Steel mills in the U.S. are taking precautions to reduce risks to workers and operations from the coronavirus pandemic as production continues. Social distancing and proper hygiene/sanitation is encouraged, non-essential business travel is cancelled, air travel is banned and those personnel who can perform their jobs remotely are allowed to do so. Visitors are limited […]
Steel Dynamics and Nucor are both expecting improved earnings for the first quarter of 2020 due to higher steel prices and increased shipments. So far, the impact from the COVID-19 outbreak has been minimal on supply chains and operations, said the companies. Disruptions are expected, however, as more manufacturers temporarily suspend production and construction activity […]
Housing starts dipped 1.5 percent from January to February to a seasonally adjusted annual rate of 1,599,000, but were 39.2 percent higher than a year ago, according to a report from the U.S. Housing and Urban Development and Commerce Department. Single-family housing starts jumped 6.7 percent in February to 1,072,000 while starts for housing with […]
Distributors supplying galvanized steel to the HVAC market report that demand and prices have remained surprisingly resilient so far, but they fear it’s only a matter of time before their business feels the full effect of the coronavirus crisis. “Your business is going to change. We are in the very early part of that change,” […]
By CRU Research Manager Paul Butterworth, from CRU’s Global Steel Trade Service Activity in steel end-use sectors in China is recovering as per CRU’s base case, but evidence suggests that demand may start to run ahead of our base case in the near term. Encouraged by government stimulus measures, there is a lot of optimism […]
Construction employment numbers increased in January, but the Associated General Contractors of America says the coronavirus is likely to significantly affect employment beginning in March. “There is no doubt the coronavirus will have a significant impact on our economy, including the construction sector,” said Stephen E. Sandherr, the association’s chief executive officer. “That is why […]
We had to change the way we calculate the adjusted data, which will also change how we derive our analysis. Previously, we adjusted the data to mirror the exact mix of service centers that responded to the previous month’s survey. We saw a decrease in participation in the March survey, which we can understand given […]
In the last 12 months, the price declines of cold rolled carbon steel and aluminum sheet have been similar. This report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of the competitive position of sheet steel, aluminum, plastic and wood. The analysis includes some downstream […]
In the last 12 months the competitive position of steel sheet has improved against aluminum, plastic and wood. This report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of where sheet steel stands in terms of pricing compared with aluminum, plastic and wood. The analysis […]
Demand for long products declined by 3.5 percent in the three months through January, but rebar was up by 9.6 percent. This analysis is based on steel mill shipment data from the American Iron and Steel Institute (AISI) and import-export data from the U.S. Department of Commerce (DoC). It summarizes total steel supply by product […]
The world is changing, it is not ending. I expect the steel industry will go through some changes as well. In Europe, the car makers are closing manufacturing facilities. Europe seems to be a couple weeks ahead of us here in the United States. Will we see the same plant closures in a couple of […]
Steel prices are as unpredictable as the spread of a rogue virus, but one symptom of COVID-19 is likely to be lower steel prices. As of this writing on March 13, the price of flat rolled steel products had yet to see much effect from the global panic over the coronavirus. Steel Market Update’s latest […]
By CRU Analyst Arshiya Sibia and Research Manager Paul Butterworth, from CRU’s Steel Monitor Current information from our China team shows that steel demand is closely tracking our base case forecast for the impact of Covid-19, though steel production remains slightly higher than we had forecast. While our forecast was for steel demand to return […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations or comments […]
The Department of Labor announced its final rules for the Industry-Recognized Apprenticeship Programs with the glaring exclusion of programs for the construction industry. “It remains troubling that the administration has wasted so much time, energy and political capital in creating a new apprenticeship program that is both deeply flawed and fails to address construction workforce […]
Covid-19 continues to spread globally, now detected in at least 103 countries. More than 80,000 cases have been reported in the epicenter of China and worldwide more than 114,500 people have been infected. The number of deaths reported has jumped to over 4,000. Testing for the virus has been slow in the U.S. as the […]
In February, job creation beat expectations, and there is no sign of a virus effect even in the details. Net job creation in February was a surprising 273,000. In addition, December was revised up by 37,000 and January up by 48,000. Rising employment and wages are the main contributors to GDP growth because personal consumption […]
February’s employment report showed a turnaround in manufacturing, while construction continued to boom. The net increase in employed persons was 273,000 in February, the same as an upwardly revised result for January. In February, 42,000 jobs were created in construction and 15,000 jobs in manufacturing. The private sector gained 228,000 jobs in February and government […]
In January, total construction continued to boom with a 5.1 percent year-over-year growth rate Total construction is enjoying a remarkable turnaround with positive momentum in all sectors. The January results for total construction spending yielded the best growth rate for 15 months. Growth is being led by state and locally funded work including infrastructure, but […]
Steel buyers sentiment, as measured by Steel Market Update, has moved up and down within a small, three-point range since the beginning of the year. Both Current and Future Sentiment registered a very slight uptick in the past few weeks and remain in optimistic territory well above the average of +47 to +51 in 2019. […]
The construction industry’s unemployment rate hit a new February low of 5.5 percent, according to an analysis of new government data by the Associated General Contractors of America. Construction employment increased by 42,000 jobs in February and by 223,000, or 3.0 percent, over the past 12 months. AGC officials said some of the gains were […]
Nonresidential construction planning slowed in February, according to the latest report from Dodge Data & Analytics. The Dodge Momentum Index moved 1.8 percent lower to 148.7 from the revised January reading of 151.4. The Momentum Index is a monthly measure of initial reports for nonresidential building projects in planning, which have been shown to lead […]
Sheet prices in the U.S. Midwest market fell by $5-9 /s.ton, w/w with HR coil losing the most, assessed at $560 /s.ton. These prices reflect transactions from last week, which were primarily conducted ahead of recently announced mill price increases. While prices fell, the overall volume component fell at a faster rate. Until the price […]
The coronavirus has begun to affect business in the United States, according to the latest Federal Reserve “Beige Book.” The economy is moving forward at a modest to moderate pace, but growth is uneven. The virus appears to be negatively impacting travel and tourism in the U.S., which showed only moderate to flat growth in […]
Steel Dynamics has agreed to acquire 100 percent of the equity interest of ferrous and nonferrous scrap metal recycler Zimmer, S.A. de C.V. The Monterrey, Mexico, operations will support raw material procurement for Steel Dynamics’ new Texas flat rolled mill. Zimmer operations consist of six scrap processing facilities located near scrap-rich industrial areas in Central […]
Construction spending increased 1.8 percent to $1.369 trillion in January, according to a new analysis of federal data by the Associated General Contractors of America. “Public spending on infrastructure, along with single-family housing, was exceptionally robust in January,” said Ken Simonson, the association’s chief economist. “While overall economic conditions remain favorable, future construction spending levels […]
A new steel plant is slated for Canonsburg, Pa. Ameri-Precision Metals Inc. has begun construction on a 250,000-square-foot facility to produce cold-rolled and heat-treated carbon steel strips. Ameri-Precision is leasing the location from Pennsylvania Transformer. The facility should be running by April or May with phase 1 production beginning in July. The site of the […]
Gauging how COVID-19 will impact global commerce, specifically the world’s steel industry, is almost as difficult to predict as the spread of the virus itself. CRU analysts will tackle the subject in a new webinar this week. As CRU Senior Analyst Erik Hedborg reports, the news is not all bad. For one, the pace of […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: As a participant of long standing in the saga of international trade cases, I can say that this week was particularly interesting. First, the U.S. International Trade Commission did something unusual—last Tuesday, it made a final negative determination […]
John Packard is traveling… The mills announced another $40 increase in flat rolled prices this week in the hopes of reversing the recent downturn in steel prices. Instead of an increase, ArcelorMittal released minimum base prices of $620 for hot rolled and $820 for cold rolled and coated. Steel Market Update puts the current benchmark […]