The US economy might be at the beginning of what looks to be a challenging second half, according to Reibus International CEO and founder John Armstrong. He sat down with SMU managing editor Michael Cowden for a Community Chat to discuss the economic outlook, its impact on Reibus, and the company’s long-term goals around digitizing how steel is […]
A year ago, the LME was $3,100 per metric ton (mt) and the Midwest Premium (MWP) was pressuring $0.39/lb. In early May 2023, the LME is resting near $2,300/mt and the MWP is settled at $0.25/lb. That marks a $0.50 /lb. reversal in underlying metal value year over year (y/y). The US Midwest premium continues […]
Startup Swedish steelmaker H2 Green Steel aims to raise more than €1.5 billion ($1.65 billion) in equity funding, a company spokesperson confirmed to SMU on Monday. H2 Green Steel aims to reduce CO2 emissions up to 95% compared to traditional steelmaking at its planned plant in Boden, in northern Sweden, according to its website. The […]
Despite high interest rates dampening demand, strength in manufacturing across the globe will drive a rebound in steel demand this year, the World Steel Association (worldsteel) said in its April 2023 Short Range Outlook. “In 2022, recovery momentum after the pandemic shock was hampered by high inflation and increasing interest rates, the Russian invasion of […]
CRU expects metallics prices to continue trending down in May 2023 as supply will continue to outpace demand in most markets. In the US, obsolete scrap prices are expected to move lower as the inflow to scrap yards will pick up seasonally, and dealers get more inclined to sell. In Europe, the macroeconomic environment will […]
Turkish pipe and tube maker Borusan Mannesmann has finalized its buy of Panama City, Fla.-based Berg Pipe for $162 million. Borusan said it has acquired 100% of the US pipe maker, which manufactures large-diameter line pipe. “By acquiring Berg Pipe, a company with a total manufacturing capacity of 550,000 tons, we have secured a strategic […]
The Dodge Momentum Index (DMI) dropped 8.6% in March to 183.7 from the revised February reading of 201.0, according to data and analytics from the Dodge Construction Network (DCN). Also last month, the commercial component of the DMI fell 6.6%, and the institutional component slumped 12.9% in the same comparison. “We are predicting the Dodge Momentum Index […]
Turkish scrap import prices fell in the last week of March as buying activity remained low and domestic supply improved, according to analysis from the CRU Group. CRU’s assessed Turkish scrap price for HMS1/2 80:20 is $443 per metric ton CFR, down by $17 week-on-week (WoW) and $7 month-on-month (MoM). Turkish buyers are taking a […]
Fresh off another rate hike from the Fed, US macro data came in mixed during the month of March. The final update for GDP in Q4 2022 showed 2.6% growth, which was down slightly month over month and below expectations. Consumer spending has also been revised down consistently over each update on the Q4 figures. […]
Both SMU’s Steel Current and Future Buyers Sentiment Indices have increased from two weeks ago, according to SMU’s most recent survey data. The Steel Buyers Sentiment Indices measure how steel buyers feel about their company’s ability to be successful in the current market, as well as three to six months down the road. Every other […]
US architecture firms reported a slip in demand for services for the fifth consecutive month in February, according to the latest report from the American Institute of Architects (AIA). The monthly AIA Architecture Billings Index (ABI) score stood at 48.0 in February, down from January’s 49.3. The ABI is an advanced economic indicator for nonresidential construction activity […]
About half of the US added construction jobs from January to February, according to Associated General Contractors of America (AGC) figures. Month over month (MoM), construction employment increased in 24 states, held constant in six states, and declined in 20 states and Washington, D.C. Year-over-year (YoY) construction employment increased in 45 states. California added the […]
We haven’t had a price increase since March 13, the Monday after Silicon Valley Bank collapsed. It’s entirely possible we’ll get another round of price hikes should mills decide the market will support it or should they want to reverse any bearish sentiment before it gains traction. It’s also possible that we won’t see another […]
The outlook for the construction industry is relatively optimistic, despite the uncertain state of the overall economy, according to Ken Simonson, chief economist of the Associated General Contractors of America (AGC). Simonson, who chatted with SMU chief editor Michael Cowden on the March 22 SMU Community Chat, provided the most recent data covering many aspects […]
The LME aluminum three-month price steadied this week despite a whirlwind of upsetting news, finding its footing near $2,300 per metric ton. That’s below the $2,500-per-ton mark we saw as 2023 opened on a more optimistic tone. The recent news from across the geopolitical and macroeconomic scene has dampened demand sentiment in the near term. […]
Commercial Metals Co.’s (CMC’s) net earnings slipped 53% in its fiscal 2023 second quarter compared with the same period a year earlier on weather issues and a planned outage. “CMC achieved strong financial results during the second quarter while managing a number of challenges, including weather-related shipment disruptions in our core geographies, costs associated with […]
Voestalpine AG is set to commission the construction of two electric-arc furnaces (EAFs) in Austria. The Linz, Austria-based company said the approval stage has been reached allowing for the investment of around €1.5 billion ($1.62 bilion) to construct one EAF in Linz and another in Donawitz. As part of its “greentec steel” plan, the plant and […]
New, single‐family home sales were up marginally in February, according to a joint report from the US Department of Housing and Urban Development and the US Census Bureau. Monthly gains were impacted by high mortgage rates and prices, while rising construction costs were also to blame. Despite dull results, signs point towards improvement later in […]
Galvanized sheet continues to experience stable demand but market sentiment is waning, according to members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI) speaking on the March 22 meeting of its Sheet Metal/Air Handling Council. Bullishness has subsided from sentiment in February. With lead times approaching eight weeks, HARDI members are experiencing tighter inventories and delayed […]
Worthington Industries reported lower net earnings in its fiscal 3Q ended Feb. 28 vs. the same period a year earlier on lower steel prices. The Columbus, Ohio-based service center and processor posted 3Q 2023 net earnings of $46.3 million, down 18% from $56.3 million a year earlier on net sales that fell 20% to $1.1 billion. […]
Ken Simonson, chief economist for The Associated General Contractors of America (AGC), will be the featured speaker on the next SMU Community Chat webinar on Wednesday, March 22, at 11 a.m. ET. The live webinar is free. A recording will be available free to SMU members. You can register here. We’ll talk about the outlook for […]
Commercial Metals Co. (CMC) said it has acquired post-tension cable company Tendon Systems LLC. Suwanee, Ga.-based Tendon supplies post-tensioning, barrier cable, and concrete restoration solutions in the southeastern US. CMC said Tendon’s products are used in a variety of construction projects including multi-family residential, parking structures, industrial, and high-rise buildings. The company had revenues of […]
The macro environment in the US has proven to be extremely volatile and continues to change on a month-by-month and sometimes even week-by-week basis. Last year ended with worries about an incoming recession as the Federal Reserve hiked interest rates to slow the economy. As 2023 opened and year-end economic data trickled in, the figures were […]
More than three-quarters of US metro areas added construction jobs year-over-year (YoY) through January, according to Associated General Contractors of America (AGC) figures. Despite the employment boost, construction firms struggled to find enough qualified workers to hire, the report said. The report cautioned that projects may stall or be canceled altogether if contractors lack an […]
The US International Trade Commission issued a report to Congress last week on the impact of the Section 232 import restrictions on steel and aluminum and the tariffs on imports from China under Section 301. The report catalogued significant injury to downstream industries. Namely, those that use steel or aluminum in manufacturing. The losses were […]
The CRU metallics price indicator (CRUmpi) for March increased by 7.4% month-on-month to 357.7, the highest level since last June. The main developments have been in Turkey, where the tragic earthquake initially had a negative effect on scrap buying from the largest scrap importing country, though in the second half of February this quickly turned […]
Ken Simonson, chief economist for The Associated General Contractors of America (AGC), will be the featured speaker on the next SMU Community Chat webinar on Wednesday, March 22, at 11 a.m. ET. The live webinar is free. A recording will be available free to SMU members. You can register here. We’ll talk about the outlook for […]
Despite strong profitability within its different product segments, Nucor Corp. expects first-quarter earnings to be down both sequentially and year on year. The Charlotte, N.C.-based steelmaker said Q1 operating income should be higher than the previous quarter while net earnings will be lower. This is due to higher state tax benefits seen in Q4 as […]
Steel Dynamics Inc. (SDI) expects lower first-quarter 2023 earnings on costs related to its Sinton, Texas, flat-roll mill and the continued work-through of higher-priced pig iron purchased in 2022. The Fort Wayne, Ind.-based steelmaker expects Q1 earnings in the range of $3.47 to $3.51 per diluted share. This is down from $3.61 per diluted share […]
By CRU Senior Analyst, Puneet Paliwal, from CRU’s Scrap, DRI/HBI & Pig Iron Monitor The CRU metallics price indicator (CRUmpi) for March rose by 7.4% month on month (MoM), to 357.7, which is its highest value since June 2022. Strong Turkish buying of scrap and pig iron since the second half of February is the key […]