Manufacturing activity grew for the 16th consecutive month but slowed to a PMI reading of 56.6 in September’s Manufacturing ISM Report on Business. While economists were expecting a smaller drop of 58.2 to 58.5 from last month’s reading of 59.0, U.S. manufacturing is still holding strong. “The September PMI registered 56.6 percent, a decrease of […]
Global manufacturing growth slowed in September. The JP Morgan Global Manufacturing PMI eased to a 4-month of 52.2 maintaining the general rate of expansion seen throughout 2014. Meaningful growth was mostly limited to the U.S., however, along with improvements in Czech Republic, Ireland, Taiwan and Canada. Growth was stagnant in most of the rest of […]
Barge availability is becoming an issue on U.S. waterways. According to the MID-SHIP Report, demand for barges to move record grain production is putting upward pressure on shipping costs. MID-SHIP also reports berth congestion for some breakbulk facilities along the Mississippi River due to strong steel shipments. Availability constraints in trucking and rail are adding […]
The Canadian economy was flat in July following six months of gains according to data released by Statistics Canada on Sept. 30, 2014. GDP growth was unchanged, failing to meet economist forecasts of 0.2 to 0.3 percent growth. Manufacturing output grew by 1 percent. Durable goods rose 1.6 percent with notable increases in transportation equipment, […]
The Chicago Business Barometer fell 3.8 points to 60.5 in September. The headline index in the report by MNI Indicators was lower than economist predictions of 62.0 report but well above the neutral 50 reading. The average Barometer reading for third quarter was 59.1, indicating a healthy growth for the economy. Production and new orders […]
Schnitzer Steel Industries, Inc. expects significantly improved results for fourth quarter FY 2014, ending August 31, 2014. The company’s steel manufacturing business benefited from growing West Coast construction demand and productivity initiatives that resulted in operating income in the range of $13 to $14 per ton, the highest quarterly profit since FY 2008. Metals recycling […]
To cap off its 30th anniversary, California Steel Industries, Inc. (CSI) announced production of the first pipe from the new electrical resistance welded (ERW) pipe mill at CSI Tubular Products (CSITP). The announcement coincided with celebration, invitation-only tour of the $100 million pipe mill at CSITP. The new mill will feature API (American Petroleum Institute, […]
Armada Executive Intelligence released its monthly trends report that focuses on economic issues that are likely to have short and long term impact on business. The following is a summary of the important issues to watch in the coming months and year. Trend 1: U.S. Dollar Strengthening Banks around the world are taking their cue […]
All of SSAB’s U.S. facilities are running at full capacity according to SSAB CEO Martin Lindqvist. In an interview with Bloomberg, the head of the Swedish steel company said the “re-industrialization” of the U.S. and improved demand from the energy, automotive and heavy transport sectors is boosting profitability for SSAB’s US operations. North American orders […]
Evraz North America LLC has filed for an initial public offering (IPO) with the US Securities Exchange Commission. Evraz North America said it intends to use the proceeds from the share offering to complete acquisition of North American assets and repay debt to its Russian parent company Evraz. The number and price of shares to […]
Essar Steel Algoma announced a “turnaround performance” in their second quarter FY 2015 guidance for the period ending September 30, 2014. The company expects second quarter steel shipments to equal 680,000-690,000 tons with EBITDA of CDN $75-85 million, compared to 530,000 tons and CDN $12.4 million EBITDA in Q1. Second quarter EBITDA projections far exceed […]
US Steel Hamilton Works will be put up for sale within two months according to court filings by US Steel Canada’s President and General Manager Michael McQuade. Lake Erie Works is expected to be placed for sale by March 15, 2015. A statement by US Steel Canada Director, Government and Public affairs follows: “From the […]
Essar Steel’s Canadian entities have been struggling with financing this year and now that Essar Steel Algoma problems appear resolved, Essar Steel Minnesota LLC (ESML) finds itself in dire need of capital. The $1.8 billion taconite plant under construction in Nashwauk, Minn., failed to raise the $361 million in equity needed in time to secure […]
Worthington Industries began its fiscal year 2015 with higher sales and solid net earnings. The company, located in Columbus, Ohio, reports net earnings of $44.2 million for FY 2015 first quarter, ending on August 31, 2014. Net sales totaled $862.4 million, up 25 percent compared to the first quarter of 2013. The consolidation of TWB […]
Sales of new residential homes in August surged 18 percent from July and 33 percent year over year to a seasonally adjusted annual rate of 504,000, according to Department of Commerce data. The level of sales last month was the highest seen since May 2008. The median sales price in August was $275,600 and average […]
An explosion at US Steel Fairfield on Sunday evening resulted in the death of two worker and the severe injury of another. US Steel security and paramedics responded to the incident. Edward Lamar Bryant, 53, was pronounced dead on Sunday at UAB Hospital emergency room in Birmingham, Al. Leo Bridges and Mac Bedwell were transported to the […]
Creditors of US Steel Canada are wondering how they are going to recover the money owed to them by the steel company. The Hamilton Spectator reports that US Steel Canada owes more than $94 million to contractors and suppliers, 190 of which are in the Hamilton area. The CCAA process prevents creditors from suing USS […]
Zinc prices hit a three year high in September at $2390/t, escalating quickly from the mid $1900s in March. Although the prices have moderated in the last few weeks zinc, as of September 18, zinc was at $2247/metric ton on the LME index. The soaring prices are due to production shortfalls and higher demand. The […]
The Canadian International Trade Tribune (the Tribunal) determined last Friday that there is reasonable indication that dumping and subsidization of OCTG products from nine countries have caused or may cause injury to the domestic market. The countries named in the investigation are Chinese Taipei, the Republic of India, the Republic of Indonesia, the Republic of […]
Allegheny Technologies, Inc. (ATI) is considering US Steel as a potential partner for a joint venture on its new hot-rolling and processing facility in Brackenridge, Pa., according to equity research firm Cowen and Co. ATI, a diversified specialty materials and components producer, is working with two steel mills to secure the joint venture, according to […]
Existing home sales fell unexpectedly in August, ending four straight months of gains. Home sales decreased 1.8 percent to a seasonally adjusted rate of 5.05 million from a revised rate of 5.14 in July. The August sales slid well below economist forecasts of SAAR 5.2 million for the month. The National Association of Realtors (NAR) […]
“Let’s bring sexy back to steel!” That was the rallying cry of Associated Steel Distributors President Brian Robbins at the regional meeting held at the Ritz Carlton in Cleveland, Ohio on September 18. Robbins, CEO of MidWest Materials, harkened back to the days of steel glory when CEOs were celebrities of sort and even sales […]
The September Precision Metalforming Association (PMA) Business Conditions Report reveals that metalforming companies are less optimistic about the business conditions for the next three months. The number of participants expecting economic activity to decline doubled to 14 percent from 7 percent last month, 51 percent expect no change (down from 53 percent) and 35 percent […]
US Steel announced they will seek court protection from creditor claims against US Steel Canada under the Companies’ Creditors Arrangements Act (CCAA). In the meantime US Steel will provide CA $185 million (US$165 million) to secured debtor-in-possession financing to support the Canadian mills through the end of 2015. For now, US Steel Canada will carry […]
Steel Dynamics Inc. expects profits from third quarter steel operations to surpass second quarter and year over year results. In their third quarter guidance, SDI indicated earnings of $0.34 to $0.38 per diluted share that will include before tax charges of $34 million related to the acquisition and financing of Severstal Columbus. Shipments and metal […]
Nucor is expecting higher profitability for its sheet steel, structural, bar and plate operations for third quarter. In their quarterly guidance, Nucor noted that manufactured goods, including energy and automotive, are their strongest markets. The high level of imports continues to pressure prices downward. Growth in the residential market has benefited the fabricated construction products […]
Housing starts and building permit authorizations fell in August according to data from the U.S. Department of Commerce. Housing starts were at a seasonally adjusted annual rate of 956,000, 14.4 percent below the July revised estimate of 1,117,000 but 8.0 percent above the August 2013 estimate. Single family housing starts fell 2.4 percent to a […]
The Philadelphia Fed Manufacturing Business Outlook Survey registered a drop of 5.5 points to 22.5 in September after recording its highest reading since March 2011 at 28.0 in August. Orders and shipments increased by 1 and 5 points, respectively, while indexes for unfilled orders and delivery times were positive for the month. Input prices were […]
Esmark Industrial Group (EIG) announced the acquisition of Pittsburgh Annealing Box, Inc, for an undisclosed multi-million dollar purchase price. EIG is a metals and fabrication and manufacturing subsidiary of Esmark Inc. Pittsburgh Annealing Box, a maintenance, steel fabrication and repair operation, was founded in 1893 and has conducted business under the name KMA Manufacturing since 2003. […]
Esmark Inc. has appointed steel industry veteran Michael P. DiClemente Executive Vice President of Finance and Treasurer for Esmark, Inc., and its new formed company, Esmark Europe. DiClemente will direct all financing and treasury management functions for both parent company Esmark, Inc. and its newly formed company, Esmark Europe. “Mike’s significant experience in the public […]