The Bureau of Labor Statistics (BLS) analysis of non-farm employment reported that 223,000 jobs were added in April but the March result was revised down by 41,000 to a mere 85,000. The three month moving average (3MMA) of gains through April was 191,000 and the combined result for March and April was the lowest since […]
The monthly value of the Federal Reserve Broad Index of the US $ against our major trading partners is reported about one month in arrears. In one month through about April 12th this index weakened by 1.9 percent which was a sharp reversal from the previous seven month trend. The monthly BI is a “Real” […]
Buyers and sellers of flat rolled steel are split over whether or not the price increase announcements of two weeks ago will actually be collected. This past week we invited approximately 600 companies to participate in our flat rolled steel market survey. Of the more than 100 companies who responded fifty-three percent told SMU that […]
Will Domestic Price Increases Create Opportunities for Foreign Steel? Over the past few months domestic steel prices have become competitive against foreign steel imports. With the price announcements SMU wondered if the increases would widen the spread, thus creating an opportunity for more foreign steel to come to the U.S. During last week’s flat rolled […]
Buyers and sellers of flat rolled steel continue to be optimistic about their company’s ability to be successful both now and into the future. However, Steel Market Update has been seeing small adjustments lower to both our current and future Sentiment Indices. Future Sentiment, which measures how buyers and sellers feel about their company’s ability […]
Klöckner & Co SE EBITDA was heavily impacted by the sharp price declines in the U.S. EBITDA of €10 million ($11.2 million) was reported down from €45 million ($50.7 million) in Q1 2014 Shipments for Kloeckner Metals (the Americas segment) were up 0.6 percent y/y to 682,000 tonnes (751,763 tons). US shipments were up by […]
CHICAGO, IL, May 6, 2015 – The Steel Tube Institute (STI) has announced the retirement of Executive Director Bill Wolfe after 13 years serving as head of the industry trade association. Joseph Anderson, who was named Hollow Structural Sections (HSS) Director last April, has been chosen as STI’s new Executive Director. Wolfe leaves behind a […]
I had an interesting email from one of our members who expressed an issue with the reduction of articles written by me. Here is a portion of the email, “When we first subscribed to your publication several years ago, we found that John P was doing most of the writing and he would stick his […]
Steel buyers in the April ISM Steel Buyers Survey are expecting general economic activity to remain the same during the next six months but were more optimistic regarding sales and production in their specific industry. Forty percent of buyers expect the trend for sales and production to improve, compared to 30 percent in March. Fifty […]
Global manufacturing fell to a 21 month low in April according to the JP Morgan Global Manufacturing PMI. The composite index registered 51.0, down from 51.7 in March. “The April PMI shows a loss of momentum in global factory output in April, with production and new orders both decelerating,” commented Joseph Lupton, Senior Economist at […]
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 May 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In effect […]
The Institute of Supply Management released their April report on May 1st. An explanation of the ISM index is given at the end of this piece. After the October surprise on the upside, the index slid back to 55.1 in December to 53.5 in January, to 52.9 in February and to 51.5 in March it […]
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 […]
There are always two sides to any story. The domestic steel mill view is the influx of foreign steel is due to illegal dumping by the companies or countries exporting steel to the United States. The manufacturing companies who are benefiting from the lower priced imports (and their impact on domestic steel prices) have a […]
The Trade Promotion Authority bill S.995, or “fast track bill” as it being called, passed the Senate Finance Committee last week by a vote of 20-6. The fast track portion gives the President the authority and guidelines to negotiate trade deals in exchange for a vote by Congress passing resulting trade agreements without amendment. The […]
Both these data points are reported in the Federal Reserve G17 data base. The IP index was reported as 105.22 for March, down by 0.64 from February. The three month moving average (3MMA) was 105.63, down by 0.34 from February. January was the highest value ever of the 3MMA at 106.11. The Y/Y growth rate […]
This will be another interesting week for the steel industry. We have US Steel and AK Steel announcing their earnings and conducting conference calls with analysts. Will any of the mills make a move to push prices prior to one of these conference calls (mills have done it in the past)? There continues to be […]
As we discussed at the beginning of the month April, Steel Market Update (SMU) will present our Future Steel Buyers Sentiment Index at the beginning of our Sentiment articles. Future Sentiment provides a better look at what steel buyers and sellers of flat rolled steel are thinking regarding their company’s ability to be successful three […]
The graphic below shows published data for the growth of GDP, industrial production and consumer prices through the 1st Q of 2015. The GDP and industrial production portions of this graph are three month moving averages. GDP grew 7.3 percent y/y in both the 3rd and 4th quarters of 2014, declined to 7.0 percent in […]
The energy markets, especially oil and natural gas, are major users of flat rolled steel and plate products. As oil prices have fallen the production of pipe & tube and related products for the energy segment of the economy have fallen significantly. This has had a major impact on hot rolled coil production and pricing. […]
March vehicle sales brought welcome new by bouncing back vigorously to 17.15 million units on a seasonally adjusted annualized basis, up from 16.23 million units in February. The March 2015 sales pace was 4 percent higher than the March 2014 pace. Cars had the greatest growth from 7.2 million units in February to 7.7 in […]
Steel Dynamics Inc. reported high levels of steel import and customer inventory reduced shipments for first quarter resulting in a 44 percent drop in consolidated operating income compared to fourth quarter. SDI adjusted net income was $40 million for first quarter 2015 with $2 billion in net sales. The adjusted income excludes $17 million in […]
US Steel announced another round of production adjustment cuts that affect the company’s tubular operations. Notice of potential layoffs were issued to 1,404 employees on Friday, April 17. The latest round of notifications impact 404 management employees in Houston and other U.S. Steel tubular operations, 579 employees at Lone Star Tubular, 166 at Offshore Operations […]
The monthly value of the Federal Reserve Broad Index of the US dollar against our major trading partners is reported about one month in arrears. Through early March this index continued to strengthen and reached 94.686, after breaking 90 in December for the first time since July 2009. The monthly BI is a “Real” inflation […]
Respondents in the April 2015 Precision Metalforming Association (PMA) Business Conditions Report found little to get excited about for the coming months. A third of participants in the monthly survey expect improved economic activity during the next three months but 58 percent forecast no change. Incoming orders are expected to remain steady during the period. […]
Manufacturing activity in New York was essentially flat in April. The General Business Index of the Empire State Manufacturing Survey fell 8 points to -1.19, dropping into negative territory for the first time since December 2014. The survey is published monthly by the Federal Reserve Bank of New York and is on based responses from […]
The Philadelphia Federal Reserve Manufacturing Business Outlook was stronger than expected in April. The index for current activity increased from 5.0 in March to 7.5, beating economist expectations of a reading of 6. The index has been in single digits so far this year indicating only modest growth. The new orders index registered 0.7, a […]
On Tuesday, April 14, China announced it will terminate antidumping and countervailing duty tariffs on grain-oriented electrical steel exports from the U.S. U.S. Senators Sherrod Brown (D-OH) and Rob Portman (R-OH), who have been leaders in pushing for fair trade practices, applauded the decision. “This announcement is great news for Ohio steel producers like AK […]
As the publisher of Steel Market Update I get a lot of questions on a daily basis from readers and those who come across our website. Usually its about a piece of data or something having to do with one of our workshops. I got a question yesterday from someone who wanted to know what […]
Twice per month Steel Market Update (SMU) conducts an analysis of the flat rolled steel market utilizing our proprietary questionnaire which is presented to approximately 600 companies for review. We receive well over 100 responses every time we canvass the market with the vast majority of respondents falling into either the manufacturing or service center/wholesaler […]