A mild recession will impact residential and nonresidential construction in 2019, predicts the HARDI/ITR July quarterly report. Steel Market Update is a member of an association connected to the construction industry called the Heating, Air-conditioning & Refrigeration Distributors International. HARDI and ITR Economics, an economic forecasting company, work together to gather economic data to provide […]
Data from July 7, 2017, shows the U.S. rig count for the week was 950 rigs exploring for or developing oil or natural gas, reports oilfield services company Baker Hughes, Inc. This is down 2 rigs compared to last week, with oil rigs down 1 to 764 rigs, gas down 1 to 186 rigs, and […]
The U.S. Department of Commerce (DOC) released new foreign steel import license data on July 18. The trend for July is for steel imports to remain quite high, in the mid 3-million-net-ton range. We expect imports to be lower than June’s 3.9 million net tons, but above the 12-month and 3-month moving averages. Finished steel […]
The value of the U.S. dollar is in free fall on the international foreign exchange markets. Through July 18, the Broad Index value of the U.S. dollar had depreciated by 7 percent since January 3. Comparing on a rolling three-month basis, the index has declined every single day since January 20. (Please see the end […]
Since our last report, the price of crude oil has continued to decline and the price of natural gas has been stable. The number of operating rigs exploring for both oil and gas has continued to increase. The prices of oil and natural gas drive the consumption of energy-related steel products including oil country tubular […]
Below is the latest data released by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through May 2017. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for May 2017 increased 5.5 percent […]
The U.S. Department of Commerce (DOC) released license data for the month of June as well as the first 11 days of July. The bottom line is imports of foreign steel into the U.S. continue to be worrisome (to the domestic steel mills) and the early trend is for July 2017 to be another three […]
The U.S. employment situation continues to be good. Net job creation in June, including revisions for April and May, was 269,000, and the latest number of job openings was the highest on record. The Bureau of Labor Statistics (BLS) net job creation report released on Friday exceeded economists’ expectations and was another example of why […]
The administrative law judge presiding over U.S. Steel’s Section 337 case against Chinese steelmakers has extended the deadline for fact discovery by three weeks. The close of discovery is now set for July 15, pushing back the evidentiary hearing from September to mid-October. In the International Trade Commission case it filed in April 2016, U.S. […]
Data from July 7, 2017, shows the U.S. rig count for the week was 952 rigs exploring for or developing oil or natural gas. The last time U.S. rig counts were this high was in early 2015, reports oilfield services company Baker Hughes Inc. This is up 12 rigs compared to last week, with oil […]
The Manufacturing ISM Report on Business exceeded expectations in June with a PMI reading of 57.8 percent. The composite index jumped 2.9 points for its strongest reading since August 2014, said the Institute for Supply Management, Tempe, Ariz. A reading above 50 indicates growth. The new orders index strengthened with a 4 point increase to […]
Once its new Ruhrstahl-Heraeus (RH) degasser is fully commissioned in the next 30-45 days, Big River Steel will have all its steelmaking equipment up and running. Except for “a few hiccups,” the startup of the new EAF mill in Osceola, Ark., has gone smoothly, said Mark Bula, chief commercial officer, “above plan, plan-plus.” Speaking at […]
According to Baker Hughes data from June 30, 2017, the U.S. rig count for the week was 940 rigs exploring for or developing oil or natural gas. This is down 1 rig compared to last week, with oil rigs down 2 to 756 rigs, gas down up 1 to 184 rigs, and miscellaneous rigs unchanged […]
Worthington Industries posted a strong fourth quarter, setting record annual earnings per share and quarterly net earnings of $56.5 million. Net sales increased 18 percent year-over-year to $845.3 million. Steel processing sales rose 25 percent to $582.2 million, driven by higher average selling prices. Automotive demand is beginning to soften, said President and COO Mark […]
Ryerson Holding Corp., a processor and distributor of industrial metals, said end-market shipments to most sectors improved in the second quarter, particularly in commercial ground transportation and HVAC industries. Shipments also increased to the oil and gas sector, while a quarterly year-over-year decline was seen in industrial machinery and equipment, consumer durables, and food processing […]
According to Baker Hughes data from June 23, 2017, the US rig count for the week was 941 rigs exploring for or developing oil or natural gas. This is up 8 rigs compared to last week, with oil rigs up 11 to 758 rigs, gas down up 3 to 183 rigs, and miscellaneous rigs unchanged […]
Mill Steel Co., Grand Rapids, Mich., one of the nation’s largest distributors of flat-rolled carbon steel, expanded its operations and geographic presence with the opening of a new facility in Houston. The new Texas location is now operational with slitting and cut-to-length capabilities in the 100,000-square-foot facility. This premier building houses three production lines with […]
The prices of oil and natural gas drive the consumption of oil country tubular goods (OCTG) and related steel products. The energy markets represent a large portion of the hot rolled coil used to make welded tubular goods, as well as equipment used to drill and pump oil and natural gas. On June 12, George […]
We start this report with comments made by Jun Wei Yeo on iron ore and coking coal. “In April to May alone, there was an over 30 percent drop in the price of iron ore. Iron ore mining companies such as Rio Tinto, BHP Billiton, and Brazil’s Vale are suffering simultaneous stock price declines. Most […]
Below is the latest data release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through April 2017. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for April 2017 decreased 3.9 […]
According to Baker Hughes data from June 9, 2017, the US rig count for the week was 927 rigs exploring for or developing oil or natural gas. This is up 11 rigs compared to last week, with oil rigs up 8 to 741 rigs, gas rigs up 3 to 185 rigs, and miscellaneous rigs unchanged […]
Commerce Secretary Wilbur Ross is leaning towards a Section 232 finding that national security is threatened by steel imports. On Thursday, he told a Senate Appropriations subcommittee that he believes there is “a genuine national security issue that must be considered in this case.” Results of the Section 232 investigation are expected by the end […]
On Friday, the U.S. Department of Commerce released Final Census Data on foreign steel imports for the month of April 2017. As expected, the month was another large one with imports totaling 3,350,983 net tons. This is above both the 3-month and 12-month moving averages. License data for the month of May approached 3.6 million […]
The Bureau of Labor Statistics (BLS) employment report for May was released on Friday and revealed a disappointing total net job creation of 138,000 which was well below analysts expectations. To make matters worse, March and April were revised down by a total of 66,000 jobs. Using a three month moving average (3MMA), the result […]
According to Baker Hughes data from June 2, 2017, the US rig count for the week was 916 rigs exploring for or developing oil or natural gas. This is up 8 rigs compared to last week, with oil rigs up 11 to 733 rigs, gas rigs down 3 to 182 rigs, and miscellaneous rigs unchanged […]
According to Baker Hughes data from May 26, 2017, the US rig count for the week was 908 rigs exploring for or developing oil or natural gas. This is up 7 rigs compared to last week, with oil rigs up 2 to 722 rigs, gas rigs up 5 to 185 rigs, and miscellaneous rigs unchanged […]
Please see the end of this report for an explanation of data sources. On May 22 Arun Chopra of Fusion Point Capital wrote: “The dollar has been on a 2 year plus uptrend. When the dollar broke out we saw oil and all commodities collapse. An important long term trend line has broken, having implications […]
The Chinese, Russians, Turks, Vietnamese, Koreans and to a lesser extent the Taiwanese ears were burning Wednesday after the “bad-mouthing” they got at the Section 232 hearing on steel. Of the 37 scheduled speakers 9 domestic companies/organizations along with four foreign entities (Russia, China, Ukraine and Eurofer) spoke on behalf of allowing foreign steel without […]
As CEOs and association representatives presented their arguments for why the administration’s Section 232 action on steel imports should go forth, AIIS international Trade Counsel Gary Horlick talked about the unintended consequences of such actions. AIIS represents 108 members that include traders, freight forwarders, stevedores, shippers, importers, exporters, railroads, port authorities, unions and other logistics […]
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 coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing futures […]