By CRU Senior Cost Economist Ross Cunningham, from CRU’s Steelmaking Raw Materials Monitor The Brent crude price is often deemed a bellwether for the global economy. A high oil price increases inflation and impacts economic growth. It influences global confidence, affects investment decisions and weighs on exchange rates—particularly those of large oil exporters. In the […]
The House Transportation and Infrastructure Committee gave its approval to the INVEST in America Act on Friday, moving forward a measure that would fund much needed infrastructure work, create thousands of jobs and help the economy recover from the effects of the coronavirus pandemic. The measure is widely supported by the steel industry, as construction […]
Big River Steel (BRS) expects to complete its capacity expansion by the end of this year more than two months ahead of expectations. The mill in Osceola, Ark., is in the process of doubling its annual steel production capacity from 1.65 million to 3.3 million tons. BRS began operations at its $1.3 billion scrap metal […]
Construction employment declined in nine out of ten metro areas from March to April, during a season when the industry normally sees employment levels climb, said the Associated General Contractors of America in an analysis of new government data. “Today’s employment report shows how few areas were left unscathed by April’s unprecedented job losses,” said […]
The House has proposed an infrastructure bill that would provide $494 billion over the next five years to improve the nation’s highways, rails and transit systems. The INVEST in America Act includes $319 billion for highway investment, $105 billion for transit agencies, $10 billion for motor vehicle safety and $60 billion for rail investment. The […]
Alliance Steel, LLC, is open for business at its new headquarters in Gary, Ind. The company’s Bedford Park location will cease operations in mid-2020. Alliance, a leading distributor and processor of flat rolled steel, has been in operation on Chicago’s south side for 20 years. The company announced its plans to relocate to Northwest Indiana […]
By CRU Senior Analyst Erik Hedborg, from the CRU Steelmaking Raw Materials Monitor In the past week, the iron ore price has risen to $88.8 /dmt as seaborne supply displayed some temporary weakness while China’s steel production remained at a high level. The current iron ore price, $5.3 /dmt higher than last week, sits at […]
By CRU Principal Analyst Justin Hughes and Senior Cost Economist Ross Cunningham, from CRU’s Global Steel Trade Service The international oil markets have been under severe pressure since the outbreak of Covid-19 with the rapid destruction of crude oil and oil product demand. Despite attempts for coordinated supply-side action by major oil producing nations, including […]
“The SDI team shines in moments of challenge,” said Steel Dynamics President and CEO Mark Millett. First-quarter results support that confidence as the company reported strong earnings for January-March despite the coronavirus pandemic. First-quarter net sales totaled $2.6 billion and net income $187 million, an improvement from Q4 2019 for both metrics. Selling price per ton […]
Infrastructure is finally getting some attention again, despite and because of the cornavirus. Congress and the White House are calling for an infrastructure bill to be included in the fourth COVID-19 relief package. “With interest rates for the United States being at ZERO, this is the time to do our decades long awaited Infrastructure Bill,” Trump […]
Service centers polled by Steel Market Update this week reported layoffs and sales declines expected to range from 30-70 percent. Steel orders are being canceled or delayed at most companies as steps to fight the coronavirus take a toll on regional economies across the country. Following are some executives’ comments: “We have not had customers […]
In the last 12 months, the price declines of cold rolled carbon steel and aluminum sheet have been similar. This report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of the competitive position of sheet steel, aluminum, plastic and wood. The analysis includes some downstream […]
In the last 12 months the competitive position of steel sheet has improved against aluminum, plastic and wood. This report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of where sheet steel stands in terms of pricing compared with aluminum, plastic and wood. The analysis […]
In just a few weeks from the first known case, the COVID-19 outbreak has wreaked havoc on the global manufacturing sector. The J.P. Morgan Global Manufacturing PMI posted a steep decline in February, falling to 47.2 from 50.4 in January, its lowest level since May 2009. New orders and production fell at record rates in […]
Construction spending increased 1.8 percent to $1.369 trillion in January, according to a new analysis of federal data by the Associated General Contractors of America. “Public spending on infrastructure, along with single-family housing, was exceptionally robust in January,” said Ken Simonson, the association’s chief economist. “While overall economic conditions remain favorable, future construction spending levels […]
A new steel plant is slated for Canonsburg, Pa. Ameri-Precision Metals Inc. has begun construction on a 250,000-square-foot facility to produce cold-rolled and heat-treated carbon steel strips. Ameri-Precision is leasing the location from Pennsylvania Transformer. The facility should be running by April or May with phase 1 production beginning in July. The site of the […]
Canadian pipe and tube company Nova Steel is returning to the U.S. with a $70 million investment in Delta, Ohio. Nova plans to construct two new tube mills in northwest Ohio in proximity to North Star BlueScope. The 250,000-square-foot facility will produce hollow structural sections and standard pipe. “We are very excited to be back […]
Domestic mills won back market share from imports in 2017, 2018 and 2019. Even though the steel market contracted by 1.9 percent in 2019, shipments by U.S. mills to domestic locations increased by 2.9 percent as imports declined. Table 1 shows 13 years of history of total steel supply to the U.S. market in short […]
By CRU Research Manager Paul Butterworth and Analyst Zhenzhen Jiang, from CRU’s Global Steel Trade Service The loss of steel demand from Covid-19 has pushed Chinese steelmakers to either reduce utilization or idle capacity but, as steel stocks at mills reach critical levels, they will increasingly seek to offload in the export market. Decisions by […]
Writing with CRU’s Chief Economist Jumana Saleheen are Principal Consultant for Aluminum Wan Ling, Senior Analyst Richard Lu, Analyst Ruilin Wang and China office CEO John Johnson. Last week, CRU’s China offices in Shanghai and Beijing returned to work following the Chinese New Year holiday, which was extended due to the outbreak of novel coronavirus (Covid-19). This virus has had a heavy […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: I received a question recently about the significance of Section 321 of the Tariff Act of 1930. Section 321 exempts imports from duties if they have an entered value of less than $800 per entry and meet certain […]
January’s employment report was a downer for manufacturing, but construction was particularly strong. The net increase in employed persons was 225,000 in January, of which 108,000 were in health, education and leisure activities. In January, 44,000 jobs were created in construction and 12,000 jobs lost in manufacturing. The private sector gained 206,000 jobs in January […]
The U.S.-Mexico-Canada-Agreement was signed into law by President Trump on Wednesday. The signing clears the way for Canada to begin the ratification process that is likely to be concluded in March. The president called the agreement the “largest, fairest, most balanced, and modern trade agreement ever achieved.” “Everybody said this was a deal that could […]
The trucking industry reported a “choppy” year for truck tonnage. The American Trucking Association’s advanced seasonally adjusted For-Hire Truck Tonnage Index increased for the 10th year in 2019, but at only half the gain realized in 2018. The index was up 3.3 percent compared to 6.7 percent in 2018. The SA December Index rose 4.0 […]
By CRU Senior Analyst Manjot Singh, from CRU’s Raw Materials Monitor In the past week the coking coal market was characterized by mixed signals, keeping buyers cautious. We heard from a few sources that restrictions on coal intakes at major Chinese ports of Caofeidian and Jingtang could return soon. Currently there is no confirmation of […]
The composite producer price index of commodities peaked in October 2018, then through December 2019 declined by 2.6 percent. This Steel Market Update report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of the competitive position of sheet steel, aluminum, plastic and wood. The analysis […]
By CRU Research Analyst Eduardo Tinti and Senior Analyst Erik Hedborg, from CRU’s Iron Ore Costs Following suspensions of iron ore production in Minas Gerais, Vale’s Northern System located in the Pará state will account for a growing share of the company’s total production. Despite some supply issues in 2019, production is ramping up and […]
About half of the nations surveyed by J.P Morgan and IHS Markit ended the year with manufacturing PMIs in contraction, with conditions especially poor in the Eurozone. The J.P. Morgan Global Manufacturing PMI fell to 50.1 last month from 50.3 in November indicating business conditions remained weak at the end of 2019. The intermediate and […]
By CRU Principal Analyst Matthew Watkins, from the Steel Sheet Products Market Outlook The European Green Deal for the EU was launched on Dec. 11 by the new European Commission. This is a strategy that aims both at achieving zero net emissions of greenhouse gases by 2050 and at managing the transition to that state […]
Chicago-based UPG Enterprises LLC has acquired Metalex LLC and its Morton Rail Products division, formerly known as Morton Manufacturing Co. Metalex is a manufacturer of perforated products, expanded metal, safety grating, perforated tubes and architectural metals. UPG said this acquisition significantly enhances its portfolio, not only with a suite of new products and capabilities, but […]