In its comments on President Trump’s “Buy America” executive order, California Steel Industries (CSI) makes a convincing case for steel companies that process slabs not “melted and poured” in the United States. In April, President Trump instructed all federal agencies to assess their compliance with Buy America/Buy American policies (which have an important distinction, as […]
Steel market indicators look good in the September data. Our view of the present situation is that 50 percent of the 36 indicators are historically positive with only 19 percent negative. The balance of them are within the band of historically normal. This was the same result as May and August. Along with September, these […]
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, therefore will be brief in this summary. We […]
A sharp rise in the September Chicago Business Barometer indicates a strong fourth quarter for manufacturing. The Barometer rose to 65.2 from 58.9 in August for its second highest level in more than three years. The average reading for the third quarter was a solid 61.0, steady with the second quarter’s three-year high of 61.1. […]
Despite a run of disruptions during its first quarter, Worthington CEO and Chairman John McConnell is optimistic about the new fiscal year. “We believe that most of the markets we serve are healthy with some showing more strength than others,” said McConnell. “We are off to a good start in fiscal 2018.” Worthington Industries’ earnings […]
Durable goods orders rose more than expected in August, picking up a gain of 1.7 percent versus a forecast for 1.0 percent, the U.S. Census Bureau announced today. The increase was welcomed after a 5.8 percent decline in July. A 45 percent jump in the volatile category of nondefense aircraft orders led the increase. Core […]
Canadian steel producer Stelco Holdings will go public with the sale of at least $150 million in shares. The company filed for an initial public offering on Wednesday with security regulators in Canada. Stelco, the former U.S. Steel Canada, was acquired out of bankruptcy by Bedrock Industries in June. The restructuring relieved Stelco of $3 […]
Autumn is expected to bring stronger economic activity and more work for metalforming companies, according to the latest survey by the Precision Metalforming Association. “Metalforming companies are greeting fall with increased optimism,” said PMA President Roy Hardy. “Predictions from our industry reflect the latest Bureau of Labor Statistics report which showed growth through some 36,000 […]
When asked to comment on spot flat rolled steel prices this week, the president of a medium-sized service center told SMU, “Drifting. Demand seems down.” He went on to report that even with AK Steel and ArcelorMittal reporting extending lead times, the market “feels soft.” Other steel buyers reported that their perception of the market […]
U.S. content in NAFTA automobiles is shrinking and contributing to the trade deficit America has with Canada and Mexico, according to Secretary of Commerce Wilbur Ross. In an editorial for the Washington Post, Ross cites a new study analyzing data from 1995 to 2011 that indicates U.S.-produced content in manufactured goods imported from Canada fell […]
Last Friday, the U.S. International Trade Commission ruled that the domestic solar industry has been seriously injured by imports of cheap, foreign-made solar cells. The case was brought by solar panel makers Suniva and SolarWorld under Section 201 of the Trade Act of 1974. The ITC now has until Nov. 13 to make recommendations to […]
On Friday, Steel Market Update (SMU) adjusted our Price Momentum Indicator to Lower from Neutral. It is our opinion that flat rolled steel prices will move lower over the next 30 days for the following 10 reasons: First, when the head of commercial of a domestic steel mill tells SMU that “transaction pricing cannot go […]
Steel Market Update (SMU) asked those responding to last week’s flat rolled steel market trends questionnaire where they see flat rolled steel prices headed? The results are shown in the graphic below. However, what is also of interest were the comments left behind by respondents. First, the results: The majority (52 percent) believe there is […]
Flat rolled steel lead times have been relatively flat going back to early May 2017, according to the service centers and manufacturing companies who participated in the Steel Market Update (SMU) flat rolled market trends survey this week. Lead time, which is the amount of time it takes for the domestic steel mills to produce […]
Mills are even more open to price discussions than they were a couple weeks ago, report steel buyers and sellers who replied to Steel Market Update’s latest flat rolled market trends questionnaire. More than 100 executives responded to this week’s questionnaire. Steel buyers’ perceptions of their suppliers’ attitudes offer a snapshot of how steel mills […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Are “Buy American” policies good for the U.S. economy and the U.S. steel industry? President Trump issued an executive order in April instructing all federal agencies to conduct comprehensive assessments aimed at cracking down on weak enforcement of Buy American policies, and targeting the abusive use of waivers and exceptions that undermine Buy American laws. […]
Zinc is once again trading above $1.40 per pound ($1.42 as of 3:30 PM ET) and the smaller steel mills and converters are wondering why U.S. Steel, ArcelorMittal USA and Nucor haven’t made the move to higher zinc coating extras on galvanized steel? We have seen four mills make changes on their “spot” new orders: […]
Despite recent price increase announcements from major domestic mills and imports that are trending lower, wholesalers and distributors who sell galvanized steel products to the HVAC market don’t expect much change in lead times or pricing until there’s some resolution to the Section 232 and Vietnam circumvention trade actions pending in Washington. In the monthly […]
European steel producers are worried about tight supply conditions for carbon graphite electrodes used in electric arc furnace steelmaking, but it may not be as big a problem in the U.S. A global shortage of high quality needle coke has spiked prices and squeezed supply of electrodes in Europe in recent months, said Axel Eggert, […]
Weakening federal vehicle fuel economy standards would not relieve the auto industry of burdensome regulation, but rather would hurt job growth, as well as the environment, maintains the BlueGreen Alliance (BGA), a coalition of American labor unions and environmental organizations whose mission is to “work together to solve today’s environmental challenges in ways that create […]
The Producer Price Index of commodities increased by 3.8 percent in the 12 months through August 2017, according to data released Tuesday by the Bureau of Labor Statistics. The BLS released its series of producer price indexes (PPIs) for more than 10,000 goods and materials this week. The latest release reported results through August. For […]
The Producer Price Index of commodities increased by 3.1 percent for the 12 months ended in November, according to data released Thursday by the Bureau of Labor Statistics—the largest advance since the 12 months ending January 2012. On Thursday, the BLS released its series of producer price indexes (PPIs) for more than 10,000 goods and […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
JSW Steel, a steel plate mill in Baytown, Texas, reports a remarkable story of perseverance, ingenuity and courage as it faced the devastation of Hurricane Harvey. As the hurricane was bearing down on the coast, CEO John Hritz made the difficult decision to shut down operations at the mill. JSW’s 700 acres are situated in […]
Throughout the day (Tuesday, Sept. 12, 2017), Steel Market Update (SMU) has been discussing steel prices, AK Steel’s price announcement and whether or not there is any way the mills will be able to collect another $30 (or anything) based on what is happening in the market right now. “This increase puzzled all of us. […]
The U.S. economy should finish 2017 strong, but the leading indicators point to a downturn in the second half of 2018 followed by a mild global recession in 2019, predicts economist Alan Beaulieu, principal of ITR Economics, who addressed a sellout crowd Aug. 30 at Steel Market Update’s Steel Summit Conference in Atlanta. “You will […]
Steel buyers and sellers report that most mills are still open to price discussions, even after recent price increase announcements, based on responses from Steel Market Update’s latest flat rolled market trends questionnaire. Over the course of the past week, SMU canvassed active participants in the manufacturing and service center segments of the flat rolled […]
Flat rolled lead times, the amount of time it takes for the steel mills to produce an order if placed today, have shortened ever so slightly in the past month, according to data collected by Steel Market Update (SMU) from manufacturers and steel service centers earlier this week. Viewed over a longer time frame, lead […]
Editor’s note: Following is a response from Zekelman Industries CEO Barry Zekelman to remarks by Daniel Pearson of the Cato Institute published in Steel Market Update’s Sept. 5 newsletter. Zekelman comments on his position on imports and the current state of steel-related trade into the U.S. During our exchange at the recent SMU Steel Summit […]