Tenaris announced it will temporarily suspend operations at its welded tubes mill in Conroe, Texas. The shutdown will result in the layoff of approximately 230 employees, effective April 2015. “Record levels of unfairly traded imports of OCTG (oil country tubular goods) from South Korea and the sharp decline in the price of oil and consequential […]
Each month the Bureau of Labor Statistics, (BLS) puts out its series of producer price indexes, for thousands of goods and materials. For an explanation of this program see the end of this piece. The latest release last Wednesday reported January results. We run this analysis every three months to give readers an opportunity to […]
Global steel production in 2014 totaled 1.627 billion tonnes with a capacity of 2.2 billion tonnes which yields an average utilization for the year of 74 percent. China accounted for 51 percent of global production in 2014. Asia as a whole, including India, accounted for almost 70 percent of global production. Production in January on […]
I couldn’t escape the snow. Our offices in North Georgia were closed today due to 4″ of the white stuff which paralyzes those in its wake in the South. However, I traveled to Chicago yesterday only to find that the flurries being forecast earlier in the week became closer to 5″ of snow and much, […]
Once a month, HARDI sponsors a galvanized steel conference call with the wholesalers who sell sheet and coil to the HVAC mechanical contractors. Steel Market Update (SMU) has participated in these informative discussions for a number of years and they are very useful in our understanding of the ebb and flow of both pricing and […]
Worthington Industries Inc. has revised its six month outlook due to falling steel prices and demand. In a Feb. 23 press release, Worthington wrote, “The price of steel has dropped over $100 a ton since mid-December. The amount and speed of the decline was not anticipated. When steel prices fall, the Company typically has higher-priced […]
President Obama vetoed the Keystone XL Pipeline bill passed by the U.S. Congress. We have a full story on the veto on our website blog. We are trying to put more and more general interest stories, press releases, etc. on our website blog as opposed to publishing everything in our newsletters. This way we hope […]
United Steelworkers representing the nations refineries turned down a seventh contract offer from Shell Oil Co. Negotiations, which began January 1, took a one week hiatus before resuming on Wednesday and ending in frustration on Friday. The USW said the latest offer from Shell, which is leading the contract negotiations for the U.S. refineries, “failed […]
According to Baker Hughes data from February 20th, 2015, the U.S rig count for this week is 1,310 rigs exploring for or developing oil or natural gas. This count is a decrease of 48 rigs when compared to last week, with oil rigs down 37 to 1,019 rigs, gas rigs down 11 to 289 rigs, […]
Steel Market Update last Apparent Excess/Deficit forecast for flat rolled steel shipments and inventories called for shipments in January to exceed 2014 levels by 2 percent. Total flat rolled shipments for the month of January 2015 were projected by us to be 2,415,000 tons. In actuality, shipment levels were 1.6 percent higher than January 2014 […]
The U.S. Department of Commerce released the latest import licensing data for the license requests received through the 18th of February. Steel Market Update (SMU) then compares the daily tonnage rate against the previous four months and the daily license rate being reported during the 3rd week of that particular month. Based on that analysis, […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. We are working on adding new futures workshops in the coming months. If interested please email us at: […]
Reliance Steel & Aluminum fourth quarter consolidated sales rose 11.7 percent year over year to $2.58 billion. Tons sold increased 4.4 percent year over year to 1,469,300 tons. Carbon steel sales of $1.4 billion fell 5.9 percent sequentially with tons sold down 4.7 percent to 1,999,300 tons. The average selling price per ton of steel […]
Below is the latest data issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through December 2014. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for December 2014 increased 12.0 percent, […]
“It’s not 2008 or 2009.” We heard this from trading companies, steel service centers and mills during the Port of Tampa Steel Conference this past week. This week we are hearing similar comments as we make our rounds talking to those active in the industry. Prices have been collapsing but there does not appear to […]
The Coface Group, a worldwide leader in credit insurance, publishes country risk assessments for 160 countries, based on its unique knowledge of company payment behavior and on the expertise of 350 underwriters located close to clients and their debtors. The following a reprint of their risk outlook for 2015. Laborious Global Recovery, Subject to Multiple […]
Steel Market Update recently attended the Port of Tampa Steel Conference in Tampa, Florida. When speaking with the service centers and traders it was apparent that we are in a period of time when buyers do not trust that the price today will be any good tomorrow. Our Comparison Price Indices report accentuates the issues […]
Phillip Bell, President of the Steel Manufacturers Association (steel mills) told those assembled at the 26th annual Port of Tampa Steel Conference, “There is a growing consensus that something just isn’t right.” What he was referring to was the domestic steel mills running at 75 percent capacity utilization rates and the industry still suffering due […]
Figure 1 shows historical gas and oil prices since January 2000. The daily spot price of West Texas Intermediate fell below $100 in August and by January 23rd was down to $44.80. By February 9th, the latest daily figure available from the Energy Information Administration (EIA), the price of WTI had recovered to $52.99. Brent […]
ArcelorMittal narrowed its net loss to $1.1 billion in FY 2014 and cut its debt to $15.8 billion, the lowest level since the company was formed in 2006. Cash flow from operations in 2014 totaled $3.9 billion. Consolidated steel shipments for 2014 were up 3 percent year over year to 85.1 million tonnes. Fourth quarter […]
The following article was taken from the Armada Corporate Intelligence Report dated February 11,2015. The report is written by Dr. Chris Kuehl and his business partner, Keith Prather. Dr. Kuehl spoke at our last Steel Summit Conference in September 2014 and will once again be a keynote speaker for our 2015 Steel Summit Conference on […]
The USW oil refinery strike has expanded to 11 plants and is nearing the end of its second week. Over 3,800 workers are now actively striking, protesting unsafe conditions and use of unskilled contractors. The latest facilities to be affected by the strike are British Petroleum (BP) refineries in Whiting, Indiana and Toledo, Ohio, joining […]
The Q1 2015 February Senior Loan Officer Opinion Survey on Bank Lending Practices was released on February 2nd. This survey addresses changes in the standards and terms on, and demand for, bank loans to businesses and households on a quarterly basis and is based on the responses from 73 domestic banks and 23 U.S. branches […]
The Bureau of Labor Statistics (BLS) report on non-farm employment indicated that 257,000 jobs were added in January. As we were analyzing this date we noticed massive historical revisions and had to go back to January 2000 (15 years!) before were confident we had caught them all. In the 12 months of 2014, job creation […]
SSAB Americas posted sales of SEK 3.5 billion ($421.8 million) in Q4, a 17 percent increase from third quarter. For the full year 2014, the Americas segment had sales of SEK 13.2 billion ($159 million) up from SEK 11.1 billion ($133 million) in 2013. Fourth quarter external steel shipments were down 13 percent year over […]
As we reported last week, prior to negotiations beginning for the month of February market players were predicting ferrous scrap prices would drop by $30-$50 and then $50-$70 per gross ton. Then we heard prices would drop by $100 per gross ton over the months of February and March combined. When the smoke cleared at […]
The American Institute for International Steel (AIIS) reports that U.S. steel exports declined 5 percent year over year in 2014. Exports fell 2.6 percent in the last month of the year with a drop in NAFTA exports accounting for most of the November to December decline. AIIS statistics and commentary follows: Falls Church, VA. February […]
The American Institute for International Steel (AIIS) reports steel imports declined for the second consecutive month in December. Despite the month over month reduction, steel imports were 44.4 percent higher than December 2013. AIIS says falling oil prices may support a continued downward trend due to reduced demand for OCTG and line pipe. The full […]
EUROFER, the European Steel Association, says high levels of steel imports into the European market are “distorting traditional steel trade flows.” Steel imports into the European Union (EU) rose by more than 14 percent. EU steel use grew hesitantly in the second half of 2014, rising just 3.3 percent in 2014. “Weak business conditions in […]
According to Baker Hughes data from February 6th, 2015, the U.S rig count for this week is 1,456 rigs exploring for or developing oil or natural gas. This count is a decrease of 87 rigs when compared to last week, with oil rigs down 83 to 1,140 rigs, gas rigs down 5 to 314 rigs, […]