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 […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by David Feldstein. As Flack Steel’s director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. […]
The July Architecture Billings Index indicated that design activity for construction projects remains healthy although growing at a slower pace than the past two months. The ABI was at 51.5 in July, just above the average score for the first half of 2016 and down slightly from June’s score of 52.6. New design contracts rebounded […]
We normally reserve our expanded service center data analysis for our Premium members but felt this would be a good piece to share with all of our members. Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments declined by 443,300 […]
Housing starts increased 2.1 percent in July to a seasonally adjusted annual rate of 1,211,000 from a revised June estimate of 1,186,000, according to data from the U.S. Census Bureau and Department of Housing and Urban Development. The increase was the highest level since February. Starts were 5.6 percent above the July 2015 rate. Multi-family […]
At SMU we almost always use three month moving averages to mitigate situations like the dismal and not credible May job creation statistics. In the July report May was revised up slightly from 11,000 to 24,000 and June was revised up from 287,000 to 292,000. This week’s report from the Bureau of Labor Statistics reported […]
Ryerson Holding Corp, a leading metals distributor and processor, reported net income of $5.6 million for second quarter 2016. Sales of $739.8 million declined 12 percent year over year due to lower average selling price, but increased 5.3 percent from Q1. Tons shipped increased 3.5 percent. Ryerson expects manufacturing growth to remain slow in the […]
PITTSBURGH, AUGUST 10, 2016 – Esmark Steel Group, one of the nation’s largest processors and distributors of flat-rolled steel, steel fabrication manufacturing and tinplate production, today announced that Michael Ogrizovich, currently President of Esmark Steel Group, has been named a Director to the company’s Board of Directors and been promoted to Vice Chairman of Mill […]
The Dodge Momentum Index, an indicator of nonresidential construction planning, edged ahead 0.5 percent in July to 134.7 after a revision in June to 134.1. The modest increase follows a surge of 10.9 percent the previous month and continues a fourth consecutive month of increases. Planning for institutional construction increased 0.7 percent in July and […]
June data for Construction Put in Place (CPIP) was released by the Department of Commerce on Monday August 1st. In June total construction slowed for the third consecutive month on a 3MMA (three month moving average) basis. All four sectors had negative momentum. These are non-residential buildings, residential buildings, infra-structure and other, which is a […]
Olympic Steel announced net income of $3.6 million in the second quarter 2016, up substantially from the $22.3 million loss in Q2 2015. Consolidated net sales for the quarter were $273.6 million. Second quarter shipments of carbon flat products totaled 272,000 tons, up 2 percent from first quarter, and 2 percent below Q2 2015. Net […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. It is important to understand 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. The total […]
In the Bureau of Economic Analysis report of GDP released on Friday, economic statistics were revised back to Q1 2013. In these revisions, Q2 and Q4 of 2015 were revised down as was Q1 of 2016. Q1 of 2015 was revised up substantially and Q3 of 2015 was unchanged. The annualized GDP growth rate in […]
US Steel narrowed its losses in second quarter, reporting a net loss of $46 million compared to a loss of $340 million in first quarter, and $261 million in Q2 2016. Net sales for the company totaled $2.58 billion. Earnings for the flat rolled and US Steel Europe segments returned to positive numbers at $6 […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
Home prices continued to rise in May but at a slower pace. The S&P CoreLogic Case-Shiller Home Price Indices for May shows the 20-city Composite posted a year-over-year gain of 5.2 percent in April, down from 5.4 percent in April. “Home prices continue to appreciate across the country,” says David M. Blitzer, Managing Director and […]
SSAB Americas results in improve in second quarter due to higher volumes and prices. Sales were SEK 2.8 billion ($323 million) compared to SEK 2.4 billion ($277 million) in first quarter. Shipments improved 11 percent to 526,000 tonnes from 475,000 tonnes in Q1. The company reports good demand from steel service centers and the wind […]
Reliance Steel & Aluminum Co. reported net income rose 11.9 percent to $100.9 million in second quarter 2016. Sales of $2.20 billion were down 9.1 percent from a year ago but up from first quarter by 1.9 percent. Gregg Mollins, President and CEO of Reliance, said, “The metals pricing environment for carbon steel products was […]