Foreign or domestic? “More risk buying domestic….” I had some interesting conversations with steel buyers today as I have been trying to gauge the strength of domestic price support, and what will be the catalyst that will turn the tide. One large manufacturing steel buyer with operations around the world told me, “The prices will […]
Foreign or domestic? “More risk buying domestic….” I had some interesting conversations with steel buyers today as I have been trying to gauge the strength of domestic steel price support, and what will be the catalyst that will turn the tide. One large manufacturing steel buyer with operations around the world told me, “The prices […]
Nucor expects first-quarter 2021 earnings to be the highest quarterly profits in the company’s history, surpassing the previous record set in the third quarter of 2008. Earnings are expected to be in the range of $3.00 to $3.10 per diluted share. Strong steel demand and pricing are generating record results in the steel mills and […]
U.S. raw steel production rose again, a trend that has continued for five weeks and counting. Weekly steel production by U.S. mills totaled 1,761,000 tons in the week ending March 16, pushing production up 0.3% compared with the week prior when production was 1,755,000 tons. The small increase may reflect some seasonality as construction and […]
By CRU Principal Analyst Matt Watkins from CRU’s Global Steel Trade Service International prices have rebounded in March from a dip that happened in February (see chart 1). Larger m/m gains have occurred in flats than in longs, which have been more impacted by a pullback in scrap costs, but almost all prices are up […]
By CRU Analyst Sam Grant, from CRU’s Zinc Monitor The U.S. COVID-19 vaccination program has continued to make impressive headway over the past month, with over 100 M doses now administered across the country. With more transmissible strains of the virus now present in the U.S., and with many states continuing to roll back containment […]
By CRU Principal Economist Alex Tuckett and CRU Chief Economist Jumana Saleheen, from CRU’s March Global Economic Outlook In March, we received good news on the outlook for the world’s two largest economies: the U.S. stimulus package was larger than expected, and economic growth in China is stronger. We expect a temporary rise in inflation in […]
By CRU Analyst Dave Thewlis, from CRU’s Steel Long Products Monitor Prices among all types of long products rose again in April, the most challenged of which remains wire rod. February’s winter storms, which were extreme enough to cause a 2.2% m/m decline in U.S. industrial production, made a difficult situation worse for wire rod […]
By CRU Senior Analyst Helen O’Cleary from CRU’s Zinc Monitor. Zinc use has been optimized on an ongoing basis for decades as technological advances lead to lower raw materials usage and the development of higher-performing alloys with a lower zinc content. This is particularly true of the galvanizing industry, which accounts for around 60% of […]
By CRU Senior Analyst Helen O’Cleary from CRU’s Zinc Monitor After a month of sideways trading in April, zinc’s price has entered ever more overbought territory in recent weeks, following copper’s price higher and benefiting from booming ex. China steel demand and the news this week of output cuts at zinc smelters in China’s Yunnan […]
Construction employment continues to lag pre-pandemic levels in most of the U.S., says a new analysis by the Associated General Contractors of America. Only eight states added construction jobs from February to January 2021 while 42 states remained below February 2020 levels. “Despite improvement in many sectors of the economy, nonresidential contractors are coping with […]
Steel Market Update’s monthly analysis of Key Market Indicators–a host of data on the economy, raw materials, manufacturing, construction, and steel sheet and long products–shows that the marketplace continues to improve, albeit cautiously. At the onset of COVID-19 a year ago, the impact of the pandemic on the economy was delayed, with only 3 of […]
Editor’s note: Steel Market Update is pleased to share this Premium content–an edited version of our Key Market Indicators analysis–with Executive members. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Steel Market Update’s monthly analysis of Key Market Indicators–a host of data on the economy, raw materials, manufacturing, construction, and steel […]
The construction industry remains optimistic despite still facing many challenges resulting from the COVID-19 pandemic. Out of 1,400 contractors responding to the Associated General Contractors of America’s Coronavirus Survey, 62% said they plan to add employees this year. A bullish perspective typical of the construction industry, said AGC Chief Economist Ken Simonson. “No matter how bad […]
AM/NS Calvert has a planned maintenance outage coming up, a company spokeswoman confirmed. The outage is expected to take place in May on the Alabama steel mill’s hot-strip mill, market participants said. The spokeswoman did not confirm when the outage would take place or on what part of the mill repairs or upgrades would be […]
I am going to spend some time discussing Steel Market Update this evening. I started SMU in August 2008 as a one-man show. The company has grown over the years both in size and scope. The sale of the company to CRU has turned out to be a blessing (I think for both companies), and […]
The U.S. economy added 379,000 jobs in February, making the first positive move in three months, reported the Bureau of Labor Statistics (BLS). The unexpected increases were driven by large job gains in the nation’s service and entertainment industries as the economy continues to recover. The jobs data was the strongest since October, resulting from a […]
After dismal reports for the U.S. labor market in December and January, February saw positive gains in employment. The U.S. Bureau of Labor Statistics (BLS) reported that employers added 379,000 to their payrolls in February, as vaccinations and business reopenings gave the economy a boost. Despite the added jobs this past month, the unemployment rate […]
U.S. gross domestic product (GDP) closed out 2020 on an encouraging note with annualized growth of 4.1%, based on the second estimate from the Bureau of Economic Analysis (BEA). The second estimate included upward revisions to residential fixed investment, private inventory investment, and state and local government spending, partly offset by a downward revision to personal […]
Nucor today announced board approval to build a tube mill in the Midwestern U.S. The $164 million project will be completed within two years and will capitalize on Nucor’s recent Midwest investments that include a plate mill, galvanizing line and hot roll expansion. A specific location for the new plant was not provided, but sources expect […]
The PRO Act (Protecting the Right to Organize Act) will begin debate in the U.S. House this week. The legislation, voted down in previous years, would change long-established labor laws that not everyone believes will benefit employees and the industries in which they work. Among those critical of the legislation is the Associated General Contractors […]
Severe weather froze the construction industry in February, contributing to an employment loss of 61,000 workers, said the Associated General Contractors of America in an analysis of government data. The sector’s unemployment rate soared 9.6% last month. Total construction employment was 7,340,000, a 4.0% drop from the most recent peak in February 2020. “The steep decline […]
The Dodge Momentum Index jumped 7.1% in February to register 149.0 for the highest level in nearly three years. The index is a monthly measure of the first report of nonresidential projects in planning, shown to lead construction spending by a full year. A surge of large projects entered the planning phase last month, said […]
Registrations for the 2021 SMU Steel Summit Conference have topped 200 and counting. We continue to work toward having a live in-person conference in Atlanta on Aug. 23-25. We are heartened to hear President Biden speak to having enough vaccine to inoculate the entire U.S. population by the end of May. If true, that gives […]
Registrations for the 2021 SMU Steel Summit Conference have topped 200 and counting. We continue to work toward having a live in-person conference in Atlanta on Aug. 23-25. We are heartened to hear President Biden speak to having enough vaccine to inoculate the entire U.S. population by the end of May. If true, that gives […]
Steel prices continued their upwards climb in the month of February, fueled by strong demand and tight supply. Hot rolled steel prices surpassed $1,200 per ton in the third week of the month, reaching levels never before seen. Steel Market Update’s hot rolled price index reached $1,210 per ton by the end of February, up […]
Economic activity grew modestly in the U.S. from January to mid-February, reports the Federal Reserve in its latest Beige Book. The vaccine rollout has boosted confidence that business conditions will improve over the next 6-12 months. The leisure and hospitality sector continues to be impacted by COVID-19 restrictions with only slight improvement reported by some […]
Nonresidential construction spending expanded for the first time in seven months, according to a new analysis of January federal construction data by the Associated General Contractors of America. Total construction spending was $1.52 trillion in January, up 1.7% from December and 5.8% from January 2020. Combined private and public nonresidential construction spending climbed 0.9% from […]
There has been much said about the squeeze on supply of flat rolled and not as much about demand. Demand has been quite good in all sectors except the energy sector, which has been struggling for a couple of years due to prices that went below $40 per barrel. Now we are seeing warning signs […]
Demand is strong and approaching pre-COVID levels in the first quarter, said Olympic Steel President and COO Andrew Greiff during the service center’s fourth-quarter 2020 earnings call. All three company divisions contributed to earnings for Q4 with specialty metals turning in its third strongest quarter in the company’s history as well as the strongest quarter […]