The Architecture Billings Index took another plunge in December, falling to 42.6 from 46.3. A score below 50 shows a decline in demand for design planning and is a leading economic indicator for nonresidential construction activity. “Since the national economic recovery appears to have stalled, architecture firms are entering 2021 facing a continued sluggish design […]
The housing construction market continued its strength in December with starts vaulting 5.8 percent from November to a seasonally adjusted annual rate of 1,669,000. Single-family housing starts soared 12 percent, but starts of multifamily housing of five units or more plummeted 15.2 percent. Building permits, an indicator of future construction, rose 4.5 percent last month […]
At least two more automakers with substantial North American operations have cut production because of a global microchip shortage, according to company representatives. Stellantis has scheduled “down time” at an assembly plant in Brampton, Ontario, a company spokeswoman said. The Canadian plant makes the Chrysler 300, Dodge Charger and Dodge Challenger cars. The company – […]
Earlier this week I received a note from one of our readers regarding the plate price index and the changes we recently made to the index (FOB Mill vs. Delivered pricing). We were asked how we are accomplishing this, and how do our members reconcile the historical data that was based on delivered pricing versus […]
Subaru will scale back production of vehicles at its assembly plants in Lafayette, Ind., and in Japan’s Gunma prefecture, because of a semiconductor shortage, a company spokesman said. “We currently expect several thousand units will be affected at each plant,” he said. “We are closely watching the situation and working to minimize the impact on […]
Flat Rolled = 51.3 Shipping Days of Supply Plate = 50.8 Shipping Days of Supply Flat Rolled Service center flat rolled steel inventories found their low point in November and bounced back up in December. Service centers carried 51.3 shipping days of supply at the end of December, up from 40 in November. The data […]
“It’s not how much it cost, it’s do I have steel to make my parts…?” That was one of the comments discussed this morning during our HARDI galvanized steel conference call. Some of the mechanical contractors have jobs to complete, and they need steel to finish. However, others are trying to hold back on buying […]
On Wednesday at noon the Biden administration will take over the Executive Branch of the U.S. government. President Biden is planning on hitting the ground running as he works to control the pandemic, put the U.S. back in the Paris Climate Accord, and (unfortunately) deal with a country fractured by Trump insurrectionists. Biden has made […]
November heating and cooling equipment shipments totaled 1.66 million units, up 36.3 percent from levels one year prior, according to recent data from the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Total 2020 shipments through November reached 20.4 million units, up 6.3 percent compared to 19.2 million units shipped in the same period of 2019. As […]
By CRU Economist Ippolito Tarabini and Multi-Commodity Analyst Zanna Aleksahhina, from CRU’s Steel Sheet Products Monitor There is a global semiconductor shortage. It was ignited by strong demand for consumer electronics during the COVID-19 pandemic and it is now threatening auto production around the world. We expect it to reduce global vehicle output by around […]
The U.S. automotive industry showed remarkable resiliency in 2020 despite a production shutdown in March and the most challenging year since the Great Recession. U.S. auto sales ended the year at an estimated 14.6 million units, well below forecasts of 16.7 million, yet incredibly robust amidst a pandemic, high unemployment and an economic recession. U.S. […]
I anticipate next week’s spot hot rolled and other flat rolled steel prices will be higher than what we reported on Tuesday evening (HRC = $1,080 per ton average). We received information from an end user today of hot rolled purchases of $1,140 per ton for end of March/early April production. An order for HR […]
Hot rolled steel prices are venturing into uncharted territory as an unprecedented combination of variables—idled capacity, short supplies, limited imports and an economy that’s surprisingly strong despite the pandemic—keep pushing them higher. Assuming that today’s record-high prices are unsustainable for the long-term, Steel Market Update asked in its survey last week: At what level do […]
The runup in steel prices continues unabated with benchmark hot rolled prices now averaging $1,080 per ton. The $1,080 number on hot rolled is the highest in our history (we reported $1,070 back in July 2008). Steel buyers should note that even as we bust through our past record high, we believe prices will still […]
Current Sentiment among steel buyers, as measured by Steel Market Update’s Jan. 4 questionnaire, saw a small increase, while Future Sentiment saw a small decrease, suggesting that service center and OEM executives feel more confident about their immediate prospects than they do about the uncertainty ahead. As one commented: “We ended 2020 struggling to get […]
The merger of Fiat Chrysler and Peugeot S.A. (Groupe PSA) was approved last week and is expected to be finalized on Jan. 16. The new company will be called Stellantis and will have a production capacity of 8.7 million vehicles per year. The lineup will include French carmakers Peugeot and Citroen, Jeep, Ram pickups, and […]
After communicating with one of our readers over the weekend, I realize it is important for our readers, and those who interact with our website, to understand what the SMU Price Momentum Indicator means. The SMU Price Momentum Indicator definition on our website clearly states that this is meant to be a visual showing where […]
Officials at the Associated General Contractors of America provided a troubling outlook for the construction industry for the first half of 2021. Postponement and cancellation of construction jobs, difficulty finding skilled labor, rising material costs, supply shortages and continued costs and challenges associated with COVID-19 suggest that the industry will not return to pre-pandemic levels […]
Hot rolled lead times were slightly shorter this week, but lead times for other products were the same or slightly longer, based on Steel Market Update’s first check of the market in the new year. Lead times for deliveries of hot rolled were still highly extended at an average of nearly eight weeks, and it’s […]
With steel in such tight supply as 2021 gets off to a fast start, it’s clearly a seller’s market, with little to no price negotiation between buyers and the mills. Based on Steel Market Update’s check of the market this week, average hot rolled steel prices have surpassed $1,000 per ton. SMU has received anecdotal […]
Quality information is KEY…in steel and in life. I have been struggling on how to deal with what I saw yesterday at the U.S. Capitol. We cannot allow thugs to attack the workings of our democracy. At the same time, we should hold those who spread disinformation to the public accountable for the disservice they […]
Home prices rose to an all-time high in October, according to the latest S&P Dow Jones Indices. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index jumped 8.4 percent in October following a 7.0 percent annual gain in September. The 20-City Composite posted a 7.9 percent year-over-year gain, up from 6.6 percent in the […]
Construction spending was heavily weighted toward single-family homebuilding in November, according to an analysis of government data by the Associated General Contractors of America. Residential construction soared 2.6 percent last month and 16.2 percent year-over-year, contrasting a 0.6 percent decline in private and public nonresidential spending in November and a 4.7 percent tumble from a […]
As we enter the New Year (goodbye 2020, welcome 2021), you will notice changes to Steel Market Update. One of the very first things you will notice is that our newsletters will have more relevant content in them. This is due to the addition of Michael Cowden who joins us after spending 13 years with […]
Looking back at the past year, 2020 was not the disaster many in the steel industry had feared. And looking ahead, 2021 appears even more promising, say OEM and service center executives polled by Steel Market Update last week. Despite an economy that struggled with the COVID pandemic, as well as civil unrest and an […]
New home sales in November slipped 11 percent from October to a seasonally adjusted annual rate of 841,000, reported the Census Bureau and Department of Housing and Urban Development. The pace of sales continues to outperform the 2019 rate however, up 20.8 percent from November last year. The median sales price in November was $335,300 and […]
2021: A New Year and New Opportunities and Adventures The coming New Year is going to be one for the ages. This year (2020) has been one where our personal, political, and professional lives got mixed together as never before. I am ready for the mundane (politics), for the pandemic to end (personal), and to […]
Sentiment among steel buyers, as measured by Steel Market Update’s Dec. 21 questionnaire, saw a small dip as the year comes to a close on concerns about tight steel supplies. As one respondent said, “We need supply in order to be successful. I am not able to line that all up so far for 2021.” […]
Steel Market Update’s check of the market a few days before Christmas shows no let-up in steel demand, as prices continue to rise and lead times continue to extend. With steel supplies remaining extremely tight, lead times for deliveries of hot rolled have stretched to more than eight weeks and coated steel orders to around […]
Based on Steel Market Update’s check of the market this week, hot rolled steel prices are nearing $1,000 per ton, within sight of a record high. With service centers and OEMs willing to pay such high prices in order to secure inventory in a tight market, it’s no surprise the buyers report little willingness among […]