The Federal Reserve Open Market Committee met on Friday, an event closely watched by currency traders around the world as they try to anticipate the Fed’s future interest rate activity. AllianceBernstein (AB) had this to say on Saturday. While Yellen’s main focus in Wyoming was on the tools needed to ensure a resilient monetary policy […]
According to Baker Hughes data from August 26, 2016, the U.S rig count for the week was 489 rigs exploring for or developing oil or natural gas. This is down 2 rigs compared to last week, with oil rigs unchanged at 406 rigs, gas rigs down 2 to 81 rigs, and miscellaneous rigs unchanged at […]
The prices for flat rolled steel have dropped over the past few weeks which is creating a situation where the domestic steel mills want to recoup a portion (or all) of the reductions by negotiating lower ferrous scrap pricing. The mills are asking for $20 per gross ton across the board (HMS, shred, prime grades) […]
According to Baker Hughes data from August 19, 2016, the U.S rig count for the week was 491 rigs exploring for or developing oil or natural gas. This is up 10 rigs compared to last week, with oil rigs up 10 to 406 rigs, gas rigs unchanged at 83 rigs, and miscellaneous rigs unchanged at […]
Below is the latest release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through June 2016. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for June 2016 decreased 12.5 percent […]
According to Baker Hughes data from August 12, 2016, the U.S rig count for the week was 481 rigs exploring for or developing oil or natural gas. This is up 17 rigs compared to last week, with oil rigs up 15 to 396 rigs, gas rigs up 2 to 83 rigs, and miscellaneous rigs unchanged […]
At SMU we almost always use three month moving averages to mitigate situations like the dismal and not credible May job creation statistics. In the July report May was revised up slightly from 11,000 to 24,000 and June was revised up from 287,000 to 292,000. This week’s report from the Bureau of Labor Statistics reported […]
Ryerson Holding Corp, a leading metals distributor and processor, reported net income of $5.6 million for second quarter 2016. Sales of $739.8 million declined 12 percent year over year due to lower average selling price, but increased 5.3 percent from Q1. Tons shipped increased 3.5 percent. Ryerson expects manufacturing growth to remain slow in the […]
A.M. Castle & Co., a specialty metals distributor, announced that it will sell its 50 percent joint venture ownership in Kreher Steel Business to partner Duferco. Duferco will become the 100 percent owner of Kreher in exchange for a purchase price of approximately $31.6 million. The transaction is expected to close August 22, 2016. The […]
According to Baker Hughes data from August 5, 2016, the U.S rig count for the week was 464 rigs exploring for or developing oil or natural gas. This is up 1 rig compared to last week, with oil rigs up 7 to 381 rigs, gas rigs down 5 to 81 rigs, and miscellaneous rigs down […]
June data for Construction Put in Place (CPIP) was released by the Department of Commerce on Monday August 1st. In June total construction slowed for the third consecutive month on a 3MMA (three month moving average) basis. All four sectors had negative momentum. These are non-residential buildings, residential buildings, infra-structure and other, which is a […]
Vallourec, French-based global pipe manufacturer, is expecting challenging market conditions for the oil and gas industry for the remainder of 2016. CEO Phillipe Crouzet said in the company’s second quarter earnings report that the oil and gas market will continue to be “significantly impacted by low demand and intense pricing.” He offered some optimism for […]
Manufacturing activity expanded in July for the fifth consecutive month, while the overall economy grew for the 85th consecutive month, according to supply executives surveyed in the July ISM Report on Business. The PMI registered 52.6 in July, down 0.6 percentage points from June and 2.2 percent above the 12 month average of 50.4. New […]
Global manufacturing began the second half of 2016 on a positive note, according to the JPMorgan Global Manufacturing PMI, compiled by Markit. The rate of growth for manufacturing rose at a faster rate between June and July on all of the indices that make up the composite PMI. At 51.0 in July, the PMI was […]
The states compile their employment numbers independently of the Feds, then both are reported by the Bureau of Labor Statistics. The results are close. In the last fourteen quarters since Q1 2013, the Feds reported total job creation of 9,111,000 and the states reported 9,105,400 a difference of only 0.06 percent. Part of this small […]
According to Baker Hughes data from July 29, 2016, the U.S rig count for the week was 463 rigs exploring for or developing oil or natural gas. This is up 1 rig compared to last week, with oil rigs up 3 to 374 rigs, gas rigs down 2 to 86 rigs, and miscellaneous rigs unchanged […]
US Steel narrowed its losses in second quarter, reporting a net loss of $46 million compared to a loss of $340 million in first quarter, and $261 million in Q2 2016. Net sales for the company totaled $2.58 billion. Earnings for the flat rolled and US Steel Europe segments returned to positive numbers at $6 […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
Figure 1 shows published data for the growth of GDP, industrial production and consumer prices through the second quarter of 2016. The GDP and industrial production portions of this graph are three month moving averages. The growth of GDP was 6.7 percent in the second quarter, which was unchanged from the first quarter, down from […]
Each month Steel Market Update looks at shipping conditions on the seas, rivers, rails and highways. July freight volumes were down somewhat in the first half of July for cargo moved by rail and truck. Barges on America’s rivers are seeing an uptick in rates due to several lock closures. Seaborne shipping is seeing a […]
SSAB Americas results in improve in second quarter due to higher volumes and prices. Sales were SEK 2.8 billion ($323 million) compared to SEK 2.4 billion ($277 million) in first quarter. Shipments improved 11 percent to 526,000 tonnes from 475,000 tonnes in Q1. The company reports good demand from steel service centers and the wind […]
According to Baker Hughes data from July 22, 2016, the U.S rig count for the week was 462 rigs exploring for or developing oil or natural gas. This is up 15 rigs compared to last week, with oil rigs up 14 to 371 rigs, gas rigs down 1 to 88 rigs, and miscellaneous rigs up […]
The price of oil and natural gas have much to do with sales 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 pipe and tube, storage facilities as well as equipment used to drill and pump oil and natural […]
Below is the latest release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through May 2016. 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 2016 decreased 13.6 percent […]
Steel buyers believe that we have reached the top of the flat rolled steel price cycle and that all of the risk is downside from here. Even so, most of the buyers with whom SMU spoke over the past couple of days are not believers in the idea that steel prices will collapse in the […]
According to Baker Hughes data from July 8, 2016, the U.S rig count for the week was 440 rigs exploring for or developing oil or natural gas. This is up 9 rigs compared to last week, with oil rigs up 10 to 351 rigs, gas rigs down 1 to 88 rigs, and miscellaneous rigs unchanged […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. May data was released on Friday July 1st and included revisions back to January 2014. Construction Put in Place is based on spending work as it occurs, estimated for a given […]
The Associated General Contractors of America report that construction spending fell 0.8 percent in May to $1.143 trillion. Most of the decline was due to lower spending in private nonresidential construction. The press release from AGC follows: Construction spending dipped in May but posted strong, broad-based gains for the first five months of 2016 compared […]
A strong finish to the 2016 fiscal year drove annual earnings per share to a record $2.22 for Worthington Industries. Earnings for fourth quarter, ending May 31, 2016, were were $58.8 million with sales of $714.7 million. Net earnings were more than double Q4 2015 earnings of $28.9 million. “While we expect some headwinds to […]
The United Kingdom surprised the world by voting for an exit from the European Union on Thursday. Steel Market Update asked John Anton, Principal Economist-Steel at IHS Global Insight to provide us his insights into what this might mean for the global market. GDP growth in the EU27 is expected to lose 0.2 percent in […]