New orders, production and employment grew in October, while supplier deliveries slowed at faster rate and backlogs lengthened further, said the Institute for Supply Management in its latest Manufacturing ISM Report on Business. The Manufacturing PMI fell for the third straight month in October, down 0.3 percentage points to 60.8% in October, but still indicating […]
Total construction spending declined in September for the first time since February, as both residential and nonresidential construction slipped, according to a new analysis of federal construction spending data by the Associated General Contractors of America. AGC continues to lobby for the House to complete work on the bipartisan infrastructure bill that the Senate passed […]
It goes without saying, the steel industry is in a dynamic, volatile market and the only thing that is certain is the volatility will continue as we move into calendar year 2022. It is not just price we need to watch over the coming months. There are many moving pieces to this puzzle. The agreement […]
It goes without saying, the steel industry is in a dynamic, volatile market and the only thing that is certain is the volatility will continue as we move into calendar year 2022. It is not just price we need to watch over the coming months. There are many moving pieces to this puzzle. The agreement […]
“Business is great! Why is Steel Market Update always spreading so much gloom and doom about falling steel prices?” That’s not an actual quote, but we hear comments to that effect nearly every week. As if folks believe it will be a self-fulfilling prophecy. Of course, if prices decline, it won’t be because of some […]
This year’s third quarter was the best quarter on record for Reliance Steel & Aluminum Co., the nation’s largest service center organization. Reliance reported gross profit of $1.21 billion on sales of $3.85 billion in Q3. “Our resilient business model, favorable metal pricing trends and excellent execution combined to produce another quarter of record-setting financial […]
Allegheny Technologies Inc. (ATI) reported profitability for the first time since Q1 2020, three months ahead of schedule, company executives said on Thursday’s earnings call. The third-quarter net income of $48.7 million – up 35% against second-quarter results – was fueled by an improving aerospace market and a post-strike accelerated recovery. ATI said that production […]
I thought I’d be writing today that Steel Market Update had switched all its steel pricing momentum indicators to lower. But what you think should happen and what reality serves up are sometimes very different things. Hot-rolled coil prices continued to fall – they’re down $25 per ton compared to last week. That’s not a surprise. […]
Distributors who sell galvanized steel products to the construction and HVAC sectors report a slight softening in demand at the same time that competition is firming up and prices are looking down. Market conditions overall are still favorable, reported members of the Heating, Air-Conditioning & Refrigeration Distributors International during HARDI’s monthly conference call today, but […]
Cleveland-Cliffs Inc.’s earnings skyrocketed higher in the third quarter, and the steelmaker predicted that higher priced contract deals would protect it from any slip in spot prices in future quarters. The Cleveland-based steelmaker recorded net income of $1.28 billion in the third quarter of 2021, up from a mere $2 million in the same quarter […]
The U.S. economy expanded at a modest to moderate rate from late August to early October, said the Federal Reserve in its latest Beige Book report. Overall growth was curbed, though, due to supply chain disruptions, labor shortages and uncertainty around the surging Delta variant. Consumers spent more dollars in travel and tourism activity once again, […]
Steel Dynamics’ President and CEO Mark Millett expects “transformational change” from SDI’s new electric arc furnace mill nearing completion in Sinton, Texas. “We are not simply adding flat rolled steel production capacity. We have a differentiated product offering, a unique regional supply chain solution, a significant geographic lead time advantage and offer a sustainable alternative […]
Manufacturing growth in the state of New York grew at a noticeably lower rate in October compared to September, according to the Empire State Manufacturing Survey. The headline general business conditions index fell nearly 15 points to 19.8 during the month. After climbing by 16 points in September, the headline index nearly lost all the […]
General Motors Co. will extend production downtime at its Orion Assembly through the end of the month, a company spokesperson confirmed to Steel Market Update. The automaker’s Lake Orion, Mich., assembly plant, down since Aug. 23 due to the semiconductor scarcity, will extend its downtime to include the weeks of Oct. 18 and Oct. 25. […]
Monthly Key Market Indicators, as analysed by Steel Market Update, softened again in the past month. A typical summer slowdown followed by a surge in COVID variant cases, compounded by a lackluster job market, reflects an uneasy economic landscape. Consumer confidence has dwindled, highlighted by decreases in key indicators across the marketplace. SMU’s Key Market Indicators […]
Producer prices posted the smallest advance year-to-date in September, according to data released by the Labor Department. Despite supply chain snarls and shortages that have driven up manufacturing and shipping costs, the negligible expansion kept the historic climb for the index and subcategories for final demand going. Since the fall in early 2020, the composite […]
By Trade Attorney Lewis Leibowitz I used to love a PBS show called Connections. The title is still around, and I recall an episode years ago that explored the Space Shuttle. Thousands of “connections” were necessary before the spacecraft became a reality: chemistries to make substances capable of withstanding re-entry temperatures, power systems for rockets, […]
Global steel demand will grow by 4.5% in 2021 and reach 1.855 billion metric tons following a 0.1% growth the year prior, according to World Steel Association’s (worldsteel) October 2021 Short-Range Outlook (SRO). An additional increase of 2.2% to 1.896 billion metric tons in 2022 is forecast for steel demand worldwide. The current forecast assumes […]
Steel Dynamics Inc. (SDI) has agreed to acquire a minority equity interest in New Process Steel – its largest flat roll customer – growing the steelmaker’s holdings in manufacturing and distribution. Terms of the transaction were not disclosed. “We have enjoyed a strong customer relationship with New Process since our founding,” SDI Chairman and CEO Mark […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Sheet Products Monitor Steel sheet price declines continue in the USA and Europe as lead times shorten further and inventories build. In the former market, small transactions are occurring at levels above $1,900 /s.ton, but there are many more deals occurring at well below this level. As […]
Commercial Metals Company (CMC) posted record-breaking earnings from continuing operations of $152.3 million on net sales of $2.0 billion in the fourth quarter of FY 2021, exceeding the previous record posted the prior quarter by more than $22 million. For the full year, CMC’s earnings from continuing operations totaled $412.9 million, the best results in […]
Sentiment among steel buyers tends to mirror steel prices. The higher the steel price, the higher the spirits of service center and manufacturing executives and the more optimistic they feel about their prospects. Steel Market Update data shows that the record-high steel prices of the past year have begun to moderate. But Steel Buyers Sentiment […]
Flat rolled and plate steel prices were flat to down slightly this week with the exception of a small increase in cold rolled, according to Steel Market Update’s check of the market on Monday and Tuesday. The small ups and downs in steel prices over the past month are in line with most buyers’ expectations […]
As I bounce around the market this week talking to steel buyers, I am trying to get a better feel for potential changes, how contract negotiations are going, how receptive end-user customers are toward the higher prices being offered (compared to one year ago), and what kind of foreign steel offers are out there. The […]
As “the next precious metal,” prime scrap is a growth opportunity and a logical fit for Cleveland-Cliffs, which announced Monday that it plans to acquire Detroit-based Ferrous Processing and Trading Co. (FPT). The $775-million deal, Cliffs’ first foray into scrap, comes as no big surprise to most market observers. Cleveland-Cliffs is the largest producer of […]
September saw the worst monthly performance for the U.S. labor market since January, according to the U.S. Bureau of Labor Statistics’ (BLS) job report. The latest data showed the economy created a stingy 194,000 new jobs in September to mark the second disappointing monthly increase in a row. The sharp dive from the 1.091 million positions […]
U.S. job creation came up short again in September with just 194,000 added, marking the second disappointing monthly increase in a row. U.S. economic growth continued to decelerate in September on COVID concerns, driving hiring to its slowest pace since January. Surprisingly, the unemployment rate dropped to its lowest level since February 2020, down 0.3 […]
By Trade Attorney Lewis Leibowitz A reader turned me on to a recent column by former U.S. Trade Representative Robert Lighthizer. I have known Ambassador Lighthizer for quite a few years now. He is smart and an able advocate. But that does not mean we see eye to eye. The column, which appeared in the […]
Olympic Steel Inc.’s sale of its Detroit location to Venture Steel and its subsequent acquisition of Shaw Stainless & Alloys marked the latest step in a years’ long effort to pivot from roots in Midwestern carbon flat-rolled steel markets, the company’s top executive said. The Cleveland-based service center – while by no means exiting the region – […]
Olympic Steel Inc.’s sale of its Detroit location to Venture Steel and its subsequent acquisition of Shaw Stainless & Alloys marked the latest step in a years’ long effort to pivot from roots in Midwestern carbon flat-rolled steel markets, the company’s top executive said. The Cleveland-based service center – while by no means exiting the region – […]