U.S. automotive sales fell 5.5 percent year-over-year in September. Depending on one’s perspective, they were either good, at a seasonally adjusted annual rate 17.54 million, or a portent of worse times to come. General Motors, which no longer reports monthly sales, said third-quarter sales plunged 11 percent and estimates put September sales down a dismal […]
I am back in the office, at least for a few days, trying to catch up on paperwork that has been piling up, as well as working on our SMU Service Center Inventories report. I hope to have our “Flash” report out on Sunday. The “Flash” report gives a snapshot of how the data is […]
One more day in Chicago before I head back to my office in Florida. I have been attending the CRU North American Steel Conference. CRU Principal Economist Lisa Morrison spoke about President Trump doing what he promised he would do on the campaign trail. “If he said he is going to do X, then we […]
I am in Chicago for the start of the CRU North American Steel Conference on Monday. I am looking forward to attending my first CRU hosted conference. Tim Triplett and I will let you know what we learned during the conference in Tuesday’s and Thursday’s issues of Steel Market Update. I got a note from […]
Sales of new homes increased last month despite affordability issues related to building costs. Sales of new single-family homes rose 3.5 percent in August compared to July and were 12.7 percent higher than in August 2017. The seasonally adjusted annual rate was estimated at 629,000. Sales were strongest in the Northeast, soaring 47.8 percent from […]
I am back in my office after four very long days, mostly due to long and late flights to Minnesota, Pittsburgh and back to West Palm Beach. I will be in the office for most of the day on Friday should you need to reach me. I am off again on Sunday as I head […]
Home prices grew at a slower rate in July, according to the latest S&P CoreLogic Case-Shiller Index. The National Home Price NSA Index posted an annual gain of 6.0 percent, down from 6.2 percent in June. The 20-City Composite was at an 11-month low, posting a 5.9 percent year-over-year increase compared to 6.4 percent in […]
The number of flat rolled and plate spot transactions has dwindled over the past couple of weeks. End users are squeamish about ordering any steel other than what is needed for the work on the floor. Steel buyers are reporting a weakening of the top end of the range but firming at the lower ends. […]
As I mentioned in a recent newsletter, comments received from our readers will many times lead to an article, or even a series of articles. One of our goals is to dig into topics of interest to our readers from as many angles as possible, and then allow you to make your own conclusions. For […]
The SMU Steel Buyers Sentiment Index has been treading water, albeit at optimistic levels, for the past six months. However, the attitudes of buyers and sellers about conditions in the steel market might be described as anywhere from cautious to tepid, judging by the comments provided in Steel Market Update’s latest Steel Buyers Sentiment Index […]
Lead times for most flat rolled steel products are about a week shorter than they were two months ago. Shorter lead times suggest that steel demand is easing. Lead times for steel delivery are a measure of demand at the mill level—the shorter the lead time, the less busy the mill. Lead times for hot […]
The pendulum has definitely swung back in buyers’ favor when it comes to negotiating steel prices with the mills. Steel Market Update tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. More than nine out of 10 buyers report that mills are willing to negotiate spot prices on hot rolled […]
Housing starts rebounded in August after a lackluster gain in July. Data from HUD and Commerce show new residential housing starts jumped 9.2 percent to a seasonally adjusted annual rate of 1,282,000 from the upwardly revised July SAAR of 1,174,000. Starts were 9.4 percent higher than August 2017. The increase took economists by surprise and […]
Existing-home sales were flat in August, halting a four-month decline, said the National Association of Realtors. Sales of single-family homes, townhomes, condos and co-ops were at a seasonally adjusted annual rate of 5.34 million last month, down 1.5 percent from a year ago. “Strong gains in the Northeast and a moderate uptick in the Midwest […]
First, I must warn steel buyers that the USW may be losing patience with U.S. Steel and ArcelorMittal USA. We are monitoring the individual locals and we will report when we think something is going to break. The question right now is how long a leash is the union offering? As I said the other […]
Construction costs are escalating due to labor costs and tariffs on critical materials. Although declining 0.8 percent from July to August, prices for construction goods such as diesel fuel, steel, aluminum, asphalt and gypsum products have risen 6.2 percent since the beginning of the year, said the Associated General Contractors of America in a recent […]
If your company is interested in a sponsor spot at the 2019 SMU Steel Summit Conference in Atlanta (Aug. 26-28), please contact Jill Waldman at Jill@SteelMarketUpdate.com so we can get you our sponsorship package as soon as it is ready. Those companies that were sponsors this year will have first crack at committing for 2019. […]
The following analysis is from the SMU Service Center Inventories Index. This index is a proprietary product produced through data collection and interaction with a large number of flat rolled and plate service centers across the United States. This index is normally shared only with data providers and our Premium level members. If you would […]
I had originally intended to add to the Methodologies article I wrote last week, but I have decided there is not enough new relevant information to add to what was already written. I expect that we will re-visit this subject as time goes by and as questions are asked about the various indexes. Our first […]
Each month, Steel Market Update produces an import analysis by region for two of the six flat rolled product groups (HRC, CRC, HGD, OMC, CTL plate and coiled plate). This month, we are focusing on plate products. The intent of these regional updates is to bridge the gap between our monthly licensed data summaries and […]
Each month, Steel Market Update produces an import analysis by region for two of the six flat rolled product groups (HRC, CRC, HGD, OMC, CTL plate and coiled plate). This month, we are focusing on plate products. The intent of these regional updates is to bridge the gap between our monthly licensed data summaries and […]
Net job creation in August totaled 201,000 positions. Manufacturing took a small step back, but year to date the results are good, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics (BLS) data. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. Most […]
There have been many comments regarding the recent article I did on steel index methodologies. Included were comments/answers from two of the price providers mentioned at the beginning of the article who were unable to get to me prior to our publication deadline. I am going to do a follow-up article on Sunday evening. What […]
The Dodge Momentum Index fell 2.9 percent in August to a reading of 164.1. The Momentum index is a monthly measure of the initial report for nonresidential building projects in planning. Commercial construction led the decrease, falling by 6.1 percent after rising 25 percent in the first seven months of 2018. “While commercial planning did fall […]
I am in Middletown, Ohio, having spent the day at AK Steel’s Research and Innovation Center as part of our new Steel 201 training workshop. The facility is impressive both in physical beauty as well as the operations and people working there. Our class is being held in an auditorium that seats about 70 people […]
Another busy week for me as our first Steel 201: Introduction to Advanced High Strength & Other New Steels workshop will be conducted at AK Steel on Tuesday and Wednesday (Monday is a travel day for me). We have a sold-out workshop, we have some new instructors and for the first time we will be […]
Steel demand and prices are seeing some softening, but perhaps not enough to trigger a big inventory correction yet, report respondents to Steel Market Update’s flat rolled market trends questionnaire this past week. About 27 percent of the steel buyers who responded believe demand for their products is declining. However, the majority, 58 percent, report […]
Heating and cooling equipment shipments were up 6.5 percent in July compared to one year ago, according to data released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) on Friday. Residential and commercial storage water heater shipments were up 3.7 percent year over year to a combined 646,975 units; 631,474 units were shipped for residential […]
Future Sentiment, measured as both a single data point and as a three-month moving average (3MMA), is near its low point of the year as conflict on the trade front keeps buyers guessing. Future Sentiment registered +55 in Steel Market Update’s latest Steel Buyers Sentiment Index, down from +67 in mid-August. Current Sentiment registered +63, […]
Lead times on most flat rolled steel products continue to shorten, according to Steel Market Update’s latest market trends data. Lead times for steel delivery are a measure of demand at the mill level—the longer the lead time the busier the mill. Shortening lead times suggest steel demand is easing. Lead times for hot rolled […]