Steel prices continued to climb in October as demand rose further on hot rolled, cold rolled and galvanized products. Steel Market Update’s hot rolled price index averaged $665 per ton in October, up nearly $100 over the previous month and up over $200 compared to August. The SMU Pricing Momentum Indicator remained at Higher, indicating […]
By CRU Principal Analyst James Campbell, from CRU’s Long Products Monitor Most long product prices around the world increased this month as the recovery in demand continues. For some markets and products, the increase in supply has been outpaced by demand. Wire rod remains the strongest product right now as the increase in construction activity […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor Lack of supply and higher demand is causing sheet prices to diverge further from plate across regions, with U.S. sheet prices reaching their highest level since April 2019 this week. New lockdown announcements have not had an impact on the European market at this point, […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor The global sheet market has seen a few key trends emerge across a variety of regions. First, demand has continued to rise from the pandemic-related lows recorded earlier this year. While sheet demand continues to be driven by sequential increases in automotive demand, […]
By CRU Analyst Estelle Tran, from CRU’s Global Steel Trade Service The U.S. market is at a unique point where steel buyers could be convinced to buy imports because of extreme supply tightness. With about 7Mt of blast furnace capacity remaining idled in the U.S. and Canada, sheet mills in operation are effectively running at […]
By CRU Principal Analyst James Campbell, from CRU’s Global Steel Trade Service The recent acceleration in news of a pre-approved vaccine has led us to bring forward the economic recovery to the first half of 2021. Confidence has returned and spending is resuming. An earlier-than-expected vaccine provides upside risks to our automotive and construction outlook. […]
By CRU Senior Analyst Helen O’Cleary, from CRU’s Steel Sheet Products Monitor The impact of Covid-19 restrictions on global manufacturing this year has led to the loss of ~ 700,000 t of refined zinc demand compared to our pre-Covid-19 forecasts. Smelter output has been far less impacted, despite mine supply losses, and this has led […]
By CRU Chief Economist Jumana Saleheen and Principal Economist Alex Tuckett, from CRU’s Steel Monitor In this Global Economic Outlook, we look ahead to 2021 and outline our top ten calls for the global economy. These include predictions on Covid-19 vaccines, world growth, the auto and construction sectors, the U.S. dollar, monetary and fiscal policy, […]
The ISM Manufacturing PMI exceeded expectations in October posting a score of 59.3 percent, a 3.9 percent increase from September and indicating factory growth for the fifth consecutive month. “The manufacturing economy continued its recovery in October,” said Timothy Fiore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee. “Survey committee members reported that […]
The J.P. Morgan Global Manufacturing PMI reached a 29-month high in October, posting a score of 53.0. Manufacturing output expanded across consumer, intermediate and investment goods industries with the weakest sector consumer goods. Twenty of 26 countries in the survey saw manufacturing activity increase, however activity in Japan, Greece, Malaysia, Indonesia and Russia contracted last […]
Residential construction spending continues to lead nonresidential by a wide gap, said the Associated General Contractors of America. Total construction spending in September increased 0.3 percent from August to a seasonally adjusted annual rate of $1.41 trillion. Private and public nonresidential spending fell 1.6 percent from August and 4.4 percent from a year ago. In […]
Construction is slowing, but still has positive growth driven by state and local building and infrastructure expenditures. Privately funded work is contracting. In September, construction expenditures reached an all-time high and on a three-month moving average (3MMA) basis were only slightly lower than April 2020. Steel Market Update analyzes the Commerce Department’s Construction Put in […]
Canadian steel processor Nova Steel plans to open a new tube manufacturing plant in Bowling Green, Ky. The $70 million project was announced Thursday and includes an initial investment of more than $20 million for the acquisition of a 108,000-square-foot building in the Kentucky Transpark and the purchase and installation of equipment. The plant will […]
When I look at the results of our flat rolled survey, sometimes I have to scratch my head. In the survey we just completed last week, we asked at what point hot rolled prices would peak. Sixty-two percent of our respondents believe prices will peak at $700 or lower. To them I ask, what is […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled The latest hot roll production data shows that recent year-on-year figures are off by roughly 20 percent due mainly to […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled In spite of the rapidly spreading Covid virus and some market concern about its potential impact on manufacturing operations, not […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: This campaign, like all others, is about many issues. The economy, though, is clearly the most powerful message of the Trump campaign. Over the last century or so, where does the Trump economy rank? There are many different […]
Orders for durable goods increased for the fifth straight month, up 1.9 percent to $237.1 billion and surpassing expectations. Transportation orders led the increase with a 4.1 percent gain. Automotive orders rose 1.5 percent in September on continued strong sales for SUV’s and light trucks. The commercial airline industry, showing losses through the pandemic, had […]
We had a good conference call with HARDI wholesalers this morning. The dealers who service the mechanical contractors with galvanized sheet and coils continue to be busy. They are surprised at the steepness of the cost curve, and they are beginning to be wary of paying too high a price. One reason they are wary is […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: This campaign, like all others, is about many issues. The economy, though, is clearly the most powerful message of the Trump campaign. Over the last century or so, where does the Trump economy rank? There are many different […]
The return of automotive manufacturing after closures due to the pandemic boosted demand for Cleveland-Cliffs’ products and resulted in revenue of $1.6 billion and net income of $2 million for the third quarter of 2020. “We were significantly affected in Q2 by the unprecedented shutdowns that took place throughout the entire auto sector for an […]
The agriculture market in the Midwest is on course for a profitable year despite the historic pandemic and a historic storm earlier this summer. Farmers are in the fields more than halfway done with a successful harvest. Grain prices are decent and, combined with government subsidies, “it sounds like net farm income is going to […]
Economic activity grew at a slight to modest pace in early October with inconsistency among sectors, says the Federal Reserve’s latest Beige Book. Manufacturing activity growth was moderate and the sector added jobs across the country. Demand for new and existing homes kept residential construction robust, but interest in commercial real estate leasing deteriorated. Construction […]
Nucor reported better than expected results for the third quarter of 2020. The company’s bar and structural mills led earnings, benefiting from a good nonresidential construction market. Joist and deck orders, quotes and backlogs are up year-over year with strong demand from nonresidential, including data and distribution center construction, company executives told investors and analysts […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
Schnitzer Steel, a metals recycler and steel manufacturer, maintained operations throughout the pandemic, navigating though low scrap supply and falling demand and emerging optimistic about the year ahead. “These past seven months have been challenging for all of us,” said Chairman and CEO Tamara Lundgren of Schnitzer Steel. “We have been confronted with cascading crises, […]
ESG (Environmental, Social and Governance) and decarbonization are big concerns for corporate investors in the metals and mining sector, according to a recent survey by CRU. How prepared are global corporations to take on the changes needed to reach zero emissions? China is a leader in decarbonization, announcing in September a target of net zero emissions […]
With early voting underway, record breaking mail-in ballots, and a final voting date a mere 14 days away, it is safe to say that much is riding on the upcoming U.S. presidential election. With two candidates who share little common ground in a bitter election battle, it’s clear that a shift in presidential administration will […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of financial market trading experience and has been active in the ferrous futures space for eight years. David earned an MBA from the University of Chicago Booth School of Business with concentrations in economics, statistics and analytical finance. […]