Worthington Industries has acquired Heidtman Steel Products’ pickling and slitting facility in Cleveland. As part of the sale, the Cleveland operation under Worthington will continue to service Heidtman customers through a toll processing agreement. “Heidtman’s Cleveland operation is a great addition to our steel business, further expanding our value-added steel processing capacity,” said Worthington Industries […]
The United Auto Workers’ strike against General Motors is in its 23rd day. After the union rejected a counterproposal from GM on Sunday, UAW-GM Vice President Terry DIttes commented, “These negotiations have taken a turn for the worse.” “We, in this union, could not be more disappointed with General Motors,” he said, adding that the […]
SMU continues to pick up negative vibes through the analysis we currently are actively conducting on the flat rolled and plate steel markets. There is obviously something going on that is concerning buyers and sellers of steel. At the same time, one of the steel mills told me today that even though prices on their […]
The good news is that the Commerce Department has finally approved Priefert Manufacturing’s request to exclude one of its products from the Section 232 tariff. The bad news is that the company still may never see a refund of the $700,000 it has paid out in unfair duties. Priefert Manufacturing is a service center and […]
The American Institute of Architect’s Architecture Billings Index (ABI) posted a score of 47.2 for August indicating a decline in planning activity for nonresidential construction. The national score for new design contracts was also below the neutral point of 50 at 47.9, a rare occurrence for the two scores. Having both indexes in contraction means […]
EVRAZ NA President “Skip” Herald is the newest addition to the American Iron and Steel Institute Board of Directors. “Skip Herald has had an impressive career, and I am excited to welcome him to the AISI Board of Directors,” said AISI Chairman and AK Steel CEO Roger Newport. “Skip’s wealth of experience will be an […]
More than 80 percent of the steel buyers polled by Steel Market Update in the last 10 days believe steel prices will test the lows reached earlier this year. SMU’s current average hot rolled price is $525 a ton, just $5 above the $520 low hit in late June. Pointing to sketchy demand, some believe […]
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 […]
September saw big downturns on both steel price momentum and steel buyers sentiment that aren’t readily evident in the monthly data (below) from Steel Market Update. SMU’s Price Momentum Index was pointing downward for the entire month of September. The benchmark price for hot rolled steel averaged $565 per ton for the month, down nearly […]
A new solar project in Pueblo, Colo., will bring the state one step closer to its goal of providing 100 percent carbon-free electricity by 2050 and give EVRAZ Rocky Mountain Steel predictable electricity prices through 2041. The 240-megawatt Bighorn Solar project will be built, owned and operated by Lightsource BP on property owned by EVRAZ […]
The September Manufacturing ISM Report on Business showed further decline of the manufacturing sector. ISM’s PMI edged down 1.3 points to 47.8 from the August reading of 49.1. “This is the lowest reading since June 2009, the last month of the Great Recession, when the index registered 46.3 percent,” said Timothy R. Fiore, chairman of […]
The net situation changed little from August but the Treasury 10/2 yield spread became slightly positive on Sept. 27 and the SMU Steel Buyers Sentiment Index suffered a serious setback on Sept. 15. This report is designed to be a big picture summary of data on which we have reported in detail during the month. […]
The global manufacturing sector remains in contraction but is beginning to stabilize, says the latest report from J.P. Morgan and IHS Markit. The J.P. Morgan Global Manufacturing PMI rose for a second month in a row reaching 49.7, although still below the 50 neutral point. “The global manufacturing PMI sent a message of stability in […]
From June through August, global steel production increased by 3.1 percent, but excluding China, growth declined by 2.1 percent with the result that China’s share reached another all-time high of 55.9 percent. We have a new perspective this month on global capacity. About a year ago, the World Steel Association stopped reporting global capacity utilization […]
The Chicago Business Barometer dropped 3.3 points to 47.1 in September after seeing a brief rebound from contraction in August. The decline in the index released by ISM and MNI Indicators was lower than the 50+ reading expected by many economists. The September Chicago PMI, as the index is also known, marked the third contraction […]
Construction spending edged up 0.1 percent in August from July but declined from year-ago levels, with divergent trends in residential and nonresidential categories, according to an analysis by the Associated General Contractors of America of new federal spending data. Association officials said that many contractors in its recent survey report that staffing challenges are causing […]
Steel buyers report flat or declining demand and expect spot steel prices to test the lows reached earlier this year, according to the findings of Steel Market Update’s market trends questionnaire this past week. The consensus view of the economy is more uncertain. Demand Nearly half of steel buyers responding to SMU’s questionnaire reported declining […]
Orders for durable goods rose 0.2 percent to $250.7 billion in August, but most of the increase was military related. Orders for defense-related goods jumped 15 percent. Orders minus defense decreased 0.6 percent, reported the U.S. Census Bureau. Core capital goods, non-defense orders minus aircraft and an indicator of future investment, fell 0.2 percent. Economists […]
Metalforming firms are expecting a slowdown in the manufacturing sector, according to the September 2019 Precision Metalforming Association Business Conditions Report. Thirty percent of participants in the monthly survey expect a decline in economic activity in the next three months, up from 27 percent in August. Those who expect no change in activity jumped to […]
We saw further weakening in pricing this week, based on the active flat rolled and plate steel market trends questionnaire which began on Monday. We did see evidence of pressure on prices from a number of different areas. From the service centers, we saw reports of hot rolled at $500 per ton. However, we do […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: On Friday, the Office of the U.S. Trade Representative published three notices in the Federal Register announcing new exclusions from the China-related tariffs imposed beginning in July 2018. As you will recall, there are four published lists of goods […]
“Fragile and uncertain” is how the Organization for Economic Cooperation and Development (OECD) describes the current global economy. The OECD’s latest Interim Economic Outlook shows economic growth slowing as escalating trade conflicts impact confidence and investment and increase downside risks in financial markets. In May of 2018, the OECD was predicting global growth of 4 […]
By CRU Senior Analyst Helen O’Cleary August ended on a bearish note as weak economic data from the USA signaled that the U.S. economy had slipped into contraction territory and European manufacturing data confirmed ongoing contraction. These data, coupled with ongoing rmb weakness, heightened concerns over metal demand going forward and helped push zinc’s price to […]
The growth of manufacturing in the U.S. is slowing, and on a single-month basis the ISM index became negative in August. This does not bode well for the balance of 2019 or for 2020, according to Steel Market Update’s analysis of 11 manufacturing indicators. This report summarizes 11 data streams that describe the state of […]
Demand for sheet products is declining due to the weakness in manufacturing. Construction expenditures are showing signs of softening and will reduce the demand for long products through the balance of 2019. This analysis by Steel Market Update is based on steel mill shipment data from the American Iron and Steel Institute (AISI) and import/export […]
The composite producer price index of all commodities has been relatively stable in 2019, but tinware products are becoming very uncompetitive against aluminum. This report is an analysis of Bureau of Labor Statistics data performed by staff of Steel Market Update and is intended to provide subscribers with a view of the competitive position of […]
Service centers and manufacturing companies are telling Steel Market Update of softening demand, shortening lead times (may not be in the published numbers, but orders are coming out early), and negotiable pricing. Many buyers are sitting on their hands and only buying what they need. On top of this, SMU Service Center inventories appear to […]
The Empire State Manufacturing Index surprised economists by slipping to 2.0 on the general business index, a three point decline from August. The new orders index fell three points to 3.5, but remained above zero indicating only slight growth. The shipments index declined four points to 5.8 for it lowest level in nearly three years. […]
Builder confidence hit a one-year high in September, according to the latest NAHB/Wells Fargo Housing Market Index. The HMI, which measures builder perceptions of current and future sales of new single-family homes, rose one point to 68. The HMI index gauging current sales conditions increased two points to 75 and the component measuring traffic of […]
For those of you who are not aware, my Final Thoughts is an area where I will sometimes provide my opinion or view of the marketplace. Understand that these are my comments and are not coming from any steel mills, service centers, trading companies or the financial community. You can take them or leave them; […]