The construction industry gained 30,000 jobs in December for its highest employment level since September 2008. Construction employment totaled 6,993,000 in December, according to government data analyzed by the Associated General Contractors of America. During 2017, 210,000 jobs were added for a 3.1 percent annual increase. “Employment and pay in construction have risen more rapidly […]
As of late Friday, Steel Market Update ferrous scrap sources reported that scrap negotiations were ongoing and had not yet settled for the month of January. We heard late in the week of one Detroit-area mill paying up $20 per gross ton on prime grades and up $30 per gross ton on cut grades. We […]
Current and future sentiment among flat rolled steel buyers remains high as the New Year begins, much the same as at this time last year, according to the Steel Market Update Steel Buyers Sentiment Index. The SMU Steel Buyers Sentiment Index measures changes in buyers’ optimism levels, which offers insight into their likely decision-making. Three […]
Six months ago, Steel Market Update began collecting inventory data from a select group of flat rolled and plate steel service centers. Over time, the number of participating distributors has grown and we have been able to expedite the gathering of information from most (not all) of the service centers involved. Our initial goal is […]
So far this month, Steel Market Update has had a strong response rate from the service centers registered as inventories data providers. As of this afternoon, we had 79 percent of the steel service center data providers respond to our inquiry about their flat rolled and plate steel inventories. The headline number is flat rolled […]
Mill lead times on flat rolled steel extended a bit last month, but defied expectations and returned to prior levels despite mill price hikes in December and January, according to the latest data from Steel Market Update’s market trends questionnaire. Lead time for hot roll remains slightly over four weeks, for cold roll slightly over […]
Despite price increases by the major mills in December, followed by additional increases this week, the majority of buyers of flat rolled steel report mixed results in their negotiations with mill representatives. About 53 percent of respondents to the latest Steel Market Update market trends questionnaire report that some mills are firm and some still […]
Annual auto sales reached 17.13 million vehicles in December, according to WardsAuto, making it the third year in a row the industry has topped 17 million, but breaking the industry’s growth streak. It was the first time annual sales declined since the recession eight years ago. Actual December sales were reported as 1.596 million units […]
We are hearing that ferrous scrap prices will rise by $20 to $30 per gross ton this month. Negotiations continue at most of the mills, but we did learn of one Detroit mill settling yesterday up $20 on primes (busheling/bundles) and up $30 on the other grades. The cold weather, strong exports and low inventory […]
Key market indicators bode well for business conditions in the first quarter of 2018. Steel Market Update’s view of the present situation based on our examination of data released in December shows that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance is within the historically normal band. […]
New home sales surged in November to the highest pace since July 2007, report the U.S. Census Bureau and Department of Housing and Urban Development. The seasonally adjusted annual sales rate of 733,000 was up 17.5 percent from October and 26.6 percent from November 2016. Home prices averaged $377,100 in November with a median sales price […]
Happy New Year and welcome back to work. For the first time in many years, I was able to get away and not concentrate all of my time and effort on the steel industry. If you have been trying to reach us between Christmas and New Years, you may have had an issue in locating […]
Current and future sentiment among flat rolled steel buyers improved further in December, according to the Steel Market Update Steel Buyers Sentiment Index, mirroring the pattern at this time last year that heralded a strong first quarter. The SMU Steel Buyers Sentiment Index measures changes in buyers’ optimism levels, which offers insight into their likely […]
Flat rolled steel inventories ended November in approximate balance with current activity levels, based on the proprietary Steel Market Update Apparent Excess/Deficit model, which SMU applies to MSCI inventory and shipment data. Comparing shipments and inventory on a historical basis allows SMU to forecast if the distribution channel is likely to be over- or under-supplied […]
Through November, Mexico continued to take a greater share of light vehicle assemblies from the U.S. and Canada. U.S. Vehicle Sales At the close of 2017, the Big Three U.S. auto makers see their market share closing in on less than 44 percent, down from over 50 percent in 2007. This comes as analysts are […]
In addition to the tax overhaul passed by the Republicans this week, President Trump has promised a trillion-dollar infrastructure overhaul. Given the possible $1.5 trillion cost of the tax cuts, will the public have the stomach for another big bill to fix the nation’s aging roads and bridges? Respondents to Steel Market Update’s market trends […]
Mill lead times have inched up slightly in the past two weeks following price hikes announced by the major mills earlier this month, according to the latest data from Steel Market Update’s flat roll market questionnaire. One of the key indicators tracked by SMU, lead times reflect the activity at the mills and the order […]
Buyers of flat rolled steel report that more mills are holding the line on pricing following the price increases announced earlier this month. Mill order books are firm and there’s no negotiating for a better price, according to 28 percent of respondents to SMU’s latest steel market questionnaire. About 22 percent say they still find […]
More than nine out of 10 respondents to Steel Market Update’s latest market trends questionnaire see steel prices heading higher in the first quarter. Seven percent say they see no clear direction for prices. Virtually no one expects prices to decline in the wake of price hike announcements by the major mills earlier this month. […]
Existing home sales surged for a third month in November, increasing at their strongest pace in almost 11 years, reports the National Association of Realtors. Sales jumped 5.6 percent sequentially to a seasonally adjusted annual rate of 5.81 million and were 3.8 percent higher year-over-year. The median home price for all types of existing housing […]
This is the last “official” issue of Steel Market Update for the 2017 calendar year. The Steel Market Update team is looking forward to taking a week off to relax with family and friends and to reflect on what 2017 has meant to them. We hope that you will have a quiet moment to do […]
Housing starts surprised economists by jumping 3.3 percent last month to a seasonally adjusted annual rate of 1,297,000. Compared to November 2016, starts were up 12.9 percent. Starts of single-family homes jumped 5.3 percent to 930,000 units, the highest level since September 2007. Construction starts on buildings with five units or more in November inched […]
For better or worse, depending on your income and situation, it looks like President Trump and the Republicans will win a big political victory with passage of their historic tax overhaul this week. No doubt, there will be a shakeout period during which the many complicated details of the measure will be scrutinized, and their […]
Happy Holidays to everyone. I know I have told you on a number of occasions that I am now no longer at my desk, but rather slowly moving out to sea for an extended period of rest. Well, as much rest as a workaholic can possibly get. The rest of the SMU team is busy […]
Service centers continue to hold flat rolled inventories steady at 2.89 months of supply at the end of November, according to the proprietary Steel Market Update Service Center Inventories Index (SSII). This is now the third consecutive month we have found flat rolled steel distributors’ inventories close to the three months of supply level. Contrast […]
Both flat rolled and plate steel distributors saw only a very modest drop in inventories as of the end of July. Inventories continue to be “balanced” at 2.7 months of supply on flat rolled and 2.1 months of supply on plate, according to Steel Market Update’s proprietary inventory data. Flat Rolled Spread Tightens Although our […]
You may or may not be aware that we updated our Steel Market Update website over the Thanksgiving Holiday weekend. We updated software that controls a number of the functions of our website in order to speed up the site and to make sure that it is up-to-date over the next few years of use. […]
I have been working on our new service center months of supply report and I hope to have it to the distributors who provide the data tomorrow (Wednesday, Dec. 13). I will then publish for our Executive newsletter readers on Thursday evening. I continue to entertain adding more service centers to the mix as we […]
Domestic mills are in the driver’s seat and steel prices have nowhere to go but up, agreed most respondents to Steel Market Update’s flat roll market trends questionnaire this week. SMU contacts steel buyers twice each month to monitor their views on market conditions. Asked for their opinion on the current direction of steel prices, […]
The Dodge Momentum Index climbed 13.9 percent to 149.5 in November. The Dodge Momentum Index, published by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. Construction planning was […]