The March Empire State Manufacturing Survey rose slightly to 5.61 from 4.48 in February, below economist expectations of 6.0 to 7.0. New orders increased to 3.13 after contracting to -0.21 last month. Shipments rose to 3.97, up from 2.13 in February. Inventories increased during the month evidenced by an index reading of 7.06 compared to […]
Canadian manufacturing sales took its largest jump since February 2013, rising 1.5 percent to $50.4 billion. (Note all dollar amounts are Canadian: 1 Canadian dollar = $.90 US dollar.) Sales were up in 45 percent of the manufacturing sectors in January with primary metal sales leading the gains. Sales for primary metals jumped 8 percent […]
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 February results. These statistics are a useful way to evaluate any changes in the competitive position of steel against competing materials. See below for the official description […]
After a shake in confidence last month, metalforming companies are once again optimistic that business conditions will improve in the next three months, albeit only slightly. Metal companies surveyed in the March 2014 Precision Metalforming Association (PMA) Business Conditions Report, however, are anticipating new orders to fall slightly during that same period. Current average daily […]
I once asked a friend, who works for a large steel mill, how many different grades of steel they produced – he estimated the number at 1,000! On top of that, each grade can come in any gauge, any width and many may be coated. Mills make an almost unlimited number of different individual types […]
Steel Market Update has been aware for awhile that at least one, and probably more than one, domestic steel mill has been trying to convince the rest of the industry to support dumping suits on coated products. This would most likely include galvanized and Galvalume steels. The countries being mentioned include China, India, Taiwan and […]
The rumor mill has been buzzing for a number of months about the potential for flat rolled steel dumping suits on galvanized and Galvalume steels. The focus of attention seems to be on China, India, Taiwan and South Korea as being the major offenders. However, Steel Market Update, which has a long background in coated […]
One of our readers sent me an article produced by another steel-related publication about the state of Kentucky offering financial incentives to AK Steel. The Kentucky Industrial Revitalization Act is being extended with one of the hopes that AK Steel will use the incentives to help reline the Ashland blast furnace. The question asked by […]
Key Banc recently published its report entitled “The Industrial Cycle: Monthly Update on Key End Markets.” The following is a summary of findings from report that SMU readers may find interesting. Key Banc says the outlook for industrial activity remains positive for 2014. After a dismal performance in January affected by weather conditions, activity rebounded […]
For our Premium Level members – we should have a special Premium Supplemental newsletter for you by Wednesday afternoon. In it will be an article on currency values and changes and their impact on the market as well as our imports by product, port and country. We will be including slabs in our import by […]
Steel Market Update saw the percentage of manufacturing companies reporting steel service center flat rolled steel spot prices as declining increase from 20 percent in early February to 54 percent at the beginning of March. This past week Steel Market Update (SMU) conducted our early March analysis of the flat rolled steel markets. This is […]
The Bureau of Labor Statistics (BLS) report on non-farm employment beat the consensus expectation of a 150,000 gain in February by showing a net gain of 175,000 jobs. The three month moving average (3MMA) of the net gain has slowed for three consecutive months but the growth trajectory is still on track for a full […]
In an earlier article I talked about price risk in steel and several strategies to hedge that risk. Another, perhaps more important, steel buyer risk is continuity of supply. Steel making is a difficult and dangerous activity, and a global one. Unfortunately suppliers often make (and don’t catch) unusable product. Also, every year there seems […]
On Monday of this week, Steel Market Update (SMU) began our early March flat rolled steel market analysis. We sent invitations to just under 600 companies associated with the industry. Of the companies responding 44 percent were manufacturing companies (end users), 40 percent were steel service centers/wholesalers (distributors), trading companies represented 6 percent of the […]
Buyers and sellers of flat rolled steel continue to be optimistic regarding business prospects both in the current market environment as well as looking out 3 to 6 months into the future. Even so, our index was 2 points lower than the +39 measured during the middle of February and at +37 is the lowest […]
On Monday of this week Steel Market Update sent invitations to just under 600 companies to participate in our flat rolled steel market survey. The respondents to our survey consist of manufacturing companies (44 percent of the respondents), service centers/wholesalers (41 percent) and trading companies (6 percent), with the balance being steel mills, toll processors […]
Steel buyers report a softening in new orders in the latest Institute for Supply Management (ISM) Steel Buyer’s Survey. Those who expect orders to increase over the next three months dropped to 27.3 from 42.9 percent in January, 18 percent expect orders to decline, and 54.5 percent expect levels to remain the same. Current incoming […]
Manufacturing activity expanded more than expected in February after a weather related drop last month. The Institute for Supply Management (ISM) Manufacturing PMI registered 53.2 percent, up from 51.3 percent in January. A reading above 50 indicates the manufacturing economy is growing, a reading below 50 indicates contraction. The new orders index rose 3.3 points […]
Global manufacturing activity showed steady improvement during February. The JP Morgan Global Manufacturing PMI rose to 53.3 in February, inching up from 53.0 in January. Manufacturing output remained steady in February while new orders grew at a faster rate. Employment levels were higher in much of the world with staffing cuts reported in China, Russia and […]
Nucor Chairman, President and CEO John Ferriola and Louisiana Governor Bobby Jindal dedicated the completed Nucor Louisiana facility in St. James Parish on Monday. The $750 million DRI plant began production in December 2013 and is Phase 1 of a potential five phase $3.4 billion project. Construction of the plant began in March 2011 at a ground […]
Steel Market Update (SMU) began collecting responses for the mid-February flat rolled steel market survey during the week of February 17th. Even with weather related issues being felt around the country, our Buyers Sentiment Index was measured at a robust +39 at that time. That result was one point lower than from our last measurement […]
The following article was written by steel industry consultant and contributor to Steel Market Update, Paul Lowrey. Mr. Lowrey owns a consulting company called Steel Research Associated, LLC which works with steel mills and large distributors or manufacturing companies involved with steel and steel products. More information about Mr. Lowrey can be found in the […]
The Empire State Manufacturing Index for general business conditions fell 8 points to 4.5 in the February 2014 Empire State Manufacturing Survey after rising 10 points in January. New orders were flat for the month, declining 11 points to -0.2. Manufacturers remained optimistic about business conditions for the next six months. The future general business […]
The following is an abridged version of the Chicago Federal Reserve statement plus our own graphical analysis. The 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 of this piece. The official statement […]
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-six. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. The present situation of […]
Olympic Steel reported a net loss of $1.4 million for the fourth quarter 2013. Net sales for the quarter were $290.5 million, nearly even with Q4 2012 sales of $291.7 million Full year results showed an increase in net income to $7.6 million. Full year sales declined 8.7 percent to $1.3 billion in 2013, shy […]
Australian company BlueScope Steel announced EBIT of AUD$48.7 million ($44 million) for its Hot Rolled Products North America segment for the first half of FY 2014 ending December 31, 2013. EBIT increased 48 percent from the same period in FY 2013. The segment includes a 50 percent interest in US-based North Star BlueScope Steel Ltd […]
Steel Market Update (SMU) conducted our mid-February flat rolled steel market survey this past week. Our surveys are by invitation only and our current invitee list consist of 586 companies. The vast majority of the individuals or companies associated with our survey have been vetted by SMU management to insure that we are working from […]
A stronger performance is expected in all end-markets for 2014 said Reliance Steel & Aluminum in the company’s recent conference call. The following are some comments by Chief Executive Officer and Chairman of the Board David Hannah and Gregg Mollins, President and Chief Operating Officer on the steel market and industry. Regarding pricing Gregg Mollins […]
Steel Market Update (SMU) began collecting responses earlier this week from the companies invited to participate in our twice monthly flat rolled steel market analysis. Even with weather related issues being felt around the country, our Buyers Sentiment Index was measured at a robust +39 this week. This result is one point lower than from […]