While the December jobs report was a bit disappointing, it still represents the 85th consecutive month of job growth and left the unemployment rate unchanged. The Bureau of Labor Statistics (BLS) employment report for December was released on Friday. The total number of nonfarm jobs created was 148,000. October was revised down by 33,000 and […]
Total construction spending in the United States expanded by 1.3 percent in November, versus November 2016, but in the longer term the growth rate is slowing. On a rolling 12-month basis year over year, construction spending slowed every month in 2017. On a rolling three-months basis year over year, growth improved in October and November, […]
Total construction expenditures have turned around and grew by 3.9 percent in three months through February year over year. The growth of total construction on a rolling 12-month basis year over year has been constant at 2.1 percent for each month December through February. On a rolling three-month year-over-year basis, the situation is much better […]
A favorable indicator of construction activity, the Dodge Momentum Index gained 3.6 percent in December for a reading of 153.9. The November index was revised downward to 148.6 from 149.5. The gain last month was due to an 8.5 percent jump in planning for institutional building projects. The commercial building index gained just 0.7 percent […]
The construction industry gained 30,000 jobs in December for its highest employment level since September 2008. Construction employment totaled 6,993,000 in December, according to government data analyzed by the Associated General Contractors of America. During 2017, 210,000 jobs were added for a 3.1 percent annual increase. “Employment and pay in construction have risen more rapidly […]
Current and future sentiment among flat rolled steel buyers remains high as the New Year begins, much the same as at this time last year, according to the Steel Market Update Steel Buyers Sentiment Index. The SMU Steel Buyers Sentiment Index measures changes in buyers’ optimism levels, which offers insight into their likely decision-making. Three […]
Key market indicators bode well for business conditions in the first quarter of 2018. Steel Market Update’s view of the present situation based on our examination of data released in December shows that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance is within the historically normal band. […]
Global steel production grew by 4.6 percent in the three months through November year over year with negative momentum, according to Steel Market Update’s analysis of World Steel Association data. The reduced growth rate was driven by pollution control cutbacks in China. Production in the month of November totaled 136,280,000 metric tons, down from 144,972,000 […]
The American Iron and Steel Institute welcomed Canada’s integrated steel company Stelco to its membership at AISI’s recent board meeting in Washington, D.C. “With its significant presence in North America, Stelco will be a great partner in our continued advocacy to fight unfairly traded foreign imports and level the playing field for the North American […]
Commercial Metals Company (CMC) has agreed to buy Gerdau’s rebar operations in the United States for $600 million. The acquisition includes 33 rebar fabrication facilities, as well as steel mills in Knoxville, Tenn.; Jacksonville, Fla.; Sayreville, N.J.; and Rancho Cucamonga, Calif., with annual mill rolling capacity of 2.5 million tons. The addition of the Gerdau facilities will bring CMC’s global […]
The year 2017 proved a bit “odd” as the threat of political action against foreign steel worked against the domestic steel mills. Early in the year, newly crowned President Trump authorized the U.S. Department of Commerce, led by former steel magnate Wilbur Ross, to investigate if the steel industry is essential to the U.S. for […]
Construction firms are encouraged by recent regulation cuts and passage of the tax reform bill. The Associated General Contractors of America notes that firms are adding jobs in anticipation of stronger market conditions in 2018. Between October and November, 39 states added construction jobs. Forty states added construction jobs between November 2016 and November 2017. […]
Since the Chinese government put a stop to all exports of steel scrap, analyzing the global scrap trade has become a bit more complicated. Steel Market Update performs this analysis of the world scrap market each quarter to help readers understand the gyrations of the domestic scrap market and where the U.S. stands as a […]
The American Institute of Architects’ Architecture Billings Index (ABI) rose to 55.0 in December from a reading of 51.7 in November, reflecting an increase in design services provided by U.S. architecture firms. The new projects inquiry index was 61.1, up from a reading of 60.2 the previous month, while the new design contracts index rose […]
Sectors closely associated with the steel industry have generally reacted favorably to the tax reform legislation passed on Wednesday. The Steel Manufacturers Association hopes the bill will “result in significant economic growth that improves the fiscal situation for individuals, small business and corporations.” SMA President Philip Bell said it is now time to turn to […]
Housing starts surprised economists by jumping 3.3 percent last month to a seasonally adjusted annual rate of 1,297,000. Compared to November 2016, starts were up 12.9 percent. Starts of single-family homes jumped 5.3 percent to 930,000 units, the highest level since September 2007. Construction starts on buildings with five units or more in November inched […]
Steel Dynamics Inc. provided guidance on fourth-quarter earnings, predicting a lower sequential quarter. Planned outages at the company’s flat rolled divisions resulted in higher costs and lower value-added shipments, reducing pretax earnings by approximately $27 million. Flat rolled steel pricing declined at a steeper rate than prices for scrap raw material. The long products division […]
The Georgia Port Authority is expanding the Port of Savannah to handle increased cargo demand. “A strong Southeast U.S. economy, on-terminal expansion, and investment by private logistics firms throughout the region have resulted in phenomenal growth for Georgia,” said Executive Director Griff Lynch. Total tonnage for fiscal year 2017 grew 23 percent to 33,397,357 tons […]
For better or worse, depending on your income and situation, it looks like President Trump and the Republicans will win a big political victory with passage of their historic tax overhaul this week. No doubt, there will be a shakeout period during which the many complicated details of the measure will be scrutinized, and their […]
ArcelorMittal’s new headquarters in Luxembourg will be a testament to the strength and beauty of steel. The primarily steel and glass structure designed by Wilmotte & Associés will “showcase the diverse benefits of steel over other building materials,” said ArcelorMittal in a press release. Approximately 5,000 to 7,000 metric tons of steel produced in Luxembourg […]
Nucor offered fourth-quarter guidance on Wednesday, forecasting a decrease in earnings compared to the third quarter. Fourth-quarter results are expected to be in the range of $0.50 to $0.55 per diluted share compared to third-quarter consolidated net earnings of $0.79 per diluted share and comparable to year-ago earnings. Imports continue to negatively impact the U.S. […]
The Italian-Argentine industrial consortium Techint Group and its Ternium subsidiary are planning to construct a $1 billion hot rolled steel mill in Monterrey, Mexico. The mill will be part of an expansion of Techint’s industrial center in Nuevo León, where the consortium first started operations in 2013. The rolling mill will have an annual capacity […]
The Dodge Momentum Index climbed 13.9 percent to 149.5 in November. The Dodge Momentum Index, published by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. Construction planning was […]
Construction employment increased to its highest level in November since 2008, said the Associated General Contractors after analyzing new government data. Construction employment totaled 6,955,000 in November, a gain of 24,000 for the month and 184,000 over 12 months. The year-over-year growth rate in industry jobs was nearly twice the 1.4 percent rise in total […]
Construction improved in October, but the longer-term trend is for a slowdown in construction spending. Construction slowed every month this year through August on a rolling three-months year-over-year basis. The slowdown in the growth rate stabilized in September and October, improving from 0.5 percent to 1.5 percent. Construction expenditures data is developed by the Department […]
It is a busy time for the shipping industries that move the nation’s goods. Shipping sectors are busy lobbying for infrastructure funds to repair aging waterways, ports and rail lines. The U.S. rail system would like relief from regulatory burdens while independent truck drivers are asking for exemption from a new regulation that requires the […]
Steel Market Update’s steel market indicators show improved trends in the November data. In our examination of data released in November, our view of the present situation is that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance is within the band of historically normal. The total of […]
Overall construction spending reached a record high in October, totaling a seasonally adjusted annual rate of $1.241 trillion, an increase of 1.4 percent from September. However, government data analyzed by the Associated General Contractors of America shows public-sector infrastructure investments lagging behind other public and private spending. “There was healthy growth this October in both […]
The U.S. employment situation in November was excellent, according to the Bureau of Labor Statistics’ (BLS) net job creation report released on Friday. While employment was down by 14,000 jobs from October, it was still the third best month of the year and in agreement with the other data streams tracked by Steel Market Update. […]
Construction employment increased in 243 out of 358 metro areas between October 2016 and October 2017, declined in 59 and stagnated in 56, according to a new analysis of federal employment data released by the Associated General Contractors of America. “Growing demand, especially from the private sector, is continuing to drive construction employment gains in […]