U.S. Steel has formally announced it will restart construction immediately on its Fairfield electric arc furnace facility. Construction on the EAF began at U.S. Steel’s Tubular operations in Fairfield, Ala., in March 2015 and was suspended in December 2015 due to unfavorable market conditions. “We are pleased to announce the achievement of the market and […]
The recent mining disaster in Vale prompted a flurry of concern from analysts on the Cleveland Cliffs earnings call. Cleveland Cliff’s CEO Lourenco Goncalves said on Friday that the impact from the Vale mining disaster has yet to be properly quantified. Estimates of 11 million tons of capacity loss are likely to be double that, […]
Employment gains were unexpectedly strong in January. The January employment release from the Bureau of Labor Statistics (BLS) included huge historical revisions. We re-entered our data back to January 2010, but found that revisions extended even further back in time. Net job creation in January as reported by the BLS on Friday was 303,000, […]
Construction is pulling ahead of manufacturing as a job creator, according to Bureau of Labor Statistics data. In January, 296,000 jobs were created in the private sector and 8,000 in government. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. Most of the goods-producing employees work […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Section 232 tariffs propelled ArcelorMittal to its best results in nearly 10 years, the company reported to analysts and investors today. The 25 percent tariffs on steel imports helped drive up steel prices, adding to company revenue from its U.S. assets. Average steel selling price in North America rose 15 percent year-over-year. Net income for […]
The State of the Union speech on Tuesday brought renewed calls from industry associations for increases in federal infrastructure spending. President Trump’s reference to the subject was cursory at best, but provided hope that Congress can agree on a bipartisan bill in 2019. “Both parties should be able to unite for a great rebuilding of […]
The Dodge Momentum Index rose 4.7 percent in January to 157.7 from a revised reading of 150.6 in December. The bounce back reversed December’s decline and put it in line with the average index reading for the second half of 2018. Institutional projects gained traction in January driven by public funding for schools and transportation […]
A petition filed with the U.S. Commerce Department on Feb. 4 alleges that fabricated structural steel from Canada, China and Mexico is being dumped on the U.S. market and is benefitting from countervailing subsidies. Products covered by the petition include carbon and alloy (including stainless) steel products such as angles, columns, beams, girders, plates, flange […]
One constant I am hearing during my phone and email conversations is that January was a good month for shipments and February has started out strong. The construction community is pleasantly surprised, and I really have not heard anyone say business is bad in any market segment. One of the mills pointed out that much […]
By CRU Principal Economist Lisa Morrison The partial U.S. government shutdown, which began on Dec. 22, 2018, lasted 35 days and is the longest shutdown in U.S. history. President Trump decided to re-open the government until Feb. 15 to allow time for additional negotiations regarding the border security issues. The Congressional Budget Office estimates that […]
January got off to a tentative start as steel prices continued to decline, leaving buyers with a cautious perspective on the months ahead. Steel Market Update’s Buyers Sentiment Index shows buyers slightly less optimistic than they were in November. Sentiment factors into buyers’ decision-making about such factors as purchasing, inventory levels, capital investment and hiring. […]
Key Market Indicators in January, indicators of the present situation, remained strong, but trends deteriorated to the weakest level in two years. This report summarizes 36 data streams that we believe critically describe the state of and provide forward guidance for the steel market. Due to the government shutdown, 13 of the 36 indicators were […]
By CRU Senior Analysts Erik Hedborg and Andrew Gadd The death toll after the tailings dam accident at Vale’s Córrego do Feijão mine continues to climb, as 84 people are now confirmed dead and close to 300 are still missing. Five people have been arrested; three managers at the Córrego do Feijão mine site and […]
Home prices are continuing to rise but at a slower rate, reports S&P Dow Jones Indices. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index was nearly flat in November, slipping 0.1 percent to a 5.2 percent annual gain for the month. Indices showed a steady drop in price gains throughout 2018. The 10-City […]
The Architecture Billings Index dipped in December, falling to 50.4 from 54.7 in November, according to the latest report by the American Institute of Architects. Billings continued to be positive for the 15th consecutive month, scoring above the neutral reading of 50. Backlogs lengthened to an average of 6.4 months in December, a historical record […]
Steel Dynamics is excited about its recently announced plans for a new steel mill in the Southwest. After an outstanding year, breaking records for shipments, sales, net income and cash flow, CEO Mark Millett is looking forward to filling a steel void in the southwestern U.S. and Mexico. Steel Dynamics hopes to announce a site […]
Economist Alan Beaulieu, president of ITR Economics, will make another appearance as a keynote presenter for Steel Market Update’s premier event, the 2019 Steel Summit Conference, set for Aug. 26-28 at the Georgia International Convention Center in Atlanta. He will offer an insightful overview of U.S. economic trends and their implications for the steel industry. […]
This article on the competitiveness of steel against other products was originally produced last week for Steel Market Update Premium members. We want our entire readership to review the analysis done by the Bureau of Labor Statistics and then analyzed by Peter Wright on our staff. If you would like information about upgrading to Premium […]
More than 800,000 car enthusiasts turned out for the North American International Auto Show this week in Detroit to admire the shiny new offerings for the 2019 model year. The steel industry is even more interested in what’s beneath those shiny exteriors. The Steel Market Development Institute displayed a degree of pride in congratulating the […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Steel became less competitive in 2018 against aluminum, plastic and wood, according to Steel Market Update’s analysis of Bureau of Labor Statistics Producer Price Index data. The cost of carbon cold rolled sheet was up more than twice as much as aluminum sheet, and steel pipe was up by nine times as much as plastic […]
Housing start data is on hiatus as the partial government shutdown continues. The National Association of Home Builders, however, estimates that single-family starts ended 2018 at 876,000 units, a 3 percent gain from the 2017 total of 848,900 in 2017. Builder confidence increased in January, rising two points to 58 on the NAHB/Wells Fargo Housing […]
Sherwin-Williams has announced a 6 percent hike in the cost of paint effective in March, upsetting customers in the prepainted steel and aluminum market. “There is no justification for this paint increase,” said one coil coater. “Oil prices are at their lowest level in years.” Sherwin-Williams raised prices twice last year when oil prices were […]
Steel Dynamics has announced additions and changes to its senior leadership team. Two new positions have been created to support SDI’s presence in the Southwest and Mexico. Miquel Alvarez will join Steel Dynamics in the new position of Senior Vice President, Southwest and Mexico. He will be responsible for the comprehensive business development and partnerships […]
Construction costs declined in December after a year of price spikes, but remained higher than a year ago, said the chief economist for the Associated General Contractors of America. “Steep declines in fuel prices in December offset mixed costs for other construction inputs, but most materials and services posted higher year-over-year increases than in 2017,” […]
If the prevailing view in the market proves correct, steel mills will announce a price increase soon—but it won’t stick. Two out of three steel executives responding to Steel Market Update’s market trends questionnaire this past week believe the mills will announce an increase in flat rolled prices by the end of January. But given […]
By CRU North America Analyst Ryan McKinley Long product prices in the U.S. are coming under downward pressure after a build-up in late-2018 inventory levels lingered into the new year and import prices became more attractive for domestic buyers. Price drops so far—where they have occurred—have been minimal but import deals with arrival dates 60-90 […]
With the partial government shutdown in its 20th day, the political standoff in Washington over President Trump’s border wall remains focused on his $5.7 billion budget request. The larger question is whether a construction project of the scale the president has proposed is even feasible, at any cost. From a steel industry standpoint, the project […]
Nucor Corp. announced on Monday that it is scouting the Midwest for a suitable location to build a $1.35 billion EAF mill that is capable of producing 1.2 million tons of steel plate products annually. Nucor expects site selection to be completed in 2019 and construction to begin as soon as permits are secured. The […]