The U.S. is experiencing a housing construction boom, but nonresidential construction projects are dwindling as pre-pandemic starts are completed and new projects are put on hold, said the Associated General Contractors of America. As a result, more than half of metro areas reported a decline in construction employment from December 2019 to December 2020. “A […]
Total construction expenditures rose further in December 2020 to $1,490.4 billion, a 1.0 percent gain on the revised November estimate of $1,475.6 billion, according to the U.S. Census Bureau. Despite a health crisis that marred most of 2020, year on year the figure is 5.7 percent above the December 2019 estimate of $1,410.3 billion. The report goes […]
Dr. Walter Kemmsies, managing partner at the Kemmsies Group, is bullish on the steel market for 2021. In comments during Tuesday’s virtual Tampa Steel Conference 2021, Kemmsies estimated a minimum metals demand of 218 million tons from 2021 to 2025, most of which will be steel. That is an additional 20 million tons in each of […]
Steel and scrap prices continued to climb throughout January, fueled by strong demand and tight supply. Hot rolled steel prices surpassed $1,000 per ton in the first week of the year, levels not seen in over a decade. Steel Market Update’s hot rolled price index reached $1,140 per ton by the end of January, up […]
U.S. Steel does not plan to build additional electric-arc furnace capacity for the “foreseeable future,” company executives said. The company also plans to keep the “A” blast furnace at its Granite City Works in southern Illinois idled, they suggested. U.S. Steel acquired two flat-rolled EAFs when it closed its deal for Big River Steel’s mill […]
Swedish steelmaker SSAB navigated a difficult year in 2020, taking down production and idling blast furnaces due to lower demand and COVID-19 restrictions. “Looking back at it, I think our flexibility in the system has served us well because when the market started to recover in Q4, we were quite fast to adapt to that […]
Nucor, the industry’s largest steelmaker, is expecting a significant increase in earnings in the first quarter of 2021 following a strong fourth quarter with net earnings of $398.8 million. Fourth-quarter earnings outpaced the third quarter at $193.4 million and Q4 2019 at $107.8 million due primarily to higher pricing at Nucor’s sheet and plate mills. […]
Steel Dynamics Inc. President and CEO Mark Millett has been elected to serve as board chairman of the Steel Manufacturers Association for the lobbying group’s 2021-22 term. “The SMA is uniquely positioned to represent electric arc furnace steel producers, who over the last 30 years have emerged as the dominant force in North American steelmaking […]
The steel industry’s ecommerce platforms have drawn a lot of interest lately from buyers searching for material and sellers searching for the highest price. John Armstrong, president and CEO of Reibus, said his online platform is thriving despite—or perhaps because of—the tight market conditions. “The volatility drives buyers to look for new solutions. Our tool […]
JD Fields & Co. Inc. and HDM Tubes Ltd. have teamed up to build a new spiral-weld pipe mill on the campus of Steel Dynamic Inc.’s new flat-rolled steel mill in Sinton, Texas. The joint venture between JD Fields, a steel distributor focused on the energy and civil infrastructure markets, and HDM, a Turkish pipe […]
Construction employment remains below pre-pandemic levels in 34 states despite gains in 37 states and the District of Columbia in December, according to an analysis of federal data by the Associated General Contractors of America. The data reflects the broad impact of the pandemic and the need for additional coronavirus recovery measures, said AGC. “While […]
Steel Dynamics Inc. turned in a remarkable fourth quarter and 2020 results despite a year fraught with challenges from the COVID-19 pandemic. SDI posted its second highest record for yearly steel shipments at 10.7 million tons. The company’s fabrication platform shipped a record 666,000 tons. Metals recycling posted operating income of $45 million in 2020 […]
Home prices soared in November, gaining 7.6 percent from October and 9.5 percent year-over-year, reports the S&P CoreLogic Case-Shiller U.S. Home Price Index. The 20-City Composite rose 8 percent from the previous month and 9.1 percent from November 2019. Phoenix, Seattle and San Diego led the increase with gains of 13.8 percent, 12.7 percent and […]
Cancellation of the Keystone XL pipeline project by the Biden administration will have some impact on the steel market in North America, specifically supply and demand for line pipe, but the effect is difficult to assess, say the experts. On his first day in office Wednesday, President Biden followed through on his green-energy campaign promise […]
It might be comforting to have 2020 in the rear-view mirror, but 2021 could have a few tricks up its sleeves, an ArcelorMittal USA analyst said. The good news: The U.S. should see apparent steel consumption increase 6% in 2021 after it fell 16% in 2020, according to Ping Liang, senior analyst-strategic marketing, at ArcelorMittal […]
The Architecture Billings Index took another plunge in December, falling to 42.6 from 46.3. A score below 50 shows a decline in demand for design planning and is a leading economic indicator for nonresidential construction activity. “Since the national economic recovery appears to have stalled, architecture firms are entering 2021 facing a continued sluggish design […]
The housing construction market continued its strength in December with starts vaulting 5.8 percent from November to a seasonally adjusted annual rate of 1,669,000. Single-family housing starts soared 12 percent, but starts of multifamily housing of five units or more plummeted 15.2 percent. Building permits, an indicator of future construction, rose 4.5 percent last month […]
Steel prices surging to their highest levels ever has masked another potentially key market trend–a narrower spread between hot-rolled coil and galvanized base prices, according to Steel Market Update (SMU) data. SMU’s hot-rolled coil price averages $1,130 per ton ($56.50/cwt), $60 per ton above 2008’s peak of $1,070 per ton. The base price for galvanized […]
Demand for flatbed trucks was fueled by residential construction in 2020, with nonresidential construction slipping from pre-pandemic rates. The Associated General Contractors trade group expects 2021 to be a difficult year for the construction industry with only three nonresidential market segments, water and sewer, warehouse and healthcare facilities, expanding. The latest report from the U.S. […]
Flat-rolled steel prices have room to rise despite being at record levels, and any correction might not come until well into the second quarter. That was the takeaway from a conference call this morning with members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI). “I don’t remember a market like this. Maybe at […]
When will steel prices plateau? There seem to be two schools of thought on the subject. Many predict prices will peak in March/April, according to Steel Market Update’s surveys of the market. Most members of the Heating, Air Conditioning & Refrigeration Distributors International say they don’t see market prices changing direction before mid-summer. HARDI is […]
“If you’ve tried to buy steel in the last six months, it’s a very frustrating climate,” said one member of the Heating, Air Conditioning & Refrigeration Distributors International during their monthly conference call this morning. HARDI is a trade group representing wholesalers who supply galvanized and other products to the construction/HVAC market. Demand is strong […]
“If you’ve tried to buy steel in the last six months, it’s a very frustrating climate,” said one member of the Heating, Air Conditioning & Refrigeration Distributors International during their monthly conference call this morning. HARDI is a trade group representing wholesalers who supply galvanized and other products to the construction/HVAC market. Demand is strong […]
The good news still outweighs the bad news in the construction/HVAC market, report wholesalers of galvanized steel products. During their monthly conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) said demand is strong across the country and has not been diminished by the record high steel prices, at […]
Steel buyers are resigned to paying record-high steel prices, if that’s what it takes to get the material they need to keep business moving. In their monthly conference call today, members of the Heating, Air Conditioning & Refrigeration Distributors International reported that demand for HVAC and construction products has seen little slowing, though they are […]
Wholesalers who sell galvanized steel products to the construction and HVAC markets are skeptical of analysts’ predictions of a big price correction in the next few months. Judging by the persistently strong inquiries from their customers, most believe the experts underestimated steel demand as prices were on the way up and may do the same […]
Forecasts of weakness in commercial construction have not played out as analysts expected, at least not yet, contend members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI). Robust demand for HVAC and other galvanized steel products has shown no signs of abating, said members of the wholesale trade group during their monthly conference call […]
Forecasts of weakness in commercial construction have not played out as analysts expected, at least not yet, contend members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI). Robust demand for HVAC and other galvanized steel products has shown no signs of abating, said members of the wholesale trade group during their monthly conference call […]
Flat Rolled = 51.3 Shipping Days of Supply Plate = 50.8 Shipping Days of Supply Flat Rolled Service center flat rolled steel inventories found their low point in November and bounced back up in December. Service centers carried 51.3 shipping days of supply at the end of December, up from 40 in November. The data […]
By CRU Senior Analyst Ryan McKinley and Analyst Dave Thewlis, from CRU’s Steel Long Products Monitor U.S. domestic long product prices rose further m/m in January, hitting multi-year highs (see chart) as limited supply met with strong demand. Buyers are increasingly relying on domestic mills to acquire material, as global prices have made importing less […]