The dry bulk shipping market continues to recover from its historic lows of 2016. Carriers are reporting positive earnings and a more optimistic outlook for the next two years. Fleet growth in 2018 is expected to be at its lowest level since 1999, a mere 1 percent, according to the latest MID-SHIP Report. Spot rates […]
SMU Note: This construction market analysis article is normally reserved for our Premium members only, but it is being shared with our entire readership this month. To learn more about our Premium level membership and how it can benefit you, click here. Growth of total construction spending has almost come to a halt, according to […]
Growth of total construction spending has almost come to a halt, according to Steel Market Update’s latest analysis of Department of Commerce construction put in place (CPIP) data. Last month, we reported that total construction expenditures contracted in the three months through August year over year for the first time since November 2011. Based on […]
A rail line servicing Canada’s Algoma steel mill is in financial jeopardy over track maintenance costs. The Huron Central Railway, which connects Sault Ste. Marie and Sudbury, needs $46 million to cover infrastructure repairs over the next five years. This is the second time in the last decade that Huron Central has appealed to Ottawa […]
Total construction expenditures contracted in the three months through August year over year for the first time since November 2011, according to August data for construction put in place (CPIP) released by the Department of Commerce on Monday. Privately funded projects still have positive growth on a rolling 12-month basis, but are more than negated […]
Pictures of countless cars and trucks submerged in Houston floodwaters and homes shattered by high winds in the Southeast have the worth of a thousand words in describing the destruction from Hurricanes Harvey and Irma. What they say about post-storm conditions in the ferrous scrap market is less clear. For those who assume thousands of […]
Seaborne shipping is getting a much needed rise in rates. Freight rates are gaining strength following two years of historic lows, says MID-SHIP report. The Baltic Dry index, a benchmark for overall trade volume, rose to 1470 on Sept. 21 for its highest level in two years. MID-SHIP expects the BDI to approach 2000 in […]
Steel buyers are evenly split on how their businesses will be affected by the cleanup from Hurricanes Harvey and Irma. About half (48 percent) of respondents to Steel Market Update’s latest steel market trends questionnaire expect the hurricanes and flooding in Texas and Florida to have a significant impact on their businesses and steel demand […]
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 […]
Hurricane related delays continue to frustrate shipping on the Gulf Coast and now on the Eastern Seaboard from Florida to the Carolinas. Port closures, rail delays, truck shortages, and flooded roadways and rail systems are affecting all modes of freight transportation. Seaborne Freight The freight market gained steam in July and since then rates have […]
Ferrous scrap prices were expected to rise by $20 to $30 per gross ton once the September negotiations began. By Thursday afternoon (today), we were learning that steel mills are suddenly able to buy at sideways numbers. We understand North Star BlueScope was able to buy September at the same prices as August. Other sources […]
The chaos to commerce continues in the Houston area as a result of flooding and damage from Hurricane Harvey. Texas Governor Gregg Abbot estimates damage to the area will be in the range of $150 billion to $180 billion. A quick survey of steel service centers and distribution centers in the area found that many […]
The growth of total construction spending is slowing, though still positive year over year. July data for construction put in place (CPIP) was released by the Department of Commerce on Friday. Total construction still shows positive growth, but slowed to 0.9 percent year over year in the latest three months of data. Privately funded projects […]
Scrap prices are likely to jump by $20 to $30 per ton in the short term as a result of the hurricane and flooding in Houston, predicts John Harris of Aaristic Services, Inc., who was a panelist at Steel Market Update’s Steel Summit Conference last week in Atlanta. Harris did not have time to respond […]
Shipping complaints about CSX Transportation have prompted the Surface Transportation Board to write to CSX President and CEO E. Hunter Harrison to express their concerns. According to the Board, shippers are complaining that CSX rail service deteriorated markedly in second-quarter 2017, coinciding with significant operational changes at the company. The Board received a number of […]
All facilities at the Port of Houston are still closed as of Thursday, Aug. 31, following the devastation of Hurricane Harvey. The Coast Guard has cleared ports in the area for restricted vessel access for ships waiting offshore. Drafts cannot exceed 33 feet at the ports of Texas City, Galveston and Freeport, and no more […]
SMU’s Steel Summit 2017 kicked off its first full day with heartfelt empathy for those colleagues in the Houston region who were unable to make it to the conference in the wake of destruction left by Hurricane Harvey. The devastating floods along the Gulf Coast and in Houston may have a lasting impact on the […]
In the last month, the price of crude oil has risen and the price of natural gas has declined slightly. The number of operating rigs exploring for both oil and gas has declined for three straight weeks. This is the first decline since the low point of June 27 last year. The prices of oil […]
Total construction expenditures are expanding slowly, but the contraction of infrastructure expenditures is accelerating, according to June data for construction put in place (CPIP) released by the U.S. Department of Commerce on Aug. 1. Total construction still shows positive growth, but slowed to 1.3 percent year/year in the latest three months of data. Privately funded […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel HR futures prices have moved $12-$27/ST higher on very light trading volumes this past week. In spite of the higher HR […]
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 […]
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 […]
Cliffs Natural Resources announced today that it has selected Toledo, Ohio, to be the site of its first hot briquetted iron production plant. Midrex Technologies will design, engineer and procure equipment for the new plant, which will produce at least 1.6 million tons of HBI per year. The project is expected to cost approximately $700 […]
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 […]
Ships, barges, trains and trucks move the nation’s cargo. Here is this month’s look at shipping conditions by various modes. Seaborne Freight Rates have dropped in the dry bulk market recently, but may now be plateauing, according to the latest report by MID-SHIP Group. Fleet expansion was strong during the first half of 2017, growing […]
April data for Construction Put in Place (CPIP) was released by the Department of Commerce on Thursday June 1st 2017. Total construction still has positive growth but slowed to 2.5 percent year/year in the latest three months of data. Privately funded projects are the growth engine as state and local and infrastructure both had negative […]
Steel Market Update (SMU) has an active presence on social media. We find LinkedIn in particular an area where we can get our LinkedIn readers involved in a subject prompting questions and responses. In the preamble prior to the posting of an article produced by Steel Market Update entitled “Is Trump Administration the Next Black […]
A look by Steel Market Update at shipping conditions… Seaborne Freight Rates have eased in all four of the major shipping segments (cape, panama, Supramax and handy) in second quarter, according to April’s MID-SHIP Report. Rates are expected to continue to ease throughout this month creating a potential early summer slump. Coal and steel raw […]
In summary, the March CPIP data released on May 1st, yielded mixed results. Private expenditures recorded overall growth with the exception of manufacturing, transportation and religious structures. However, State & Local and Infrastructure spending continued to contract. Data in this report is not seasonally adjusted or corrected for inflation. At SMU we analyze the CPIP […]