U.S. automotive sales in May are in reach of the 1.52 million units forecast by Edmunds and WardsAuto. WardsAuto is reporting a seasonally adjusted annual rate of 16.6 million for the month, just shy of its forecast for 16.8 million. Flat sales for the month would be welcomed by auto manufacturers that have seen sales […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. This will explain the difference between our view of the present situation which is subjective and our analysis of trends which is based on the latest facts available. We now have three […]
Home prices continued to rise in March, setting a 33-month high, according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index. The Index gained 5.8 percent in March, up from a 5.7 percent annual gain in February. The 10- and 20-City Composite year-over-year indices were unchanged from the previous month with 5.2 […]
The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States remained negative this week for the sixth consecutive week, following an eight week streak of being in positive territory. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the […]
I will be in New York City during this year’s Steel Success Strategies Conference. I just booked my hotel at the Marriott Marquise and for three days my total was just shy of $1700… Ugh. If you attend the SMU Steel Summit Conference and book while our room block is still available your cost for […]
For our USA customers welcome back from the Memorial Day Holiday weekend. Our scrap sources are advising us that as of today they are not aware of any cancellations of existing ferrous scrap orders by the domestic steel mills. This expectation is for a “soft sideways” market, meaning prices would remain the same, although there […]
Existing home sales dipped 2.3 percent in April to a seasonally adjusted annual rate of 5.57 million, according to the National Association of Realtors. Sales were 1.6 percent higher than in April 2016. Existing home inventory increased by 7.2 percent to 1.93 million in April, representing a 4.2 month supply at the current sales pace. […]
The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States remained negative this week for the fifth consecutive week, following an eight week streak of being in positive territory. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the […]
During the Section 232 hearing at the Department of Commerce yesterday, Wilbur Ross told U.S. Congresswoman Marcy Kaptur (OH) that his report on steel Section 232 will be on the President’s desk by the end of June. This coincides with the prognostication of trade attorney Lewis Leibowitz who felt the President could react by the […]
Sales of new single-family homes in April fell 11.4 percent from March to a seasonally adjusted annual rate of 569,000, according to the Commerce Department. Sales were up 0.5 percent from the same month in 2016. The steep slide was unexpected following the ten year high of revised March sales of 642,000. Ian Shepherdson, chief […]
A number of the Steel Market Update prognostications for service center inventories and shipments came true (well, almost). We forecast daily shipments would rise on a tons per day basis to 108,400 tons per day. In actuality they rose to 111,100 tons per day. Since April 2017 only had 19 shipping days (according to MSCI) […]
Vehicle sales improved slightly from the previous month, but they were slower compared with the first quarter average and year-ago numbers. According to J.D. Power, incentive spending in April averaged about $3,500 per new vehicle—or approximately 10 percent of the average transaction price—which surpasses the previous peak for the month of April in 2009. Furthermore, inventories […]
I have been working day and night trying to get a list of the invited speakers for the Section 232 (national security) hearing at the U.S. Department of Commerce on the morning of Wednesday, May 24th. The US Department of Commerce came out with the list to the media late this afternoon. The hearings starts […]
I am working on getting a strong keynote speaker to discuss the impact politics is having on the economy and on our daily lives. I have narrowed the list down to a few names so I thought it might be good to let our readers chime in and tell us who they would like to […]
Buyers and sellers of flat rolled steel are slightly less enthusiastic about how they view their company’s ability to be success both in the existing, or current market environment as well as three to six months out into the future. There is an uncertainty that is becoming an issue to business as companies who buy […]
Flat rolled lead times have been shrinking over the past eight weeks according to the results of this week’s SMU Flat Rolled Steel Market Trends questionnaire. Buyers and sellers of flat rolled steel are reporting shorter lead times than what we measured at the beginning of May and lead times on all products are much […]
Since early Monday morning of this week, Steel Market Update (SMU) has been conducting an inquiry into the flat rolled steel markets. We discovered lead times have shrunk which usually relates to lower steel prices and more willingness by the domestic steel mills to negotiate spot prices being offered into the market. SMU inquired on […]
U.S. auto manufacturers are tightening their belts as automotive sales fall from their two year highs. Ford Motor Co. said it will cut 1,400 salaried jobs in North America and Asia through voluntary retirement as shares of stock dropped 2.5 percent on Wednesday. Ford will offer financial incentives and generous retirement packages to encourage managers […]
The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States remained negative this week for the fourth consecutive week, following an eight week streak of being in positive territory. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the […]
This evening I attended the Metals Industry Boy Scout Dinner in Chicago. The steel, and now metals industries have supported the Chicago area Boy Scouts for more than 25 years and, once again, there was close to 1,000 mostly steel people at the cocktail party and dinner. This included steel mills, service centers, trading companies, […]
In a move that has been building over the past few weeks, today Steel Market Update (SMU) is moving our Price Momentum Indicator to Lower from Neutral. Our belief at this point is flat rolled steel prices will continue their drift lower over the next 30-60 days as we approach what many in the steel […]
Housing starts surprised economists by moving lower in April to a seasonally adjusted annual rate of 1,172,000. April’s tally is 2.6 percent below the March estimate of 1,203,000 but 0.7 percent higher than a year ago. Projections were for starts to reach 1.26 million in April. Starts increased 41.1 percent in the Midwest and 5.4 […]
Below is the latest data release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through March 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 March 2017 increased 12.5 […]
I have read reports that suggest the first fully integrated mill in Vietnam, Formosa Ha Tinh Steel, has received permission to test their #1 blast furnace. The Vietnamese government has approved the pollution control equipment and the company is going to be allowed to run the blast furnace on a six-month trial period. In July […]
Construction has expanded in the U.S. for over 30 quarters, and it still has legs, said Alex Carrick, Chief Economist at ConstructConnect. ConstructConnect presented a webinar May 11, entitled “Bump or Slump? 2017 Prospects for Design & Construction. AIA chief economist Kermit Baker and AGC of America Chief Economist Ken Simonson joined Carrick in discussing […]
Happy Mother’s Day (at least for one more hour here on the East Coast)… We are beginning our mid-May flat rolled steel market trends survey at 8 AM ET tomorrow (Monday) morning. If you receive an invitation to participate please take a few minutes to click on the button on your invitation and complete our […]
Steel Market Update (SMU) spoke with many trading companies over the past few days about concerns their companies might have with the status of the industry and efforts to stop foreign steel from entering the country. “The trading companies are not the bad guy here,” is what one trading executive said to us late this […]
The Steel Market Update Steel Price Momentum Index (MoMo) for hot rolled steel in the United States remained negative this week for the third consecutive week, following an eight week streak of being in positive territory. MoMo is a trailing indicator and shows the relationship between the current U.S. hot rolled coil price movements against the […]
As I mentioned in one of the articles in tonight’s edition of SMU, I have been speaking with trade attorney Lewis Leibowitz on a whole host of subjects. We will be working on an article to help our readers better understand the ramifications of the Section 232 review (national security) and what powers the President […]
My “final thoughts” is an area of the newsletter where I can provide some of my opinions on a wide range of topics, provide information or updates on our workshops and conference or provide late-breaking tidbits from around the world that come in late in the day and are unable to make it into a […]