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 […]
Steel buyers appear to have considerably more leverage in mill negotiations than at any other point this year. Twice per month, in a proprietary poll, Steel Market Update tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. Most buyers report that mills are willing to negotiate spot prices today. According […]
Construction is on a roll with expenditures in July at an all-time high, according to Steel Market Update’s latest analysis of Commerce Department data. In the Sept. 4 data release which reported expenditures through July, the growth of total construction on a rolling 12-month basis year over year increased from 2.1 percent in January to […]
I have received many questions regarding the variance in pricing between the various flat rolled steel indexes out there. I have been researching the methodologies between the indexes. I am asking each one to explain how their index works and to provide details or a better explanation in some of the gray areas that may […]
Automotive sales remained healthy in August with most automotive manufacturers reporting at least moderate sales growth year-over-year. FCA US led sales with an increase of 10 percent for August. Ford sales were up 4.1 percent and Hyundai 6.0 percent. Toyota sales dropped 2 percent. Sales for German automaker Volkswagen inched up 0.7 percent while Mercedes-Benz […]
We sold out our first Steel 201 workshop which will be held next week at AK Steel in Middletown, Ohio. I am excited to conduct this workshop with the AK Steel team. It is the first time we have visited their Research and Innovation Center (RIC) and the fully integrated Middletown steel mill. Thank you […]
Labor shortages are highlighted in a new survey released by the Associated General Contractors of America and Autodesk. In a survey of more than 25,000 respondents, 80 percent of firms report they cannot find enough hourly craft workers to fill the positions that make up the bulk of the construction industry. The problem is widespread […]
Nucor and USS/POSCO announced new coating extras today, and SMU learned U.S. Steel will provide their new extras in about a week and Steel Dynamics will announce their numbers within the next few days. Coating extras have dropped due to lower zinc costs on the LME over the past few months. SMU expects all of […]
Due to our conference, we will hold back on producing our steel indices until Thursday of this week. It’s Tuesday evening and we are deep into our 8th SMU Steel Summit Conference. The official number of attendees is 912, which exceeded our most optimistic expectations when we did our last forecast about six months back. Tomorrow […]
Sixty-two percent of those responding to Steel Market Update’s latest market trends questionnaire believe steel prices on the spot market are on the decline. Another 35 percent expect prices to remain the same. Only 3 percent feel steel prices could still move higher. SMU has adjusted its Price Momentum Indicator to Lower, meaning prices are […]
The steel market is watching and waiting to see if President Trump will hit other countries with higher tariffs as he did with Turkey. If he does, the majority of observers will not be surprised. Indeed, more than 60 percent of the steel executives responding to Steel Market Update’s latest market trends questionnaire expect further […]