US manufacturing activity expanded in July, but at a slightly slower pace compared to the month prior, according to the Institute for Supply Management (ISM). Indices for new orders, production, employment, supplier deliveries and prices all contracted in the month of July. July’s Manufacturing PMI fell to 52.8%, down 0.2 percentage-points compared to June’s reading. […]
O’Neal Steel recently announced a $2.6 million investment that will expand its Birmingham headquarters with a new flat laser and press brake. After working closely with the Birmingham Business Alliance, O’Neal received abatements on non-educational sales and property taxes for the manufacturing machinery. A representative for the City of Birmingham stated that O’Neal has had […]
Two major pieces of legislation were in the news this week. On the merits, both are scaled back substantially from earlier versions. But they are still major initiatives. The first has gone to President Biden for his signature, which is certain. That is the Chips for America Act, legislation that will provide substantial subsidies to […]
Monthly Key Market Indicators (KMI) fell through June and into July, while steel buyer sentiment tumbled to a two-year low, according to the latest analysis by Steel Market Update. Negative and neutral indicators have increased, while positive indicators have collapsed. Present headwinds are notable. Consumers and businesses have pulled back on spending, and rising inflation […]
New orders for US manufactured durable goods rose unexpectedly in June after a surprising increase the month prior. June’s gain was boosted by a surge in defense aircraft as well as a sustained demand for equipment. Last month’s bookings for durable goods were up 1.9% following a 0.8% gain a month earlier, according to the Commerce Department. […]
American Honda Motor Co., Honda’s North American subsidiary, has paused some production at three assembly plants this week because of the ongoing parts and microchip shortages, a company spokesperson told Steel Market Update (SMU). Honda’s Greensburg, Ind., assembly plant, Marysville Auto Plant Line 1 in Ohio, and Honda Canada Manufacturing Plant Line 2 in Alliston, […]
Steel pipe producer Tenaris has joined the Steel Manufacturers Association, the US industry trade association representing electric arc furnace producers. Additionally, Luca Zanotti, president of Tenaris’ US operations, is joining the SMA’s board of directors. “Our company is committed to supporting low emissions steelmaking with an agenda rooted in sound public policy, a strong safety […]
Although pricing continues to fall, there is a sense of cautious optimism within the HVAC realm. During this month’s call with HARDI’s Sheet Metal/Air Handling Council, many members shared the same sentiment: prices and demand are dropping. But there are open orders that still need to be satisfied. An HVAC company in the West said […]
Austal USA has been contracted to build two more towing, salvage, and rescue ships (T-ATS) for the US Navy. The latest contract for the Mobile, Ala.-based shipbuilder, valued at $156 million, is in addition to two other T-ATS contracts awarded to the company last year. The T-ATSs support the Navy fleet operations with ocean-going tug, […]
The SMU Steel Buyers Sentiment Index collapsed last week to the lowest reading we have had since the early days of the pandemic. Current Sentiment, which is how companies feel about their ability to be successful in the current market environment, came in at +43 compared to the +60 recorded just two weeks ago. The […]
We have seen a flurry of activity as we begin the countdown to the start of the 2022 SMU Steel Summit Conference, which will be held at the Georgia International Convention Center on August 22-24. I want to commend Jill Waldman and our events team for the work they have done to date, and for […]
Producer prices rose moderately in June, maintaining a sustained 27-month growth run. Last month the headline index grew by just 3.3%, seasonally adjusted, but was up 23.4% compared to the same year-ago period, the US Labor Department reported. The wholesale level was hit hard by inflation as well in June. The producer price index (PPI), […]
Cleveland-Cliffs Inc. saw strong profit in the second quarter and double free cash flow versus the prior quarter while predicting that even better days were ahead thanks to fixed-price contracts resetting at higher numbers. That projection comes largely because automakers, which typically buy steel on contract terms, are seeing backlogs grow because of supply chain […]
Leaders of the American steel industry gathered with members of the Congressional Steel Caucus on Wednesday in Washington, to discuss the state of the industry and how Congress can continue to support this critically important sector of the economy. Topics of discussion at the Caucus hearing included building and supporting critical supply chains and domestic manufacturing, […]
The ongoing chip shortage continues to impact Toyota Motor North America’s production rates, and now the company is facing additional issues from a potential energy crisis impacting the state of Texas. Extreme hot weather is driving record power demand, putting pressure on the state’s electric grid. Recall that in February 2021, snow, ice, and record-low […]
The US economy has expanded at a modest pace since mid-May, the Federal Reserve said in its latest Beige Book report. But while the economy continues to grow, it has been exhibiting signs of a slowdown over the past month. And recession concerns are rising, the report said. The latest temperature check by the Fed on […]
Business activity in the state of New York saw a modest increase in July, following a sideways move the month prior, according to the Empire State Manufacturing Survey. The New York Fed’s Empire State headline general business conditions index – a gauge of manufacturing activity in the state – rose 12.3 points in July to […]
Startup company Altex Tube LLC is setting up shop on the campus of Steel Dynamics Inc.’s flatrolled sheet mill in Columbus, Miss. Altex’s new, $100 million HSS and mechanical tube mill will manufacture black and pre-galvanized steel tubing ranging in size from 1–6 inches square and 1.25–7.625 inches round, up to 48 feet in length […]
I’ve been writing a lot lately about steel prices going down. It’s hard at a certain point to find a new way to write about the same thing. So let’s talk about logistics, heat waves, and electricity for a little bit. First, I want to draw your attention to our Community Chat earlier this week […]
We are now 38 days away from the start of the 2022 SMU Steel Summit Conference. Registrations are now approaching 900 attendees and we still expect another 200+ executives to register over the next five weeks. If you have not yet registered, you can do so by clicking here. The following companies registered for the […]
We are now 38 days away from the start of the 2022 SMU Steel Summit Conference. Registrations are now approaching 900 attendees and we still expect another 200+ executives to register over the next five weeks. The following companies registered for the conference over the past few days (those with an * mean more than […]
With markets becoming more regional and localized, having a solid supply chain is critical in business today, and Majestic Steel’s latest acquisitions are helping the company create just that for its current and future customers. Majestic, a Cleveland-based prime flat-rolled steel service center and processor, has just completed the acquisition of two more companies to […]
Combining its recent acquisitions in pallet rack manufacturing and manufacturing and integration services, Charlotte, N.C.-based steelmaker Nucor Corp. has launched its newest division, Nucor Warehouse Systems. In August 2021, Nucor purchased Hannibal Industries, a national provider of steel racking solutions headquartered in Los Angeles, for $370 million. In April of this year, Nucor added Elite […]
Steel Market Update sources reported ferrous scrap prices fell significantly in July, the third consecutive month of declines since peaking in March and April. Prime grades declined as much as $150 per gross ton, while obsolete grades decreased $30-50 per ton. Scrap prices are now in line with levels seen in the first two months […]
Data on US industrial production, capacity utilization, orders and inventories continued to improve through the first half of 2022, indicating a strengthening manufacturing sector. The health of the manufacturing economy has a direct bearing on the health of the steel industry. The Industrial Production (IP) Index The IP index is a gauge of output from […]
I promised there would be more “Final Thoughts” from me before I retire. Today, I am going to write about conversations I had with steel buyers late last week about the market. But first, a couple of key reminders that are important (at least to me): • SMU Steel Summit Conference = 43 days (Aug. […]
The US economy added 372,000 new jobs in June, while the unemployment rate held unchanged at 3.6%, and the labor force shrank by 353,000 people, according to the Labor Department. Hiring last month slowed only slightly, and the US job market remains resilient despite high inflation and waning economic growth. Job gains have slowed since […]
Luxembourg-based steel tube producer Tenaris SA is set to purchase Benteler Steel & Tube Manufacturing Corp. from Benteler North America Corp. in a deal valued at $460 million. Benteler Steel & Tube is a seamless pipe producer with production facility in Shreveport, La., that has annual capacity of 400,000 metric tons. The acquisition, which is subject […]
US construction spending in May totaled $1.780 trillion at a seasonally adjusted annual rate, 0.1% below April’s upwardly revised $1.783 trillion. This is the first drop since September 2021. The surprising decline month-on-month (MoM) came as a drop in public spending dragged on stalling single-family homebuilding, the Commerce Department reported. The construction spending decline in […]
The US labor market added 372,000 jobs in June, an unexpected boost in hiring. It was ahead of most expectations and only slightly down from May’s revised 384,000 additional payrolls. The result kept the unemployment rate unchanged month on month (MoM) at the pandemic-era low of 3.6%, the Bureau of Labor Statistics reported. Payroll gains […]