Antidumping duties on oil and gas drilling pipes from South Korea were increased on Tuesday after an administrative review by Commerce. Duties were raise to a range of 2.76 – 24.92 percent from previously assigned duties of 4 – 6.5 percent. New provisions under the Trade Preferences Extension Act of 2015 allow Commerce to consider market […]
The Bureau of Labor Statistics (BLS) employment report released Friday was another example of why we should not be fixated on a single month’s result. Month on month this was a dismal report with a net increase of only 98,000 jobs, well below analyst’s expectations. To make matters worse, January and February were revised down […]
According to Baker Hughes data from April 7, 2017, the US rig count for the week was 839 rigs exploring for or developing oil or natural gas. This is up 15 rigs compared to last week, with oil rigs up 10 to 672 rigs, gas rigs up 5 to 165 rigs, and miscellaneous rigs unchanged […]
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 […]
Based on the report filed by the U.S. Department of Commerce earlier this week, March 2017 foreign steel imports will be well above 3 million net tons and could be as high as 3.4 million tons. The last time we saw licenses at, or above, 3.4 million net tons was May 2015, the month prior […]
For the thirteenth consecutive month, manufacturing across the globe expanded. The JP Morgan Global Manufacturing PMI posted at 53.0 in March, the same as its February 69-month high. First quarter 2017 averaged a reading of 52.9, the best quarter since Q2 2011. As expected with a no-change reading, components of the PMI were little changed […]
Flat rolled steel Price Momentum ended the month of March where it began – indicating higher prices for hot rolled, cold rolled, galvanized, Galvalume and now plate prices. The steel and manufacturing industries remain firmly entrenched in the Optimistic camp as the SMU Steel Buyers Sentiment Index hit new highs for the three-month moving average […]
The Keystone XL project was given official approval on March 24 after the State Department issued a presidential permit authorizing TransCanada to begin construction of its long-delayed pipeline. The decision was immediately met with criticism from numerous groups. America Made When the executive order was delivered in January opening the way for TransCanada to resubmit […]
According to Baker Hughes data from March 31, 2017, the U.S rig count for the week was 824 rigs exploring for or developing oil or natural gas. This is up 15 rigs compared to last week, with oil rigs up 10 to 662 rigs, gas rigs up 5 to 160 rigs, and miscellaneous rigs unchanged […]
Worthington Industries reported net sales of $703.4 million for third quarter FY 2017 and net earnings of $35.9 million. The company claimed inventory holding losses of $3 million and restructuring charges of $1.4 million. “We had a very good third quarter performance with Steel Processing contributing near record earnings and overall, we produced year-over-year growth, which […]
TransCanada received the go-ahead from the White House on Friday to complete the long-delayed Keystone XL pipeline. During remarks at the White House announcing the approval of the presidential permit, President Trump said: “It’s a great day for American jobs and a historic moment for North American and energy independence. This announcement is part of […]
According to Baker Hughes data from March 24, 2017, the U.S rig count for the week was 809 rigs exploring for or developing oil or natural gas. This is up 20 rigs compared to last week, with oil rigs up 21 to 652 rigs, gas rigs down 2 to 155 rigs, and miscellaneous rigs up […]
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 […]
The shipping season opened on the Great Lakes this month. In general, freight shipments within the U.S. are moving without complications in March. Rate increases have been noted for most seaborne freight with the Baltic Dry Index approaching highs last seen in November 2016. Seaborne Freight The Panama Canal continues to break monthly records for […]
Trade attorney Lewis Leibowitz asked Steel Market Update if he could comment on the recent request for comments on the Buy American rules suggested by President Trump on private projects that require government approval. The U.S. Department of Commerce was charged with telling the President what could be done under current law. Here is the […]
Last Tuesday the Bureau of Labor Statistics (BLS) released its series of producer price indexes (PPI), for more than 10,000 goods and materials. For an explanation of this program see the end of this piece. The latest release reported results through February. We run this analysis every three or four months to provide information for […]
According to Baker Hughes data from March 17, 2017, the U.S rig count for the week was 789 rigs exploring for or developing oil or natural gas. This is up 21 rigs compared to last week, with oil rigs up 14 to 631 rigs, gas rigs up 6 to 157 rigs, and miscellaneous rigs up […]
President Trump announced on Wednesday the rollback of fuel economy standards that were established by executive action near the end of the Obama administration. Speaking to automotive executives and workers in Detroit, MI, Trump said, “Today, I am announcing that we are going to cancel that executive action. We are going to restore the originally […]
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. Figure 1 shows historical […]
Ryerson Holdings saw a challenging year in 2016 with demand contracting but pricing improving. CEO Edward Lehner noted, “Carbon steel prices recovered from decade lows at the end of 2015, peaked in June of 2016, and deflated again in October of 2016 before starting in upward trajectory that has continued into the first quarter of […]
Turkey has filed a complaint with the World Trade Organization against U.S. countervailing duties placed on imports of pipe and tube products. Turkey requested the WTO initiate dispute consultation with the United States alleging the U.S. determination and imposition of duties was inconsistent with the WTO’s Agreement on Subsidies and Countevailing Measures (SCM Agreement) and […]
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 January 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 January 2017 increased 1.8 […]
The Bureau of Labor Statistics (BLS) released the February employment data on Friday which was a week later than normal. This was the best result for goods producing industries (mainly construction and manufacturing) since August 1998. The preliminary result for net job creation in February was 235,000. December was revised down by 2,000 and January […]
Twice per month, Steel Market Update conducts a detailed analysis of the trends impacting the flat rolled steel markets. We issue over 670 invitations to people associated with manufacturing, distribution, steel mills, trading companies and toll processors to assist us in our analysis. We finished conducting our early March research on Thursday of this past […]
According to Baker Hughes data from March 3, 2017, the U.S rig count for the week was 756 rigs exploring for or developing oil or natural gas. This is up 2 rigs compared to last week, with oil rigs up 7 to 609 rigs, gas rigs down 5 to 146 rigs, and miscellaneous rigs unchanged […]
Big River Steel, the newest and most technologically advanced scrap recycling and steel production facility in the world, is officially open for business. According to David Stickler, Chief Executive Officer of Big River Steel, the first line went operational nineteen months after groundbreaking: “A world record time to start up a mill. We’ve invested […]
The February ISM Report on Business indicates manufacturing activity expanded in February with the overall economy in a 93rd month of consecutive growth. The PMI was 57.7 percent, up from 56 percent in January. Looking at it from a 3 month moving average, February showed growth at 56.1, up from 54.7. Production at 62.9 gained […]
President Donald Trump says the Keystone and Dakota Access pipelines must be built from American manufactured steel. After playing with semantics for weeks, the President has now issued a mandate that will require the Keystone XL and Dakota Access pipelines to use steel pipe manufactured in the U.S., according to a report by CNBC on […]
The number of oil and natural gas rigs is moving higher and this is good news for the North American steel industry. According to Baker Hughes data from February 24, 2017, the U.S rig count for the week was 754 rigs exploring for or developing oil or natural gas. This is up 3 rigs compared […]
Please see the end of this report for an explanation of data sources. The Broad Index value of the US $ is reported several days in arrears by the Federal Reserve, the latest value published was dated February 17th (Figure 1). The dollar had a recent peak of 128.963 on January 3rd which was the […]