Few of the steel buyers canvassed by Steel Market Update this week expect flat roll prices to rise significantly in the first quarter. Most anticipate prices stabilizing or continuing to trend downward, especially if the Trump administration lifts the Section 232 tariffs on imports from Canada and Mexico. The promise of increased supplies from the […]
Home price increases are slowing, according to the latest S&P CoreLogic Case-Shiller Index. The National Home Price NSA Index reported a 5.5 percent annual gain in September, down from 5.7 percent in August and the second consecutive decline. Sixteen of the 20 cities reported smaller annual price gains. Gains are now at the lowest level […]
Builder confidence, as measured by the NAHB/Wells Fargo Housing Market Index, fell eight points in November to its lowest reading since mid-2016. The index posting of 60 was still in positive territory, but indicated caution among builders. “Builders report that they continue to see signs of consumer demand for new homes but that customers are […]
Housing starts rebounded in October due to multi-family construction, while single-family starts continued to decline. Overall housing starts were 1.5 percent higher from September to October for a seasonally adjusted annual rate of 1,228,000, according to Commerce data. Multi-family starts were up 6.2 percent, but single-family starts declined 1.8 percent. Starts climbed 32.9 percent in […]
Labor costs and a shortage of skilled workers may result in fewer construction jobs next year, according to the Associated General Contractors of America. Forty-four states and the District of Columbia added construction jobs between October 2017 and October 2018, while 36 states and D.C. added construction jobs between September and October, according to an […]
The North American Steel Alliance, the service center industry’s top buying co-op, has recruited two new members: Texas Iron & Metal and Beaver Steel Services, bringing NASA’s total membership to 124 companies. Texas Iron & Metal in Houston is a family owned company that offers a selection of steel and pipe products to the agriculture, […]
The first major winter storm of the 2018-2019 season is currently making its way up the East Coast, which means it is time to start thinking about the navigation on the Great Lakes. Right now, iron ore and coal ships are busy supplying steel mills in the Great Lakes region with enough inventory for the […]
Steel Facing Stiff Competition from Other Products This article is regularly published for our Premium users, but we decided to share it with our entire readership this month. If you are interested in upgrading to a Premium subscription, contact us at info@SteelMarketUpdate.com or 800-432-3475. Steel is becoming less competitive compared to aluminum, plastic and wood. […]
Steady demand in the HVAC sector is offsetting concerns about declining steel prices, leaving members of the Heating, Air-conditioning and Refrigeration Distributors International hopeful about their prospects in 2019, reported HARDI members during the trade group’s monthly conference call on Tuesday. The distributors of galvanized steel products have seen prices slide by about $5/cwt since […]
Imagine being told to create a steel mill out of an empty field in Arkansas. How would you even begin? That was the challenge presented to Lenore Trammell, Chief Compliance Officer at Big River Steel. Moving from Detroit to the rural South, Trammell plunged herself into securing construction contracts and building a team that could […]
Economic activity expanded across the United States with the majority of the 12 Federal Reserve Districts reporting modest to moderate growth in the September-October period, according to the Fed’s Beige Book released late last month. However, several Districts indicated that firms faced rising materials and shipping costs, uncertainties over the trade environment and difficulties finding […]
By CRU Chief Economist Jumana Saleheen The U.S. midterm elections brought few surprises; voter turnout was exceptional, the Republicans gained a majority in the Senate, and the Democrats in the House. What does this mean for U.S. policy and growth? Our view is that there is some scope for additional fiscal policy easing, which would […]
The price of new nonresidential buildings accelerated in October as contractors attempted to recoup fast-rising costs for materials and labor, according to an analysis by the Associated General Contractors of America of new Labor Department data. Association officials said that trade tensions and labor shortages are contributing to higher construction prices, making it harder for […]
The laws of unintended consequences concern me. President Trump’s Section 232 steel and aluminum tariffs, as well as Section 301 tariffs, are only beginning to have an impact on the consumer. It is only a matter of time before consumers have to react as they do not have unlimited cash flow to pay higher prices […]
By CRU Steel Analyst Ryan McKinley CMC’s expanded footprint across the United States, following its acquisition of Gerdau’s assets, raises the probability that a rebar price increase is on the horizon. That said, price increases may be short-lived as Nucor works to bring two of its newest micro mill projects online in 2019. Rebar prices […]
The Associated General Contractors of America urged the newly elected Congress to work together to make infrastructure funding a top priority in 2019. A statement from the chief executive officer of AGC, Stephen E. Sandherr, follows: “We congratulate all the winners from tonight’s election and look forward to having the opportunity to educate newly elected […]
The Dodge Momentum Index moved lower in October, dropping 4.2 percent from September to a reading of 150.5. The index, published by Dodge Data & Analytics, is a monthly measure of the first report for nonresidential projects in planning, which have been shown to lead construction spending by a full year. Commercial and institutional planning both […]
Construction is experiencing strong growth led by nonresidential building and infrastructure expenditures. On Nov. 1, the Commerce Department released the Construction Put in Place (CPIP) expenditures data for September. The growth of total construction on a rolling 12-month basis year over year increased from 2.1 percent in January to 4.2 percent in September. On a […]
Net job creation in October totaled 250,000 positions. Construction and manufacturing gains were both strong, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics data. 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 in manufacturing and […]
The employment situation in the United States is excellent and continues to improve, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics (BLS) data. Rising employment and wages are the main contributor to GDP growth because personal consumption accounts for almost 70 percent of GDP. Steel consumption is related to GDP; therefore, […]
Reliance Steel & Aluminum Co. announced the completed acquisition of toll processor and transportation/logistics company All Metals Holdings, LLC. It is the third acquisition for Reliance in 2018. All Metals includes operating subsidiaries All Metals Processing & Logistics, Inc., and All Metals Transportation and Logistics, Inc. AMPL, headquartered in Spartanburg, S.C., with an additional facility […]
U.S. Steel earnings were in line with expectations for the third quarter. U.S. Steel reported net earnings of $291 million compared to $214 million in the second quarter and earnings of $147 million in Q3 2017. Net sales rose 14.8 percent year-over-year to $3.7 billion. Adjusted EBITDA of $526 million improved by $169 million compared […]
Construction employment increased by 30,000 jobs in October and by 330,000 jobs over the past year, topping 7.3 million for the first time since April 2008, while the industry’s average pay jumped and unemployment decreased to a historic low, according to an analysis of new government data by the Associated General Contractors of America. Despite […]
Construction spending hit a seasonally adjusted annual rate of $1.329 trillion and grew 5.5 percent for nine months of 2018, with continued year-to-date gains for major public and private categories, according to an analysis of new government data by the Associated General Contractors of America. Association officials said that while demand for construction should remain […]
Construction spending hit a seasonally adjusted annual rate of $1.329 trillion and grew 5.5 percent for nine months of 2018, with continued year-to-date gains for major public and private categories, according to an analysis of new government data by the Associated General Contractors of America. Association officials said that while demand for construction should remain […]
Robust demand in the construction industry is helping to elevate employment levels in the sector. Construction employment increased in 278 out of 358 metro areas between September 2017 and September 2018, declined in 42 and was unchanged in 38, according to a new analysis of federal employment data by the Associated General Contractors of America. […]
Reliance Steel & Aluminum reported its second highest quarterly net sales in the company’s history. Third-quarter net sales jumped 21.4 percent year-over-year to $2.97 billion, down just 0.5 percent from the record set in the second quarter at $2.99 billion. Reliance net income for the quarter of $148.2 million was impacted by a $36.8 million […]
Architecture firms report that billings slowed in September, but new projects are expected in the coming months. The AIA Architecture Billings Index score was 51.1 last month, down from 54.2 in August. “Similar to the strong conditions we’ve seen nationally, architecture firms located in the Midwest and Southern regions of the country continued to report […]
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 […]
Voters who go to the polls in Colorado next month will consider Proposition 112, a measure with serious implications for the energy industry in their state, and beyond. “If this passes, not only will it devastate our economy, but also the economies of surrounding states,” an executive from a steel fabricator in Denver told Steel […]