The article below is normally published to our Premium members as a supplement to the Executive write up. The author is Peter Wright who produces a number of articles for both our Premium and Executive level newsletters. Peter is also one of our Steel 101 instructors where he shares both his marketing and metallurgical knowledge […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments increased by 264,500 tons in January to 2.909 million tons. Shipping days at 20, were down by two from December. On a tons per day basis (t/d) shipments increased from 120,200 […]
Both these data points are reported in the Federal Reserve G17 data base. The index had an all-time high of 107.9108 in December 2014 but on a month over month basis has declined for nine of the last thirteen months. January was a welcome respite with an increase of 0.92 percent, which is huge, and […]
Residential construction is beginning the new year with slower momentum. A blast of winter weather in the Northeast slowed construction starts in January after a warmer than usual December. The Commerce Department reports U.S. housing starts fell 3.8 percent from December to a seasonally adjusted annual rate of 1.099 million in January, the lowest rate […]
Reliance Steel & Aluminum reported net income of $68.8 million for fourth quarter of 2014, down 25.7 percent from fourth quarter 2014 but up 33.5 percent from third quarter. Total sales for Q4 were $2.03 billion down 21.4 percent year over year and down 11.4 percent from third quarter 2015. Total tons sold were down […]
After a generally positive performance in 2015, the Architectural Billings Index started the year with a slip to 49.6 in January from December’s reading of 51.3. A score above 50 indicates growth in design services and below 50 indicates a decline. AIA Chief Economist Kermit Baker called January “rocky” but noted “the fundamentals are mostly […]
FORT WAYNE, Ind., Feb. 16, 2016 /PRNewswire/ — Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced the creation of three new leadership positions which will coincide with the retirement of Richard P. Teets, Jr., a co-founder of the company and its Executive Vice President of Steelmaking, and President and Chief Operating Officer of Steel Operations. Effective […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Assisting Andre with tonight’s article is Jack Marshall also associated with CrunchRisk. Here is how Andre and Jack saw trading […]
The following article is normally reserved for our Premium members only, but we felt it would be a good one to share with all of our readers. If you are interested in upgrading to a Premium membership or would like to trial it, contact our office at (800) 432 3475 or info@SteelMarketUpdate.com. The Q1 2016 […]
The Dodge Momentum Index rose for the second month in a row, gaining 2.4 percent in January to register 126.4 from a revised December reading of 123.4. The Momentum Index, published by Dodge Data & Analytics, is a measure of the initial report for nonresidential building projects in planning. The January increase was the result […]
Mill Steel Co., one of the nation’s largest distributors of flat-rolled carbon steel, has acquired certain assets of S&S Steel Services, Inc. (S&S), an Indianapolis/Anderson based supplier of carbon flat-rolled steel service. Terms of the deal, which closed on January 11, 2016, were not disclosed. S&S Steel services manufacturing customers in the Midwest, Mid-South and […]
During their earnings conference call with the financial analysts, ArcelorMittal spoke about excess Chinese steelmaking capacity which needs to be removed from the markets as well as demand outlook which they believe will improve in the United States and Europe during 2016. The following selected comments were taken directly from the ArcelorMittal conference call transcript […]
The Bureau of Labor Statistics (BLS) reported on Friday in their analysis of non-farm employment that 151,000 jobs were added in January, down from 262,000 in December. According to the Wall Street Breakfast, “consensus had called for 190,000 jobs to be added, with the unemployment rate holding steady at 5 percent. Traders in interest rate […]
Each month the Commerce Department issues its construction put in place (CPIP) data, usually on the first working day covering activity two months earlier. December data was released on Monday February 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
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 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
The Bureau of Economic Analysis (BEA) released the first estimate of Q4 2015 Annual Revision of the National Income and Product Accounts on Monday. The annualized growth rate in the first estimate of the fourth quarter was 0.69 percent, down from 1.99 percent, in the 3rd quarter and down from 3.91 percent in Q2. Normally […]
The states compile their employment numbers independently of the Feds then both are reported by the Bureau of Labor Statistics. The results are close. In the last eight quarters since Q1 2014, the Feds reported total job creation of 5,766,000 and the states reported 5,415,400. Figure 1 and Figure 2 show the history of Federal […]
First, a note to our Premium level members (subscribers) we will produce another Premium supplemental issue of our newsletter for you tomorrow afternoon. The newsletter will contain the most recent CPIP (construction put in place) data. We also will release the results of this week’s flat rolled steel market trends analysis in the form of […]
Caterpillar says it plans to close five plants in the U.S. as part of a cost-cutting strategy it began last year. The closures at the mining and construction equipment company will mean layoffs for about 670 employees. In September 2015, Caterpillar said global restructuring actions would cut as many as 18,000 jobs through 2018. “Cost […]
Impairment charges contributed to a $62 million net loss for Nucor Corp. in fourth quarter 2015. An impairment charge of $153 million was recorded for the Duferdofin Nucor plant in Italy due to low operating performance. The company also took an $84.1 million non-cash write-down after deciding not to proceed with plans for a blast […]
Mexican steelmaker, TYASA, plans to build the first Castrip® mill outside of Nucor at its mini-mill in Ixtaczoquitlan. The new facility will have the capability to produce 500,000 tons of thin-gauge, high-strength. The TYASA steel campus in the state of Veracruz, Mexico is designed to be highly efficiently with environmentally-friendly low emissions. The Simetal EAF […]
Total housing starts in December were at an annual rate of 1,149,000 which was down from 1,179,000 in November. Since April total monthly starts annualized have ranged from 1,062,000 to 1,211,000 with the high month being June. In December the three month moving average (3MMA) was 1,133,000 which was down from 1,153,000 in November. August […]
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 […]
The following is the Chicago Federal Reserve statement followed by our own graphical analysis. The CFNAI is an excellent reality check for much of the economic analysis that we routinely provide in The Steel Market Update and is also a reasonably good predictor of the direction of steel demand with a six to nine month […]
Steel Dynamics’ struggling recycling segment widened the company’s net loss to $253 million in fourth quarter 2015. It was determined that the book value of the metals recycling segment recorded $435 million in non-cash goodwill and other related asset impairment charge. Excluding the metals recycling charges, adjusted net income was $22 million on net sales […]
Construction employment increased in the U.S. in December and for 2015 amid strong demand according to an analysis by the Associated General Contractors of America. The press release from AGC follows: Forty-four states and the District of Columbia added construction jobs in 2015 while construction employment increased in 39 states and D.C. between November and […]
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 […]
China’s economy, the second largest in the world behind the U.S., grew at 6.9 percent in 2015. That was pretty close to its target of 7 percent for the year but also the slowest rate since 1990. Data released by the Chinese government shows fourth quarter growth at 6.8 percent. As recently as 2007 China’s […]
Housing starts and permit authorizations fell from November to December, according to the U.S. Department of Commerce report, despite unseasonably warm temperatures. The drop surprised economists who expected gains from the mild weather and from the positive report of construction jobs added in December. Housing starts were at a seasonally adjusted annual rate of 1,149,000, […]
The American Institute of Architects called 2015 a healthy year for construction. In eight of the twelve months last year the Architecture Billings Index (ABI) posted scores above the 50, indicating an increase in design services. The December ABI was 50.9, up from 49.3 in November. The new projects inquiry index gained 1.6 points to […]