The Conference Board Consumer Confidence Index decreased in July, a decline from June but an improvement over recent months. The composite index now stands at 92.6, down from 98.3 in June, and down from 135.8 percent one year prior. “Consumer Confidence declined in July following a large gain in June,” said Lynn Franco, Senior Director […]
The U.S. manufacturing sector expanded again in July indicating a third consecutive month of growth for the overall economy, said the Institute for Supply Management in the latest Manufacturing ISM Report on Business. The July PMI rose 1.6 points from June to register 54.2. “The growth cycle continues for the second straight month after three […]
Global manufacturing finally moved into expansion territory in July, posting 50.3 on the J.P. Morgan Global Manufacturing PMI, up from 47.9 in June. Production and new orders both rose from contraction, posting PMIs of 51.5 and 50.7, respectively. Thirteen of the 27 countries with manufacturing data available posted readings above 50 in July. International trade […]
Steps to contain the coronavirus pandemic have taken a serious toll on industrial production, manufacturing and durable goods orders in the U.S., but the data shows signs of improvement in June. The health of the manufacturing economy has a direct bearing on the health of the steel industry. The Industrial Production Index The IP index is […]
By CRU Economist Anissa Chabib from CRU’s Global Economic Outlook The estimate of U.S. GDP for Q2 2020 shows a decline of 32.9 percent q/q. This is the biggest drop on record, but slightly better than expected. Overall, the surprisingly good data on consumption, sentiment and production released in July is due to the reopening […]
A spike in business activity was recorded by the Chicago Business Barometer in July. The index rebounded from 12 months of contraction to a reading of 51.9. Increasing demand resulted in a vault of 23.8 points for the new orders index to its highest level since August 2019. Production soared 49.5 percent and back into […]
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 […]
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 […]
Durable goods orders rose again in June gaining 7.3 percent as a surge in auto sales helped offset a heavy decline in commercial aircraft orders. Orders for commercial aircraft and parts plummeted an astounding 462 percent last month while orders for new trucks and cars rebounded 86 percent after pandemic shutdowns. Core capital goods, non-defense […]
In 12 months through June, China’s steel production exceeded one billion metric tons for the first time. Figure 1 shows annualized monthly global steel production on a three-month moving average (3MMA) basis and capacity utilization since January 2000 based on the updated OECD capacity data. Capacity utilization in June on a 3MMA basis was 75.3 […]
Global steel production contracted by 6 percent year over year in the three months through July as China’s steel production expanded by 6 percent to another all-time high. This data comes from the World Steel Association (WSA), which defines crude steel as “steel in its first solid (or usable) form: ingots, semi-finished products (billets, blooms, […]
Global crude steel production expanded for the first time since February in the three months through September. This data comes from the World Steel Association (WSA), which defines crude steel as, “steel in its first solid (or usable) form: ingots, semi-finished products (billets, blooms, slabs), and liquid steel for castings.” Figure 1 shows annualized monthly […]
U.S. gross domestic product had negative growth in every region of the country in the first quarter of 2020 following four quarters when every region had positive growth, according to Bureau of Economic Analysis data. The BEA reports GDP by state and region on a quarterly basis. This data is released several weeks after the […]
Join us for CRU’s free economic outlook webinar, where CRU experts will answer your questions about the impact of Covid-19 on the global economy. Tuesday Aug. 4, 2020 Session I – 8:00 AM BST (3:00 PM CST)Session II – 10:00 AM EDT (3:00 PM BST) Topics discussed Key phases of the Covid-19 downturn and recovery […]
Steel industry trade groups have joined voices in calling for significant funding for state departments of transportation (DOTs) in the next phase of COVID-19 stimulus legislation. Members of The American Institute of Steel Construction (AISC), American Iron and Steel Institute (AISI), Steel Manufacturers Association (SMA), The Committee on Pipe and Tube Imports (CPTI) and the […]
Demand for design services by architectural firms showed signs of stabilizing in June. The Architecture Billings Index rose 8.0 points to post a score of 40.0. A score of 50 is the neutral point between contraction and expansion. “While business conditions remained soft at firms across the country, those with a multifamily residential specialization saw […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium subscription, email Info@SteelMarketUpdate.com. On a percentage basis, the North East and New England suffered the worst job losses in the first half of 2020. The full force of the pandemic-led job losses […]
Since the severe pandemic-led job losses of March and April, all regions and all states have seen some level of recovery, though not on a uniform basis. The recovery in Michigan has far exceeded that of Texas, for example, a reversal of what is considered the normal employment pattern. Comparing September to April on a […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel Declining HR spot steepens the HR futures curve even as it shifts lower, but the light is just around the corner. […]
The U.S. dollar weakened against 14 of the 16 steel and raw materials trading nation currencies in the last 90 days, which follows a decline against nine in our June 14 report. The biggest change was in the value of the Australian dollar, which was up by 9.3 percent in three months. The only currencies […]
The U.S. dollar weakened against 14 of the 16 steel and raw materials trading nation currencies in the last 90 days, which follows the same decline that we reported July 14. The biggest changes were in the value of the Australian dollar, which was up by 11.4 percent, following a 9.3 percent appreciation in our […]
The July Federal Reserve “Beige Book” showed economic activity increased in almost all Districts, but was far below pre-pandemic levels. Information from Districts collected on or prior to July 6 revealed a pickup in consumer spending as states began lifting COVID-19 restrictions. Automotive sales led the rebound in consumer activity as well as sustained growth […]
New Yorkers received some respite in the manufacturing sector on Wednesday. The headline general business index of the Empire State Manufacturing Survey rose to 17.2 in July for its first positive reading since February. The index rose 17.4 points from -0.2 in February with 41 percent of respondents reporting improved business conditions during the month. […]
Kevin Dempsey has taken the reins as the chief executive at the American Iron and Steel Institute at a challenging and unprecedented time. Indeed, helping AISI’s steel mill members navigate an economy hard hit by the COVID-19 pandemic is first and foremost on his agenda, he said in an interview with Steel Market Update on […]
By CRU Chief Economist Jumana Saleheen, from the Steel Sheet Products Market Outlook There is widespread agreement that the dollar is overvalued by around 10 percent. CRU expects the trade weighted dollar (TW$) to remain overvalued and broadly stable for the rest of 2020, as pandemic uncertainty continues to support the dollar as a “safe-haven” […]
Steel buyers are split on whether the government will need to shut down parts of the economy once again to get the spread of the coronavirus under control. In this week’s check of the market, Steel Market Update asked: Are you or your company concerned about the rising numbers of COVID-19 cases in the South […]
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 […]
In stark contrast to the mostly bad news related to the coronavirus pandemic, the North American steel industry is celebrating the new USMCA trade agreement that took effect last week. “Entry into force of the USMCA represents a significant achievement by the United States, Canada and Mexico that will benefit the North American steel industry […]
The Conference Board Employment Trends Index (ETI) increased in June, further stabilizing from sharp declines in recent months. The index now stands at 49.05, up from 45.27 in May. However, the index is still down 54.8 percent from a year ago. “The Employment Trends Index increased for the second consecutive month, but the virus’s recent […]
The U.S. economy added 4.8 million jobs in June, exceeding analysts’ expectations once again, according to data released Thursday by the Bureau of Labor Statistics. May’s job gain was revised up by 160,000 to 2,699,000. Figure 1 shows the total number of nonfarm workers in the U.S. since 1990. The net loss since February’s all-time […]