I thought I was going to get a respite from the stress of putting on the 2019 SMU Steel Summit Conference as the conference has concluded and I have returned home. For those of you who do not know, I live in southern Florida on the Atlantic coast side close to West Palm Beach. Mother […]
Steel demand from the agricultural sector is down substantially, according to a panel of steel distributor and processing CEOs at the 2019 SMU Steel Summit. North American farming profits were hit hard in 2019 by weather, high steel prices and retaliatory Section 232 and 301 tariffs, impacting the ability of farmers to invest in equipment. […]
Steel Market Update is pleased to announce the recipient of the first SMU NexGen Leadership Award is Meredith Meade at Tempel Steel Company. Ms. Meade was presented her award by Steel Manufacturers Association CEO Philip Bell. SMA sponsored this year’s award, which attracted 21 highly qualified nominees from 18 companies. The finalists for the award were Ms. […]
Orders for durable goods increased for a second month, gaining 2.1 percent in July, according the latest data from the Commerce Department. Transportation again led the gain with a surge of 47.8 percent for aircraft and parts. Excluding the volatile transportation category, durable goods orders were down 0.4 percent. Core capital goods, non-defense minus aircraft and […]
By CRU Principal Economist Lisa Morrison and Senior Analyst Erik Hedborg In the past month, we have seen sharp declines in global commodity prices, including steelmaking raw materials. The fall was triggered by an escalation of the U.S.-China trade war, but CRU’s research shows that supply and demand fundamentals in the markets also contributed to […]
The U.S. International Trade Commission determined on Tuesday that unfair imports of steel racks from China are causing material injury to domestic producers and should be subject to duties. The final decision follows the Department of Commerce AD/CVD determination that the racks are subsidized and sold in the U.S. at less than fair value. As […]
Material Sciences Corp. was named as one of five winners of the 2019 Altair Enlightment Award given to honor the greatest achievement in vehicle weight savings. MSC was honored for its MSC Smart Steel, a new multilayer steel laminate engineered as a direct substitute for low carbon steel stamped vehicle body parts. Offering a 20 […]
The labor productivity of nonfarm businesses grew by 2.3 percent in the second quarter of 2019. The average of the last six quarters has been 0.40 percent. Unit labor costs increased 2.5 percent year over year, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics (BLS) data. Unit labor costs and productivity […]
The official economic statistics out of China showed a decline in industrial production in July. But in June, China’s share of global steel production was 55.1 percent. Once each quarter we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. We don’t know the accuracy of these numbers, […]
Our analysis of 11 manufacturing indicators suggests that growth is slowing and, if trends continue, will become negative in the fourth quarter. This report summarizes 11 data streams that describe the state of U.S. manufacturing in general and the steel industry in particular. We have reported on most of these separately in our Steel Market […]
ArcelorMittal Burns Harbor has the honor of providing the steel for the first U.S.-flagged Great Lakes bulk carrier to be built in more than 35 years. Fincantieri Bay Shipbuilding held a ceremony at its shipyard to celebrate cutting the first sheet of steel to be used in the construction of the vessel for Interlake Steamship […]
The following editorial is by Allan Golombek, a Senior Director at the White House Writers Group, and was published on Aug. 12, 2019 by RealClearMarkets. The steel industry should have listened to the founder of Nucor. In 1986, Ken Iverson pointed out that protectionist measures to save the American steel industry had not had the desired […]
Electric arc furnace minimills may have a cost advantage in steel production today, but there are still 19 traditional blast furnaces going strong in the United States. Blast furnaces dominate about three-fourths of global steelmaking, but only three steel producers in the U.S. currently are using BF or basic oxygen furnace technology: U.S. Steel, ArcelorMittal […]
Despite concerns over trade wars and recession, the Empire State Manufacturing Index expanded in August. The index from the Federal Reserve Bank of New York showed modest improvement in August, beating economists’ expectations. The general business index rose for a second month, increasing to 4.8 from 4.3 in July. “New orders increased after declining for […]
Tariffs on some of the $300 billion in Chinese goods due to take effect on Sept. 1 have been pushed back until Dec. 15, and some items are likely to be removed from the tariff list entirely, as the Trump administration faces opposition from U.S. companies that claim the duties are hurting their businesses, The […]
HarbisonWalker International, a manufacturer of refractory products for the steel industry, announced completion of the first phase of a $9 million investment in its manufacturing plants in North America. Phase one increased warehouse space by 35 percent at the White Cloud, Mich., facility, using American-made steel. Additional manufacturing space will house new production technologies, including […]
Job creation slowed in July but is still healthy and in its 10th year of uninterrupted expansion, according to Steel Market Update’s analysis of the latest Bureau of Labor Statistics data. In July, 16,000 jobs were created in manufacturing industries and 4,000 in construction activities. About 148,000 jobs were created in the private sector, while […]
The rate of job creation in the U.S. in 2019 is slowing, according to Steel Market Update’s analysis of the latest Bureau of Labor Statistics data. Net job creation in July declined to 164,000 from a downwardly revised 193,000 in June. June was revised down by 31,000 and May down by 10,000. Rising […]
Nearly 1,000 executives are registered with just two weeks to go before the start of the 2019 SMU Steel Summit Conference. We continue to see strong interest in this year’s event, which will be held in Atlanta on Aug. 26-28. Once again, the Georgia International Convention Center will be the home of this, our 9th […]
Steel prices are up, but the same cannot be said for industry optimism. Following a brief uptick shortly after the mill price increases were announced last month, Steel Market Update’s Steel Buyers Sentiment Index has ticked back down. Steel buyers’ comments suggest that concerns about the economy, steel demand and the staying power of the higher […]
For the past three days, I have been studying the nominations of 21 young individuals who were nominated by their companies for the 2019 SMU NexGen Leadership Award, which this year is being sponsored by the Steel Manufacturers Association. The process has been exhilarating to say the least. I decided many years ago that as […]
Russel Metals, Inc., Canada’s second largest metals distributor, reported revenues of $937 million in the second quarter. Net income totaled $31 million, about half the $66 million the company earned in the same quarter last year (figures are in Canadian dollars). The company’s gross margins in this year’s second quarter averaged 18.8 percent, well below […]
The trade war with China escalated on Monday as China allowed its currency to weaken in retaliation for a new round of tariffs imposed by President Trump. The yuan fell to 7 per U.S. dollar, the lowest it has been in 11 years, making exports from China cheaper and more competitive versus the United States. […]
Distributors of galvanized steel to the HVAC sector are paying higher prices to their suppliers, but having difficulty collecting the increase from their contractor customers, reported members of the Heating, Air Conditioning & Refrigeration Distributors International during their monthly conference call earlier today. Since HARDI’s last call, domestic flat rolled mills have announced three price […]
Distributors of galvanized steel to the HVAC sector are paying higher prices to their suppliers, but having difficulty collecting the increase from their contractor customers, reported members of the Heating, Air Conditioning & Refrigeration Distributors International during their monthly conference call earlier today. Since HARDI’s last call, domestic flat rolled mills have announced three price […]
Demand for HVAC products remains relatively strong in an otherwise lukewarm steel market, but members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) say they are challenged by declining galvanized steel prices and rising intensity from the competition. Polled six weeks ago, nearly all the HARDI members expected galvanized steel prices to stay […]
Distributors of galvanized steel to the HVAC industry remain surprisingly positive despite steel prices that have been on the decline for more than six months. While there is some variance by region and market segment, members of the Heating, Air Conditioning & Refrigeration Distributors International generally expect solid demand for their products at least through […]
By Josh Spoores, CRU Principal Analyst Sheet prices have continued to rise, but the bullish trend is clearly fading. Overall volume of spot transactions last week was the lowest recorded all year. Furthermore, manufacturing is now in recession based on the last two quarters of IP activity, while recent PMI data shows weakness in new […]
Olympic Steel further advanced its strategy to add manufactured metal products to its portfolio with the acquisition this week of EZ-Dumper. EZ-Dumper, a nationally recognized brand, produces steel and stainless steel dump inserts for pickup truck and service truck beds. Built from heavy-gauge materials and backed by a structural steel frame, the dump inserts can […]
Steel Market Update is pleased to announce we have closed the nomination process for the 2019 SMU NexGen Leadership Award, and we have 21 solid candidates. Steel Market Update and the Steel Manufacturers Association want to say “well done” to each of the candidates and their nominating company. The judges will be reviewing the nominations […]