Business activity in the state of New York saw a sharp decline in August, a complete reversal from the modest increase 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—plummeted by 42.2 points in August to […]
Domestic steel groups are supportive of some portions of the recently passed Inflation Reduction Act. The bill is meant not only to make a down payment on deficit reduction to fight inflation but to also invest in domestic energy production and manufacturing. It in addition aims to reduce carbon emissions by 40% by 2030, allow for […]
North Star BlueScope is “substantially complete” with a $700 million expansion that will provide the Delta, Ohio, EAF sheet mill with additional annual capacity of nearly 950,000 short tons (850,000 metric tonnes). The mill produced the first coil from its expansion in June and has begun the 18-month process of ramping up the facility to […]
We had a big development this week with London-listed Russian steelmaker Evraz Plc announcing plans to sell its North American operations. A move like this has been rumored for some time. We’ve heard versions of it going back to Russia’s full-scale invasion of Ukraine in late February. Still, it was something of a shock to […]
The prices contractors pay for construction materials and services – chiefly for new nonresidential construction – fell 1.3% month-on-month (MoM) in July, while contractors’ bid prices rose 5.4%, the Associated General Contractors of America (AGC) reported in its latest analysis of government data. AGC noted that despite the MoM decline, materials prices remain high and […]
We are now 11 days away from the start of the 2022 SMU Steel Summit Conference at the Georgia International Convention Center in Atlanta. As of Wednesday, we had 1,174 registered attendees from all over the world. This year’s conference will be the largest one ever conducted by Steel Market Update, and it will be […]
United States Trade Representative Katherine Tai addressed the 2022 United Steelworkers (USW) Constitutional Convention on Wednesday, Aug. 10. The USW Constitutional Convention is a meeting of delegates from local unions, representing steelworkers from around North America and allowing them to discuss and vote on a variety of topics. Upwards of 5,000 delegates were in attendance, according […]
The S&P Global US manufacturing PMI—another measure of manufacturing—fell to 52.2 in July, its lowest level in two years, as output and new orders decreased last month. July’s results are down slightly from 52.7 in June, as US manufacturers report the toughest business conditions since 2009. (Recall that a reading above 50.0 indicates growth.) The […]
While steel service centers remain cautiously optimistic on their demand outlooks for the remainder of the year, most agree that the environment for mergers and acquisitions remains quite strong. This is according to executives from Reliance Steel & Aluminum, Ryerson, and Olympic Steel—some of the industry’s top players—speaking on their recent and respective second quarter […]
US construction spending in June totaled $1.762 trillion at a seasonally adjusted annual rate, 1.1% below May’s upwardly revised estimate of $1.782 trillion. Though down for the second straight month, this is only the second drop since September 2021, according to data from the Commerce Department. The decline came as outlays on single-family homebuilding declined […]
The US labor market added 582,000 jobs in July, a surprising boost in hiring and more than doubling what forecasters had projected. The economy has now regained all jobs lost during the pandemic. The result pushed the unemployment rate down to 3.5%, matching the pre-pandemic low, the Bureau of Labor Statistics reported. The July jobless […]
The US economy added 528,000 new jobs in July despite downbeat expectations, nearly doubling earlier estimates, according to data from the US Department of Labor. Hiring last month was far better than expected, defying multiple other signs that the economic recovery is losing steam. The unemployment rate declined to 3.5%, now back to its pre-pandemic […]
The US International Trade Commission (ITC) recently conducted hearings on the future of the Section 232 tariffs on steel and aluminum as well as on the Section 301 tariffs on imports from China. Congress mandated the ITC investigation in response to calls for the tariffs to be reduced or eliminated to fight inflation. Unlike the […]
Strong OCTG pricing and demand is driving higher sales for global pipemaker Tenaris. The Luxembourg-based company reported $2.8 billion in sales during the second quarter—an 18% rise from the previous quarter and an 83% jump from Q2 2021. Q2 net income also rose 18% sequentially and showed growth of 118% year-on-year to reach $634 million. […]
Our events team has informed me that registrations for the 2022 SMU Steel Summit Conference have already eclipsed last year, and we are well on our way to having record attendance. We are passing through 1,100 registered executives, and we still have slightly more than two weeks to go. A couple of quick notes before […]
While Evraz plc’s earnings results in the first half of the year were negatively impacted by geopolitical tensions and resulting operational challenges, the company’s North American operations recorded a solid performance. The Russian steelmaker made no mention of Russian forces invading Ukraine in February in its H1 financial results, citing only “geopolitical tensions, mounting economic […]
UPG Enterprises LLC announced its acquisition of Orchid Monroe LLC, a manufacturer of electrical steel laminations, electric motors and generator cores, and lamination tooling. Wisconsin-based Orchid’s additional capabilities include engineering, prototyping, tool design and building, steel slitting, high speed lamination stamping, and annealing. Jeffrey Dwyer, CEO of UPG, stated, “Today’s announcement is another step in UPG’s […]
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 […]