Flat rolled steel buyers and sellers of steel have split personalities–believing the domestic steel mills will officially raise prices to the $700 level on hot rolled while at the same time believing that prices will essentially trend sideways from here between now and the first of June. Last week Steel Market Update conducted our early […]
There will be a lot of news in the media today and tomorrow regarding foreign steel imports and their damage to the U.S. economy. We are seeing demonstrations across the country by union workers trying to influence policy and, particularly, the final determination of the OCTG dumping suits. Politicians are involved with Senator Sherrod Brown […]
I am getting excited by the progress we are making on our September Steel Summit conference. I have been talking to as many manufacturing companies, service centers, steel mills and trading companies as we strive to put on an exceptional program with quality speakers who will provide valuable content. Easy to say, not so easy […]
For the first time since Steel Market Update began surveying the flat rolled steel industry, a majority of our respondents are reporting demand as “improving.” As you can see by the timeline shown in the graphic below, the optimistic trend for demand growth began to pick up steam during late 1st Quarter 2014 and momentum […]
The Broad Index value of the US $ has been gradually strengthening for 18 months (Figure 1), which favors imports to the US and depresses exports. See explanation at the end of this piece. Table 1 shows the number of currency units that it takes to buy one US $ and the percent change in […]
More than 200 Ohio steel workers and supporters gathered at a rally outside US Steel Lorain Tubular Operations on May 5 to urge the federal government to protect the Northeast Ohio steel industry from unfair foreign competition. “Northeast Ohio’s steelmakers and workers can compete against anyone in the world—when given access to a level playing […]
Steel buyers in the April Institute for Supply Management (ISM) Steel Buyers Survey are expecting general economic activity to remain the same for the next six months. Higher orders are anticipated during the next three months but current order levels are still weaker than buyers would like. Right now at present production rates and with […]
The Bureau of Labor Statistics (BLS) report on non-farm employment wildly exceeded expectations in April with a net gain of 288,000 jobs. The February and March total was revised upward by 36,000. The three month moving average (3MMA) rose from 150,000 in February, to 190,000 in March and to 238,000 in April (Figure 1). The […]
Allied Tube & Conduit and members of USW Local 9777 reached an agreement on a new contract on Sunday, ending a week-long strike. The contract for USW Local 9777 expired in April 2013 and the company and union officials have been in negotiations for the past year. A compromise over the weekend led to contract […]
The JP Morgan Global PMI was at a six-month low in April but indicated manufacturing remains in the expansion range. At 51.9 the score reflected weaker production and new orders. The PMI was negatively affected by the downturn in production and new business that followed an increase in sales tax in Japan. The US and […]
Mike Rippey, president and CEO of ArcelorMittal USA, has been elected Chairman of the American Iron and Steel Institute (AISI). Rippey will serve as chairman until May 2015, leading advocacy efforts on behalf of AISI and the industry to advance pro-manufacturing polices that will enhance the competitiveness of the North American steel industry. “Mike’s been a strong […]
Economic data released in April indicated signs of slower growth in the economy. Survey participants, however, continue to be optimistic about business activity during the next three to six months. The Architecture Billings Index fell to 48.8 in April, indicating contraction after hovering just above the neutral point for the last two months. The protracted […]
April is now behind us and it proved to be one interesting month. In looking at the key data we follow on a monthly basis for our readers, SMU Price Momentum Indicator ended the month where it began pointing to higher prices over the near term. SMU Steel Buyers Sentiment Index ended the month at […]
Will 2014 be a breakthrough year for construction? That was the premise of a webinar presented by Reed Construction Data paneled by Bernie Markstein, US chief economist at Reed Construction Data; Kermit Baker, chief economist at the American Institute of Architects (AIA); and Ken Simonson, chief economist at Associated General Contractors of America (AGC). The […]
The following article published April 13, is one that we would normally just provide to our Premium Level members. We thought that those who have Executive level and Monthly membership would be interested in some of the detail we are providing our Premium Level members. If you have questions about Premium Level membership please feel […]
Castrip has advised Steel Market Update that a new flat rolled mill using Castrip technology will be built in North America by an EAF mill other than Nucor. Castrip LLC has signed a license agreement to build and operate a plant utilizing a Castrip thin-strip casting process for an unnamed North American steelmaker. The facility […]
This story was one of the popular points of discussion at the recent Metals Industry Dinner held in Chicago on May 1, 2014. Castrip has advised Steel Market Update that a new flat rolled mill using Castrip technology will be built in North America by an EAF mill other than Nucor. Castrip LLC has signed […]
The Institute of Supply Management released their April report on May 1st. The April PMI registered 54.9 percent up from 53.7 percent in March. Any number >50 indicates expansion and this was the eleventh straight month for which this was the case. The three month moving average (3MMA), which had declined for the last three […]
Mill Steel Co, a flat rolled steel service center company in Grand Rapids, Michigan, is investing $16.2 million in the purchase, opening and expansion of operations in Jeffersonville, Indiana, at the Port of Indiana-Jeffersonville. The existing 105,000 square foot facility will be expanded to 225,000 square feet and will house two state-of-the-art slitting lines in […]
One of the products which is provided to our Premium Level members only is our Key Market Indicators. Our KMI analysis is showing an improving (more positives than negatives) situation, especially in the flat rolled steel markets. An explanation of the Key Indicators concept is given at the end of this piece for those readers […]
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 […]
Caterpillar reported that, excluding restructuring costs, earnings were flat in first quarter compared to first quarter 2013. Sales and revenues totaled $13.241 billion. North American sales for Machinery, Energy & Transportation were up 16 percent year over year to $5,219 million in the first quarter of 2014. Construction industry sales were up 36 percent to […]
For our plate customers, SSAB announced a $40 per ton plate price increase effective immediately. We will see if it sticks in the marketplace. We have a couple of minor bugs and tweaks we are working out of our systems and then we will release our Managing Price Risk II: Strategies & Execution workshop for […]
Light vehicle sales in the US rebounded strongly in March as the weather improved in the North and automakers increased incentives to reduce excess inventory. Light vehicles are cars and light trucks (GVW Classes 1-3, under 14,001 lbs.). The sales rate increased to 16.4 million units from 15.4 million units in February. The increase in […]
Business conditions will remain steady for the next three months said metalforming companies in the April 2014 Precision Metalforming Association (PMA) Business Conditions Report. Of those surveyed, 36 percent predict economic activity will improve while 56 percent say it will remain unchanged. Almost no change was expected for incoming orders in the April survey, with […]
Chinese statistical data is always questioned for a number of reasons, not least is, “Is the data politically motivated.” Other suspicions arise because China gets their data out faster than any other major economy and the data is never revised. However at SMU we believe that in spite of these concerns what we have is […]
Steel Market Update (SMU) conducted our mid-April steel market survey this past week. Early in the survey process we approached a subject that we know is near and dear to those within the steel industry – where do our respondents see demand for their products. What we found is a clear sign of improving demand. […]
All of the steel indices followed by Steel Market Update saw flat rolled steel prices increase this past week. Benchmark hot rolled coil saw the spread between the indices shrink while the average HR price increased by $17 per ton. Cold rolled was one item where the price spread increased across the various steel indexes […]
Will 2014 be a breakthrough year for construction? That was the premise of a webinar presented by Reed Construction Data paneled by Bernie Markstein, US chief economist at Reed Construction Data; Kermit Baker, chief economist at the American Institute of Architects (AIA); and Ken Simonson, chief economist at Associated General Contractors of America (AGC). The […]
Steel Market Update (SMU) Steel Buyers Sentiment Index reached new highs this week. Buyers and sellers of flat rolled steel were the most optimistic we have seen since SMU first began measuring Sentiment in October 2008. Our Sentiment Index was measured at +58 which is up 15 points since early April and exceeded the previous […]