Economy
Steel Buyers Showing Caution in November
Written by Sandy Williams
December 3, 2013
Steel buyers are showing a little less confidence that the trend for general economic activity will improve in the next six months according to the ISM Steel Buyers Survey for November. The percentage of buyers who believe activity will remain the same increased from 46.2 percent to 66.7 percent this month with the balance expecting conditions to improve. Likewise caution was seen for sales and production in the next six months, with 60 percent saying activity will stay at current levels, up from 38.5 percent last month.
With no new orders and at the present production rate, the current order book would last 1-2 months for 42.9 percent of buyers, and 2-4 months for 35.7 percent. Those whose order book would last six or more months jumped from 15.4 percent to 21.4 percent.
Current tons on hand would cover shipping levels for 1-2 months for 53.3 percent, up from 38.5 percent in October. Tons on hand are the same or 10 percent higher than a year ago. Inventory was just right for demand said 93.3 percent of those surveyed and 73.3 percent said they will maintain the same inventory levels for the next six months. The rest of those surveyed said they would decrease stocks.
Receipts for the next three months are expected to rise compared to current levels. Incoming orders were still lower than needed for most efficient levels of operation and are expected to remain the same or rise in the next three months. Backlogs are expected to remain the same or increase in the next three months.
Shipping levels moved lower this month but were above levels seen one year ago. Selling prices were seen as competitive by 73.3 percent with 26.7 percent calling them weak, up from 7.7 percent last month. Slightly more than half of buyers expect to hire new people.
More than 93 percent of those surveyed said they had no workers on short time or layoff. Almost unanimously steel buyers said they had no plans to build or buy new manufacturing facilities within the next year.
Of those surveyed, 40 percent said foreign mills are offering prices below domestic levels.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Trump taps Lutnick to be Commerce Secretary
President-elect Donald Trump has named Wall Street veteran Howard Lutnick as the new US Secretary of Commerce.
New York state manufacturing activity ramps up to multi-year high
New York state’s manufacturing sector saw substantial recovery in November, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.
CRU: Dollar and bond yields rise, metal prices fall as Trump wins election
Donald Trump has won the US presidential election. The Republican party has re-taken control of the Senate. Votes are still being counted in many tight congressional races. But based on results so far, the Republicans seem likely to maintain control of the House of Representatives. If confirmed, this will give Trump considerable scope to pass legislation pursuing his agenda. What this means for US policy is not immediately obvious. Trump will not be inaugurated until Jan. 20. In the coming weeks and months, he will begin to assemble his cabinet, which may give a clearer signal on his policy priorities and approaches. Based on statements he made during the presidential campaign, we have set out the likely direction of his economic policy here and green policy here.
ISM: Manufacturing index fell in Oct to lowest point of ’24
Domestic manufacturing contracted for the seventh straight month in October, according to the latest report from the Institute for Supply Management (ISM). This marks the 23rd time in the last 24 months that it has been in contraction.
Chicago Business Barometer slips in October
The Chicago Business Barometer fell to a five-month low in October and continues to indicate deteriorating business conditions, according to Market News International (MNI) and the Institute for Supply Management (ISM).