November was a major letdown for the U.S. labor market, which added just 210,000 jobs, though the unemployment rate ticked slightly lower. The latest data from the U.S. Bureau of Labor Statistics showed that the U.S. economy created far fewer jobs than expected in November, in a sign that hiring started to slow even ahead […]
U.S. job growth was weaker than expected in November, well below estimates for the third time in the past four months. November payrolls rose by 210,000, well below the 573,000 anticipated by Wall Street and a disappointing showing following the 531,000 new jobs added the month prior. Despite the big hiring miss, the unemployment rate […]
By CRU Chief Economist and Head of Sustainability Jumana Saleheen and CRU Principal Economist Alex Tuckett, from CRU’s Economic Outlook, Nov. 30 Global Economic Outlook November 2022 In this Global Economic Outlook, we look ahead to 2022 and outline our top 10 calls for the global economy. These include predictions on world growth, inflation, exchange […]
Algoma Steel Group Inc. has picked Danieli & C. Officine Meccaniche S.p.A (Danieli) as the technology provider for their new electric arc (EAF) steelmaking facility set for operation in early 2024. The Sault Ste. Marie, Ontario-based steelmaker said that Danieli’s systems were the best choice for their new mill as they transition away from basic […]
SSAB Americas will supply the Mobile, Ala.-based shipbuilder Austal USA with steel for the construction of new U.S. Navy ships. The supplier partnership with the Alabama-based steelmaker follows Austal’s award from the U.S. Navy to build steel-hulled Towing, Salvage, and Rescue ships (T-ATS). The Navajo-class ships will be built in new steel shipbuilding facilities that […]
By CRU Analyst Tanya Bhaiji, from CRU’s Steel Sheet Products Monitor, Nov. 29 Galvanized sheet is the biggest first use for refined zinc, constituting around 30% of total refined zinc demand in 2020. The majority of galvanized sheet is consumed in end-use sectors such as construction and automotive while a smaller percentage is also consumed in […]
The U.S. economy expanded at a modest rate from late October to early November, the Federal Reserve said in its latest Beige Book report. Overall growth was again constrained by supply-chain disruptions and labor shortages. Consumer spending increased modestly. But low inventories held back sales of some items, notably light vehicles. Leisure and hospitality activity picked […]
Steel prices declined for the third consecutive month in November, following a 12-month streak of continuous price increases. Hot-rolled coil prices declined $105 per ton throughout the month, with the SMU index averaging $1,770 per ton ($88.50 per cwt) as of Tuesday, Nov. 30. The SMU Price Momentum Indicator for hot-rolled coil was adjusted from Neutral […]
Engineering and construction costs continued to rise in November, though at a slower rate than in October, according to IHS Markit and the Procurement Executive Group (PEG). The November 2021 headline IHS Markit PEG Engineering and Construction Cost Index declined from 74.2 in October to 67.4 in November. The sub-index for materials and equipment costs drove […]
Steel Buyers Sentiment saw a notable dip this week, as did steel prices. Industry sentiment tends to track with steel price tags – the stronger the prices, the more optimistic service center and OEM executives who respond to SMU’s surveys. While sentiment remains near record levels, the downtrend suggests optimism, like prices, may have peaked. SMU […]
First, please note that due to the Thanksgiving holiday, the Steel Market Update newsletter will not be published on Thursday (which is Thanksgiving Day) and Sunday, Nov. 28. We will return to our normal publication schedule on Tuesday, Nov. 30. We want to wish everyone in the United States a happy, healthy Thanksgiving with family and […]
Friedman Industries reported the most profitable quarter in the company’s history with earnings for its fiscal second quarter ended Sept. 30 of $13.2 million on sales of $92.6 million. That’s a big turnaround from the same quarter last year when the company lost $250,000 on sales of $24.9 million due to the pandemic. Results for […]
Sheet and plate prices are nearing parity for the first time in about a year, the latest sign of a market in flux. Below is a good way to visualize that trend. The chart below maps out the spread between sheet and plate going back to 2017. If we rewind to mid-November of last […]
Sheet and plate prices are nearing parity for the first time in about a year, the latest sign of a market in flux. Below is a good way to visualize that trend. The chart below maps out the spread between sheet and plate going back to 2017. If we rewind to mid-November of last […]
With 2022 right around the corner, it’s time to reflect back on an unusual and eventful year for the steel industry. Following is Steel Market Update’s Top 10 News Events of 2021: #10 – Economy Rebounds from COVID: No one could have predicted when the virus crippled commerce in the spring of 2020 that the […]
Housing starts slipped 0.7% in October as single-family housing production lagged, hampered by supply-chain shortages and limited access to labor and lots. Overall housing starts decreased to 1.52 million units, seasonally adjusted, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. The October reading of 1.52 […]
Strong consumer demand and low inventories helped push builder confidence higher in November for the third consecutive month despite continued supply-side challenges. Even though the construction sector continues to wade through building material bottlenecks and lot and labor shortages, builder sentiment for newly built single-family homes moved three points higher to an index reading of […]
Nucor Corp. will add a blast and prime line to its greenfield steel plate mill currently under construction in Brandenburg, Ky. The blast and prime line will have an annual capacity of approximately 120,000 tons and will provide the Nucor Plate Group with even broader capabilities and offerings for buyers of wider and thicker plate products. The Charlotte-based steelmaker […]
Distributors who sell galvanized steel products to the construction and HVAC sectors still feel very positive about their prospects heading into next year despite weakening prices and rising inventories. Declines in galvanized prices out of the domestic mills have been fairly minor so far and demand remains strong, reported members of the Heating, Air-Conditioning & […]
Some of our key market indicators are pointing toward higher inventories at service centers and an “expectation” of lower prices out of the domestic steel mills. There are many questions yet to be answered as to what the “new normal” will look like when it comes to flat rolled steel prices. We have not seen […]
Monthly Key Market Indicators, as analyzed by Steel Market Update, edged down over the past month as positive indicators have decreased successively since June. A typical summer slowdown started the momentum shift, however, a surge in COVID variant cases, compounded by a slow-moving job market and supply-chain bottlenecks have continued to push the market indicators […]
Earnings season is (mostly) done and dusted, so I’d like to turn your attention to another season: M&A announcement season. Bankers like to get deals done before Christmas. And I think there is a decent chance that any deals in the pipeline now are announced in the next month or so. Also, while spot prices […]
Alro Steel Corp. will expand its operations into Iowa with the construction of a new regional distribution center, according to local media reports. The Jackson, Mich.-based metals and plastics distributor is planning to build a nearly 200,000-square-foot facility at an estimated cost of $20 million. The plant is expected to bring roughly 40 new jobs to […]
Algoma Steel posted record profits in its fiscal second quarter, and the Canadian flat-rolled steelmaker expects money to continue to pour in as high spot prices roll into 2022 contracts. The Sault Ste Marie, Ontario-based company also thinks that the traditional relationship between sheet and plate prices will be restored as infrastructure spending increases demand for […]
The board of Canadian flat-rolled steelmaker Algoma has approved the construction of two new electric arc furnaces (EAFs) with combined steelmaking capacity of 3.7 million tons per year. The new EAFs are expected to come online in 2024 and to replace the Sault Ste. Marie, Ontario-based company’s blast furnaces and basic oxygen furnaces. “We believe […]
ArcelorMital Tubular Products and the United Steelworkers (USW) Union Local #3057 have ended their five-day standoff by agreeing to a new four-year labor contract, a company spokesperson confirmed to Steel Market Update. The new deal – already ratified by the members of the local USW – ensures work can now resume at ArcelorMittal’s tube plant […]
Producer prices rose at a slightly higher rate in October, according to data released by the Labor Department. Supply-chain bottlenecks and shortages continue to drive manufacturing and shipping costs, keeping the historic climb for the index and subcategories for final demand moving up. Since falling in early 2020, the composite Producer Price Index (PPI) of […]
Ternium is considering adding a new electric arc furnace to its operations in North America as well as downstream cold rolling and coating capability. That’s according to sources familiar with the matter and as indiciated in recent public comments from company executives. The most likely candidate for any new EAF would be Pesquería, Mexico – […]
The U.S. construction sector saw an employment boost in October, as firms added 44,000 workers to their payrolls. The increase was supported by a 10.4% decline in the sector’s unemployment rate, while nonresidential construction firms posted back-to-back increases for the first time since January, reports the Associated General Contractors of America (AGC) in its latest […]
Steel industry lobbying groups and trade unions cheered passage of the bipartisan House $1 trillion infrastructure bill – which experts estimate could result in millions of tons of new steel demand. The legislation devotes approximately $850 billion to steel-intensive infrastructure, according to estimates from the American Iron and Steel Institute (AISI). The House vote, which occurred late […]