The Institute for Supply Management’s May Report on Business showed improvement, with the manufacturing PMI rising to 43.1 percent from a reading of 41.6 percent the previous month. The PMI score was at a contraction level not seen since April 2009, but the slight uptick was a promising sign. Manufacturers, however, continue to be guarded regarding […]
Construction spending fell 2.9 percent in April after holding steady in March. The Department of Commerce estimates construction spending was at a seasonally adjusted annual rate of $1.35 trillion—the lowest total since November, says the Associated General Contractors of America. Public construction spending dropped 2.5 percent from March to $342.1 billion. Private spending fell 3.0 […]
Olympic Steel is expanding its southeastern footprint with the opening of a new 120,000-square-foot metal processing facility in Buford, Ga., that will act as a primary flat rolled fabrication hub for the region, which also includes facilities in Locust, N.C., Winder, Ga.; and Hanceville, Ala. Olympic Steel’s facilities in the Southeast offer a wide array […]
The Chicago Business Barometer dropped to 32.3 in May, indicating further pressure on the manufacturing sector due to the COVID-19 crisis. The barometer was at its lowest level since March 1982. After seeing a dramatic drop in demand during April, new orders fell 2.3 points in May. Production fell 6.3 percent putting the index at […]
Steel processor JM Steel, a JENNMAR affiliate, will expand its footprint at the site of Steel Dynamics new flat roll steel mill in Sinton, Texas. The JM facility will include three slitting lines capable of producing 30,000 tons of steel a month. The first line will have capabilities of 0.500″ by 84″ at 80,000 psi, […]
O’Neal Steel is expanding with the opening of a new metal distribution center in St. Joseph, Mo. The 64,000-square-foot warehouse and distribution center will open on June 1. “We are thrilled about our expansion into the St. Joseph market. This new facility opening aligns with growing demand in the area, and we are extremely well […]
“Resilient” is how Barry Zekelman, executive chairman and CEO of Zekelman Industries, characterized steel markets during the SMU Community Chat Webinar yesterday. “We went through a rapid shock and adjustment at the end of March and early April, but April was actually pretty decent and May is basically back on track,” he said, expressing a fairly […]
New data from U.S. Federal Reserve Districts shows economic activity declined in all regions of the country in April and May due to disruption caused by the COVID-19 pandemic. Almost all areas of economic activity were negatively impacted during the period. Most districts reported a severe drop in manufacturing activity with production especially weak in […]
Covid-19 restrictions kept consumers and businesses from buying big ticket items last month, causing manufactured durable goods orders to plummet 17.2 percent in April. The new data from the Commerce Department follows a 16.6 percent decline in orders during March. Transportation orders, always a volatile data point, plunged 47.3 percent in April. The auto industry […]
Algoma Steel welcomed a decision by the Canada Border Services Agency (CBSA) to initiate an antidumping investigation regarding hot-rolled heavy steel plate exported from Chinese Taipei, Germany, South Korea, Malaysia and Turkey. Algoma submitted a complaint to CBSA on April 6, 2020, alleging that the goods indicated were illegally dumped, causing injury to Canadian producers […]
Construction jobs reached multi-year lows in many states in April, according to the latest analysis of government data by the Associated General Contractors of America. Construction employment declined in every state except South Dakota, for a loss of 975,000 jobs last month. Employment in the sector was down 13 percent from March to April with […]
Home prices rose 4.4 percent in March compared to a year ago and 4.2 percent from February, according to the latest S&P Core Logic Case Shiller Index. The 20-City Composite edged up 3.9 percent from 3.5 percent in February. The Composite was short one city, Detroit, due to reporting delays related to the COVID-19 pandemic. “March’s […]
New home sales rose slightly in April, inching up 0.6 percent to a seasonally adjusted annual rate of 623,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. Compared to April 2019, home sales declined 6.2 percent. Median sales price was $309,900 and the average […]
Neither rosy nor the voice of doom, IHS Markit analyst John Anton offered a realistic assessment of the U.S. economic recovery post-COVID-19 during Wednesday’s SMU Community Chat Webinar. Recovery from the current recession will not be a quick V-shaped rebound, said Anton, who is associate director of IHS Markit’s Pricing and Purchasing Service. Instead, he […]
Demand for design services at architectural firms plummeted in April, dragging the Architecture Billings Index down to 29.5 and its lowest level in the history of the index, said the American Institute of Architects. The ABI follows March’s record decline of 20.1 points to 33.3. New project inquiries and design contract indices also declined significantly, […]
Existing-home sales slid almost 18 percent in April, according to the National Association of Realtors. Sales fell 17.8 percent month-over-month and 17.2 percent from a year ago to a seasonally adjusted annual rate of 4.33 million units. Sales were at the lowest level and worst month-over-month decline since July 2010. “The economic lockdowns – occurring […]
U.S. Steel announced a four-year agreement to sell a “substantial volume” of iron ore pellets to Algoma Steel in Ontario, Canada. The purchase agreement runs from 2021 through 2024 and provides a new long-term customer for U.S. Steel’s Minnesota mines. Monday’s announcement follows an iron ore purchase agreement with Stelco in April that gives Stelco […]
Housing starts plummeted 30.2 percent in April compared to March, falling to a seasonally adjusted annual rate of 891,000 and the lowest level since 2015. Compared to April 2019, starts tumbled 27.9 percent, said the U.S. Census Bureau and the Department of Housing and Urban Development. Building permit authorizations were at a SAAR of 1,074,000, […]
The economic downturn in the U.S. will continue for the rest of this year, says the Institute for Supply Management in their Spring 2020 Semiannual Economic Forecast, based on survey responses from manufacturing purchasing and supply executives. The COVID-19 crisis has cast a shadow over the manufacturing sector that is unlikely to lift until the […]
Manufacturing activity in May continued to deteriorate in New York State, according to the May 2020 Empire State Manufacturing Survey. The general business conditions index posted at -48.5, but did gain 30 points from April’s record lower. Sixty-three percent of the firms reporting said that conditions had worsened in May, while 15 percent saw some […]
We are in the middle of a black swan event—an event that is expected but unexpected, said Chris Kuehl, managing director of Armada Corporate Intelligence during Wednesday’s SMU Community Chat Webinar. “Viral threats are not new and have been frequent in the past few decades, but we don’t know from year to year how they […]
We are in the middle of a black swan event—an event that is expected but unexpected, said Chris Kuehl, managing director of Armada Corporate Intelligence during Wednesday’s SMU Community Chat Webinar. “Viral threats are not new and have been frequent in the past few decades, but we don’t know from year to year how they […]
Federal Reserve Chairman Jerome Powell delivered a dire forecast for the U.S. economy should the government fail to provide ongoing financial support for businesses and workers and warned of potential “lasting damage” to the economy. “The scope and speed of this downturn are without modern precedent, significantly worse than any recession since World War II,” […]
World Trade Organization Director-General Roberto Azevêdo announced he will step down from his second term one year early, on Aug. 31. Azevêdo called it a “family decision.” “It is not health-related (thank goodness). Nor am I pursuing any political opportunities,” he added. Stepping down now will avoid creating complications ahead of preparations for the MC12 […]
Cleveland-Cliffs expects operations to normalize during the second quarter as end-markets begin recovering from the COVID-19 pandemic. “Although the pandemic effect led to automotive plant shutdowns over the past six weeks, the timing and pace of production restarts as well as consumer sales data have both exceeded our expectations,” said Cliffs’ Chairman, President and CEO […]
The trucking industry lost more than 88,000 jobs in April, according to the U.S. Bureau of Labor Statistics, a 6.2 percent year-over-year decline. “Job losses in the U.S. trucking industry in April were not as deep as in the broader economy, but they were substantial nonetheless, wiping out four years of trucking employment growth in […]
Tenaris announced it will reduce the workforce at its Bay City tubular mill by 200 employees. “We have an unexpected combination of events straining U.S. and global markets—a drastic drop in demand caused by the pandemic and an oversupply triggered by the price war between Russia and Saudi Arabia. In these stark conditions, we must […]
A new survey of construction firms by the Associated General Contractors of America shows that two-thirds of firms have reported project cancellations or delays due to concerns about the pandemic or future funding. Fewer construction projects equal more job losses; 43 percent of firms surveyed reported staff cuts between March and May. Construction employment fell […]
International steelmaker ArcelorMittal was hit particularly hard by the pandemic, dealing with closures and economic recessions across the globe. The company reported a loss of $1.1 billion for the first quarter of 2020 and expects the remainder of the year to be challenging. “There are still too many uncertainties to accurately predict what the rest […]
Ryerson CEO Eddie Lehner says the last three months have felt like three separate years due to the shock of the COVID-19 pandemic: BCV (Before the Coronavirus), DCV (During the Coronavirus) and ACV (After the Coronavirus). After a slow start to January due to weak demand from OEMs, the quarter gave way to a “pandemic […]