We’re all saturated with news of the employment disaster caused by the coronavirus, but to look at the long-term picture graphically is still shocking. Figure 1 shows the three-month moving average (3MMA) of the number of jobs created or lost through April since 2005 as the brown bars and the total number employed as the […]
The U.S. lost a net 701,000 jobs in March as the economy struggled with the coronavirus, and the labor situation is expected to be much worse in April. The brunt of March’s employment decline was felt by service industries. In the coming months, manufacturing and construction jobs will suffer more as well. Table 1 breaks […]
More than 20.5 million Americans lost their jobs in April, including 18.1 million in service industries and 2.4 million in goods-producing industries such as manufacturing and construction, according to data just released by the Bureau of Labor Statistics. The latest job losses came on top of 870,000 lost in March, following a gain of 230,000 […]
Schnitzer Steel Industries, a metals recycler and long products producer, posted revenue of $439 million for the second quarter of FY 2020. Net income was $4.5 million for the quarter, improving from a $7 million loss in Q1 but down significantly from income of $13 million in Q2 2019. Autos and Metals Recycling achieved operating […]
The Dodge Momentum Index slipped slightly in March, retreating 0.6 percent to a reading of 146.5. The momentum index is a monthly measure of the initial report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. In March, the commercial component of the […]
Steel Buyers Sentiment—how steel executives view their prospects for success—has continued to deteriorate as the market struggles with the coronavirus restrictions. Current sentiment dipped into pessimistic territory to a reading of -8 this week, the lowest level since November 2010. It is also the first time we have entered the pessimistic portion of our index […]
Infrastructure is finally getting some attention again, despite and because of the cornavirus. Congress and the White House are calling for an infrastructure bill to be included in the fourth COVID-19 relief package. “With interest rates for the United States being at ZERO, this is the time to do our decades long awaited Infrastructure Bill,” Trump […]
Today we took our Price Momentum Indicator on flat rolled steel to Lower from Neutral. We are clearly seeing an erosion in pricing, which is expected to continue over the near term. The economy is heading into recession. Key indicators are pointing toward a slowdown in construction as states and local municipalities mandate construction projects […]
Today we took our Price Momentum Indicator on flat rolled steel to Lower from Neutral. We are clearly seeing an erosion in pricing, which is expected to continue over the near term. The economy is heading into recession. Key indicators are pointing toward a slowdown in construction as states and local municipalities mandate construction projects […]
Business remains surprisingly strong for wholesalers who sell galvanized steel products to the HVAC sector, considering the devastating impact of the coronavirus on the economy. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) said the construction industry has dodged the worst of the virus’ effects so […]
Wholesalers in different parts of the country tell a different story about how the coronavirus restrictions are impacting their businesses. In one sense, the virus is picking winners and losers by geography. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International compared notes on their experiences in dealing […]
Architecture firms reported fewer new design projects in March as uncertainty grows regarding the length and impact of the coronavirus crisis. A special mid-month survey by the American Institute of Architects found that 28 percent of respondents reported directed delays in current projects or those slated to start in 30 days. An additional 11 percent […]
We are in uncharted waters. The key is not to panic. Learn to separate fact from rumor. I repeat, learn to separate fact from the rumors that tend to envelope this industry. For example: The “rumor” is the domestic steel mills are getting huge order cancellations. Is that a fact or is it conjecture based […]
U.S. Steel announced on Friday a series of aggressive actions to mitigate the impact of the coronavirus and significant demand changes in the oil and gas industry. Flat-rolled: Gary Works—U.S. Steel will idle the #4 blast furnace at Gary Works immediately, moving up a 48-day outage originally planned for April. The scope of the planned […]
Service centers polled by Steel Market Update this week reported layoffs and sales declines expected to range from 30-70 percent. Steel orders are being canceled or delayed at most companies as steps to fight the coronavirus take a toll on regional economies across the country. Following are some executives’ comments: “We have not had customers […]
Worthington Industries reported net sales of $764.0 million and net earnings of $15.3 million for its fiscal 2020 third quarter, ending Feb. 29, 2020. Sales were down 13 percent from the prior year due to lower average selling prices in Steel Processing and lower volumes in Pressure Cylinders. Steel Processing net sales were down 12 […]
Thirty-nine percent of contractors report that project owners have halted or canceled current construction projects amid deteriorating economic conditions, according to a survey by the Associated General Contractors of America. The project cancellations are particularly severe in light of new data showing that 42 states added construction jobs through February. “The abrupt plunge in economic […]
John Packard is taking some time off… By most readings of the government guidelines, steel is considered an “essential” industry during this virus crisis. Mills that produce steel products, and by extension service centers that distribute them, are critical to getting the economy back on track. For some steel-consuming sectors, however, their “essentialness” may be […]
A battle is brewing among legislators, manufacturers and steel producers regarding whether tariff measures should be suspended on imports under Section 301 and Section 232 during the coronavirus crisis. Republican members of the Senate Finance Committee urged President Trump to ease tariff restrictions during the pandemic. In a letter on March 25, the committee exhorted […]
Steel prices saw further declines this week, but not a dramatic collapse. The benchmark price of hot rolled now averages around $560 per ton, down $5 from last week and down $50 from the mid-January high of $610. Most of the steel buyers responding to Steel Market Update’s check of the market this week expect […]
U.S. Steel and Tenaris will adjust production of tubular products in the U.S. due to low oil prices and declining demand in the oil industry. U.S. Steel plans to idle tubular operations in Texas and Ohio, affecting 850 employees. “U.S. Steel advised employees that Lone Star Tubular Operations in Lone Star, Texas, and Lorain Tubular Operations in […]
By CRU Research Manager Paul Butterworth, from CRU’s Steel Monitor CRU has massively downgraded forecast GDP growth in China to 1-2 percent for 2020 and we now expect the USA and Eurozone to fall into recession. Global GDP growth is now expected to be 1 percent for the year, an effective global recession. While economic […]
The coronavirus pandemic has caused more than one out of four contractors to halt or delay work on current projects, according to a new survey by the Associated General Contractors of America. As an industry, construction is the biggest consumer of steel worldwide. The survey results show how quickly market conditions have changed. AGC data […]
Sales of new homes in February rose 4.4 percent to a seasonally adjusted annual rate of 765,000, according to estimates by the U.S. Census Bureau and the Department of Housing and Urban Development. Compared to February 2019, sales jumped 14 percent. “New home sales were solid in February before challenges associated with the coronavirus set […]
Editor’s note: Various states, counties and cities have issued some form of “shelter-in-place” or “stay-at-home” orders including California, Pennsylvania, New York, New Jersey, Oregon, Ohio, Connecticut and Illinois, as well as cities such as St. Louis, Kansas City, New Orleans and some counties in Colorado, Georgia and Idaho, among others. The list grows by the […]
Cleveland-Cliffs has temporarily shut down construction activity at its hot-briquetted iron (HBI) site in Toledo, Ohio, due to the COVID-19 virus. All construction at the site will cease at the end of the business day on March 20 until further notice. Cleveland-Cliffs’ iron ore mining and steelmaking facilities will continue operations. The Toledo plant is […]
Commercial Metals Company reported a strong second quarter for fiscal year 2020 ending Feb. 29. The Americas Mills segment achieved record second-quarter shipment levels while the International Mill had the highest shipment level for second quarter in 12 years. Earnings for the quarter were $63.6 million on net sales of $1.3 billion. Gross margins jumped […]
U.S. Steel’s performance in the first quarter of 2020 was better than expected with adjusted EBITDA projected at $30 million. “Our Flat-rolled segment results are expected to be better than anticipated as strong operating performance across our footprint, continued cost improvement, and seasonally strong shipment volumes more than offset the typical seasonality of mining,” said […]
Pennsylvania Gov. Tom Wolf ordered all non-life-sustaining businesses in Pennsylvania to close their physical locations as of 8 p.m. Friday, March 19, to slow the spread of COVID-19. Life sustaining businesses include grocery stores, gas stations, farms and transit systems. Due to the high volume of waiver requests, enforcement actions against businesses that do not […]
John Packard is taking some time off… As we all hunker down (wondering if that’s the hint of a sore throat when we swallow), it’s easy to feel the walls closing in. The intellectual part of us knows the economy will return to normal eventually (indeed, there’s money to be made when the market comes […]