Housing starts grew 3.8 percent from September to October to a seasonally adjusted annual rate of 1,314,000 and rose 8.5 percent from October 2018, according to the latest report from the Commerce Department and U.S. Housing and Urban Development. Single-family housing starts were up 2 percent from September and housing starts in buildings of five […]
The first U.S.-flagged Great Lakes bulk carrier to be built in more than 35 years will be made from steel supplied by ArcelorMittal Burns Harbor. The carrier was commissioned by Interlake Steamship Company and will be built by Fincantieri Bay Shipbuilding. A ceremony celebrating the first cut of steel for the new vessel was held at […]
The composite producer price index of all commodities peaked in October last year and in 12 months through September has declined by 3.2 percent. This Steel Market Update 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, […]
Demand for steel sheet products declined by more than the seasonal norm in September. This analysis by Steel Market Update 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). The analysis summarizes total steel supply by product from 2003 […]
By Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) rose by 7.5 percent m/m to 195.7 (see chart) after prices rose in most markets. The most pronounced rebounds were in the U.S. and European scrap markets, while prices in Asia either rose or were stable. Prices in regions […]
U.S. Steel announced on Wednesday a new target for reducing greenhouse gas emissions intensity. As part of its “best of both” strategy, U.S. Steel said it will reduce its global greenhouse gas emissions intensity 20 percent by 2030, based on 2018 baseline levels. Emissions intensity is measured by the rate of carbon dioxide equivalents emitted […]
Flack Global Metals says it will move forward on plans to build a new coil coating and downstream processing facility adjacent to Big River Steel in Osceola, Ark. The new facility will cost approximately $150 million and create more than 150 new jobs. This investment, if completed, will add production capability to the Big River […]
ArcelorMittal reported a third-quarter net loss of $539 million—its second quarterly loss in a row as the global steel and mining company faced lower shipments and weak steel prices in markets all over the world. “As anticipated, we continued to face tough market conditions in the third quarter, characterized by low steel prices coupled with […]
The Dodge Momentum Index increased 6.9 percent in October to 152.6 from a revised September reading of 142.7. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full […]
The rate of job creation in October slowed, partly due to the GM strike. Net job creation in October declined to 128,000 from an upwardly revised 180,000 in September. August was revised up by 51,000 and September up by 44,000. In combination, this was the highest upwards two-month revision that we can remember. Rising employment […]
Jobs have been lost in the primary metals sector in each of the last seven months. In October, 10,000 jobs were created in construction, while manufacturing industries lost 36,000 jobs. A reported 131,000 jobs were created in the private sector, while government lost 3,000 positions. Table 1 breaks total employment down into service and goods-producing […]
Commerce Department Construction Put in Place (CPIP) data for September confirms the contraction that began in June 2019. CPIP expenditures data for September was released on Nov 1. Through September, total construction had negative momentum every month since October last year. In the period June through September, total construction declined each month on a year-over-year […]
By CRU Senior Analyst Ryan McKinley The rate of decline for U.S. domestic longs product prices is decelerating as steel buyers slowly return to the market and scrap market sentiment firms. Although not low, inventory levels have worked through enough for buyers to re-enter the market and conduct seasonal restocking. Still, domestic prices and demand […]
The Associated General Contractors of America maintains that trade fights with China, the EU and other countries are undermining demand for private sector construction projects. “The best way to make sure our economy continues to expand is to quickly resolve a series of trade disputes that have contributed to business uncertainty and likely held back […]
This report is designed to be a big picture summary of data we have reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for steel buyers and sellers. See the end of this piece for an explanation of the Key Indicators […]
China’s steel production continues to grow as the rest of the world contracts. Figure 1 shows annualized monthly global steel production on a three-month moving average (3MMA) basis and capacity utilization since January 2000. The OECD has taken over responsibility for tracking global steel capacity. Their data shows that global capacity declined each year 2016 […]
The Associated General Contractors of America are calling for comprehensive immigration reform and additional workforce funding to address a shortage of qualified labor. Despite the widespread job gains, AGC’s latest survey found 80 percent of contractors say hourly craftworker positions remain difficult to fill. Construction employment grew in 244, or 68 percent, out of 358 […]
U.S. Steel announced that it has completed $1.1 billion of financing activity that will support its previously announced growth projects. “The closing of these financing activities marks another successful step in the execution of our ‘best of both’ strategy,” said President and CEO David B. Burritt. “I am thankful for the strong support from our […]
John Packard is traveling… While it’s too early to tell how the market will fully react to last week’s price increase announcements by the flat rolled mills, change is clearly afoot, based on the findings from SMU’s canvass of the market over the past two days. How high will prices go, and for how long? […]
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 […]
Weak steel prices and plummeting pellet premiums cut earnings significantly at Cleveland-Cliffs in the third quarter of 2019, but the company still beat analysts’ expectations. Revenues fell to $556 million compared to $742 million a year ago that included a one-time gain of $228 million due to a change in foreign currency translation. Third-quarter net income was […]
NLMK USA noted weaker demand in the pipe manufacturing and construction segments in its third-quarter earnings report. Prices dropped 13 percent from the second quarter and shipments declined 6 percent to 550,000 metric tons, resulting in a loss for the company. Revenue for the segment fell 18 percent from the second quarter to $391 million. […]
Reliance Steel & Aluminum Co. did better than anticipated in the third quarter, generating net sales of $2.69 billion. Shipments were higher than expected due to strength in Reliance’s largest segment, nonresidential construction, slipping just 2 percent compared to a typical seasonal decline of 4-6 percent. Demand for carbon structural and tubing products helped boost […]
SSAB Americas saw its third-quarter profits decrease to $54.5 million from $82.2 million in Q3 2018 due to lower plate steel prices. Sales were down 2 percent from the second quarter to $490 million and 6 percent from a year ago. Demand during the quarter was relatively stable with shipments of 521,000 metric tons, up […]
Commercial Metals Company is enjoying the rewards of its purchase of four rebar mills and 33 fabrication facilities from Gerdau. The acquisition added 2.5 million tons of rolling capacity and increased fabrication capacity by almost 50 percent. “The systems integration was flawless and got completed in less than four months, well ahead of schedule,” said […]
Steel price volatility was persistent in 2019, said CRU Principal Analyst Josh Spoores at the FMA/ASD Executive Networking Series held in Pittsburgh last week. U.S. economic growth was below the historical trend throughout 2019, but has improved since April, according to the Chicago Fed National Activity Index. Activity in two key steel sectors, fabricated metal products and […]
Nucor reported a decline in financial results as expected for the third quarter of 2019. Net earnings were $275 million, down from $386.4 million in Q2 and $676.7 million in Q3 2018. Consolidated net sales fell 7 percent from the previous quarter to $5.46 billion. Steel shipments to outside customers declined 7 percent from last […]
Economic activity expanded at a slight to moderate pace across most of the U.S. in September and early October. Reports from the Federal Reserve Districts in the South and West were generally more upbeat than the Midwest and Great Plains, according to the Fed’s latest Beige Book. Manufacturing activity edged lower as firms cited persistent […]
By CRU Analyst Sam Grant Looking at our North American zinc market forecasts for 2020, there are clear arguments for either a rollover or slight decline in contract premia as we head into negotiations during the final quarter of this year. In this article, we present an overview of the North American refined market fundamentals […]
By CRU Analyst Jordan Permain It is imperative for carbon steel producers to have secure supply of metallurgical coke to ensure stable and efficient operation of their blast furnaces (BF). Steelmakers also benefit from using coke with consistent technical specifications, namely CSR and ash content in their BFs. For these reasons alone it is prudent […]