Starts in March rose by 14,000 to 926,000 after the revised decline of 164,000 in February. This data is seasonally adjusted by the Census department and the monthly numbers are annualized. The three month moving average, (3MMA) declined from 1,020,000 in February to 969,000 in March (Figure 1). The projection to 1.6 million in 2018 […]
Total service center carbon steel shipments increased in March by 321,400 tons to 3.507 million tons. Shipping days at 22 were 2 more than February. On a tons per day basis (t/d) shipments increased from 159,300 in February to 159,400 in March. In the twelve years since 2004, March shipments on average have been 1.2 […]
There has been a “calming” to the market although that has not stopped the slow trickle lower we are seeing in flat rolled steel pricing. We saw hot rolled break through the $440 level although we were told by steel buyers that were able to get those kind of numbers the last $5 per ton […]
US Steel Corp. President and CEO Mario Longhi is the recipient of the 2015 AIST Steelmaker of the Year Award. The annual award is presented by the Association for Iron and Steel Technology to notable leaders for their impact on the steel industry. The prestigious honor will be conferred at the AISTech 2015—Iron and Steel […]
This past week Steel Market Update publisher, John Packard, spoke to the financial community about the flat rolled steel industry. Most of the questions received during the Cowen & Company conference call were associated with demand for steel products. Since SMU just concluded our early April flat rolled steel market analysis (survey) late last week, […]
Steel Market Update (SMU) has two Steel Buyers Sentiment Indices, current and future. We normally concentrate our initial comments on the current index, how buyers and sellers of steel feel about business conditions and their company’s ability to be successful in the current market. However, today and going forward, we will begin focusing on how […]
The Dodge Momentum Index, an initial report for nonresidential building projects in planning, slid 2.1 percent to 122.3 in March. The initial reports for project planning lead construction spending for nonresidential buildings by a full year. In general, the trend has been upward for the past 12 months. The index has gained 12 percent in the first […]
We have an article in tonight’s Steel Market Update about a service center which installed a new piece of processing equipment. Earlier today we posted on our website blog an article about Olympic Steel naming Andrew Wolfort general manager of their Schaumburg plant. We are interested in keeping the industry informed of these kinds of […]
The Bureau of labor Statistics, (BLS) reported on Friday: “Total non-farm payroll employment increased by 126,000 in March, and the unemployment rate was unchanged at 5.5 percent. Employment continued to trend up in professional and business services, health care, and retail trade, while mining lost jobs. The change in total non-farm payroll employment for January […]
Steel import levels continue to increase at ports around the U.S. SMU spoke with several ports and all but one expects imports to grow, not decrease, in the coming months. Out on the West Coast, the Port of Los Angeles is still working through congestion brought about by the recent labor dispute and chassis issues. […]
The S&P/Case-Shiller Home Price Indices for January showed home price growth slowing from year ago levels. The National Home Price Index registered a 4.5 percent annual gain for the 12 months ending in January 2015 as compared to a 10.5 percent increase in January 2014. Month over month gains for the 10- and 20-city indexes […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. February data was released on April 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In effect […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
Last week a number of steel mill CEO’s testified before the U.S. Congress about the flood of steel imports and the need to protect the domestic steel industry. Separate from the CEO’s testimony, former Nucur CEO called for quotas to be implemented against foreign steel which he considered to be unfairly traded. Steel Market Update […]
NLMK USA shipped 489,000 tonnes of flat rolled steel products in Q4 2014 compared to 534,000 tonnes in the previous quarter, a drop of 9 percent q/q. Revenue for fourth quarter was $405 million, down from $445 million in Q3. EBITDA for the quarter was $19 million compared to $36 million in Q3 and $30 […]
The Bureau of Economic Analysis (BEA) released the third estimate of Q4 2014 Annual Revision of the National Income and Product Accounts on Friday. The annualized growth rate in the third estimate of 4th quarter GDP was unchanged from the second estimate which was 2.2 percent but down from the first estimate which was 2.64 […]
So, why haven’t we released our program for the upcoming Steel Summit Conference in Atlanta on September 1 & 2, 2015? Well, we are waiting until we have all of our keynote speakers confirmed and committed. We believe we will have an exceptional program once again this year. As we have in the past, our […]
On a seasonally adjusted annual rate, light vehicle sales weakened in February to 16.2 million units, down from 16.7 million units in January but still up by 5.2 percent from February last year. The probable cause was inclement weather at the end of the month. Analysts had been expecting sales at a 16.7 million annual […]
Both these data points are reported in the Federal Reserve G17 data base. The IP index was reported as 105.8 for February a slight increase of 0.08 from January. The three month moving average (3MMA) was 105.87, down by 0.17 from January which was the highest value ever and the ninth straight month where the […]
The following is the Chicago Federal Reserve statement followed by our own graphical analysis. The CFNAI is an excellent reality check for much of the economic analysis that we routinely provide at Steel Market Update. An explanation of the index is provided at the end of this piece. This is normally an article reserved for […]
Sales rose for both existing and new homes in February. However, buyers are facing availability issues and escalating pricing. The National Association of Realtors reported existing home sales increased to a seasonally adjusted annual rate of 4.88 million in February from 4.82 million in January. Sales were 4.7 percent higher than a year ago. Tight […]
Nucor Corporation plans to take the battle against construction of Big River Steel another step. Attorneys for Nucor filed a notice that it will appeal the dismissal of its lawsuit against Big River Steel. On February 25, U.S. District Judge Leon Holmes ruled that Nucor’s lawsuit was invalid under the citizen lawsuit provision of the […]
US Steel announced today it will move forward with two capital projects at Fairfield Works in Birmingham, Alabama. The announcement follows approval by Jefferson County commissioners for more than $14 million in tax abatements on the two investments over the next 10 years. The projects planned for Fairfield Works are a $230 million electric arc […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Our next Managing Price Risk II workshop will be held in Chicago at the end of April – […]
The Architecture Billings Index inched up slightly in February after falling below the neutral point in January. The ABI, which reflects the nine to twelve month lead time between architecture billings and construction spending, registered 50.4, up from 49.9 the previous month. Any score over 50 indicates an increase in billings. The ABI has been […]
Nucor Corporation expects first quarter results to “decrease significantly” compared to fourth quarter and exceed first quarter 2014 levels only slightly. High levels of imports have lowered selling prices and squeezed margins. Nucor notes that total steel imports rose 38 percent in 2014 and account for 34 percent of the total domestic shipments last year. […]
Nucor Corporation expects first quarter results to “decrease significantly” compared to fourth quarter and exceed first quarter 2014 levels only slightly. High levels of imports have lowered selling prices and squeezed margins. Nucor notes that total steel imports rose 38 percent in 2014 and account for 34 percent of the total domestic shipments last year. […]
Total service center carbon steel shipments in February decreased by 182,800 tons to 3.185 million tons. Shipping days at 20 were one less than February. On a tons per day basis (t/d) shipments decreased from 160,400 in January to 159,300 in February. In the eleven years since 2004 February shipments on average have been 0.1 […]
Steel Dynamics expects that a decline in steel shipments caused by inventory overhang, hesitant demand and margin compression will lower first quarter profitability. In the company’s first quarter guidance, SDI noted: “During the first quarter of 2015, two important industry developments occurred: – “Domestic steel product pricing declined to levels that are now globally competitive, […]
The following article about the Asian ferrous scrap markets comes to SMU from Damon Sun of Daido International: After the Lunar New Year holidays in Asia, the finished steel market has been subdued. However the scrap markets have stabilized. The raw factors affecting scrap markets: Negative Issue Affecting Ferrous Scrap in Asia: 1.) Iron ore […]