Manufacturing in New York State continued to expand in November, but the headline business conditions index of the Empire State Manufacturing Survey fell to 19.4 after reaching a three-year high in October. The November index lost 11 points and dropped more than expected, but solid gains in new orders and shipments indicate still brisk growth […]
Commerce Secretary Wilbur Ross pushed back at critics of the Section 232 investigation this week, saying steel-consuming businesses don’t “deserve” dumped steel. Associations such as the American Institute for International Steel and U.S. Chamber of Commerce assert that Section 232 restrictions on steel could lead to economic disaster for the steel supply chain, ports and […]
Will the rest of the domestic steel mills announce new coating extras in first-quarter 2018, raising the price on galvanized steel? There was no clear consensus among members of the Heating, Air-conditioning, and Refrigeration Distributors International (HARDI) during their monthly conference call earlier today. Recent mill price announcements have stemmed the decline in galvanized prices, […]
As I move around the flat rolled steel industry, communicating with manufacturing companies, service centers, traders and steel mills, I am receiving mixed messages about the market. A good example is the HARDI steel committee conference call that was held earlier today. HARDI wholesalers, the companies who supply the HVAC mechanical contractors in the building […]
Olympic Steel posted significantly improved results for third-quarter 2017. Demand is strong across all three business segments at Olympic, but is expected to soften due to seasonality and the holidays. “Looking ahead, we are encouraged by both the positive demand trends our customers are projecting for 2018 and by the market’s outlook for improved metal […]
Registration is now open for Steel Market Update’s next Steel 101: Introduction to Steel Making & Market Fundamentals workshop. This steel training workshop will be held at the Hilton Garden Inn in Merrillville, Ind., located just outside of Chicago. As part of this workshop, we will be touring the NLMK USA Portage, Ind., steel mill. […]
SMU Note: This construction market analysis article is normally reserved for our Premium members only, but it is being shared with our entire readership this month. To learn more about our Premium level membership and how it can benefit you, click here. Growth of total construction spending has almost come to a halt, according to […]
U.S. job creation rebounded in October from the blow it suffered in September due to the hurricanes, reports the Bureau of Labor Statistics (BLS) in its employment report released on Friday. September hiring was severely affected by the Texas and Florida hurricanes, particularly in the hospitality industries in Florida. The October rebound was weaker than […]
Growth of total construction spending has almost come to a halt, according to Steel Market Update’s latest analysis of Department of Commerce construction put in place (CPIP) data. Last month, we reported that total construction expenditures contracted in the three months through August year over year for the first time since November 2011. Based on […]
Twice per month, Steel Market Update (SMU) conducts an analysis of the flat rolled steel markets and trends associated with those who buy and sell hot rolled, cold rolled, galvanized, Galvalume and steel plate. One of the key areas we review is how steel service centers are handling spot pricing to their end user customers. […]
The fifth round of NAFTA negotiations will be Nov. 17-21 in Mexico City, but contentious U.S. proposals are making a compromise between the three trading partners problematic. The U.S. has proposed a sunset clause, rules of origin tipped in favor of the U.S., restrictions on government procurement and elimination of dispute settlement mechanisms, none of […]
House Republicans released details of their vision for tax reform on Thursday, raising many questions in constituents’ minds, the primary one being: What does this mean for us? The headline provisions of the bill—which its sponsors contend would simplify the tax code, provide tax relief to the middle class and spur economic growth—include cutting the […]
Construction spending in the private sector in September outpaced public sector investment in infrastructure and other projects, according to an analysis of new government data by the Associated General Contractors of America. Association officials urged members of Congress and the Trump administration to include new funding for roads, bridges, clean water and other important infrastructure as […]
U.S. manufacturing slowed a bit from September but remained robust in October, according to the latest Manufacturing ISM Report on Business from the Institute for Supply Management. The headline PMI registered 58.7 percent, a 2.1 percentage point decrease from September’s score of 60.8 percent. A reading above 50 indicates growth. Comments from respondents suggest that […]
Global manufacturing hit a six-and-a-half year high in October. The JP Morgan Global Manufacturing PMI rose to 53.5 from September’s 53.3. Most components of the PMI rose at faster rates in October. Output and output prices softened slightly during the month. Output charges increased reflecting supply chain constraints and longer vendor lead times. “The global […]
Steel market indicators look good in the October data, but the trends took a turn for the worse. In the data released in October, our view of the present situation is that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance are within the band of historically normal. […]
We began sending out our sponsorship package to last year’s sponsors and will send it out to previous years sponsors as well as those who have expressed an interest in becoming a sponsor or exhibitor. We have a limited number of sponsors and already have commitments from Pacesetter, Bank of America Merrill Lynch, Magic Coil […]
Commercial Metals Co., a Texas-based long products producer and scrap recycler, reported a profitable fiscal 2017 despite imports of rebar and other products that continue to squeeze margins. CMC management is hopeful the company will get an assist from Washington in the coming year. “The need for infrastructure renewal is overwhelming, but the issue is […]
Economic indicators of manufacturing activity are still healthy overall and portend well for the balance of this year. This report summarizes seven data sources that describe the state of manufacturing in the U.S. We have reported on most of these separately in our Steel Market Update publications, and therefore will be brief in this summary. […]
Twice per month, Steel Market Update conducts an analysis on the flat rolled steel market. Our focus is on pricing and price direction, demand, inventory management, international steel, buyers’ sentiment, service center spot price direction, mill lead times and negotiations, and more. We have been conducting our market analysis going back to late 2008. The […]
The U.S. Justice Department wants to know if Americans are at risk as a result of the Kobe Steel quality scandal. The Japanese metal producer’s subsidiary, Kobe Steel USA, Inc., received a request from the Justice Department on Oct. 16 seeking related documents. Kobe officials said they plan to cooperate with the Justice investigation. Kobe […]
After greeting September with increased optimism, metalforming companies are now expecting business conditions to weaken slightly in the next three months, according to the October 2017 Precision Metalforming Association (PMA) Business Conditions Report. Metalforming companies also anticipate declines in incoming orders. “Ebbs and flows in productivity are a part of today’s manufacturing industry,” said PMA […]
Durable goods orders were stronger than anticipated in September, rising 2.2 percent and nearly double economists’ expectations. The volatile transportation sector drove much of the increase. Commercial aircraft orders jumped 64 percent after gaining 52 percent in August. Orders for core capital goods, which exclude defense and aircraft, rose 1.3 percent, and shipments of core […]
Steel Market Update (SMU) found steel buyers receptive to speaking their minds on how various steel mills are responding to the price increase announcements made last week. It appears mills with shorter lead times are perhaps a little more receptive to waiving part or all of the increases. Other mills have better order books and […]
Last week, Steel Market Update (SMU) conducted one of our flat rolled steel market trends analyses, sending invitations to 655 executives associated with the manufacturing, steel distribution, steel mills, trading companies and toll processor segments of the industry. The majority of respondents completed the questionnaire prior to the ArcelorMittal USA price increase announcement. One of […]
Wholesaler/distributors who sell galvanized steel products to the HVAC market are waiting anxiously to see what happens to prices in the coming weeks. In the monthly steel conference call hosted today by the Heating, Air-conditioning, and Refrigeration Distributors International, HARDI members asked two key questions: Will the mills be able to collect the flat roll […]
The volume of light vehicle assemblies in the U.S. and Canada is declining at more than 15 percent per year as Mexico’s volume is increasing by 7.7 percent, according to the latest Steel Market Update analysis of auto production in the NAFTA region. U.S. Vehicle Sales: U.S. new-vehicle sales surged in September to 18.6 million […]
Steel Market Update is a member of an association connected to the construction industry called HARDI, which stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and economic forecasting company ITR Economics work together to gather economic data to provide a forecast to the HARDI members in the United States and Canada. The information shared […]
China’s economy continues to show robust growth, and in August recorded its highest-ever share of total global steel production. Once each quarter, we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. Currently available data is through the third quarter. Many analysts don’t believe these self-serving Party figures, […]
SMU Note–The Kobe Steel scandal regarding falsifying test certifications has had a ripple effect. Steel Market Update asked those responding to our flat rolled steel market trends questionnaire if the Kobe scandal is raising some concerns that other mills may cut corners with testing and falsify documentation. Twenty-nine percent of our respondents had concerns. From […]