Home prices continued to accelerate across the nation in September, posting the fastest annual rate increase since June 2014. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index showed home prices up 6.2 percent in September, compared to a gain of 5.9 percent in August. The 20-City Composite posted a 6.2 percent gain year-over-year, […]
New home sales jumped 6.2 percent in October to a seasonally adjusted annual rate of 685,000 and a 10-year high. All regions of the U.S. recorded increases, according to data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. September’s seasonally adjusted annual rate was revised downward from 667,000 […]
The U.S. Department of Commerce and its Secretary Wilbur Ross did something today that has not been done in the last 25 years–they self-initiated an antidumping (AD) and countervailing duty (CVD) suit. In this case, it was against aluminum imports from China, but steel buyers should take note. The DOC already has a Section 232 […]
To our U.S. customers, welcome back from the long Thanksgiving Holiday weekend. I hope everyone had an enjoyable weekend with family and friends. Our website developers have been very busy working on our website going back to Wednesday of this past week. If you tried getting onto our website on Wednesday afternoon through Saturday afternoon, […]
Flat rolled steel service centers apparently do not have the luxury or ability to raise spot prices, even after two price increases by the domestic steel mills, according to the latest flat rolled steel market trends analysis by Steel Market Update (SMU). Last week, in SMU’s mid-November flat rolled analysis, one of the key areas […]
Flat rolled steel inventories ended the month of October in a balanced situation based on the Steel Market Update Apparent Excess/Deficit proprietary model, which is applied to the MSCI inventories and shipment data. U.S. steel service centers ended the month of September with +68,000 tons of excess inventories, based on the SMU model. Our forecast […]
Existing home sales increased for the second month in a row and at the strongest pace since early summer. Total sales in October, including single-family homes, townhomes, condominiums and co-ops, increased 2.0 percent from the previous month to a seasonally adjusted annual rate of 5.48 million. Lawrence Yun, National Association of Realtors chief economist, says […]
This is the last Executive issue of Steel Market Update until Sunday evening. We will produce a Premium issue for our Premium clients tomorrow. Our offices will be open tomorrow (Wednesday) and closed on Thanksgiving Day. We will have limited coverage on the Friday following Thanksgiving. Our offices will return to normal staffing and hours […]
Twice per month, Steel Market Update (SMU) conducts an analysis of the flat rolled steel market and the trends that affect pricing, demand, etc. Each analysis is conducted via an email invitation to complete a questionnaire. SMU invites approximately 650 individuals who are active participants in the manufacturing, distribution, toll processing, trading and steel mill […]
Were you surprised by the price increases announced this week by the major mills? If you were, don’t feel bad. You were among the majority of steel buyers who could foresee no clear direction for steel prices. On Monday, Steel Market Update sent its market trends questionnaire to 650 steel buyers asking, among other questions, […]
Mexico continues to take a larger share of light vehicle assemblies from the U.S. and Canada, according to Steel Market Update’s analysis of October industry data. U.S. Vehicle Sales In September, sales of autos and light trucks surged to an annual rate of 18.6 million units. October fell back to 18.1 million units. Economy.com had […]
Housing starts leapt 13.7 percent from September to October, rising to a seasonally adjusted rate of 1.290 million and beating economists’ estimates. Single-family housing starts increased 5.3 percent, while housing of five units or more jumped 37.4 percent, reported the Commerce Department. Data shows the South rebuilding after the devastation of the dual hurricanes earlier […]
We asked a question about Section 232 in last week’s flat rolled steel market trends questionnaire. The question was, “Do you think President Trump will invoke Section 232 and add duties on steel imports early next year on national security grounds?” Relatively few steel buyers elected to answer this question, which either suggests they don’t […]
Despite all the uncertainty regarding possible trade action and steel prices, the Steel Market Update Steel Buyers Sentiment Index is holding steady, and at a higher level than last year. Steel buyers’ sentiment appears to have bottomed out in October and November and, in Steel Market Update’s opinion, is poised to pick up along with […]
The latest lead time data based on the Steel Market Update flat rolled steel survey—largely unchanged from two weeks ago–offers no clear indication of whether this week’s price announcements by three of the flat rolled steel mills will be accepted by the marketplace. SMU began collecting responses from steel buyers on Monday of this week, […]
Buyers of flat rolled steel report that most domestic steel mills are open to negotiating spot prices, especially on cold rolled and coated products, even though the major mills announced price hikes this week. About half of the respondents to this week’s Steel Market Update market trends questionnaire reported a mixed market, with some mills […]
I have a feeling if I were to write a long drawn-out final thoughts article that our readers would shoot me… I think we have 16 articles in tonight’s newsletter – many of them top-line articles (price increases, MSCI data, Sentiment, Lead Times, Negotiations, Section 232, etc.). What you don’t know is we actually moved […]
Below is the latest data released by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through September 2017. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for September 2017 increased 14.6 percent […]
As I move around the flat rolled steel industry, communicating with manufacturing companies, service centers, traders and steel mills, I am receiving mixed messages about the market. A good example is the HARDI steel committee conference call that was held earlier today. HARDI wholesalers, the companies who supply the HVAC mechanical contractors in the building […]
Total rolled steel imports declined by 14.0 percent in the three months through October, compared to the three months through July. Sheet products were down by 12.6 percent on the same basis, based on final license data for October reported by of the U.S. Commerce Department on Nov. 7. The data is reported within the […]
Steel Market Update (SMU) has been working on developing and then expanding a new steel service center flat rolled steel inventories analysis. We are providing a sample of the analysis, which will be available initially to Premium level customers, as well as those service centers that participate by providing data to Steel Market Update. If […]
We will begin conducting our mid-November flat rolled steel market survey on Monday. If you receive an invitation to participate, please take a few moments to click on the button in the message, which will take you to our questionnaire. The questionnaire shouldn’t take more than a few minutes to complete. If you would like […]
The American Transportation Research Institute (ATRI) just released a new report assessing the nation’s infrastructure needs. Entitled, “A Framework for Infrastructure Funding,” the report concludes that a federal fuel tax increase is necessary for attaining the large-scale infrastructure program envisioned by the administration. Generating enough revenue through other mechanisms, such as mileage-based user fees and […]
The expectation, even among the naysayers, is there will be a bounce in flat rolled prices once lead times reach the end of December and into the New Year. The expectation is that the domestic steel mills will raise prices in the coming days. We have heard rumors that the first mill to move may […]
Growth of total construction spending has almost come to a halt, according to Steel Market Update’s latest analysis of Department of Commerce construction put in place (CPIP) data. Last month, we reported that total construction expenditures contracted in the three months through August year over year for the first time since November 2011. Based on […]
I am in Chicago this evening having conducted a shortened version of our Steel 101 workshop at the FABTECH conference. We had a good group of people who were totally unaware of Steel Market Update and, in many cases, were attending to gain more knowledge about the steels their company uses. We had energy people […]
Twice per month, Steel Market Update (SMU) conducts an analysis of the flat rolled steel markets and trends associated with those who buy and sell hot rolled, cold rolled, galvanized, Galvalume and steel plate. One of the key areas we review is how steel service centers are handling spot pricing to their end user customers. […]
Is another mill price hike likely? Nearly 60 percent of respondents to Steel Market Update’s market trends questionnaire earlier this week said they do expect the steel mills to make another price announcement this month before the Thanksgiving holiday on Nov. 23. The other 40 percent are doubtful. Following are some of their comments: · […]
Some quick final thoughts this evening – I will be traveling tomorrow (Monday) to Chicago to attend FABTECH and to teach a mini-version of our Steel 101 workshop (they call it Steel 101: Mill to Fabricator) on Tuesday afternoon. John Eckstein and I will be in Room 502B in McCormick Place, and the workshop is […]
The real news coming out of this week’s flat rolled steel market trends analysis is the jump in the SMU Steel Buyers Sentiment Index when looking at the index as a single data point, as opposed to a three-month moving average, which is our preference. Measured as a single data point, the average among those […]