The employment situation continues to be excellent with job opportunities higher than the total number of unemployed. 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, this is one of the indicators that helps us understand […]
Over this weekend, Steel Market Update had two conversations with JSW USA President & CEO John Hritz. On Saturday, we spoke about the successful start-up of the electric arc furnace at their JSW Ohio steel mill in Mingo Junction. On Sunday, we spoke in more detail about JSW USA and the company goal of being […]
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 […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor The steel sheet market in North America is starting the second half of the year off with the same primary trends seen in the past few quarters: rising prices due to strong demand and supply that continues to be affected by unplanned disruptions. […]
Tenaris, a global manufacturer and distributor of energy tubular products, has begun the second phase of its service center expansion in Midland, Texas. The project will add pipe and tube storage and service capabilities for customers in the Permian basin and other key shale plays across the U.S. Phase 2 consists of several stages of […]
In a deal in the construction materials market, Carlisle Companies, Inc., has agreed to acquire Petersen Aluminum Corp. for approximately $197 million. Headquartered in Elk Grove Village, Ill., Petersen’s primary business is the manufacture and distribution of architectural metal roof panels, steel and aluminum flat sheets and coils, wall panels, perimeter roof edge systems and […]
Most Federal Reserve districts saw their economies expand at a modest to moderate pace in October and November, but tariffs remain a common concern among manufacturers, who report widespread escalation in the cost of inputs, such as steel. So far, selling prices have risen with less intensity than input costs, they say, suggesting that price […]
Editor’s note: The following analysis of the U.S. rod and bar market was contributed by CRU Steel Analyst Ryan McKinley. Steel Market Update will periodically expand its coverage of the steel market with long products content from CRU as an added benefit to our members. U.S. mills announced wire rod price increases of $1.50/cwt across […]
The latest jobs report from the Department of Labor showed fewer jobs were added in November than expected. The U.S. economy added 155,000 jobs and the unemployment rate remained steady at 3.7 percent. Economists expected the report to come in at about 190,000 jobs for the month. The three-month average was 170,000. Construction employment increased […]
Planning for new commercial building projects drove a 5.3 percent increase for the Dodge Momentum Index, resulting in a reading of 159.7 in November. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by […]
The year 2019 is shaping up to be a special year for Steel Market Update and our customers. Steel Market Update is much more than a source of market intelligence and a supplier of spot pricing for the flat rolled and plate steel markets. Over the years, SMU has developed a number of highly successful […]
The year 2019 is shaping up to be a special year for Steel Market Update and our customers. Steel Market Update is much more than a source of market intelligence and a supplier of spot pricing for the flat rolled and plate steel markets. Over the years, SMU has developed a number of highly successful […]
How long will this economic cycle last? That is the difficult question HARDInomics posed to Anirban Basu, Chairman and CEO of Sage Policy Group. Currently, the economy is at the peak of an economic cycle, said Basu, and is experiencing a “49-year low in unemployment, a monthly job creation winning streak that is unprecedented, surging […]
Construction in the United States is experiencing strong growth led by nonresidential building and infrastructure expenditures, according to Steel Market Update’s analysis of the latest Commerce Department Construction Put in Place data. On Dec. 3, Commerce released CPIP expenditures data for October. The growth of total construction on a rolling 12-month basis year over year […]
Construction spending inched lower in October from September levels, but increased from the October 2017 total, according to an analysis of new Census data by the Associated General Contractors of America. However, investment in public infrastructure posted declines from recent peaks, and association officials urged the White House and Congress to act promptly on comprehensive […]
Steel Dynamics made big news on Monday, announcing it will construct a new $1.8 billion electric arc furnace flat roll steel mill in the United States. The mill will have an annual production capacity of approximately 3 million tons and the capability to produce the latest in advanced high-strength steels. The facility will include value-added […]
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 […]