The U.S. Court of Appeals has upheld a lower court’s dismissal of a lawsuit brought by Nucor Corp against Big River Steel. The suit charged that the Big River Steel permit air permit was invalid and the continued construction of the mill violated the Clean Air Act. The district court dismissed the lawsuit for “lack […]
The Dodge Momentum Index, a monthly measure of the initial report for nonresidential building projects in planning, rose 2.4 percent to 119.4 in May. The commercial sector led the increase with a 6.4 percent gain, offsetting the 3.4 percent decline in institutional construction planning. “May’s increase places the overall Index 3.6% higher than its year-ago […]
Steel Technologies LLC plans to invest $18 million in a new processing facility in Smyrna, Tennessee. The 83,000 square foot facility will create 50 new jobs and handle both steel and aluminum sheet. “This new greenfield operation expands our exposed and unexposed automotive slitting and blanking capabilities,” Steel Technologies Vice President of Operations Randall Patterson […]
Recent reports on India’s steel sector are providing mixed signals on the industry’s health. The nation’s steel industry has suffered two years of low prices and subdued demand but rising GDP and the onset of monsoons after a severe drought may stimulate new orders. “Indian steel demand rose 4.5 per cent in the financial year […]
We normally reserve Employment articles for our Premium members but felt this would be a good piece to share with our Executive members as well. The Bureau of Labor Statistics (BLS) reported on Friday in their analysis of non-farm employment that 38,000 jobs were added in May, a result so poor and unexpected as to […]
This Key Markets Indicator report is something we produce for our Premium level clients. However, we thought that our Executive level readers would appreciate knowing why we continue to be bullish on the direction of the market based on our analysis of the Key Market Indicators. An explanation of the Key Indicators concept is given […]
I received a couple of notes from trading companies thanking me for my article on Thursday evening (The Sky is NOT Falling… at least not yet) as I tried to put into context some of the pricing available for foreign steel, correct some misinformation and look at the bigger picture. Even as questions arise about […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 34. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. April data was released on Wednesday June 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
Earlier today the HARDI wholesalers conducted their May galvanized steel conference call. The wholesalers on the call service the mechanical contractors involved in the residential and commercial construction markets supplying galvanized sheet and coil and other products used in the heating and air-conditioning markets. Needless to say, the call was well attended in response to […]
Last week the Department Commerce slapped AD/CVD duties totaling over 500 percent on China cold rolled steel flat products. China immediately challenged the determination, calling for removal of the penalties and reaffirming the rebates awarded to its industry to help with solving the steel and coal overcapacity. The Chinese Ministry of Commerce confirmed that it […]
The Architecture Billings Index score was 50.6 in April, down from 51.9 in March. It is the third consecutive month the Index has been above 50 indicating increasing demand for design activity at architectural firms. The new projects inquiry index was 56.9 compared 58.1 last month. “Architects continue to report a wide range of business […]
Today, the Department of Commerce announced its affirmative final determinations in the AD investigations of imports of certain cold-rolled steel flat products (cold-rolled steel) from China and Japan, and CVD investigation of imports of cold-rolled steel from China. Commerce determined imports of cold-rolled steel from China and Japan have been sold in the U.S. at […]
The article below was published to our Premium members yesterday afternoon, but we felt it would be nice to share with our Executive members too. If you would like more information about a Premium membership or would like to upgrade, contact us at info@SteelMarketUpdate.com. Based on Steel Market Update (SMU) analysis of the recently released […]
Housing starts in April increased 6.6 percent from the previous month to a seasonally adjusted annual rate of 1,172,000, according to data from the U.S. Department of Housing and Urban Development and the Commerce Department. On a year over year basis housing start were down 1.7 percent. Single-family housing starts in April were at a […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments decreased by 84,700 tons in April to 3.091 million tons. This decrease was driven by the number of shipping days, down by 2 to 21. On a t/d basis shipments increased […]
“U.S. Steel Sinks as Another Wave of Cheap Imports Predicted” was the headline in Bloomberg on Friday morning. The article cites Axiom Capital Research analyst Gordon Johnson who wrote to his clients, “A boat load of imports are likely on the way.” This opinion permeates the financial community and the pessimism is, in our opinion, […]
On May 17, 2016, the Department of Commerce is scheduled to announce its final determinations in the AD investigations of imports of certain cold-rolled steel flat products from China and Japan and CVD investigation of imports of certain cold-rolled steel flat products from China. The investigations cover certain cold-rolled, flat-rolled, steel products, neither clad, plated, […]
Nucor Corp. announced today that it will expand its Vulcraft/Verco Group into Canada. The new production facility, Vulcraft Canada, Inc., will be located near Hamilton, Ontario and will serve the Central and Eastern markets. The facility will produce steel joists, joist girders, and decking. Product fabrication is expected to begin later this year. “We are […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. March data was released on Monday May 2nd. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
The annualized GDP growth rate in the first estimate of the first quarter of 2016 was 0.54 percent, down from 1.38 percent, in the fourth quarter of 2015. Normally there are two revisions of the first estimate and sometimes three. Revisions to the four quarters of 2015 were +0.4 percent, +1.59 percent, +0.5 percent and […]
Economists participating last week in the CMD Webinar: Is Construction Gaining or Waning were generally optimistic about the economy and forecast for construction growth. Although some sectors of construction peaked last year, growth is continuing in almost all areas, although at a slower pace. During the webinar, chief economists Ken Simonson, Associated General Contractors of […]
The Dodge Momentum Index rose 0.6 percent in April to 116.5 from a revised March reading of 115.8. Planning for commercial construction increased 0.8 percent and institutional planning rose 0.4 percent. Institutional planning, although volatile on a month-to-month basis, continues to recover and is now seven percent above year ago levels. The pace for commercial […]
The Bureau of Labor Statistics (BLS) reported on Friday in their analysis of non-farm employment that 160,000 jobs were added in April, down from 208,000 in March. February and March were revised down by a total of 19,000. An explanation of the BLS report is included at the end of this piece. The three month […]
The Associated General Contractors of America, on May 1, released their March analysis of construction spending. Construction spending in March 2016 was at a seasonally adjusted annual rate of $1.138 trillion. SMU looked back at past March analyses and found an upward trend in spending for the month. In March 2014 construction spending totaled $943 […]
On April 29, 2016, the Department of Commerce initiated an antidumping duty (AD) investigation of imports of certain carbon and alloy steel cut-to-length plate (CTL plate) from Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, Korea, South Africa, Taiwan, and Turkey, and countervailing duty (CVD) investigations of imports of CTL plate from Brazil, China, and […]
Olympic Steel reported a narrower than expected net loss of $767,000 for first quarter 2016. Revenues were $258.3 million compared to $346 million in Q1 2015 due to lower prices and volume. First quarter shipments increased, however 16 percent from fourth quarter 2015 recapturing market share from last year’s declining marketplace. “We successfully navigated challenging […]
Last week Steel Market Update reported our Steel Buyers Sentiment Index as being at record highs. Buyers and sellers of flat rolled steel are very optimistic about their company’s ability to be successful not only in the current market but three to six months out into the future as well. When looking at Sentiment from […]
The S&P/Case-Shiller U.S. National Home Price Index indicated home prices continued to rise over the past 12 months but at a slower growth rate. The 20-City Composite gain was 5.4 percent year over year in February, down from 5.7 percent in January. The composite gained just 0.7 percent on month over month base after seasonal […]
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 […]