The Dodge Momentum Index declined for a third straight month in August, a stark contrast from the six consecutive months of gains seen since the close of 2020. The downturn suggests strong headwinds from supply-chain limitations, rising raw material prices, and labor shortages that are plaguing the nonresidential construction sector, especially new projects. The index […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. The U.S. construction sector rose in July, lifted by gains in both the private and public sectors. Overall spending rose by 0.3% following a sideways revision for the month prior, the Commerce […]
The U.S. labor market saw its worst monthly performance since January, according to the U.S. Bureau of Labor Statistics’ (BLS) August report. The latest data showed 235,000 new workers were added to payrolls in August, less than a quarter of the 1.053 million positions added in July. August’s employment report was a huge disappointment, nearly […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. U.S. job creation in August disappointed, unable to maintain pace with July’s results. The U.S. economy decelerated in August, as hiring rose at its slowest pace since January. Nonfarm payrolls increased by […]
General Motors Co. will halt production at nearly all North American assembly plants starting Monday, a company spokesperson confirmed to Steel Market Update. The widespread stoppages extend as the semiconductor chip shortage in Asia continues to cripple automakers worldwide, and particularly the U.S. GM said that most assembly plants in North America will idle starting Monday […]
Alro Steel Corp. has acquired Metal Stock, a Philadelphia-based service center and distributor of steel and plastic products. This asset purchase will allow Alro to grow its customer base while providing improved service for cut-to-size metals and plastics, the company said. Established in 1994 as a full-service metal distributor, Metal Stocks serves Eastern Pennsylvania, New Jersey, […]
The U.S. manufacturing sector saw significant improvement in August, supported by steep upturns in production and new orders, according to the latest U.S. Manufacturing PMI data from IHS Markit. “U.S. goods producers continued to register marked upturns in output and new orders in August, as demand flourished once again. That said, constraints on production due […]
New orders, production and prices grew in August, while employment contracted and supply backlogs expanded, said the Institute for Supply Management in its August 2021 Manufacturing ISM Report on Business. The Manufacturing PMI rose 0.4 percentage point in August to 59.9%, edging higher and indicating expansion in the overall economy for the 15th consecutive month […]
World crude steel production contracted for the second straight month in July after repeated months of record-breaking output, according to World Steel Association (worldsteel) data. Global production in July, at an estimated 161.7 million metric tonnes, declined 3.7% from June, but was still 4.0% higher than the same period last year. Since March’s historic 12.7% […]
U.S. gross domestic product (GDP) grew by an estimated 6.6% in the second quarter of 2021, slightly faster than the 6.5% annual rate previously forecast, marking the fourth consecutive quarter of growth for the U.S. economy since the pandemic downturn, according to the Bureau of Economic Analysis (BEA). The second estimate was adjusted higher thanks […]
Auto assemblies in North America plummeted in July, revealing the extensive impact the semiconductor scarcity is having on carmakers. Regionally, the annual production rate fell 21.5% or by nearly 270,000 vehicles in July versus the prior month, according to LMC Automotive (LMCA). The more alarming figure may be that July’s annual production rate was down 21.8% […]
U.S. consumer confidence declined for the second straight month in August, following a downward revision for the month prior, according to the latest data from The Conference Board. The August index fell by 11.03 points month on month after slipping 3.8 points in July. “Consumer confidence retreated in August to its lowest level since February 2021 […]
Despite some regional shifts in commercial construction, demand remains robust – while some project delays are creating backlogs that will likely drive additional construction activity in late Q4 and into early 2022, said members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI). Demand for HVAC and other galvanized-intensive steel products remains strong, said members of […]
Weekly domestic raw steel production slipped last week after climbing the week prior. Output varied slightly throughout the month of August. Production by U.S. mills was 1,873,000 net tons while the average utilization rate was 84.9% in the week ending Aug. 28, according to the American Iron and Steel Institute (AISI). Weekly output dipped by […]
Economist Alan Beaulieu struck a cautionary tone in the forecast he offered to attendees of SMU’s Steel Summit last week. The pace and rate of rise in steel demand and production will level off in 2022, he predicted, after skyrocketing due to pent-up demand and government stimulus following last year’s COVID-driven disruptions. “The massive buildup […]
The shortage of qualified workers and supply chain disruptions continue to be a drag on the U.S. construction sector, said economist Ken Simonson, who predicted continued volatility for nonresidential building in the year ahead. Speaking to the crowd of steel executives at SMU’s Steel Summit Tuesday in Atlanta, the Associated General Contractors of America’s chief economist […]
Steel Dynamics’ top executive said he remains very optimistic about the market’s outlook, especially for the balance of 2021, but expects the trend to carry well into 2022. “I’m really bullish,” said Mark Millett, SDI’s president and CEO, during a fireside chat at SMU’s 2021 Steel Summit on Tuesday in Atlanta. “We’re booking for December […]
Cleveland-Cliffs reported that its COVID vaccination incentive program worked. In July, the steelmaker launched a voluntary bonus program, in collaboration with its labor unions, to achieve a higher vaccine adoption rate across the business. The company says it reached a total vaccination rate of 75%, or nearly 19,000 employees out of its 25,000 workforce, by […]
Weekly raw steel production by U.S. mills edged back up after successive decreases the past two weeks. The average utilization rate was 85.0% while production was 1,877,000 net tons in the week ending Aug. 21, according to the American Iron and Steel Institute (AISI). The slight increase in domestic production edged utilization back up to […]
Construction employment is still trailing peak pre-pandemic levels in 36 states, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. As the Delta variant threatens to hold down further gains, the AGC stressed that construction employment would benefit from new federal infrastructure investments, urging the House to quickly pass […]
Algoma Steel Inc. reported strong results for its fiscal first quarter ended June 30, setting the stage for its parent company, Algoma Steel Group Inc., to become a public company later in 2021. Algoma reported net income of $214 million Canadian ($166.6 million U.S.), nearly double its earnings in the prior quarter. The Ontario-based steelmaker attributed […]
Toyota Motor Corp. is anticipating a reduction in automotive production in the range of 40-60% in North America. Except for Toyota’s San Antonio, Texas, plant, all North American vehicle assembly plants will be affected, a company spokesperson confirmed to Steel Market Update. “Due to COVID-19 and unexpected events with our supply chain, Toyota is experiencing […]
Housing starts fell by 7.0% in July as supply chain and labor challenges continue. The decrease brought the seasonally adjusted annual rate to 1.53 million units, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. The July reading includes a 4.5% decrease in single-family starts to […]
Manufacturing growth in New York State expanded slightly in August but at a far slower rate than the record-setting pace seen the month prior, according to the data collected in the Empire State Manufacturing Survey. The general business index fell 25 points to 18.3. Indices for new orders and shipments fell by double digits from […]
Builder confidence edged down in August to its lowest reading in 13 months due to higher construction costs, supply shortages and rising home prices, according to the NAHB/Wells Fargo Housing Market Index (HMI). The index contracted for the third time in as many months, falling five points to a reading of 75 in August, as […]
Mill shipments of steel products rose in June by 1.7%, following an increase of 1.9% the month prior. Apparent supply jumped 6.0% in June after a 1.3% increase in May. June’s gains were the fourth in as many months after February’s double-digit contraction. This analysis is based on steel mill shipment data from the American […]
Mild weakening of monthly Key Market Indicators, as analyzed by Steel Market Update, may reflect the usual summer slowdown or perhaps growing concern over the latest COVID variant and its possible effects on the economy. Markers for the Present Situation have contracted for the second straight month and Trends have now followed after a small but positive […]
Steel demand remains strong, outpacing supplies in the U.S. and causing prices to continue escalating. The trend is attracting more imports as customers look overseas for price and supply relief. June data shows imports of most steel products have risen over the past two months as imports’ share of total sheet product shipments rose to 16.2%, […]
Steel Market Update is pleased to share this Premium content with our Executive members. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Producer prices accelerated into midsummer, showing no signs of slowing down. The index and subcategories for final demand have fully recovered from the COVID-driven collapse and have overtaken pre-pandemic […]
Steel prices will go higher and stay stronger, predicted company executives during Stelco’s second-quarter 2021 earnings call on Wednesday. The Hamilton, Ontario-based flat-rolled steelmaker was rather bullish on the prospect of steel prices and their general direction through 2022 and beyond. As the company claimed “industry-leading profit margins” and record-setting quarterly results due to a favorable pricing […]