Key Market Indicators show that the improvement in market trends that occurred in December continued into January. This report is designed to be a big picture summary of data SMU has reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for […]
The Chicago Business Barometer, a leading indicator of Midwest manufacturing, dropped to its lowest level since December 2014, said MNI Indicators. The PMI posted a reading of 42.9 in January following two months of gains. The three-month average dipped to 45.9. Any reading below 50 indicates contraction. New orders fell 6.1 points to 41.5 and […]
It’s Super Bowl Sunday! I will try to keep my comments short so we can all enjoy the game and worry about the steel markets in the morning. On Thursday and Friday of this past week I was in Ponte Vedra, Fla., as I was speaking to the Steel Manufacturers Association. The SMA are the […]
The recent rise in flat rolled mill spot prices have, in Steel Market Update’s opinion based on our survey analysis, been supported by a rise in service center spot prices to their end customers. However, the analysis of last week’s flat rolled and plate steel market trends survey indicates that support for higher prices has […]
Demand is looking good for the steel industry this year, especially in the construction sector, said panel members on the Steel Manufacturers Association media call today. Dave Sumoski, Nucor Executive Vice President – Merchant and Rebar Products, noted that construction is a major area for Nucor. The market for steel bar is very strong with […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations or comments […]
By Principal Analyst James Campbell, from CRU’s Steel Plate Products Market Outlook The coronavirus outbreak in Wuhan has led to Chinese New Year holidays being extended and transportation restrictions introduced in order to contain the spread of the virus. Steel demand is normally weak during this period, but production continues as usual. Every day of […]
The U.S.-Mexico-Canada-Agreement was signed into law by President Trump on Wednesday. The signing clears the way for Canada to begin the ratification process that is likely to be concluded in March. The president called the agreement the “largest, fairest, most balanced, and modern trade agreement ever achieved.” “Everybody said this was a deal that could […]
The U.S. Bank Freight Payment Index, a quarterly analysis of freight volumes and spending, fell 4.0 percent in the fourth quarter after gaining a total of 10 percent in the second and third quarters. Both volumes and spending dropped during the quarter due to weaker economic activity and impacts from the international trade market. The […]
Commerce Secretary Wilbur Ross says that tariffs on imports of autos and parts are still on the table, refuting claims that the deadline has passed to impose such measures under Section 232. After Commerce delivered its report on the national security implications of imports of foreign autos to the administration, the president had 180 days […]
Durable goods orders rose 2.4 percent in December supported by a surge in defense spending. Defense capital goods increased 90.2 percent last month primarily due to orders for defense aircraft, the Census Bureau reported. The uptick in December orders follows a sharp decline in November of 3.1 percent, revised downward from 2.1 percent. Excluding the […]
The South Central region of the U.S. created the most jobs in the fourth quarter of 2019, with the Pacific in second place, based on government employment data. Fourth-quarter regional employment data by state was released by the Bureau of Labor Statistics (BLS) on Friday. The state data follows and confirms the employment situation that […]
Tap, tap, tap… the sound of fingers drumming on a stack of blank purchase orders. Today I spoke with a group of key steel buyers and many of them are sitting and waiting. They are waiting because they have no tons to place, they are waiting because service center resale prices have not caught up […]
The trucking industry reported a “choppy” year for truck tonnage. The American Trucking Association’s advanced seasonally adjusted For-Hire Truck Tonnage Index increased for the 10th year in 2019, but at only half the gain realized in 2018. The index was up 3.3 percent compared to 6.7 percent in 2018. The SA December Index rose 4.0 […]
I have been spending time looking at market momentum, lead times (real, not from our survey), who is buying and who is not (and why), and what the market should be concentrating on over the next couple of months (not just today). I am going to start with comments I got from a couple of […]
By CRU Senior Analyst Erik Hedborg, Principal Economist Lisa Morrison, Principal Analyst Josh Spoores and Senior Analyst Ryan McKinley, from CRU’s Iron Ore Market Outlook In a recent insight series, CRU highlighted some of the challenges facing the three U.S. iron ore producers, Cleveland-Cliffs, U.S. Steel and ArcelorMittal. The location of the mines and pellet plants […]
Acknowledging that “it’s a lot easier to sell steel when the price is going up,” distributors of steel products to the HVAC sector reported strong sales in the first month of the new year despite galvanized base prices that have risen by about $130 in the past 12 weeks to the current $800 per ton. […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Based on Steel Market Update’s analysis of 10 indicators in January, the decline in U.S. manufacturing continues. This report summarizes 10 data streams that describe the state of U.S. […]
2019 was a challenge for steel suppliers, with both demand and pricing on a downward slope for the first three quarters of the year. Although it’s still early, there are signs 2020 could prove to be a better year for the steel industry. Steel mills, and the service centers that process and distribute their products, […]
The composite producer price index of commodities peaked in October 2018, then through December 2019 declined by 2.6 percent. This Steel Market Update report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of the competitive position of sheet steel, aluminum, plastic and wood. The analysis […]
The official economic statistics out of China show a decline in GDP to a level slightly lower than the depths of the global recession in 2009. China’s share of global steel production was 54.3 percent in November. Once each quarter we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed […]
The Senate voted its approval of the United States-Mexico-Canada Agreement in a sweeping 89-10 bipartisan vote on Thursday. The trade agreement now goes to President Trump for signature. The Canadian parliament is expected to follow suit, allowing the USMCA to be implemented later this year. The final agreement adds language addressing the internet, digital services and […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium-level subcription, email Info@SteelMarketUpdate.com. This month we have expanded our report on steel product downstream shipments and inventories to include total manufacturing. We are (but shouldn’t be) surprised by the result, which confirms […]
Manufacturing in New York State expanded modestly in January. The Empire State Manufacturing Survey’s general business conditions index gained 1.5 points to post 4.8 for the month. Shipments posted 8.6, down one point from December, but new orders gained 4.9 points to post 8.6. Unfilled orders continued to decline, delivery times were shorter, and inventories […]
The other day I mentioned I am open to suggestions regarding subjects to be discussed or possible speakers at this year’s SMU Steel Summit Conference. One of the suggestions I got was that we consider having a steel buyer’s panel. I like the idea and it has already been incorporated into the agenda. I have […]
The Alliance for American Manufacturing is more than a little skeptical that the China Phase One trade agreement will have value for American workers, calling it “completely inadequate” in a letter to President Trump. “The agreement does not level the playing field for American workers in the U.S. or global market,” wrote AAM President Scott […]
I spent today working on two projects. First was contacting and communicating with flat rolled and plate steel buyers in order to get a sense of the current spot price offers/transactions and where the markets are heading over the near term. The second project was working on the 2020 SMU Steel Summit Conference. As with […]
An update on the 2020 SMU Steel Summit Conference. My team has been very active in soliciting and confirming agenda slots and speakers to go with those spots. Today we confirmed CNN’s Michael Smerconish as a special keynote speaker on Wednesday, Aug. 26. He will be covering the Republican National Convention (which is happening at […]
The number of jobs created in December declined from the excellent November result on a seasonally adjusted basis. Net job creation in December declined to 145,000 from November’s exceptional result of 256,000. October and November were both revised down by 10,000. Rising employment and wages are the main contributors to GDP growth because personal consumption […]
Job creation decline by 21.3 percent in 2019, compared with 2018, according to Bureau of Labor Statistics data. The December employment reports were delayed by a week due to the holidays. In December, 20,000 jobs were created in construction and 12,000 jobs were lost in manufacturing. The private sector gained 139,000 jobs in December as […]