census Bureau. Construction employment accounted for 14,000 jobs last month and 177,000 in the past 12 months, according to the latest analysis of government data by the Associated General Contractors of America. Ken Simonson, the association’s chief […]
July heating and cooling equipment shipments came in at 1.81 million units for the month, up 0.4 percent over the same month one year ago, according to data recently released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). This is the first month that total monthly equipment shipments have increased on a year-over-year basis since […]
Steel Market Update will produce our Service Center Inventories and Shipments “Flash Report” on flat rolled and plate steels for data providers on Monday, Sept. 9. Also on Monday, we will begin our early September flat rolled and plate steel market trends analysis. On Friday, we will provide data providers with a link to a […]
Steel Market Update is making adjustments to our Price Momentum Indicators on hot rolled, cold rolled, galvanized and Galvalume steels. The pressure behind rising steel prices seems to be subsiding as lead times at most mills are reasonable (especially considering the maintenance schedules in place for September and October). Steel buyers are beginning to tell […]
August U.S. auto sales, minus the non-reporting Detroit Big 3, grew 12.2 percent from a year ago. Sales were strong for Asian manufacturers with most reporting double digit gains. Honda led the sales increase in August posting an 18 percent gain year-over-year. Nissan was next at 13 percent, followed by Hyundai at 12 percent and […]
Construction spending was essentially flat in July, inching up less than 0.1 percent from June, according to an analysis of U.S. Census Bureau data by the Associated General Contractors of America. Spending slid 2.7 percent from a year ago to a total seasonally adjusted annual rate of $1.289 trillion. Year-to-date, spending declined by 2.1 percent […]
This report is designed to be a big picture summary of data we have reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for steel buyers and sellers. See the end of this piece for an explanation of the Key Indicators […]
Construction Put in Place (CPIP) data released Sept. 3 by the Commerce Department shows the first decline in total construction in nearly eight years. Through July, total construction has had negative momentum every month since October last year, and in June and July total construction declined for the first time since November 2011, according to Steel […]
Ferrous scrap prices are starting to settle as of today. Initial checks with some of our scrap sources found prime grades down $40 and obsolete grades down $30 in portions of the Midwest. We learned the Cleveland area mills bought busheling down $20 to $300/gross ton. We also learned of a purchase of HMS at […]
The United Auto Workers has chosen General Motors as the lead company for labor negotiations that will set the pattern for 2019 discussions. Contracts at the Detroit Big 3 will expire at midnight on Sept. 14. “We are focused. We are prepared. And we are all ready to stand up for our members, our communities […]
As I write my “final thoughts” for Tuesday evening’s issue of Steel Market Update, I am in Stuart, Fla., and there is a hurricane located about 80 miles due east in the Bahamas. It is Monday and I expect there will be limited power or mobility come Tuesday, so I am trying to be a […]
Contract negotiations between the United Auto Workers and Ford, GM and FCA are facing unwanted outside pressures. As a precautionary strike vote is being taken at UAW locals, the FBI reportedly raided homes of UAW presidents in Ohio, California, Wisconsin, Missouri and Michigan as part of a government investigation into bribery allegations. United Auto Workers […]
Eighty percent of contractors report difficulty filling hourly craft positions, according to a new survey by the Associated General Contractors of America. Only 4 percent expect hiring conditions to be easier in the next 12 months. “Workforce shortages remain one of the single most significant threats to the construction industry,” said Stephen E. Sandherr, AGC’s […]
I thought I was going to get a respite from the stress of putting on the 2019 SMU Steel Summit Conference as the conference has concluded and I have returned home. For those of you who do not know, I live in southern Florida on the Atlantic coast side close to West Palm Beach. Mother […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. North American auto production exhibited the normal slowdown in July. This report is based on data from LMC Automotive for automotive assemblies in the U.S., Canada and Mexico. The breakdown of […]
We are not producing our flat rolled and plate steel price ranges and averages this evening as we are tied up with our conference. We will produce new pricing on Tuesday of next week, after the Labor Day Weekend Holiday. On the elevator up to my room this evening (Tuesday, Aug. 27) was a gentleman […]
Steel Market Update’s Steel Buyers Sentiment Index moved lower over the past two weeks as buyers appear concerned about the economy and steel demand. Steel prices remain a source of anxiety as the mills have been only partially successful at collecting their recent price increases. The goal of SMU’s Buyers Sentiment Index is to measure […]
New home sales fell 12.8 percent to a seasonally adjusted annual rate of 635,000 from June’s revised rate of 728,000, acccording to the latest report from Commerce. Sales increased 4.3 percent from a year ago and were 4.1 percent higher on a year-to-date basis. The revision to sales was notable due to the upward rise […]
Temperatures in Atlanta were in the high 70’s today under cloudy skies. The forecast for the next few days is for temperatures to be in the low 80’s on Monday and then climbing to the high 80’s by Wednesday. There is a chance of showers/thunderstorms on Monday and Tuesday, but they should be gone come […]
If the price increases announced by the mills over the past two months were gaining real traction, it should be showing up in lengthening mill lead times. According to Steel Market Update data, the impact on lead times has been mixed and minimal. Lead times for steel delivery are a measure of demand at the […]
There has been little change in the tone of price talks over the past two weeks. The majority of buyers continue to report that mills generally are willing to negotiate to secure spot orders, even as they work to collect recent price increases on flat rolled and plate products. Since late June, the mills have […]
Home buyers in the U.S. bought more existing homes in July as mortgage rates continued to ease. The National Association of Realtors reports that existing-home sales rose 2.5 percent to a seasonally adjusted annual rate of 5.42 million after dipping in June. On a year-over-year basis, existing home sales were 0.6 percent higher last month. […]
I have been traveling all day, so I have had limited exposure to the market today. For that matter, as I have mentioned on a couple of recent occasions, I have been almost entirely focused on the 2019 SMU Steel Summit Conference. So, here are a few comments about the conference for those of you […]
Using U.S. International Trade Commission (USITC) data, SMU has taken the import tonnage of cold rolled sheet and broken it down into coil and leveled, then into four thickness ranges, and then identifies how much was full hard, annealed and high strength. Through June 2019, of the total cold rolled sheet and strip imports into […]
The official economic statistics out of China showed a decline in industrial production in July. But in June, China’s share of global steel production was 55.1 percent. Once each quarter we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. We don’t know the accuracy of these numbers, […]
Six days to go… Today, I had a long conversation with Ryan Smith who is the Global Costing Analyst for CRU. Ryan is based out of Australia and will be joining us in Atlanta next week when he will speak about the advantages and disadvantages the domestic steel industry has, and domestic steel buyers need […]
Housing starts in July dipped 4.0 percent from June to a seasonally adjusted annual rate of 1,184,000, but were 0.6 percent higher than a year ago, reports the U.S. Department of Commerce. Single-family housing starts gained 1.3 percent from the previous month, while starts for buildings with five units or more fell 17.2 percent. “Despite […]
Construction jobs are plentiful but the industry says more workers are needed. The number of new jobs available indicates there is a need for new federal investments in career and technical education programs, along with immigration reform, said the Associated General Contractors of America.. Forty states added construction jobs between July 2018 and July 2019, […]