Too much went on last week to limit this week’s column to a single issue. The Ukraine war touches everything these days, including almost all recent developments on the trade front. It was a week that, to paraphrase Winston Churchill, was “not entirely uneventful.” First, the NATO summit meeting took on issues that have divided Europe […]
Producer prices rose moderately in February, maintaining a sustained 23-month growth run. Last month the headline index grew by just 0.8%, seasonally adjusted, but was a gain of 10% when compared to the same year-ago period, reports the U.S. Labor Department. Wholesale prices accelerated as steady consumer demand and pandemic-related supply-chain snarls continued to fuel […]
Steel prices that spiked in 2021 over disruptions from the coronavirus, then again in the past month due to Russia’s invasion of Ukraine, have been particularly challenging for the construction sector, said executives from Structural & Steel Products, Inc., Fort Worth, Texas. Speaking during Steel Market Update’s Community Chat webinar on Wednesday, the pair appealed […]
Distributors who sell galvanized steel products have some recent experience at managing purchasing and inventory in a rapidly rising price environment. In their monthly conference call earlier today, members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI) drew some comparisons between the spike in steel prices prompted by the pandemic last year and the […]
Housing starts grew in February, boosted by a strong multifamily reading and despite production bottlenecks as well as rising construction costs. Strong demand and low levels of existing inventory aided last month’s results, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. Overall housing starts increased 6.8% to […]
Existing-home sales contracted in February, according to the National Association of Realtors. Each of the four major U.S. regions saw sales fall on a month-over-month basis in February, while sales activity year-over-year was also down overall. Three out of four regions reported drops in transactions. The South saw the sole increase. February sales fell 7.2% […]
By Matthew Abrams, Analyst, CRU Group Over the past week, there have been a few noteworthy updates to new Russian sanctions. First, the big news was Russia’s removal from the list of Most Favored Nations. This allows room for new duties to be imposed on the imports of Russian goods. The U.S. does not import […]
Commercial Metals Co. (CMC) posted record net earnings of $383.3 million on sales of $2.01 billion in its second fiscal quarter ended Feb. 28, beating the previous record set the prior quarter by more than $150 million. Results for the Irving, Texas-based steelmaker were boosted by proceeds of $195.8 million from the sale of Southern […]
Nucor Corp., the largest steelmaker in the U.S., expects to achieve record first quarter earnings in the range of $7.20 to $7.30 per diluted share. That’s down from earnings of $7.97 per share in the prior quarter but double $3.10 per share in the same quarter last year. Steel mill segment earnings in the quarter ending this month will […]
It’s time to register for Wednesday’s SMU Community Chat webinar, which will feature Matt Brace, owner of rebar fabricator Brace Steel and CEO of Structural and Steel Products Inc. Also joining the discussion on the construction sector will be Brian Desigio, company president and chief operating officer. We’ll be holding the Community Chat on Wednesday, […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor, March 9 The CRUspi moved higher m/m as war in Ukraine broke steel supply chains. While prices in the USA were down m/m, this downward trajectory has now halted. Elsewhere, buyers are scrambling to secure enough steel and steelmaking raw materials before prices […]
The U.S. construction sector added 60,000 new workers to payrolls in February, while hourly wages climbed at the steepest pace in nearly 40 years, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. “All segments of construction added workers in February,” said Ken Simonson, AGC’s chief economist. “However, filling […]
While 29 states now employ more construction workers than before the pandemic, construction employment is still below February 2020 levels in 21 states and D.C., underscoring how spiking materials prices and tight labor markets are undermining the sector’s recovery, said the Associated General Contractors of America. “Employment has risen in most of the nation over […]
The Dodge Momentum Index rose in February by 4.0%, rebounding from three consecutive months of declines, according to data and analytics from the Dodge Construction Network. The index registered 158.2 last month, up from January’s revised reading of 151.9. In February, commercial planning moved 1.0% higher while institutional planning rose by 9.0%. The index reached […]
AZZ Inc. has agreed to purchase Precoat Metals from its parent, Sequa Corp., for approximately $1.28 billion. The deal continues the Fort Worth, Texas-based company’s buying spree in the coated metals space. “We are pleased to acquire North America’s largest independent provider of metal coil coatings and related services,” AZZ CEO Tom Ferguson said. “Through this acquisition, AZZ […]
The U.S. labor market exceeded expectations in February, adding 678,000 new jobs last month. It was the best month for job growth since last July, the Bureau of Labor Statistics reported Friday. The U.S. still has 2.1 million jobs to go before hitting the February 2020 level and recouping all positions lost in the pandemic. […]
U.S. construction spending in January totaled $1.68 trillion at a seasonally adjusted annual rate, boosted 1.3% by strong outlays on single-family homebuilding and private nonresidential structures, the Commerce Department reported. The gain is even more significant given December data was revised higher to show construction outlays rising 0.8% instead of 0.2% as previously reported. January’s […]
The U.S. economy has expanded at a modest pace since mid-January, the Federal Reserve said in its latest Beige Book report. Overall growth was constrained by a surge in Omicron, forcing firms to deal with heightened absenteeism and continued supply-chain bottlenecks. Consumer spending was weaker, with auto sales largely mixed and manufacturing activity expanding at […]
Ryerson has acquired Apogee Steel Fabrication, expanding the service center’s value-added offerings in a move likened to its purchase of Specialty Metals Processing (SMP) last September. Terms of the deal were not disclosed. “We see Apogee strengthening Ryerson’s network of value-added service centers in Canada, adding to our processing capabilities and growing our full-service fabrication business,” […]
February marked month six of declining steel prices, following a 12-month streak of continuous price increases. Hot rolled prices declined $215 per ton throughout the month, with the SMU index averaging $1,020 per ton at the end of February (recall our HR average this week declined another $20 to $1,000 per ton). The SMU Price Momentum Indicator for sheet products was […]
Construction spending rose in January with strong gains in private nonresidential and residential construction, but mixed results for public spending, reported the Associated General Contractors of America (AGC). “Private nonresidential construction, especially for manufacturing plants, has rebounded sharply in recent months, while demand for housing remains strong,” said Ken Simonson, AGC’s chief economist. “But public […]
Evraz North America has seen no impact on its U.S. and Canadian operations or on its finances from sanctions rolled out following Russia’s invasion of Ukraine. Nor does the Chicago-based steelmaker expect any disruption as a result of the New York Stock Exchange (NYSE) and Nasdaq halting trading of U.S.-listed Russian companies, an Ervaz NA […]
By Trade Attorney Lewis Leibowitz Albert Einstein is reputed to have said that time is the “fourth dimension” because you cannot tell where you are except by knowing “when” you are. The onset of war in Europe is “when” we are right now. As I write, there is a battle for control of Kyiv. Because […]
The outlook for multifamily construction closed the year on a positive note, as confidence in the market for new multifamily housing improved in the fourth quarter of 2021, according to the National Association of Home Builders’ (NAHB) Multifamily Market Survey (MMS). The MMS’s two separate indices saw mixed results. The Multifamily Production Index (MPI) gained […]
Sales of new single-family homes fell in January following a sharp upwardly revised reading the month prior. Last month’s 4.5% decline in new homes sales resulted from rising interest rates. The seasonally adjusted rate of 801,000 was steady because demand remains strong, the U.S. Department of Housing and Urban Development and the U.S. Census Bureau reported. […]
Ryerson, the Chicago-based steel processor and distributor, reported record annual results for 2021 highlighted by capital investment in two new service centers and significant debt reduction that positions the company well for what management expects to be a strong 2022. Ryerson reported net income of $294.3 million on revenues of $5.68 billion in 2021. That’s […]
Demand for design services from architecture firms in the U.S. strengthened for the 12th straight month in January, with AIA’s Architecture Billings Index registering 51.0, according to the latest report from the American Institute of Architects. The ABI is an advance economic indicator for nonresidential construction activity with a lead time of 9-12 months. A score […]
For those of you who don’t pay attention to such things, today’s date is 2/22/22…. On Monday, Cleveland-Cliffs announced on their website their intention of indefinitely idling the #4 blast furnace at Indiana Harbor, and a $50 per ton ($2.50/cwt) price increase on orders slated for production in April 2022. Cliffs CEO Lourenco Goncalves spoke […]
Distributors who sell galvanized steel products to the construction and HVAC sectors see Cleveland-Cliffs Inc.’s announcement of a price increase this week as a positive sign the market’s slide may be nearing a bottom. The Cleveland-based steelmaker notified customers this week that it is shutting down a blast furnace and will raise prices for April […]
Strong downstream demand for steel is expected through the first half of 2022, but unfilled orders and backlogs resulting from supply-chain troubles and labor shortages may wreak havoc in the second half, cautioned a panel of OEM and service center executives during the Tampa Steel Conferences last week. “We’re certainly seeing strong demand for the […]