Housing starts dropped to a seasonally adjusted annual rate of 1,047,000 in September, according to the U.S. Department of Commerce. The decline was 9 percent below August’s revised estimate and 11.9 percent below the September 2015 rate. Single family housing starts increased from August by 8.1 percent to 783,000. Starts for apartment housing of five […]
September was another month in which shipments by service centers failed to live up to long term expectations. Carbon steel shipments decreased by 317,800 tons, mostly as a result of the number of shipping days declining from 23 in August to 21 in September. However tons per day shipments also declined being down from 139.7 […]
On Friday this week the Bureau of Labor Statistics (BLS) released its series of producer price indexes, for more than 10,000 goods and materials. For an explanation of this program see the end of this piece. The latest release this week reported results through September. We run this analysis every three or four months to […]
The conversation has begun regarding when flat rolled steel prices will end their slide and reverse course. Flat rolled steel prices have been in a steep decline since mid-June 2016 when benchmark hot rolled prices peaked at $635 per ton ($31.75/cwt, SMU index average) FOB domestic mill. Since then steel prices have retreated $145 per […]
The Vietnam steel industry is between the proverbial rock and hard place. U.S. steel manufacturers claim that Vietnamese exporters are party to China’s circumvention of antidumping and countervailing duties on cold rolled steel and are calling for AD duties to match those on China products. Vietnam’s influx of Chinese steel is also a concern for […]
In September net job creation was 156,000 July was revised down by 23,000 and August revised up by 16,000. Using a 3MMA, the result for September was 192,000 down from 230,000 in August. Figure 1 shows the 3MMA of the number of jobs created as the brown bars since 1990. These numbers are seasonally adjusted […]
The Dodge Momentum Index dropped 4.3 percent in September to a reading of 129.0 after making gains for five consecutive months. A reduction in institutional planning drove the decline, falling 5.3 percent last month. Planning for commercial construction projects declined 3.6 percent from August. Writes Dodge Analytics: “Even with the recent volatility on a month-to-month […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. August data for CPIP was released on Monday October 3rd. Overall this was a disappointing report with the growth of total construction having declined for five consecutive months and continuing to […]
Construction sector recovery may be at a plateau, says Stephen Sandherr , CEO of the Associated General Contractors of America. The press release from AGC for August construction spending follows: Construction spending held steady in August compared to July but is up nearly five percent for the first eight months of the year compared to […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. This will explain the difference between our view of the present situation which is subjective and our analysis of trends which is based on the latest facts available. At the end of […]
Ryerson Holding Corp., a leading distributor and processor of metals, provided guidance for its third quarter ending September 30, 2016. The Company expects third quarter 2016 net income in the range of $8 million to $12 million and adjusted EBITDA, excluding LIFO in the range of $46 million to $50 million. In Q3 2015, Ryerson […]
After running on provisional licenses for the past six years, Thyssenkrupp’s CSA steel mill in Brazil has finally been granted a definitive operating license by the state environment authority. Companhia Siderúrgica do Atlantico (CSA) has faced environmental problems ever since it began production. Numerous fines and shutdowns were ordered by the court in relation to […]
The annualized GDP growth rate in the third estimate of the second quarter of 2016 was 1.41 percent which was slightly above the consensus expectation of 1.3 percent and an improvement from the first estimate which was 1.2 percent. GDP is measured and reported in chained 2009 dollars and in the third estimate of Q2 […]
Worthington Industries delivered record earnings in the first quarter of FY 2017 (ending August 31, 2016). Net sales totaled $737.5 million for net earnings of $65.6 million. Gross margin increased $34.3 million year-over-year to $147.3 million primarily due to inventory holding gains of $17 million in Steel Processing which were partly offset by lower volume […]
On Thursday, September 22, 2016 four steel mills: ArcelorMittal USA, Nucor, AK Steel and US Steel submitted petitions asking the US Department of Commerce to review imports of cold rolled and corrosion resistant steels (galvanized and Galvalume) arriving in the United States from Vietnam as actually being a way for China to circumvent antidumping and […]
The Architecture Billings Index dipped to 49.7 in August from 51.5 in July. The Northeast average dropped to 44.9 which pulled the headline index down. “This is only the second month this year where demand for architectural services has declined and it is only by a fraction of a point,” said AIA Chief Economist, Kermit […]
Steel Dynamics expects stronger profits in third quarter due to meaningful metal spread expansion. In the company’s third quarter guidance, SDI said higher steel pricing in Q3 will more than offset higher scrap prices, however, improved margins will be impacted by lower steel shipments across the product platform. Higher earnings for third quarter are driven […]
Nucor Corporation announced today that it has agreed to acquire Independence Tube Corporation (ITC), a leading independent manufacturer of hollow structural section (HSS) steel tubing, for $435 million, or approximately 6x average EBITDA over the 2013-2015 period. “Independence Tube is a natural fit with Nucor. Their business model is similar to ours with extremely efficient […]
Housing starts were down 5.8 percent from July to August. The U.S. Census Bureau and the Department of Housing and Urban Development reported starts were at a seasonally adjusted annual rate of 1,142,000, 0.9 percent higher than year ago levels. Single family starts were down 6.0 percent and multi-family down 6.9 percent. The housing starts […]
The following analysis of the Metal Service Center Institute (MSCI) shipping and inventories data is what is normally shared with our Premium level members. Carbon steel shipments increased by 436,300 tons in August and almost reversed the decline of 443,300 in July. These gyrations are mostly driven by the number of shipping days in the […]
Nucor Steel Arkansas is planning a $230 million expansion at its Blytheville steel plant according to the Blytheville Courier News. Nucor Controller Mark DiGirolamo addressed the Blytheville City Council’s Finance and Purchasing Committee on Wednesday to seek a bond from the city to finance construction of a cold mill at the plant. According to the […]
Friday, the Department of Commerce announced its affirmative preliminary determinations in the antidumping investigations of imports of certain carbon and alloy steel cut-to-length plate (CTL plate) from Brazil, South Africa, and Turkey. CTL plate is a flat-rolled carbon and alloy steel product that is 4.75 mm or more in thickness and that has a defined […]
The uncertainty in the market (called the “blahs” by a number of our steel sources) is affecting both buyers and sellers of steel. Steel mills have been doing all that they can in an attempt to keep flat rolled steel prices from slipping too far. One of our mill sources had a sense of humor […]
The Dodge Momentum Index rose 1.3 percent in August to 134.9. Institutional construction planning gained 1.7 percent last month and commercial planning 1.0 percent. The index has made gains for five consecutive months. The Momentum Index is up 16 percent from August 2015 due to a 22 percent growth in institutional planning and 22 percent […]
This month as we contemplate the August job creation performance we will lead off with the thoughts of J.G. Collins managing director of the Stuyvesant Square Consultancy. On September 2nd he wrote: The August jobs report released this morning was full of disappointment, with just 151,000 jobs created. Higher wage occupations continued to shed jobs […]
Manufacturing contracted in August after five consecutive months of growth, according to the latest Manufacturing Report on Business from the Institute of Supply Management. ISM reported the August PMI at 49.4, down 3.2 points from July at 52.6 percent. It was the first time the index has slipped since February of this year. New orders […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. This will explain the difference between our view of the present situation which is subjective and our analysis of trends which is based on the latest facts available. At the end of […]
Existing home sales lost momentum in July, falling for the first time since November 2015. The National Association of Realtors reports that sales were down 3.2 percent from June to a seasonally adjusted annual rate of 5.39 million. On a year over year basis sales fell 1.6 percent marking only the second time in the […]
New home sales rose 12.4 percent from June to July according to estimates released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales in July were at a seasonally adjusted annual rate of 654,000, 31.3 percent above the year ago level and at their highest level in almost nine […]
As I wander around the industry talking to buyers and sellers of steel I am always asking and listening for the signs of change. These are “warnings” to my ears and I heard one earlier today that needs to be pursued further and I think we will have the opportunity to do so at our […]