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 […]
Home prices are continuing to rise but at a slower pace according to the S&P/Case-Shiller Home Prices Indices. The S&P Dow Jones Indices are released monthly and compare annual rate gain for the 10-City and 20-City Composites. The current indice, released at the end of April, shows the rate of gain in February at 13.1 […]
Mill Steel Co, a flat rolled steel service center company in Grand Rapids, Michigan, is investing $16.2 million in the purchase, opening and expansion of operations in Jeffersonville, Indiana, at the Port of Indiana-Jeffersonville. The existing 105,000 square foot facility will be expanded to 225,000 square feet and will house two state-of-the-art slitting lines in […]
One of the products which is provided to our Premium Level members only is our Key Market Indicators. Our KMI analysis is showing an improving (more positives than negatives) situation, especially in the flat rolled steel markets. An explanation of the Key Indicators concept is given at the end of this piece for those readers […]
The following is an abridged version of the Chicago Federal Reserve statement plus our own graphical analysis. The Chicago Federal Reserve National Activity Index (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 […]
SSAB Americas felt the effects of the winter freeze in the first quarter of 2014. Sales for the Americas segment were SEK 3,685 million ($559 million), down 2 percent from fourth quarter 2013 but 7 percent higher than Q1 2013. Higher prices and a favorable product mix were offset by lower volumes. External steel shipments […]
SMU has been hearing anecdotal reports about difficulties with finding truck transport as companies try to catch up on winter weather delayed orders. The MID-SHIP Report has been reporting for months that truck availability is at a premium, mostly due to a shortage of drivers. Comments we have been hearing range from product sitting on […]
Nucor announced consolidated net earnings of $111 million for first quarter 2014, up from $84.8 million a year ago but down from $170.5 million in the previous quarter. Net sales were up 12 percent to $5.11 billion year over year and 4 percent from fourth quarter 2013. Tons shipped to outside customers increased 8 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 […]
Reliance Steel & Aluminum, the largest metals service center in the United States, announced earnings earlier today. The company reported net income of $87.2 on sales totaling $2.09 billion. Sales included the recent acquisitions of Metals USA and Haskins Steel. The company reported an 8.4 percent improvement in same store sales over the same quarter […]
This seems to be a week 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 […]
Caterpillar reported that, excluding restructuring costs, earnings were flat in first quarter compared to first quarter 2013. Sales and revenues totaled $13.241 billion. North American sales for Machinery, Energy & Transportation were up 16 percent year over year to $5,219 million in the first quarter of 2014. Construction industry sales were up 36 percent to […]
Sales of new residential homes and sales of existing homes were both released this week. Sales of new single family homes continued to soften reaching the lowest level in eight months. March sales came to a seasonally adjusted annual rate of 384,000, down 14.5 percent from the revised February rate of 449,000 and 13.3 […]
The enormous undertaking by the US and Canadian Coast Guard to clear the Great Lakes of ice this year underscores the need for passage of the Water Resources Development Act (WRDA). Over 200 million tons of cargo, including iron ore and coal for steel mills, are shipped every year through the Great Lakes, according to […]
AK Steel CEO James Wainscott, in the company’s earnings conference call with analysts, reported that their blast furnaces were running at reduced capacities due to the ice problems on the Great Lakes. US Steel has been upfront by reporting their Gary Works steelmaking operations are running at less than capacity as they struggle to get […]
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 […]
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 […]
Northwest Pipe was selected to provide 108-inch diameter pipe for a Texas water project. The 81,958 feet of pipe translates into 23,000 tons of hot rolled substrate with production slated to begin as early as May 2014 according to SMU sources. VANCOUVER, WA – Northwest Pipe Company, an industry leader of engineered welded steel pipe […]