Americans released from stay-at-home mandates were eager to purchase homes in June. Sales of existing homes rebounded from three months of decline by leaping 20.7 percent from May to a seasonally adjusted annual rate of 4.72 million in June. “The sales recovery is strong as buyers were eager to purchase homes and properties that they […]
NOTE: Steel Market Update will be moving to a new Azure server tomorrow. Most of the day our website will be down as we make the transition. The website should be back up on Saturday and we intend to publish on Sunday as usual, barring any technical difficulties. We are in an interesting time for […]
Steel prices are always unpredictable, but a confluence of recent events is making price prognostication more difficult than usual. Steel prices have plummeted along with demand ever since the coronavirus appeared in mid-March and undermined the economy. The benchmark base price for hot rolled steel is down to $460 per ton, based on SMU’s canvass […]
Housing starts in June jumped 17.3 percent from May to a seasonally adjusted annual rate of 1,186,000. Single-family starts jumped 17.2 percent and multi-family construction leapt 18.6 percent. Regionally, housing starts soared 114.3 percent in the Northeast and climbed 29.3 percent in the Midwest and 20.2 percent in the South. Housing starts declined by 7.4 […]
Construction employment rose in 31 states from May to June, but new data from construction technology firm Procore shows hours on the job slipping. “The widespread job gains in June follow even more universal increases in May,” said Associated General Contractors of America Chief Economist Ken Simonson. “But the government’s employment snapshot was based on […]
The coronavirus pandemic has crippled GDP growth and made the world economy smaller. It follows, then, that the same is in store for steel. “There is going to be a permanent reduction in the size of the steel market,” predicted veteran industry analyst John Lichtenstein, managing partner of the Swiss-based Research and Consulting Group AG […]
Today there was an explosion at the “D” furnace at ArcelorMittal Burns Harbor. Will there be some impact on the market? Will it be enough to put a bottom to the slide in prices? It’s too early to tell, but we will be watching developments closely in the coming days and weeks. Steel shipments between […]
May heating and cooling equipment shipments totaled 1.66 million units, down 17.7 percent from the same month one year ago, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). This is now the largest year-over-year decline since June 2009, surpassing last month. On a three-month moving average, total heating and cooling shipments […]
We are seeing further erosion in flat rolled steel pricing this week with the possible exception of Galvalume. Our sources are advising that hot rolled numbers are being offered in the low $400’s for tons. As capacity reopens at integrated mills, the possibility exists for HRC prices to breach the $400 per ton level for […]
Despite bad news on the coronavirus front, as authorities work to keep a surge in COVID-19 infections from derailing the economy once again, sentiment in the steel industry continues to trend positive. Steel Market Update’s Steel Buyers Sentiment Indexes are near levels comparable to this time last year, prior to the pandemic. Since early April […]
John Packard (who is traveling) says his sources are telling him that JSW’s flat roll mill in Mingo Junction, Ohio, may be shutting down (not taking orders) for an unknown amount of time. No confirmation or details yet from the company. John also reports that Steel Dynamics ran the first coil through the new #3 […]
Lead times for spot orders of flat rolled steel saw minor and inconsistent changes in the past two weeks, revealing no clear trend. Hot rolled lead times extended slightly, while lead times for cold rolled and galvanized were flat and plate lead times declined, according to Steel Market Update’s check of the market this week. Lead times […]
The vast majority of steel buyers responding to Steel Market Update’s market trends questionnaire this week report that mills are willing to compromise on price to win orders as the economy and steel demand continue to battle the effects of the coronavirus crisis. About 86 percent of hot rolled buyers said the mills are open […]
A measure of the initial report of nonresidential construction projects slipped in June after an upward revision for May. The Dodge Momentum Index posted at 121.5, a 6.6 percent decline from the May index of 130.1. Planning for institutional construction dropped 11.7 percent, while the commercial component fell 3.5 percent. “The Momentum Index has shifted […]
John Packard is traveling… This was the plan when we got word there was a mysterious virus headed our way from China back in March: We shut down the economy for a month or two, keep our distance from each other, then get back to work and enjoy a quick, V-shaped recovery. Wasn’t quite that […]
Construction expenditures continued to show a positive but slowing year-over-year growth in May of 1.4 percent, non-seasonally adjusted. Because of the momentum that exists in most construction projects, steel consumption is likely to decline more slowly in building than in manufacturing. Steel Market Update analyzes Commerce Department Construction Put In Place (CPIP) data to provide […]
U.S. auto sales plunged in the second quarter as the COVID-19 crisis shut down production and severely curtailed consumer buying. The decline in sales was the largest since the Great Recession, falling by about a third from Q2 2019 levels. Results could have been worse, said analysts, if not for higher than expected sales in […]
Construction spending in May declined for a third month as projects were delayed due to economic uncertainty. Construction spending fell 2.1 percent to a seasonally adjusted annual rate of $1.36 trillion, the lowest total since June 2019, said the Associated General Contractors of America in an analysis of new government data. Private construction spending dipped […]
Only eight states and the District of Columbia have recouped the severe pandemic-induced loss of construction jobs that occurred last spring, according to an analysis of government data by the Associated General Contractors of America. Association officials warn that job losses will become even more widespread unless lawmakers promptly renew and expand the loan program […]
We don’t get to choose when we were born. We don’t choose what natural disasters, epidemiological emergencies, stock market crashes, tyrannical regimes, or wars our generations face. We only get to choose how we react. (Professor Wendy Beth Hyman of Oberlin College to her students on March 11, 2020). Thank you for bearing with us […]
Construction employment increased in 329 of 358 metro areas between April and May, reports the Associated General Contractors of America. A significant amount of construction takes place on the nation’s highways where a new AGC survey finds that worker safety is compromised by drivers exceeding the speed limit and paying more attention to their phones […]
Home prices increased at a modest rate in April, reported the S&P CoreLogic Case-Shiller Indices. The index showed a 4.7 annual gain, up from 4.6 percent in March. The 10-City Composite was unchanged while the 20-City composite inched up 0.1 percent to 4.0 percent year-over-year. On a month-over-month basis, the National Index posted a 1.1 […]
Today we officially took our SMU Price Momentum Indicator on hot rolled, cold rolled, and galvanized to Lower from Neutral. We are leaving Galvalume and plate at Neutral. We have seen prices slipping over the past few weeks, and we do not see any immediate signs of that trend reversing itself. There will be questions […]
While industry sentiment improved at a double-digit rate in May, as measured by Steel Market Update’s Sentiment Indexes, June has seen more moderate changes in optimism. Current Sentiment increased by a further 7 points in the past two weeks, but Future Sentiment actually declined by 3 points. This leveling of sentiment most likely reflects ongoing […]
This past week I unexpectantly lost someone I called a friend within the steel industry. I learned late last week that Keith Gunter, Vice President of Purchasing for McElroy Metals, lost his brief battle with cancer. He was 62 years old. Keith was one of the purchasing people I trusted to challenge me, and to […]
Lead times for spot orders of hot rolled steel have shortened a bit in the past month, which is somewhat unexpected, while delivery times for other flat rolled products have seen small ups and downs as the market searches for a stable footing. Hot rolled lead times now average 3.59 weeks, down from 3.73 two […]
Steel demand is slowly improving as the economy moves on from the coronavirus shutdowns, but the environment remains very competitive, and buyers report that most mills are willing to negotiate on price to win orders of flat rolled steel. Steel prices have moved up erratically since hot rolled bottomed at $460 per ton in late […]
Reinventing Our Lives. As I have mentioned before, the COVID-19 pandemic is a health issue, not a political issue. Social distancing and the wearing of a mask are appropriate health decisions being made to protect those around you. Your protection comes from those around you also wearing a mask and being aware of how close […]
Sales of new and existing homes reflect different impacts of the COVID-19 crisis, but analysts expect both categories to contribute to a rebound for the economy. New Home Sales Rise in May New home sales rose 16.6 percent in May to a seasonally adjusted annual rate of 676,000 and were 12.7 percent higher than a […]
Why leave your employees in the dark? Last week we had one of our member companies upgrade to an Enterprise membership, and they added 429 of their employees to their account. Today, we had a steel mill ask to add another 100 people onto their existing account. From our inception, the goal of Steel Market […]