U.S. consumer confidence slipped to a nine-month low in November, decreasing four out of the past five months. Novembers’ reading was driven by rising prices and continued COVID concerns, reported The Conference Board. “Consumer confidence moderated in November, following a gain in October,” said Lynn Franco, senior director of economic indicators at The Conference Board. […]
Reibus, the independent metals marketplace, has raised $75 million in Series B funding led by SoftBank Vision Fund 2. With this investment, Reibus claims total funding in excess of $100 million and a valuation of $750 million. The funding from SoftBank Vision Fund 2 adds to prior investment by Canaan Partners, Nosara Capital, Battery Ventures, […]
Coming off a year of strong growth, Reibus is looking to 2022 with guarded optimism. John Armstrong, president and CEO of the Atlanta-based online marketplace, anticipates more volatility ahead for the metals market. “We have budgeted for a 25% decrease in steel prices next year. That is our forecast, and we have built our business […]
Steelmakers around the world produced an estimated 145.7 million metric tons of crude steel in October, up 0.9% or 1.3 million tons from the prior month, reported the World Steel Association (worldsteel). October’s growth marked the first month of expansion since May, a notable result, especially given a 3.0% production contraction in China, down 2.2 […]
By CRU Steel Analyst Tiago Vespoli, from CRU’s Steel Sheet Products Monitor, Nov. 17 There is a high probability that the weather phenomenon La Niña will start at end-November, which could have serious consequences for the steel supply chain, depending on the severity of the event. Some expected impacts include increased rainfall in Australia and […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Before joining Metal Edge Partners, Bryan held a variety of commercial […]
By Philip Bell, President, Steel Manufacturers Association Earlier this year, the European Commission began reviewing its Waste Shipment Regulation (WSR) and considering proposals for its revision. On Nov. 17, the EU commission announced that it may restrict waste exports including metal scrap to non-OECD countries. In yesterday’s formal announcement, the commission proposed revised legislation on […]
Manufacturing growth in the state of New York saw a strong expansion rate in November compared to October, according to the Empire State Manufacturing Survey. The headline general business conditions index rose 11 points to 30.9 during the month. After falling by 15 points in October, the rebound in the headline index was a welcome […]
Flack Global Metals (FGM) is now a member of the CME Group, making it the first North American metals distributor to join the derivatives marketplace, the company said on Tuesday. The Cleveland-based service center said the move will allow its risk management team to provide even greater liquidity to buyers of flat-rolled products as well […]
When President Biden signed his long-awaited infrastructure bill, he did far more than set out to make America’s roads and bridges safer. The $1 trillion measure promises to be a boon to the environment, and the steel industry in particular. The American Iron and Steel Institute (AISI) lauded the Infrastructure Investment and Jobs Act. “Modernizing […]
Total mill shipments of steel products fell 12.2% in September to 8.502 million tons, after seeing an 11.1% increase the month prior. Apparent supply also slipped in September, down 6.9%, following a 7.9% increase in August. September’s contractions mark the first decrease in steel supply in seven months. This analysis is based on steel mill shipment […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled Spot HR has declined each of the last three Wednesday’s for a total loss of $86/ST. Spot HR has lost […]
Producer prices rose at a slightly higher rate in October, according to data released by the Labor Department. Supply-chain bottlenecks and shortages continue to drive manufacturing and shipping costs, keeping the historic climb for the index and subcategories for final demand moving up. Since falling in early 2020, the composite Producer Price Index (PPI) of […]
By CRU Chief Economist and Head of Sustainability Jumana Saleheen and CRU Research Manager Paul Butterworth There are no low-cost options when it comes to tackling climate change. Renewable energy is not cheaper than fossil-based power once the price of investment and storage are considered. Low-carbon energy will cost more. The only way to incentivize […]
October saw a major improvement for the U.S. labor market and a sign of optimism as the latest coronavirus surge eases. The latest data from the U.S. Bureau of Labor Statistics showed that the economy created a noteworthy 531,000 new jobs in October following disappointing monthly results in August and September. October’s results included nearly 100,000 […]
U.S. job creation roared back in October as payrolls rose by 531,000, a welcome contrast to the weak outcome the month prior. The mark was unexpected, as total jobs exceeded most estimates by nearly 100,000 and the unemployment rate fell to 4.6%, the Labor Department reported. Private payrolls were even stronger, rising 604,000 as a loss […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
The U.S. manufacturing sector continued to expand in October, though output growth was hampered by ongoing material shortages, according to the latest U.S. Manufacturing PMI data from IHS Markit. The report noted that overall output growth eased yet again, slowing to its weakest reading since July 2020 amid capacity constraints including material shortages. A lack […]
October saw a gradual decline in steel prices for the second consecutive month, following one full year of continuous price increases. Hot rolled steel prices decreased $45 per ton throughout the month, with the SMU index averaging $1,885 per ton ($94.25 per cwt) as of Tuesday, Oct. 26. The SMU Price Momentum Indicator for hot […]
New orders, production and employment grew in October, while supplier deliveries slowed at faster rate and backlogs lengthened further, said the Institute for Supply Management in its latest Manufacturing ISM Report on Business. The Manufacturing PMI fell for the third straight month in October, down 0.3 percentage points to 60.8% in October, but still indicating […]
The Chicago Business Barometer increased to 68.4 in October, according to MNI Indicators, following two consecutive months of decline. This is the fourth highest PMI level recorded in the last 10 years, following the May, July, and April 2021 highs. The October PMI is up 3.7 points from the month prior. MNI reports that order backlogs recovered more than […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-levels subscription, email Info@SteelMarketUpdate.com. World crude steel production fell further in September, contracting for the fourth straight month. Since repeated months of record-breaking output in late Q1 and early Q2, steel production has begun trending down, […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
U.S. consumer confidence saw a surprise increase in October, after declining the three months prior, as concerns over the Delta virus improved, reported The Conference Board. The October index recovered by 4.0 points month on month after slipping 5.4 points in September. “Consumer confidence improved in October, reversing a three-month downward trend as concerns about […]
(Editor’s note: The following commentary was submitted by Flack Global Metals Founder and CEO Jeremy Flack.) Looking to improve vendor relations during contract negotiations? Look no further than the forward curve. Contract season is underway, and we hear things are choppy out there. The mills are serving up a mixture of higher extras and lower […]
In this year’s edition of CRU Breakfast – part of LME Week – we explored three key themes that shaped the commodities markets – the global economic and commodities outlook, the changing role of China, and Navigating ESG. All three themes have been central to many developments in the industry and remain equally crucial moving […]
By Philip Bell, President, Steel Manufacturers Association Editor’s note: Phil Bell and SMA are now periodic contributors to Steel Market Update. Look for Phil’s insights on steel and events in Washington in future issues of SMU. The U.S. and EU want to resolve the Section 232 steel tariff issue by Nov. 1. This is an […]
Demand for design services from architecture firms in the U.S. improved for the eighth consecutive month, according to the latest report from The American Institute of Architects (AIA). AIA’s Architecture Billings Index rose from 55.6 in August to 56.6 in September. The ABI has expanded each month since January. The index for new project inquiries […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled Three minutes of weightlessness before gravity takes hold! This month has been a mixed bag in HR futures. Lack of a […]
The U.S. economy expanded at a modest to moderate rate from late August to early October, said the Federal Reserve in its latest Beige Book report. Overall growth was curbed, though, due to supply chain disruptions, labor shortages and uncertainty around the surging Delta variant. Consumers spent more dollars in travel and tourism activity once again, […]