US Steel announced a realignment of its reporting segments in order to meet strategic goals set forth in its Carnegie Way transformation. The North American flat-rolled segment will include creation of commercial entities to address specific markets. The realignment will take effect by January 1, 2015. “These commercial entities will put our company in a […]
The Wyoming Business Council and JR Simplot Company are hoping to revive a shuttered iron ore mine and build a $500 million iron ore concentrator and pig iron production facility in central Wyoming. The plant would produce cast pigs with a carbon content of 3.5 percent made from low grade taconite ore with an iron […]
The House of Representatives passed legislation approving construction of the Keystone XL Pipeline. The project has been delayed for more than five years while seeking presidential approval for the line to cross the U.S./Canada border. The House voted 252-161-1 in support of the pipeline. The Senate will vote on Tuesday and will need 60 votes […]
The Dodge Momentum Index, an indicator of nonresidential construction intentions, rose 7.6 percent in October. The following is the press release from Dodge Data & Analytics. NEW YORK – NEW YORK – The Dodge Momentum Index rose in October, climbing to 125.5 (2000=100) for the month, up 7.6% from September’s reading of 116.6 according to […]
There is a new flat rolled steel mill under construction in Arkansas. The mill will be complete in 2016. However, we feel that many of you are probably interested to know what the timetable is for the ramp up of the mill at this point in time. We have obtained the ramp-up schedule from Big […]
The Bureau of Labor Statistics (BLS) report on non-farm employment indicated that 214,000 jobs were added in October, September and August were revised up by 8,000 and 23,000 respectively. The three month moving average, (3MMA) has declined for four straight months but this job recovery is stronger than was the case in the mid-2000s, (Figure […]
Freight shipments, especially imports, are on the climb as the nation looks toward an economically stronger holiday season. The Cass Freight Index, which follows freight expenditures and shipment volumes, showed shipments increased in October by 3.3 percent year over year but fell 0.9 percent on a monthly basis. The slide, says Cass Information Systems, is […]
Vicwest Inc., a leading manufacturer and distributor of engineered storage and handling systems, will be sold to Kingspan Group and Ag Growth International Inc. (AGI). The company is valued at Canadian $350 million (US$ 308.6 million). Irish insulation and materials manufacturer Kingspan will purchase all the outstanding shares of Vicwest and will retain the Vicwest […]
ArcelorMittal reported $20 billion in sales for third quarter on 21.5 million tonnes (23.7 million tons) of steel shipments. Net income for the quarter was $22 million, compared to $52 million in Q2 2014 and a net loss of $193 million in Q3 2013. Total crude steel production for the company was 23.9 million tonnes […]
It may be a different day but buyers and sellers of flat rolled steel are still singing the same optimistic song regarding their company’s chances of being successful in the current (and future) steel environment. Steel Market Update has been conducting our early November flat rolled steel market survey all week and this afternoon we […]
Ternium reported earnings for the 3rd quarter 2014 this week. Ternium is a large steel producer in Mexico, which accounts for 60 percent of the company’s shipments, as well as Argentina which accounts for 24 percent. Ternium also owns a conversion mill in the United States which produces galvanized and Galvalume products along with prepainted […]
The October Senior Loan Officer Opinion Survey on Bank Lending Practices was released on November 3rd. This survey addresses changes in the standards and terms on, and demand for, bank loans to businesses and households on a quarterly basis and is based on the responses from 76 domestic banks and 22 U.S. branches and agencies […]
Each month the Commerce Department issues its construction put in place (CPIP) data on the first working day covering activity two months earlier. September data was released on November 3rd. Construction put in place is based on spending work as it occurs, estimated for a given month from a sample of projects. In effect the […]
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 has been increased by one this month to thirty six. We have added the price of coking coal FOB the Australian East Coast to the raw […]
The Bureau of Economic Analysis (BEA) released the third estimate of Q3 2014 Annual Revision of the National Income and Product Accounts on Thursday. The annualized growth rate in the third quarter was 3.50 percent which was down from 4.51 percent in Q2 but still exceeded most analysts’ expectations. GDP is measured and reported in […]
Steel Dynamics announced that effective immediately Don Switzer will be assuming the role of Manager of Sales for its recently acquired steel-making facility in Columbus, Mississippi. Switzer will succeed Kasandra Lutzko who recently left the company to pursue other interests. Mr. Switzer joined Steel Dynamics in 2006 as Product Manager for pre-painted products and most […]
Commercial Metals Company (CMC) reported net earnings of $34.9 million for its fourth quarter ending August 31, 2014. Net sales increased 12 percent year over year to $1.9 billion. For the full fiscal year 2014, net earnings were 115.6 million on net sales of 7 billion. In comparison, FY 2013 net earnings were 77.3 million […]
Cliffs Natural Resources reported a net loss of 5.9 billion for third quarter. Consolidated revenue fell by 16 percent year over year to $1.3 billion due primarily to significantly lower prices for iron ore and metallurgical coal. Adjusted EBITDA for third quarter was $233 million, 45 percent below third quarter 2013. Cliff’s has had a […]
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 in The Steel Market Update. An explanation of the Index is provided at the end of this piece. Index Shows Economic Growth Picked up […]
A.M. Castle & Co. reported net sales of $245.5 million for third quarter for a net loss of $7.3 million. Metals segment sales totaled $210.7 million, down 1.6 percent from the previous quarter and 4.2 percent lower year over year. Pricing dropped 2.5 percent and sales volumes declined 1.4 percent compared to Q3 2013. “While […]
SSAB Americas sales jumped 29 percent year over year to SEK 3,716 million ($507 million) for an operating profit of SEK 558 million ($76 million). Profit was attributed primarily to higher steel prices and improved productivity. Steel shipments increased 5 percent to 559,000 tonnes (616,191 tons) on a year over year basis and 7 percent […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a quarterly forecast to the HARDI members located in the […]
Reliance Steel & Aluminum Co reported record sales for third quarter of $2.71 billion on shipments of 1.5 million tons. Not only did the company have good results to report, the Reliance executives had good commentary to offer in their third quarter conference call. Reliance noted that their purchase of imported steel has increased from […]
On Thursday of this past week Nucor announced their earnings and conducted their quarterly earnings conference call with analysts. SMU has highlighted a number of subjects touched on during the conference call. The following information (minus the headers) was taken directly from The Street transcript of the call: Potential for Light Flat Rolled Trade Cases […]
Steel buyers and sellers continue to be optimistic about their company’s ability to be successful in the current market conditions. However, there are some signs of strain growing, either due to seasonal pressures or margin squeezes, that may be giving pause to some within the industry. Even so, the results from the mid-October flat rolled […]
The shortage of construction workers is becoming a severe problem according to new survey data released by the Associated General Contractors of America (AGC). Labor shortages were first identified by AGC in 2013 but have worsened over the past year. In a survey of 1000 AGC members, the Association found that 83 percent of firms […]
Paul Lowrey of Steel Research Associates was discussing the size of the market segments with SMU back in September during our Steel Summit Conference in Atlanta. He was making sure that we were aware that the energy markets are now the largest steel consuming segment of the steel industry, especially if you take into consideration […]
The Architecture Billings Index increased 2.2 points to 55.2 in September, according to the American Institute of Architects (AIA). The ABI, an indicator of construction activity, reflects the 9-12 month lead between architecture billings and construction spending, with any score above 50 indicating an increase in billings. The new projects inquiry index rose to 64.8 […]
I spent a good portion of this week either in Louisiana or traveling to and from the state. I attended an energy conference at Louisiana State University (LSU) which I found to be fascinating. I found out how little I knew about the various drilling operations for oil and natural gas and how far the […]