Precision Metalforming Association members are looking forward to a spike in economic activity in the first quarter of 2017. The December 2016 survey of 115 metalforming companies in the U.S. and Canada shows 43 percent are expecting improved activity in the next three months, up from 21 percent in November. New orders are expected to […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. November data for CPIP was released on Tuesday, January 3rd. The most notable feature of this update was the apparent response to the $305 billion infrastructure in the bill that Congress […]
Ford Motor Company announced today that it is canceling plans to build a new plant in San Luis Potosi, Mexico and will invest in electrical vehicle production in the U.S. About half of the $1.6 billion that was designated for the Mexican plant will be used instead to expand the Flat Rock Assembly Plant in […]
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. Looking back from the […]
Economic activity in the manufacturing sector grew in December according to the latest Manufacturing ISM Report on Business. Growth in the overall economy expanded for the 91st consecutive month, said ISM. The PMI for December reached 54.7, climbing 1.5 percentage points from November. The new orders index jumped 7.2 points to 60.2 from November and […]
For the first time this month we will summarize six data sources that describe the state of manufacturing in the US. We have reported on most of these six sources separately in our Steel Market Update publications therefore will be brief in this summary. We don’t expect these data sources to all point in the […]
Manufacturing surveys by the Federal Reserve Banks of Dallas and Richmond indicated that manufacturers are expecting positive business conditions in the first half of 2017. Activity is expected to be stronger in the Fifth District area than Texas but both regions see improvement conditions in the New Year. Federal Reserve Bank of Dallas Manufacturing activity […]
China GDP is expected to slow to 6.5 percent next year and decline to 6.4 percent by third and fourth quarters. A report released by the Chinese Academy of Social Sciences (CASS) said economic expansion is likely to dip next year due to declines in export demand, investment growth and domestic demand. The Dec. 19 […]
SMU Steel Buyers Sentiment Index has reversed trend and is rising (getting more optimistic) as we prepare to move into the New Year. On Monday of this week Steel Market Update (SMU) began conducting our mid-December flat rolled steel market trends analysis. We completed our inquiries earlier today (Thursday, December 22, 2016) and we are […]
Durable goods orders decreased 4.6 percent in November to $228.2 billion, according to the latest report from the Department of Commerce. The drop follows four months of consecutive increases. Durable goods are products designed to have a lifespan of longer than three years, such as machinery and computers. The decline in November was driven by […]
AK Steel has been awarded a $1.8 million grant from the U.S. Department of Energy to develop a new grade of energy efficient steel for electric motors. Under the scope of the project AK Steel will explore different chemical compositions added in to the existing composition of standard electrical steels to increase the resistivity of […]
Worthington Industries announced second quarter 2017 net earnings (ending Nov. 30, 2016) were $46.6 million on $727.8 million in net sales. In comparison Q2 earnings were down from first quarter earnings of $65.6 million but double that of Q2 2016. “We had a good second quarter with overall improving results and solid year-over-year growth,” said […]
M&M Manufacturing, a subsidiary of MiTek Industries and a leading producer of sheet metal products, for the air distribution and ventilation markets, has acquired Snappy Company. Snappy is a leading supplier of metal duct systems for the residential HVAC market, with manufacturing facilities in Detroit Lakes, MN; Medina, NY; and corporate offices in Marietta, GA. […]
Big River Steel announced that operations have begun at its melt shop and hot strip mill. The first hot rolled coil was purchased by Zekelman Industries and will be sent to Atlas Tube in nearby Blytheville, Arkansas. The coil was purchased for $100,000 with the entire amount jointly contributed by Big River and Zekelman Industries […]
Steel buyers and executives associated with the service center industry are reporting to Steel Market Update that end users are accepting that we are in a higher priced flat rolled steel environment and most have placed their first quarter 2017 tons. The expectation is for the market to “pause” here due to the holidays which […]
The Empire State Manufacturing Survey for December indicated modest business growth for December and strong optimism for next year. The headline general business index rose 8 points while new orders picked up 11.4 points. The shipments index was unchanged for the month. Manufacturers in New York State reported declines in employment and hours worked. Inventories […]
General Motors announced it will invest $552 million in key U.S. manufacturing facilities in New York and Ohio. The New York manufacturing facilities Tonawanda Engine, Lockport and Rochester will receive a total of $333.66 million. The Parma Metal Center in Ohio is slated for a $218 million investment. “GM remains committed to investing in its […]
Manufacturers in the Philadelphia area were optimistic in December about general business activity, shipments, and employment. The index reading for current manufacturing activity increased from an index reading of 7.6 in November to 21.5 this month, according to the latest Manufacturing Business Outlook survey by the Philadelphia Federal Reserve. The reading for December was the […]
The flat rolled steel service centers are increasing their spot steel prices to their customers. According to our most recent flat rolled steel market trends survey, 90 percent of the distributors responding reported their company as raising spot prices to their end users or to other steel service centers. The 90 percent number is 5 […]
The fifteenth anniversary of China’s accession to the World Trade Organization has passed without China receiving its coveted market economy status. The United States, European Union and Japan said they will continue to treat China as a non-market economy. A change in status would protect Chinese exporters from tariffs that the U.S., EU and others […]
Last week Steel Market Update conducted one of our flat rolled steel market trends analysis. We invited just under 600 people to participate in our early December survey and we had 100+ responses. Based on these responses we derive our lead times, negotiations, Sentiment and many other trends that impact the flat rolled steel industry. […]
As you think about your business and where you think benchmark hot rolled prices will be in 2017 and 2018 one of the areas you need to consider are the energy markets. The energy markets have been in the doldrums for the past few years due to low oil and natural gas prices. The net […]
SMU Sentiment Index Sees Renewed Optimism The SMU Steel Buyers Sentiment Index has seen a renewed spurt of optimism based on our latest data. Sentiment, which had been trending lower since the beginning of July based on our three month moving average (3MMA) reversed course and moved higher this week. Our 3MMA for Current Sentiment […]
Every year Keith Gunter of McElroy Metal produces a Christmas poem dedicated to recent steel events and wishes for the New Year. Take a moment to enjoy this year’s spin on the old classic, Twas the Night Before Christmas: T’was almost Christmas,So time to reflect on the year,Cost has had its ups and downs,But has […]
Early December logistic reports show no major problems in the shipping markets. Shipments on most transportation modes are expected to slow as the holiday season approaches. A new Secretary of Transportation has been appointed by President-elect Donald Trump. Elaine Cho, former Secretary of Labor under President George W. Bush and Deputy Secretary of Transportation under […]
Earlier today Dr. Alan Beaulieu of the Institute for Trends Research spoke to the HARDI annual conference in Colorado Springs, Colorado. He started by telling the 1300 people attending the conference, “We did not change our forecast due to the election.” He went on to say that in government things don’t happen quickly, “The economy […]
Wilbur Ross Jr. has been tapped by President-elect Donald Trump to serve as Commerce Secretary. Ross is a billionaire investor known as the “bankruptcy king.” Forbes estimates the Ross fortune at $2.9 billion made by buying and restructuring troubled companies. One of those companies was Donald Trump’s bankrupt casino in the 1990s. Ross was a […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. October data for CPIP was released on Thursday December 1st. The tables in this report don’t look so good but in fact the single month of October looked a lot better […]
In November net job creation was 178,000 which was about in line with analysts’ expectations. The employment situation is strong enough for the Fed to likely go ahead with a target rate increase later this month. September employment numbers were revised up by 17,000 and October down by 19,000. Using a three month moving average […]
Manufacturing conditions improved across the globe in November, according to the latest JP Morgan Global Manufacturing PMI. The composite index rose to a 27 month high of 52.1, inching up slightly from 52.0 in October. Expansion was noted in 22 of the 30 nations covered under the global survey. New order growth was the strongest […]