U.S. offshore wind energy is expected to grow rapidly, but bottlenecks in the market and a crucial lack of infrastructure mean that President Biden’s optimistic offshore wind target of 30GW by 2030 will almost certainly be missed, reports IHS Markit. Wind towers are a promising growth market for steel plate. IHS Markit expects U.S. offshore […]
The United States and the European Union aim to resolve their differences around Section 232 tariffs on the EU by Nov. 1, an EU official said. “On the U.S. Section 232, both sides confirmed readiness to find a solution by 1 November,” the EU official told Steel Market Update (SMU). “In terms of progress, both […]
New orders, production and employment grew in July despite a deceleration is supplier deliveries and growing backlogs, said the Institute for Supply Management in the July 2021 Manufacturing ISM Report on Business. The Manufacturing PMI fell 1.1 percentage points in July to 59.5%, still above 50% and indicating expansion in the overall economy for the […]
The U.S. manufacturing sector saw the most substantial improvement in operating conditions on record, according to July’s U.S. Manufacturing PMI data from IHS Markit. “July saw manufacturers and their suppliers once again struggle to meet booming demand, leading to a further record jump in both raw material and finished goods prices,” said Chris Williamson, chief […]
Construction sectors continued to diverge in June, reported the Associated General Contractors of America (AGC). Although residential construction increased month on month and when compared to the same year-ago period, nonresidential construction spending fell again. The nonresidential declines include a steep drop in spending on highway and street projects, prompting the AGC again to urge Congress […]
There are three weeks left before the start of the 2021 SMU Steel Summit Conference at 9 a.m. on Aug. 22. Even so, our virtual platform opened this morning which allows registered attendees to interact with one another directly through the platform. We have 900+ registered executives from manufacturing, steel distribution, steel mills, trading companies, toll […]
Steel prices continued to climb through the month of July, now the 11th consecutive month prices have increased. Hot-rolled steel prices increased an average of $30 per ton ($1.50 per cwt) each week, with the SMU index averaging $1,860 per ton ($93 per cwt) as of last Tuesday. The SMU Price Momentum Indicator has remained unchanged since the […]
Some experts believe short supplies and record-high steel prices are nearing a tipping point with new steelmaking capacity soon to come online and loads of imports on the water headed this way. But that’s not the prevailing sentiment among the service center and manufacturing executives who responded to SMU’s questionnaire this week. While it may […]
On Monday, Aug. 2, Steel Market Update will open the 2021 SMU Steel Summit Conference platform to all fully registered attendees. The platform, which was used to conduct last year’s conference and is being used for our virtual workshops, is replacing the App we have used in the past. Our virtual platform will enhance the conference […]
By CRU Senior Analyst Helen O’Cleary U.S. refined demand continues to impress through the traditionally slower summer months, with market contacts reporting still-strong off-take under long-term contracts into August. We hear that many consumers continue to take the higher end of their contracted metal tonnage, with some still buying additional spot quantities. A further increase […]
Orders for manufactured durable goods rose slightly in June, slowing the upward momentum seen the month prior, reported the U.S. Census Bureau. Orders for cars, appliances and other durable goods rose by 0.8% to a seasonally adjusted $257.6 billion in June, weaker than expected and much less than the 3.2% growth seen the month before. […]
2021 SMU Steel Summit Conference – Revised Agenda as of July 27, 2021 The 2021 SMU Steel Summit Conference will be held at the Georgia International Convention Center on Aug. 23-25. The convention center is conveniently located next to the Atlanta International Airport (ATL). The center and the hotels surrounding the convention center are on […]
General Motors has extended chip-related outages to assembly plants that make its highly sought-after pickup trucks. The Detroit-based automaker, the largest in the U.S., had previously tried to shield truck plants from the impacts of the semiconductor shortage. Here is the latest: • General Motor’s assembly plant in Flint, Mich., will operate on one production […]
Steel Market Update’s poll of service center and manufacturing executives this week shows a general consensus that steel prices still have a ways to go before they roll over and begin to correct. When that might happen is anyone’s guess. There are nascent indications that the tight steel supplies may be loosening a bit, however. […]
Steel Market Update’s poll of service center and manufacturing executives this week shows a general consensus that steel prices still have a ways to go before they roll over and begin to correct. When that might happen is anyone’s guess. There are nascent indications that the tight steel supplies may be loosening a bit, however. […]
Record steel prices = record profits for steel mills. And so it was record second-quarter profits all around, with even better expected in the third quarter. We’re not going to guess whether spot prices will continue upward for the balance of Q3. But contract prices, which lag spot prices, will. And that alone should be […]
Record steel prices = record profits for steel mills. And so it was record second-quarter profits all around, with even better expected in the third quarter. We’re not going to guess whether spot prices will continue upward for the balance of Q3. But contract prices, which lag spot prices, will. And that alone should be […]
This evening we published our SMU Mill Lead Times by Product analysis. I recently received a few questions on the subject: How do we gather our lead time data? Do we take into consideration the lead times being published by the individual domestic steel mills? How do we feel the information we report is indicative […]
Reliance Steel & Aluminum Co.’s sales soared to a record of $3.42 billion in the second quarter on shipments of 1.424 million tons. Sales were up 20.4% from the previous quarter and up 69.3% from the same period last year. The record-setting results for the largest service center in North America were due primarily to the […]
Cleveland-Cliffs Inc. reported the best quarterly results in the company’s history with net income of $795 million on revenues of $5.0 billion in the second quarter. That’s a huge turnaround from the pandemic-plagued quarter last year when the company lost $108 million on revenues of just $1.1 billion. “In the second quarter of 2021, we […]
Steel Dynamics Inc. (SDI) is still in growth mode and actively looking at M&A options But don’t expect another new mill on the scale of the electric-arc furnace (EAF) flat-rolled mill being built in Sinton, Texas, company executives said. The $1.9 billion Sinton mill, which will have annual capacity of three million tons per year, […]
Steel Dynamics Inc. (SDI) doesn’t see a big steel price correction in the cards because of broader – and largely unrecognized – structural shifts underway in the U.S. steel market, company executives said. Industry experts have been focused on potential negatives such as new capacity, increased imports and the removal of trade barriers. They are missing […]
Nucor has agreed to buy racking and hollow structural section (HSS) manufacturer Hannibal Industries Inc. for $370 million. “Acquiring Hannibal Industries gives us a new growth platform and broadens our offering to the fast-growing warehouse channel,” Nucor President and CEO Leon Topalian said. “This acquisition reflects our strategy of expanding beyond our core steel businesses and establishes […]
Lobbying groups for steel consumers blasted a federal appeals court’s decision to uphold former President Donald Trump’s abrupt doubling of Section 232 tariffs on Turkey to 50%. The tariffs have already led to high prices, long lead times and shortages that have hurt downstream manufacturers, and the decision regarding Turkey could set a dangerous precedent by […]
General Motors and Stellantis have extended downtime at some of their North American plants into August because of the ongoing chip shortage. The latest development means all Detroit-area “Big Three” automakers will be grappling with shortages of semiconductors and other parts into next month. Dearborn, Mich.-based Ford – the crosstown rival of GM and Stellantis […]
General Motors and Stellantis have extended downtime at some of their North American plants into August because of the ongoing chip shortage. The latest development means all Detroit-area “Big Three” automakers will be grappling with shortages of semiconductors and other parts into next month. Dearborn, Mich.-based Ford – the crosstown rival of GM and Stellantis […]
Evraz North America has broken ground on a new $500 million rail mill at its steelmaking complex in Pueblo, Colo. The expansion – expected to result in the most modern rail mill in North America – is slated to be completed in 2023, the company said. It will allow Evraz to make 300-foot rail segments that […]
Steel Market Update reported our service center inventories and shipment data to our data providers today. Our Premium level members will get the report at 1 p.m. ET tomorrow. I can whet your appetite by telling you that flat rolled inventories on a days of supply basis rose slightly, but are not yet at what […]
“It’s an absolute certainty we will have a stronger M&A market in the next couple years. There are a lot of businesses looking to buy and a lot of businesses looking to sell. There will be many more announcements of deals in the second half, especially the fourth quarter,” predicted Dan Sullivan, founder of Montrose […]
Producer prices continue to rise into the summer months showing no signs of slowing down. The index and subcategories for final demand have not only recovered from the collapse seen at the onset of COVID-19 but have now surpassed pre-pandemic levels. Since the repeated decreases from February through April of 2020, the composite Producer Price […]