If steel buyers are concerned about lead times that are beginning to shorten and price increases that are beginning to slow, there is no sign of it in this week’s Steel Buyers Sentiment readings. The Current and Future Sentiment indexes remain at or near record highs as steel producers and distributors continue to enjoy record […]
Steel Buyers Sentiment, as measured by Steel Market Update, has never been higher despite concerns over the latest COVID variant and signs that the rate of rise in steel prices is beginning to slow. SMU’s Current Sentiment Index registered a new all-time high of +84 this week – the first time the index has broken […]
Construction employment is still trailing peak pre-pandemic levels in 36 states, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. As the Delta variant threatens to hold down further gains, the AGC stressed that construction employment would benefit from new federal infrastructure investments, urging the House to quickly pass […]
Construction firms are struggling to find enough qualified workers to hire even as they continue to be impacted by pandemic-induced project delays and supply chain disruptions, according to the results of a workforce survey conducted by the Associated General Contractors of America and Autodesk. The survey results underscore how the coronavirus pandemic has created constraints […]
Roughly half of the steel executives responding to Steel Market Update’s market trends questionnaire this week believe the infrastructure legislation now working its way through Congress will have a significant impact on steel demand in the next year or two. The other half are unsure if the two parties in Washington can reach agreement even […]
Toyota Motor Corp. is anticipating a reduction in automotive production in the range of 40-60% in North America. Except for Toyota’s San Antonio, Texas, plant, all North American vehicle assembly plants will be affected, a company spokesperson confirmed to Steel Market Update. “Due to COVID-19 and unexpected events with our supply chain, Toyota is experiencing […]
Housing starts fell by 7.0% in July as supply chain and labor challenges continue. The decrease brought the seasonally adjusted annual rate to 1.53 million units, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. The July reading includes a 4.5% decrease in single-family starts to […]
With the exception of coated products, lead times for delivery of flat rolled and plate steel have shortened by a week or more – the first significant decline this year and a possible sign that rising steel prices are losing momentum. Lead times for spot orders of steel have extended continuously since the market bottomed last […]
Lead times have shortened noticeably based on Steel Market Update’s check of the market this week. But don’t read too much into that one data point. Other factors point to more of the same for steel prices, at least for a while. As reported elsewhere in this issue, lead times appear to have shortened by a […]
The 2021 SMU Steel Summit started with a bang on Monday morning. Turns out it was a transformer that blew. Just as the opening video and music was revving up and host John Packard was getting into his opening remarks, the Georgia International Convention Center was plunged into darkness save for some emergency lighting. Thinking […]
Settling on the direction of SMU’s Price Momentum Indicators has been an easy task for the past year. Prices on all products were clearly moving upward week after week as demand continued to outstrip supplies. Today, the market is changing, and the trend is less clear. Determining price momentum is considerably trickier. SMU does not […]
Steel Market Update’s check of the market this week shows HRC setting a new record at $1,955 per ton, just a stone’s throw from a $2,000 mark that was once unimaginable but now seems inevitable. As one observer opined: “I don’t expect to see any actual easing until we get to $2,000 a ton.” Very […]
Who is more aware of the sorry state of America’s roads and bridges than the truckers who must navigate the potholes every day? That’s why trucking industry trade groups are excited about the new funding in the infrastructure bill passed by the Senate last week. They also support language in the bill that would open […]
Builder confidence edged down in August to its lowest reading in 13 months due to higher construction costs, supply shortages and rising home prices, according to the NAHB/Wells Fargo Housing Market Index (HMI). The index contracted for the third time in as many months, falling five points to a reading of 75 in August, as […]
Flat Rolled = 51.3 Shipping Days of Supply Plate = 49.6 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories spiked in July with better on-time delivery from domestic mills, the arrival of imports and a slowdown in shipments. At the end of July, service centers carried 51.3 shipping days of supply, […]
On Friday, Steel Market Update sent data providers the final analysis for July of service center inventories, shipments, steel on-order, and percentage of inventories tied up for contract sales. Premium members will receive the report on Monday. As expected, after reviewing our Flash Report which is provided to data providers five days into the new […]
Mild weakening of monthly Key Market Indicators, as analyzed by Steel Market Update, may reflect the usual summer slowdown or perhaps growing concern over the latest COVID variant and its possible effects on the economy. Markers for the Present Situation have contracted for the second straight month and Trends have now followed after a small but positive […]
U.S. heating and cooling equipment shipments continued to increase through June, up 6.4% from the month prior to 2.32 million units, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). This is now the highest level in SMU’s history, surpassing the previous high of June 2020 at 2.28 million units. June levels are up 1.6% […]
Memorize these words, “carbon border adjustment tax,” as they are being mentioned in the Senate Budget Committee, which is working on the $3.5 trillion reconciliation package the Senate advanced on Wednesday. The idea proposed would “account for the cost incurred by U.S. businesses to comply with laws and regulations limiting greenhouse gas emissions,” based on […]
The steep rise in prices for construction materials and services continued in July, as contractors grapple with supply challenges, reported the Associated General Contractors of America in its latest analysis of government data. AGC officials have urged the Biden administration to immediately end tariffs and quotas on steel, aluminum, lumber and other essential construction items […]
Nissan Motor Co. will halt all production lines at its Smyrna, Tenn., factory for two weeks starting Monday due to semiconductor shortages brought on by a COVID-19 outbreak in Malaysia, a company spokesperson told Steel Market Update. The global chip shortage is having a signficant impact on the consumption of steel by the automotive industry. […]
Do you have a sense that conditions in the steel market are changing? If so, you are not alone. The majority of steel buyers polled by SMU over the last two weeks feel it won’t be until the fourth quarter, if not well into next year, before there will be any significant changes in steel […]
Three companies with more than a century of experience in the U.S. steel and auto industries are teaming in a joint venture called Madison Metal Processing that will operate a new, $40 million factory near Huntsville, Ala. The companies collaborating in the venture are Toyota Tsusho America Inc., Southern Mobility Products and SteelSummit Holdings, a subsidiary of Sumitomo Corp. […]
The Dodge Momentum Index has declined for the second month in a row following six consecutive months of gains, suggesting that the pace of gains in the construction sector may be facing some headwinds. The index now stands at 155.8, down 5.5% from a revised June reading of 164.9, according to the latest Dodge Data & Analytics […]
The U.S. Senate passed the $1 trillion infrastructure bill. The bill includes $550 billion in new spending. The bill calls for $110 billion for roads, bridges and major infrastructure projects. It also includes $40 billion for bridge repair and replacement, $39 billion to modernize public transit, $66 billion for passenger and freight rail, $65 billion to […]
We are seeing the early signs of a market where flat rolled steel prices are either peaking or about to top out. Last week, I spoke about service center spot prices into their end customers. I mentioned that both the manufacturing companies, and the service centers themselves, were beginning to report spot prices as being […]
When we reported steel prices on Tuesday, we noted that for the first time in a year we saw mixed results with some prices rising, one remaining the same and one dropping. We did not change our Price Momentum Indicator. However, we noted that we were carefully watching the markets to see when we would […]
General Motors has extended downtime at some auto assembly plants into September because of the ongoing semiconductor shortage. And the Detroit-based automaker said some of its truck plants would continue to see chip-related outages – a development that is notable because pickup trucks are among GM’s most profitable and in-demand vehicles. Here is where things stand now with GM: […]
The Biden administration is calling for mass adoption of electric vehicles (EVs) by 2030, a target supported by major U.S. automakers such as General Motors, Ford and Stellantis. The goal, reinforced with an executive order from the president, bolsters the U.S. auto industry’s efforts to reach a 40-50% EV penetration within the next nine years. […]
Steel Market Update’s check of the market this week shows no significant change in lead times for deliveries of spot orders from the mills. Average lead times for hot rolled orders remain above 10 weeks, while those for cold rolled and coated products are still above 12 weeks – at least twice as long as […]