Tag: Durable Goods

Does the price of ferrous scrap depend on the price of finished steel product? And how much of an influence do billet and slab prices have on scrap prices?

Data on US industrial production, capacity utilization, new orders, and inventories remained overall steady and strong through January and February figures, indicating a healthy manufacturing sector. The strength of the manufacturing economy has a direct bearing on the health of the steel industry.

New orders for manufactured durable goods fell in the US in October.

After four months of increases, orders for durable goods in the US dropped in July.

US Midwest premium has continued to trend lower. Slack end-use demand is the main driver as the CME backwardation holds for dates further out in 2023. Lower freight and weak LME prices lower the replacement costs of aluminum and thus lower the floor for the premium.

The United States and Indian governments have agreed to terminate six disputes at the World Trade Organization (WTO). Benefits from the settlement include opening the US to more shipments of steel and aluminum made in India, according to New Delhi. “As a part of the agreement, the US has agreed to grant market access to […]

New orders for manufactured durable goods increased for the third consecutive month in May, increasing 1.7%  from the previous month to $288.2 billion, according to the US Census Bureau. This follows a 1.2% month-over-month (MoM) gain in April, according to Census data. Transportation equipment is also up three consecutive months, up 3.9% to $102.6 billion. The bureau said that […]

Algoma Steel anticipates increasing its plate production in the third calendar quarter of this year. Phase two of the Canadian steelmaker’s plate mill modernization project continues, CEO Michael Garcia said on the company’s fiscal fourth-quarter of 2023 earnings call with analysts on Thursday, June 22. The second phase had initially been expected to be finished […]

New orders for manufactured durable goods increased for the second consecutive month in April, rising 1.1% from the previous month to $283.0 billion, according to the US Census Bureau. This follows a 3.3% month-over-month (MoM) gain in March, according to Census data. The bureau said transportation equipment, also up for a second straight month, drove the increase, rising 3.7% MoM to $97.6 billion. […]

Despite economic headwinds on the horizon, we are probably in store for a “shallow recession” rather than a prolonged one, according to Josh Spoores, CRU’s principal analyst – steel. Spoores sat down with SMU managing editor Michael Cowden on an April 5 Community Chat where they spoke about the outlook for the steel industry for the […]

New orders for US-manufactured durable goods fell to 1% in February month over month to a seasonally adjusted $268.4 billion, according to the US Census Bureau. They have now been down three of the last four months, according to Census data. New orders for transportation equipment, also down three of the past four months, drove the […]

Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from […]

New orders for US-manufactured durable goods fell 4.5% in January month over month to a seasonally adjusted $272.3 billion, according to the US Census Bureau. They have now been down two of the last three months, according to Census data. Transportation equipment, also down two of the last three months, drove the decrease in January, sliding 13.3% to […]

Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from […]

Cleveland-Cliffs Inc. has rolled out another $50/ton ($2.50/cwt) sheet price increase just a couple of weeks after doing the same in mid-January. The Cleveland-based steelmaker has also announced a target base price of $850 per ton for hot-rolled coil, up from the $800 per ton announced in mid-January. NLMK USA almost immediately upped the ante, […]

New orders for US-manufactured durable goods increased 5.6% in December month over month to $286.9 billion, according to the US Census Bureau. They have been up four of the last five months, with the exception of a 1.7% decline in November. Transportation equipment drove the increase, rising 16.7% to $108.1 billion, Census noted. New orders for primary […]

New orders for US-manufactured durable goods fell in November to a seasonally adjusted $270.6 billion, according to the US Census Bureau. Last month’s downward move was the first decline in four months, and well below consensus estimates. Shipments were again slightly higher month over month (MoM), moving higher for 18 of the last 19 months despite […]

The LME aluminum three-month price has found a higher trading range and has settled in near the $2,450/metric-ton mark this week. The price rallied by over $60/metric ton after lower-than-expected US inflation data was seen in the market as a positive sign that inflation is cooling. Yet as the week closed out on Dec. 16, […]

Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from Princeton […]

New orders for US-manufactured durable goods rose in October to a seasonally adjusted $277.4 billion. That figure has risen for seven out of the last eight months. Shipments picked up as well last month despite persistent inflation and global economic instability. Last month’s bookings for durable goods were up roughly 1%, or $2.8 billion more month-on-month […]

Data on US industrial production, capacity utilization, orders and inventories remained strong through September, indicating a healthy manufacturing sector. The health of the manufacturing economy has a direct bearing on the health of the steel industry. The Industrial Production (IP) Index The IP index is a gauge of output from factories, mines and utilities. Figure […]

Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from Princeton […]

Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from Princeton […]

New orders for US-manufactured durable goods rose in September to a seasonally adjusted $274.7 billion — having risen now for six out of the last seven months. Orders picked up less than expected but still reversed the weaker showings of previous months. Last month’s bookings for durable goods were up roughly 0.04% or $1 billion more […]

News that the Biden Administration is considering a total ban on Russian aluminum imports lifted the market Tuesday afternoon, Oct. 11. The LME aluminum three-month price increased sharply to a high of $2,400 per ton before some of the gains were reversed by the close. The price saw some volatile shifts during the week but […]

Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex who has been active in the metals markets for two years. In his role, Mike performs fundamental and quantitative analysis which directly leads to actionable trading/risk management strategies across the base, precious and ferrous metals derivative spaces. Prior to joining Marex, Mike received […]

Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex who has been active in the metals markets for two years. In his role, Mike performs fundamental and quantitative analysis which directly leads to actionable trading/risk management strategies across the base, precious and ferrous metals derivative spaces. Prior to joining Marex, Mike received […]

Aluminum May Be Approaching the End of Its Long Destocking Cycle Last week, I described our premise about demand versus real consumption. We talked about the market’s natural tendency to destock when prices take a beating as they have during most of 2022. The latest Index of Orders from the Aluminum Association offers some early […]

Natural gas inspired staggering energy prices crush primary aluminum economics The suspension of gas deliveries through the Nord Stream pipeline has further aggravated an already grim energy situation for European aluminum producers. Prices for day-ahead power in Western Europe are stunning in their magnitude: 404 euros/megawatt hour were published on Friday for Germany, France, the […]

Economic conditions are still iffy at best. Housing data continues to suffer with new home sales plunging and inventory reaching the highest it has been since 2009. The Richmond and Kansas City Fed manufacturing indexes both plunged in July as well. The Richmond Fed’s manufacturing skill availability index, which indicates the demand for skilled labor […]