Mill lead times, according to those taking our SMU steel market survey this week, continue to be extended compared to where they were one year ago. However, we found (based on our survey results) that the mills have become more willing to negotiate on hot rolled, galvanized and Galvalume but not on cold rolled. Hot […]
Light vehicle production in NAFTA in 2013 totaled, 16,141,347 units, the best year since 2002 and an increase of 6.0 percent on 2012 (Source Wards Automotive.). In 3 months through December production was up by 6.9 percent year over year. Light trucks which include crossovers are surging faster than cars, the year over year growth […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S remained positive this week and is currently in its 15th consecutive week of being in positive territory. MoMo, a trailing indicator, is based upon the current hot rolled coil (HRC) price weighed against the previous 12-week average spot price as recorded […]
For those of you who have not yet taken the time to go to our new website, log in for the very first time and kick the new tires, play with the steering wheel and take it for a spin – we highly recommend that you do so soon. We know technology can be a […]
Contractors are expecting a better year in 2014 said the Associated General Contractors of America in their latest report, Optimism Returns: The 2014 Construction Hiring and Business Outlook. In a survey of 800 AGCA members, firms reported stronger optimism for construction demand and employment than they have since the downturn in 2008. More than 40 […]
New York City must not want me to come visit. I have been trying to visit but, Mother Nature has not been cooperating. I guess it is Mother Nature that doesn’t want me to visit New York City. In December I was scheduled to attend the American Institute for International Steel (AIIS) dinner and my […]
Two of the indexes followed by Steel Market Update (three including our own indices) saw prices as beginning to drop for the first time in many weeks. The average hot rolled number dropped $3 per ton to $678. The cold rolled results were mixed with SMU and SteelBenchmarker (which is only published twice per month) […]
The Metal Service Center Institute (MSCI) produced their analysis of service center shipments and inventories as of the end of December 2013. According to the MSCI flat rolled inventories stood at 4,981,400 tons which represented a 2.6 month’s supply on a non-seasonally adjusted basis and 2.1 months supply based on seasonally adjusted data. Steel Market […]
The most significant observation about housing permits and starts in 2013 was how the growth rate of both single and multi-family slowed progressively during the year. The three month moving average (3MMA) of the year-over-year growth rate of single family declined from 29.6 percent in March to 10.8 percent in December as multi-family declined from […]
The following is a press release from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) on November 2013 shipments of heating and cooling equipment data: U.S. shipments of residential gas storage water heaters for November 2013 decreased 15.5 percent, to 348,542 units, down from 412,416 units shipped in November 2012. Residential electric storage water heater shipments […]
Many, perhaps most, steel buyers negotiate a new price for flat rolled steel each time they place a purchase order. Other buyers will negotiate a price for all their steel needs over a fixed period (as much as a year) and then, when they require steel, release purchase orders at this fixed price. However, there’s […]
According to Baker Hughes data from January 17th, 2014, the U.S rig count for this week is 1,777 rigs exploring for or developing oil or natural gas. This count is an increase of 23 rigs when compared to last week, with oil rigs up 15 to 1,408 rigs, gas rigs up 8 to 365 rigs, […]
I will be in my office on Monday, Thursday and Friday of this week. I will be traveling to New York City for the AHR Expo on Tuesday and Wednesday. If you are attending the AHR Expo and would like to seek me out you can do so by email: John@SteelMarketUpdate.com or by phone (or […]
I was reading the most recent economic forecast from the Institute for Trend Research (ITR) on the plane to Chicago this morning. Their analysts have an interesting take on the 2014 economy and we will share portions of their views with you beginning with Sunday evening’s newsletter. One item that caught my eye is their […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S remained positive this week, but only slightly so, and is currently in its 14th consecutive week of being in positive territory. MoMo, a trailing indicator, is based upon the current hot rolled coil (HRC) price weighed against the previous 12-week average […]
The introduction of an aluminum F-150 pickup at the Detroit auto show has the steel industry looking hard at its advanced high strength steels (AHSS) and figuring out how to insure that AHSS is the preferred material of choice for the auto industry. SMU spoke with Ronald P. Krupitzer, vice president of automotive applications for […]
Steel Market Update (SMU) has adjusted our Price Momentum Indicator from Higher to Neutral. This means we see steel market pricing at this moment as either in transition or moving sideways over the next 30 days. With ferrous scrap prices now weakening, lead times shortening and all of the available capacity back in the market […]
By the way – I think Sandy Williams did an excellent job of following the Ford F-150 aluminum story and providing some balance and depth to her article. We are going to put the article on our Blog and make it available for you to send out on social media to your contacts and friends. […]
Last week Steel Market Update conducted our first flat rolled steel market analysis (survey). Invitations were sent by email to approximately 600 companies. We received responses from 120 companies out of which 45 percent were service centers, 42 percent were manufacturing companies, 5 percent trading companies, 5 percent steel mills, 2 percent toll processors and […]
Flat rolled steel prices began to rise this past week according to the steel indices releasing data for the week. Benchmark hot rolled now averages $681 per ton with the range being $675 to $685 per ton (although the $675 is from SteelBenchmarker who did not report new numbers last week). Cold rolled is approaching […]
The majority of flat rolled steel buyers and sellers taking our most recent Steel Market Update (SMU) survey are reporting that they expect that domestic steel mills will be able to collect their most recent price increase within the first two full weeks of January. According to our survey results, 54 percent of those responding […]
Essentially all of the domestic steel mills have finished maintenance on their blast furnaces. U.S. Steel is bringing back online their Fairfield furnace, Berkeley has completed the expansion of its hot strip mill and other domestic steel mill maintenance projects from 4th Quarter 2013 have been completed. Supply is available and now it is time […]
The following article is a continuation of our Steel Buyers Basics series. Today’s article was written by Mario Briccetti. There is a hidden risk in the cost of sheet steel that many buyers do not consider. Most cold rolled and coated steel sheet applications require coverage of an area at a minimum steel thickness – […]
According to Baker Hughes data from January 10, 2014, the U.S rig count for this week is 1,754 rigs exploring for or developing oil or natural gas. This count is an increase of 3 rigs when compared to last week, with oil rigs up 15 to 1,393 rigs, gas rigs down 15 to 357 rigs, […]
Our company continues to extend our coverage around the country. John Temples has opened an office for us in Michigan. We now have offices in Chicago, Cleveland, Dallas and the Atlanta area along with our newest office in Lansing, Michigan. I will be traveling later this week as I am speaking to the AWMI Chicago […]
Buyers and sellers of flat rolled steel entered the New Year in very high spirits. Our Steel Market Update (SMU) Steel Buyers Sentiment Index was measured at +42 which is the most optimistic level recorded since March 1, 2012 (+45). The rolling three month moving average (3MMA) came in at +38.33 which is a one […]
Based on the results of our first steel market survey of the New Year, lead times at the domestic steel mills remained at moderately higher than normal. Benchmark hot rolled lead times remained above 4.0 weeks (average). Based on the average of the responses received during the survey process HRC lead times were measured at […]
The Steel Market Update Price MoMo Index for flat rolled steel in the U.S. remained positive this week for the 13th week in a row after 4 consecutive weeks of being in negative territory. MoMo, a trailing indicator, is based upon the current hot rolled coil (HRC) price weighed against the previous 12-week average spot […]
We will publish our next Premium Level Supplement Newsletter on Monday of next week. The supplement will contain currency data and information derived from this week’s steel market survey. We will also publish our Premium Level Power Point of the survey results for our Premium Level members either late on Friday or over the weekend. […]
Total light vehicle inventories fell 192,000 units from the end of November to the end of December 2013. Total automotive inventories stood at 3.4 million units at the end of December, for a day’s supply of 68 based on SAAR sales of 15.5 million units. The day’s supply at 68 is about 10 percent higher […]