“USW members and non-union workers alike know firsthand the pain inflicted by foreign predatory, protectionist and unfair trade practices,” said Leo W. Gerard, International President, United Steelworkers (USW) before the U.S. Senate Committee on Finance on June 25. Gerard told Senate members that the only way the USW wins at its efforts to counter unfair […]
Steel imports in May increased 7.4 percent from April to 4 million net tons, a 41.5 percent increase over May imports in 2013. The year-to-date total is now 17.5 million net tons, 31.7 percent higher than the same period last year. Steel imports have been a headline issue for the steel industry in the last […]
Durable Goods, a measure of the health of the steel industry and economy, saw new orders fall 1 percent after three months of increases. Shipments, Unfilled Orders, and Inventories all increased 1 percent or less. Capital goods orders for non-defense and defense items decreased in May. The Commerce Department’s GDP report showed a decline of […]
The following is an abridged version of the Chicago Federal Reserve statement plus our own graphical analysis. The Chicago Federal Reserve National Activity Index (CFNAI) is an excellent reality check for much of the economic analysis that we routinely provide in The Steel Market Update. An explanation of the Index is provided at the end […]
Each month the Bureau of Labor Statistics, (BLS) puts out its series of producer price indexes, for thousands of goods and materials. The latest release on Friday reported May results. These statistics are a useful way to evaluate any changes in the competitive position of steel against competing materials and this month for the first […]
Steel Market Update spent an extraordinary amount of time on today’s price ranges and averages. There has been a lot written recently about demand supporting prices and the lack of supply supporting prices. However, the deeper we dug the more questions we began to ask about what is real and what is a little murky. […]
Manufacturing companies as well as their service center suppliers, reported spot service centers prices as basically stable with a tilt toward the beginning of a downward price cycle for service center flat rolled steel spot pricing. Again, this is service center spot price offers to their manufacturing customers which is being measured as opposed to […]
Last week Steel Market Update conducted our mid-June flat rolled steel market analysis. We sent invitations to slightly more than 600 companies which are involved in the flat rolled steel industries as buyers, sellers or toll processors of the steel. The participants in last week’s analysis came from the manufacturing industry (45 percent), service center/wholesalers […]
We have two markets developing for flat rolled steel imports: hot rolled imports are expected to actually begin to shrink from here as the offers out of Russia and Turkey for hot rolled pricing are approximately $600 per ton or higher. Since most foreign steel buyers tend to be buyers of large tonnage and thus […]
The fact that steel prices have been moderating and, in some cases, moving lower has not dented the enthusiasm buyers and sellers of flat rolled steel are showing based on the Steel Market Update Steel Buyers Sentiment Index. The latest market analysis is pegging Sentiment at +57, up 3 points from our last measurement conducted […]
For those of you who have never gone to New York City to participate in or be around the Steel Success Strategies Conference, you are missing an experience. The sheer concentration of steel mills, trading companies, service centers and manufacturing companies as well as scrap, logistics, shipping, toll processors, equipment can be overwhelming. After spending […]
Steel Dynamics Inc. (SDI) expects higher profits in second quarter compared to first quarter 2014. In its Second Quarter Earnings Guidance, SDI said steel shipments and metal spreads are improving despite increased import activity. SDI anticipates demand from automotive, manufacturing and construction will continue to trend upward. Residential construction has rebounded with the return of […]
A downturn in business conditions is coming, said participants in the Precision Metalforming Association (PMA) Business Conditions Report for June. Fewer participants are expecting conditions to improve in the next three months (31 percent, down from 33 percent) and more are expecting that economic activity will decline (15 percent, up from 7 percent). PMA president […]
An increase in manufacturing activity in New York took analysts by surprise in June. The Federal Reserve Bank of New York reported the general business index in the Empire State Manufacturing Survey posted a reading of 19.28, up from 19.01 in May. Economists were expecting the index to decline to 15.0 in June. The new […]
Hello from New York City. If you are in the steel industry and you have never attended a Steel Success Strategies conference (or been a lobby rat hanging out in the hotel lobby and talking to people as they pass in and out of the hotel) then you need to do it at least one […]
“Following the doubling of steel production from 849 million tonnes in 2000 to 1.6 million tonnes in 2014, we are likely entering a period of consolidation, or at the very least, much reduced growth.” That is the opinion of Becky Hites, analyst and president of Steel-Insights, LLC in a June 7, 2014 report, Fixed Asset […]
John, When you mentioned the “Buy American” in response to South Korea dumping steel into America’s OCTG industry, I was reminded of a topic I would bring up with customers over dinner. I’d ask them, “What if we started a company called MIA,” a play on the words Made in America, as well as Missing […]
According to SMU sources, last week ArcelorMittal USA raised the minimum selling price on secondary grades of steel to approximately $500-$520 per ton ($25.00/cwt-$26.00/cwt). This has caused some concern within the industry with one fabricator who has been involved with secondary steel for the past 15 years reporting to Steel Market Update, “…I have been […]
A federal crackdown is needed on the import and dumping of cheap products in the U.S. said US Steel Corp CEO Mario Longhi to attendees at the West Virginia Manufacturers Association Leadership Summit on Monday. Longhi, known for his strong stance on foreign import trade regulations, told manufacturers at the meeting that stronger trade laws […]
A short note to let our Premium Level members know that our Steel Market Update survey results are online and can be accessed on the website. If you need assistance accessing any of the Premium products on our website please let me or Brett@SteelMarketUpdate.com know and we will help you. We are also sharing this […]
The Bureau of Labor Statistics (BLS) report on non-farm employment indicated that 217,000 jobs were added in May, April was revised down by 6,000 to 282,000 and March was unchanged. The three month moving average (3MMA) rose from 190,000 in March to 236,000 in April then declined by 2,000 in May, (Figure 1). All numbers […]
SMU Price Momentum Indicator Adjusted to Lower from Neutral: Steel Market Update conducted our early June flat rolled steel market analysis this past week. The results of our survey, coupled with information being gathered independently of our survey have prompted SMU to revise our SMU Price Momentum Indicator to Lower from Neutral. We now believe […]
Steel Market Update (SMU) Steel Buyers Sentiment Index is at +54 this week and continues to be well within the optimistic range for the index. Even though the index dropped 8 points from the all-time high recorded during the middle of May, the growing optimistic trend continues as our three month moving average improved to […]
Steel Market Update (SMU) Steel Buyers Sentiment Index is at +54 this week and continues to be well within the optimistic range for the index. Even though the index dropped 8 points from the all-time high recorded during the middle of May, the growing optimistic trend continues as our three month moving average improved to […]
US Steel says it will indefinitely idle two tubular manufacturing facilities in McKeesport, Pennsylvania and Bellville, Texas in early August. US Steel reported that the decision is a result of poor business conditions due to unfairly traded tubular steel products imported into the United States. The shutdown of the two facilities will impact approximately 415,000 […]
Manufacturing expanded for the 12th consecutive month in May according to the Manufacturing ISM Report on Business released by the Institute of Supply Management. The PMI registered 55.4 percent, an increase of 0.5 percent. The new orders index grew 1.8 points to 56.9. The production index gained 5.3 points to a reading of 61.0 percent. Employment continued […]
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 at present is thirty five, the Chicago Fed Mid-West Manufacturing Index is still on hold to enable the staff to complete a major re-vamp of the […]
Steel Market Update has been following the Armada Corporate Intelligence economists since we first heard Dr. Chris Kuehl present at a conference we attended earlier this year. We were so impressed with both Dr. Kuehl’s (pronounced Keel) presentation skills and their newsletter that we invited Dr. Kuehl to be a keynote speaker at this year’s […]
The JP Morgan Global Manufacturing PMI made a modest uptick to 52.2 in May after dropping to a six month low of 51.9 in April. Faster expansion rates were seen in production, new orders and orders for new exports. Overall improvement, however, remains modest with the average rate of increase in business conditions lower than […]
For those of you who are paying attention to our website you might have noticed we added a new sub-menu under the Resources tab. The new menu is called “The Truth About Selling Steel” and we have attempted to split out those articles associated with sales from our Steel Buyers Basics series of articles many […]