As CEOs and association representatives presented their arguments for why the administration’s Section 232 action on steel imports should go forth, AIIS international Trade Counsel Gary Horlick talked about the unintended consequences of such actions. AIIS represents 108 members that include traders, freight forwarders, stevedores, shippers, importers, exporters, railroads, port authorities, unions and other logistics […]
CHARLOTTE, N.C., May 25, 2017 /PRNewswire/ — Nucor Corporation (NYSE: NUE) announced today that it is investing an estimated $176 million to build a hot band galvanizing and pickling line at its sheet mill in Ghent, Kentucky. The new galvanizing line will expand Nucor Steel Gallatin’s product capabilities and have an annual capacity of 500,000 […]
Manufacturing grew moderately in the Tenth District in May, according to the Federal Reserve Bank of Kansas City. In the bank’s latest survey the composite index rose to 8 from 7 in April. Indicators were mixed, with little change overall from last month. Production and shipment indexes were slightly lower as employment and backlogs inched […]
AISI, WASHINGTON, D.C. – The American Iron and Steel Institute’s (AISI) Board of Directors today elected John Ferriola, Chairman, President and CEO, Nucor Corporation, to serve another year as chairman of the Institute, through May 2018. “John is a recognized leader in the global and domestic steel industry. He is an outspoken advocate for the […]
Vehicle sales improved slightly from the previous month, but they were slower compared with the first quarter average and year-ago numbers. According to J.D. Power, incentive spending in April averaged about $3,500 per new vehicle—or approximately 10 percent of the average transaction price—which surpasses the previous peak for the month of April in 2009. Furthermore, inventories […]
I have been working day and night trying to get a list of the invited speakers for the Section 232 (national security) hearing at the U.S. Department of Commerce on the morning of Wednesday, May 24th. The US Department of Commerce came out with the list to the media late this afternoon. The hearings starts […]
WEST CHESTER, OH–(Marketwired – May 17, 2017) – AK Steel (NYSE: AKS) announced today that it has accepted an award of up to $1.8 million from the U.S. Department of Energy (DOE) under the Advanced Manufacturing Office’s Next Generation Electric Machines (NGEM) program to develop the next generation of advanced, non-oriented electrical steels (NOES) for […]
U.S. auto manufacturers are tightening their belts as automotive sales fall from their two year highs. Ford Motor Co. said it will cut 1,400 salaried jobs in North America and Asia through voluntary retirement as shares of stock dropped 2.5 percent on Wednesday. Ford will offer financial incentives and generous retirement packages to encourage managers […]
The World Trade Organization expects global trade to continue to expand moderately in second quarter 2017. The World Trade Outlook Indicator (WTOI) rose to 102.2 and was the highest reading since May 2011. Export orders, container shipping, and air freight recorded strong gains in recent months, signaling above-trend growth in merchandise trade volumes for the […]
Construction has expanded in the U.S. for over 30 quarters, and it still has legs, said Alex Carrick, Chief Economist at ConstructConnect. ConstructConnect presented a webinar May 11, entitled “Bump or Slump? 2017 Prospects for Design & Construction. AIA chief economist Kermit Baker and AGC of America Chief Economist Ken Simonson joined Carrick in discussing […]
The following article was provided and first published by ArcelorMittal USA news: After experimenting with aluminum in its luxury models, Audi’s next A8 will switch back to steel. Scheduled for release in 2018, the body structure of the new A8 will be made up of more than 40 percent steel, following the trend of automakers […]
Lately, Steel Market Update (SMU) has been hearing the word “risk” bantered about by many within the steel industry. In Steel Market Update’s opinion, how one perceives the risks associated with buy and sell decisions is one of the factors determining the direction of flat rolled steel prices. which at this time are moving lower. […]
Flatbed trucks are generally first choice to move steel products from mills to distribution centers to manufacturing clients. What determines what freights will be for this workhorse of the steel industry? Freight costs are influenced by fuel costs, weather, seasonal demand, historical costs, and load-to-truck ratios. Flatbed rates are particularly vulnerable to weather conditions in […]
Twice per month, Steel Market Update (SMU) conducts a review of how buyers and sellers of flat rolled steel feel about their company’s ability to be successful in the existing market (Current Sentiment) as well as three to six months out (Future Sentiment). Earlier today we crunched the data and found the flat rolled steel […]
Ferrous scrap prices settled in Detroit with prime grades (bundles/busheling) settling at $360 per gross ton. At the same time there is Chinese auto bundles for sale at very low prices FOB China. Chinese scrap exports are new for the Chinese and there are issues that need to be overcome before they become major suppliers […]
The State of Texas is attempting to lure a new flat rolled steel mill to the state. According to various press reports there appear to be two interested parties: Big River Steel and the E United Group out of Taiwan. Is Big River Steel already planning to expand? That seems to be what the Port […]
SSAB announced it is opening a new office near Detroit, Michigan that will serve SSAB’s existing and potential customers. The new sales office is located in the Town Center complex in the town of Southfield. “I’m thrilled that we are opening this new office in Michigan,” said Olavi Huhtala, head of SSAB’s European and automotive […]
Despite incentives, U.S. automotive sales dipped in April with almost all brands showing declines year-ove- year. Of the Big Three Detroit manufacturers, Ford had the worst results, down 7.2 percent to 214,695 for the month. FCA USA posted sales of 177,441, down 6.6 percent and GM had sales of 244,406, down 5.8 percent. Slower sales […]
Reliance Steel & Aluminum turned in a strong first quarter with sales up 17.4 percent to $2.42 billion from Q4 2016 and net income up 81 percent to $111.7 million. On a year-over-year basis sales were up 11.9 percent and income 21.1 percent. “Improved demand, higher metal pricing and continued strong execution resulted in record […]
Cliffs Natural Resources continues to shore up its balance sheet and focus on reducing its debt. A $72 million debt extinguishment/restructuring charge resulted in a net loss of $30 million for the quarter. Debt was reduced by $550 million during Q1 resulting in total debt at the end of the quarter of $1.6 billion. First […]
Durable goods orders rose to a lower rate in March than expected. New orders rose 0.7 percent to $238.7 billion, well under the Bloomberg forecast of 1.3 percent. Orders for core capital goods (non-military capital goods minus aircraft that are used in GDP calculation) rose 0.2 percent, less than the 0.5 percent predicted. Automotive vehicles […]
AK Steel reported net income of $62.5 million for its best first quarter since 2008. Shipments declined to 1,486,900 tons year-over-year due to intentionally reduced sales of lower margin products. Net sales increased one percent from Q1 2016 to $1.53 billion as a result of increases in average selling price on both spot and contract […]
Swedish steel mill SSAB posted an operating profit of SEK 702 million for the first quarter 2017 ($79.2 million). Higher prices and increased shipments at SSAB Europe helped drive profits for the company. SSAB Americas also saw an increase in realized prices during first quarter and stronger margins as scrap metal prices increased. A maintenance […]
US vehicle sales averaged 17.3 million units, SAAR (seasonally adjusted annual rate) per month in the first quarter, down from 18.1 million in Q4 2016. March sales were much lower than expected with an annualized rate of 16.63 million units, down 0.3 percent year on year. Light-truck sales fell from 11 million annualized units in […]
Correction: In last Thursday’s issue of Steel Market Update we mistakenly referenced earnings from a previous period instead of the 1Q 2017 report. Here is what Steel Dynamics had to say in their announcement on April 19, 2017: FORT WAYNE, Ind., April 19, 2017 /PRNewswire/ — Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced first quarter […]
This morning Steel Dynamics (SDI) conducted their earnings conference call with analysts where they discussed their 1Q earnings and how they see the steel markets shaping up in the coming months. During the call, CEO Mark Millet told the analysts that the market will support “good prices” for the steel mills and he was not […]
With consolidated sales of $4.82 billion which is a 30 percent increase over 1Q 2016 and net earnings of $356.9 million it was a good 1st Quarter 2017 for the company. The company reported that the second quarter earnings should exceed that of 1st Quarter. The overall operating rates at the Nucor steel mills was […]
HAMILTON, ON, April 19, 2017 /CNW/ – Stelco, the name under which U. S. Steel Canada Inc. carries on business (“Stelco” or the “Company”), announces that it and Bedrock Industries Group LLC (Bedrock) have reached an agreement in principle (the “Agreement”) with the Stelco salaried employees and retirees and certain others represented by court-appointed representatives […]
Steel Market Update participates in a monthly steel conference call hosted by HARDI (Heating, Air-conditioning, and Refrigeration Distributors International) for their members. The HARDI conference call is dedicated to a better understanding of the galvanized steel market. The participants are wholesalers, service centers and manufacturing companies who either buy or sell galvanized sheet products used […]
US Steel has completed repairs on a waste water pipe that spilled contaminants in the Burns Waterway at the US Steel Midwest Plant in Portage, Ind., last week. The EPA has been testing Lake Michigan water in the region and, so far, has not found significant levels of toxin present. On Friday, US Steel announced […]