Global manufacturing expanded at a solid pace in February, according to the J.P.Morgan Global Manufacturing PMI. The composite PMI inched downward for the second month to 54.2, indicating solid but slower growth. Industrial nations saw growth rates decelerate somewhat in February including the U.S., Eurozone, Japan and the UK. Improvement of manufacturing conditions was brisker […]
The MNI Chicago Business Barometer fell in February to its lowest level since August 2017. The barometer slipped 3.8 points from January’s reading to 61.9. Compared to a year ago, the index was up 8 percent and was above the 2017 average of 60.8 New orders were at a six-month low and production was at […]
Key market indicators, and the trends they reveal, are the best they have ever been in Steel Market Update’s analysis. Data released in February shows that 18 of the 36 indicators are historically positive with only six negative. The balance is within the band of historically normal. Trends improved with 32 of the indicators heading […]
Scrap, iron ore and zinc prices advanced in February, while the price of coking coal has declined by $4 per ton since mid-January. To put the raw materials analysis into perspective, Figure 1 shows the spread between Chicago #1 busheling and hot rolled coil ex works Indiana through Feb. 9, both in dollars per net […]
Of the four raw materials tracked by Steel Market Update, scrap and zinc prices advanced in January, iron ore took a small step back and coking coal declined by 10 percent. Each January, Bloomberg and U.S. Global Investors compile their Periodic Table of Commodity Returns. Figure 1 shows the returns of commodities each year of […]
Steel Market Update publisher, John Packard, traded comments with a financial analysts who was of the opinion that demand was under duress and the future of the steel using markets was in doubt. This does not match our belief based on a review of the SMU Key Market Indicators. We are sharing this report with […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
The U.S. economy overall has grown for 103 consecutive months, and the manufacturing sector for 16 months, based on the Institute for Supply Management’s latest survey of corporate purchasing executives. In December, ISM’s manufacturing PMI climbed 1.5 percentage points to 59.7, well above the reading of 50 that indicates growth. “This indicates growth in manufacturing […]
The J.P. Morgan Global Manufacturing PMI ended 2017 near a seven-year high as economies improved and new orders and output expanded. The PMI, produced by J.P. Morgan and IHS Markit, rose to 54.5 in December from 54.1 in November, expanding for the 22nd month. Intermediate goods saw the greatest rate of growth in December followed […]
Key market indicators bode well for business conditions in the first quarter of 2018. Steel Market Update’s view of the present situation based on our examination of data released in December shows that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance is within the historically normal band. […]
All four raw materials tracked by Steel Market Update— iron ore, scrap, coking coal and zinc—increased in price in December. From Australia News Digest on Dec.18: “Steelmaking raw materials made strong gains on Monday as Chinese mills, responsible for half the world’s steel output, restock ahead of the resumption of full production at the end […]
Steel Market Update’s steel market indicators show improved trends in the November data. In our examination of data released in November, our view of the present situation is that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance is within the band of historically normal. The total of […]
Raw material markets have been tranquil since our October update, but the value of the U.S. dollar is once again in decline. In this report, we examine the latest prices for iron ore, scrap, coking coal and zinc. To put the raw materials analysis into perspective, we begin with Figure 1, which shows the spread […]
Global manufacturing hit a six-and-a-half year high in October. The JP Morgan Global Manufacturing PMI rose to 53.5 from September’s 53.3. Most components of the PMI rose at faster rates in October. Output and output prices softened slightly during the month. Output charges increased reflecting supply chain constraints and longer vendor lead times. “The global […]
Steel market indicators look good in the October data, but the trends took a turn for the worse. In the data released in October, our view of the present situation is that 47.2 percent of the 36 indicators are historically positive with only 19 percent negative. The balance are within the band of historically normal. […]
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 futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Global manufacturing stayed steady at a strong reading of 53.2 in September. The J.P. Morgan Global Manufacturing PMI was unchanged from the August reading with consumer, intermediate and investment goods all signaling expansion. Production rose, driven by new orders and international trade volumes and bumping up employment for the month. Higher input costs pushed selling […]
Steel market indicators look good in the September data. Our view of the present situation is that 50 percent of the 36 indicators are historically positive with only 19 percent negative. The balance of them are within the band of historically normal. This was the same result as May and August. Along with September, these […]
The price of iron ore is falling but zinc is at a 10-year high. In this report, we examine the latest prices for iron ore, scrap, coking coal and zinc and their relationship to the dollar. “Right now, the dollar has a lot going against it. The administration in the U.S. continues to hope the […]
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 futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Global manufacturing rose to a 75-month high in August. The J.P. Morgan Global Manufacturing PMI climbed to 53.1 from 52.7 in July. Most components of the PMI increased in August and at a faster rate. Future output was the only measure to remain the same as July, at a strong 63.5. Developed nations on average led […]
Half of the 36 Key Steel Market Indicators released in August are historically positive, while only 19 percent are negative, and the balance fall within the normal range, in Steel Market Update’s view. Along with May, when the data was about the same, this is the best outlook since we began our analysis in January […]
This article is normally reserved for our Premium members, but we are sharing it with our entire readership this month. To learn more about what our Premium members receive, click here. Steel Market Update offers this update on the currencies of the steel and iron ore trading nations through Aug. 21. The analysis of currency […]
BlueScope Steel, the parent of North Star BlueScope, will have a change in command. Mark Vassella has been appointed the new managing director and chief executive officer following retirement by outgoing CEO Paul O’Malley effective Dec. 31, 2017. O’Malley has been at the helm of BlueScope Steel the past 10 years of his 12-year tenure. […]
In this report, updated July 28, we examine the latest prices for iron ore, scrap, coking coal and zinc. To put the raw materials analysis into perspective, we begin with Figure 1, which shows the spread between Chicago #1 busheling and hot rolled coil ex works Indiana through July 21, both in $/net ton. On […]
Manufacturing activity in the U.S. expanded in July, though the PMI declined 1.5 percentage points to a reading of 56.3, reports the Institute for Supply Management in its latest Manufacturing ISM Report On Business. The PMI has remained above the neutral 50.0 point for 11 consecutive months indicating growth in manufacturing. Although still at robust […]
The JP Morgan Global Manufacturing PMI registered 52.7 in July indicating continued manufacturing growth across the globe. During the last four months, manufacturing expansion has remained steady at 52.6 in June and May, and 52.7 in April. Growth in June was again led by European nations with eight of the ten best-performing countries in Europe. […]
In the Key Indicators data released in July, both the present situation and trends have recovered from what now appears to have been a temporary downward blip in June. Trends lead the present situation by about four months. An explanation of the Key Indicators concept is given at the end of this piece for those […]
An explanation of the Key Market Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. This will explain the difference between our view of the present situation, which is subjective, and our analysis of trends, which is based on the latest facts available. In the June […]
Schnitzer Steel, a metals recycler and steel bar producer, reported its best third quarter since FY 2012. Total revenue increased 36 percent sequentially and 25 percent year-over-year to $477 million. Net income was up 50 percent from second quarter and 51 percent from Q3 2016 to $17 million. The improvement was primarily in the company’s […]