NLMK announced improved sales for the Group and NLMK USA in its Q1 2014 US GAAP results. The Group’s steelmaking capacity utilization ran at 92 percent through first quarter with steel sales up 8 percent quarter over quarter to 3.866 million tons. Crude steel production dropped 4 percent quarter over quarter due to seasonal factors […]
Total service center carbon steel shipments in April rose by 125,500 tons to 3.640 million tons, the highest monthly tonnage since March two years ago. Shipping days in April were unchanged from March at 21. Tons per day (t/d) shipments rose from 167,400 March to 173,300 in April, both on a non-seasonally adjusted basis. Intake […]
Every month, Steel Market Update calculates whether flat rolled steel distributor’s inventories are in excess or a deficit based on our proprietary formula. The Metal Service Center Institute released April data late last week and, based on our analysis, we believe the “apparent deficit” to be 251,000 tons. This represents an improvement of 101,000 tons […]
The housing market is struggling. Even though the steel content of housing is only a small proportion of total steel consumption, housing is a leading indicator of many construction sectors, such as non-residential and sub sectors of infrastructure, and has a large multiplier effect in the economy as a whole. Existing home sales dipped again […]
Residential building permit authorizations and housing starts surged in April after a weak showing during the winter months. Housing starts in April increased 13.2 percent from March to a seasonally adjusted annual rate of 1,072,000 and jumped 26.4 percent from the April 2013 rate, according to data released by the Department of Housing and Urban […]
Gibraltar Industries has named Frank Heard as President and Chief Operating Officer, effective immediately. Heard, joins Gibraltar with more than 25 years of experience in the building products industry. He mostly recently was President of ITW Building Components Group, a division of Illinois Tool Works Inc. At ITW Heard was in charge of strategic direction […]
On Wednesday, Steel Market Update adjusted our SMU Price Momentum Indicator to Neutral from Higher. Our Price Momentum Indicator had been pointing toward Higher prices ever since March 25, 2014. Over the past seven weeks, hot rolled coil prices advanced from $630 to a high of $685 per ton based on the Steel Market Update […]
Both Industrial Production (IP) and Manufacturing Capacity Utilization are reported in the Federal Reserve G17 data base. The IP index was reported as 102.744 for April, with a three month moving average (3MMA) of 102.83. This was the fifth consecutive month for the index to exceed the pre-recession peak of September 2007. The 3MMA has […]
Shipments of heating and cooling equipment, a benchmark for residential construction as well as the home improvement segments of the industry, have made significant improvements in the shipping rates compared to the same month one year ago. Below is the press release from the The Air-Conditioning, Heating, and Refrigeration Institute on heating and cooling equipment […]
ThyssenKrupp posted a positive net income for the first time in seven quarters. After aggressively shedding businesses and employees during the fiscal year, including the sale of the Alabama Calvert plant, ThyssenKrupp appears to have achieved a turnaround. The company hopes to break even for the 2013/2014 fiscal year and expects sales for the year […]
ArcelorMittal losses narrowed in the first quarter of 2014. The company posted a net loss of $200 million in the first quarter compared to $345 million in Q1 2013. First quarter EBITDA was $1.75 billion, an increase of 23 percent from Q1 2013. Sales of $19.8 billion were below Q4 and almost par with Q1 […]
Building permit values in Canada decreased for the second consecutive month, falling 3 percent in March after an 11.3 percent decrease in February. Value of building permits totaled $6 billion. The decrease in building permit values surprised economists at Royal Bank of Canada who expected a 4 percent rebound in March. A plunge in non-residential sector permits […]
The April 2014 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months. This summary is based on the responses from 74 domestic banks and 23 U.S. branches and agencies of foreign banks. The […]
Buyers and sellers of steel continue to grow in their belief that their company will be successful in both the existing market as well as out into the future. A new record high for our Index was achieved this week as our Steel Market Update (SMU) Steel Buyers Sentiment Index was measured at +59. This […]
ArcelorMittal’s Canadian iron ore project may begin production as early as third quarter 2014. Last week the Minister of Aboriginal Affairs and Northern Development gave final approval for Baffinland Iron Mines, a 50/50 venture between ArcelorMittal and Nunavut Iron Ore, to commence operations. The mine is located in the Qikiqtani region of Nunavit, over 300 […]
Truck transportation, the price and availability of it, has been a concern of the steel industry of late, especially after the delays that occurred during the unusually severe winter season. To determine what is affecting truck shipping, we looked at the issues currently facing the truck transportation industry. Hours of service is the issue ranked […]
The Bureau of Labor Statistics (BLS) report on non-farm employment wildly exceeded expectations in April with a net gain of 288,000 jobs. The February and March total was revised upward by 36,000. The three month moving average (3MMA) rose from 150,000 in February, to 190,000 in March and to 238,000 in April (Figure 1). The […]
Allied Tube & Conduit and members of USW Local 9777 reached an agreement on a new contract on Sunday, ending a week-long strike. The contract for USW Local 9777 expired in April 2013 and the company and union officials have been in negotiations for the past year. A compromise over the weekend led to contract […]
April turned out to be a month where supply disruptions squeezed the life out of non-repentant steel buyers: flat rolled steel buyers who had run their inventories too lean or who hesitated when U.S. Steel Great Lakes went down, only to be ambushed by steelmaking curtailments at USS Gary Works (and elsewhere) due to iron […]
Gibraltar Industries, a leading manufacturer and distributor of building products, reported a net loss of $1.7 million for first quarter 201. Net sales of $191.0 slipped from $196.8 million in first quarter 2013 due to severe winter conditions. “Although Gibraltar’s first-quarter sales were lower than expected due to the prolonged winter season in most parts […]
The Bureau of Economic Analysis (BEA) released their first estimate of real GDP today, (April 30th) for Q1 2014. GDP rose in the fourth quarter by 2.6 percent but declined to 0.1 percent in the first estimate for Q1 2014. Figure 1 shows quarterly results since 1990 with the IMF forecast through 2018. The Q1 […]
Each month the Commerce Department issues its construction put in place (CPIP) data on the first working day covering activity two months earlier. March data was released on May 1st. Total Construction March expenditures were $69.142 billion which breaks down to $51.210 B of private work, $16.064 B state and locally financed and $1.868 B […]
Economic data released in April indicated signs of slower growth in the economy. Survey participants, however, continue to be optimistic about business activity during the next three to six months. The Architecture Billings Index fell to 48.8 in April, indicating contraction after hovering just above the neutral point for the last two months. The protracted […]
April is now behind us and it proved to be one interesting month. In looking at the key data we follow on a monthly basis for our readers, SMU Price Momentum Indicator ended the month where it began pointing to higher prices over the near term. SMU Steel Buyers Sentiment Index ended the month at […]
April was a month of disappointing economic indicators. The Architecture Billings Index turned negative this month after climbing up from a reading of 48.6 in December. The March reading was just 48.8, down from 50.7 in February and 50.4 in January. The American Institute of Architects Architecture Billings Index, an indicator of future construction activity, […]
Will 2014 be a breakthrough year for construction? That was the premise of a webinar presented by Reed Construction Data paneled by Bernie Markstein, US chief economist at Reed Construction Data; Kermit Baker, chief economist at the American Institute of Architects (AIA); and Ken Simonson, chief economist at Associated General Contractors of America (AGC). The […]
The following article published April 13, is one that we would normally just provide to our Premium Level members. We thought that those who have Executive level and Monthly membership would be interested in some of the detail we are providing our Premium Level members. If you have questions about Premium Level membership please feel […]
From the Associated General Contractors of America (AGC): Total construction spending remained in a holding pattern in March as strong gains in apartment construction and modest growth in home building and private nonresidential activity offset falling public outlays, according to an analysis of new Census Bureau data by the Associated General Contractors of America (AGC). […]
Castrip has advised Steel Market Update that a new flat rolled mill using Castrip technology will be built in North America by an EAF mill other than Nucor. Castrip LLC has signed a license agreement to build and operate a plant utilizing a Castrip thin-strip casting process for an unnamed North American steelmaker. The facility […]
This story was one of the popular points of discussion at the recent Metals Industry Dinner held in Chicago on May 1, 2014. Castrip has advised Steel Market Update that a new flat rolled mill using Castrip technology will be built in North America by an EAF mill other than Nucor. Castrip LLC has signed […]