Mexico will renew its tariffs covering imports of over 200 steel products for the next five years, but will decrease the rates on most products to 5 percent by September 2023. The tariffs apply to countries with which Mexico does not have a free trade agreement. The current tariff is 15 percent, but will fall […]
New home sales rose a solid 7.1 percent in August and jumped 18 percent from a year ago, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. Sales in August were at a seasonally adjusted annual rate of 713,000. “With job growth continuing and lower interest rates in […]
Thyssenkrupp AG is sacking its CEO of 14 months after directors determined Guido Kerkhoff is unable to reverse declining profits at the German conglomerate. Supervisory Board Chairman Martina Merz will be interim CEO for the next 12 months while a permanent replacement is sought. Kerkhoff succeeded Heinrich Hiesinger in July 2018. In May 2019, the […]
Members of the United Auto Workers at AK Steel Coshocton Works ratified a new 46-month labor agreement on Sept. 20. The agreement covers approximately 300 hourly production workers and maintenance employees at the facility and will be effective until July 31, 2023. “We appreciate the work of the Union leadership with our management team to […]
The trucking barometer is not pointing toward a recession, says the American Trucking Association, citing its latest For-Hire Truck Tonnage Index. The August index declined 3.2 percent to a reading of 118.3 after climbing 6.2 percent in July. Compared to a year ago, the seasonally adjusted index was up 4.1 percent and gained 4.3 percent […]
Price growth continues to slow in the housing market, according to the latest S&P CoreLogic Case-Shiller Indices. The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index for July 2019 reported an average annual gain of 3.2 percent, unchanged from June. The 20-City composite posted a 2.0 percent gain from 2.2 percent in the prior […]
“Fragile and uncertain” is how the Organization for Economic Cooperation and Development (OECD) describes the current global economy. The OECD’s latest Interim Economic Outlook shows economic growth slowing as escalating trade conflicts impact confidence and investment and increase downside risks in financial markets. In May of 2018, the OECD was predicting global growth of 4 […]
The strike by United Auto Workers at General Motors is disrupting sister operations in Canada. As Day 5 of the strike began Friday, GM Canada announced layoffs for more than 2,500 of its workers. Union leaders expect further reductions next week. General Motors Canada laid off about 1,200 workers at the assembly plant in Oshawa […]
A workforce shortage continues to impede gains in construction employment, says the Associated General Contractors of America. Thirty-nine states added construction jobs between August 2018 and August 2019, while construction employment increased in 29 states from July to August, according to AGC’s latest analysis of Labor Department data. “Even more states probably would have posted […]
U.S. Steel is feeling the pain of falling steel prices and deteriorating market conditions. The company expects an earnings loss of 35 cents per diluted share for the third quarter of 2019 compared to a profit of 39 cents per share in the second quarter. The company followed Nucor and Steel Dynamics in lowering guidance […]
Steel Dynamics is expecting earnings to drop in the third quarter due to lower profits from its steel operations. Lower scrap prices were not enough to offset lower shipments and declining steel pricing. The steelmaker expects earnings in the range of $0.66 to $0.70 per diluted share compared to $0.87 per share in the second […]
Housing starts rebounded in August, jumping 12.3 percent from July and 6.6 percent from a year ago to a seasonally adjusted annual rate of 1,364,000. Multifamily construction surged 30.9 percent and single-family starts 4.4 percent from July. “Housing has been on an upswing in recent months as the pace of permits and starts has been […]
Existing home sales grew for the second consecutive month with three U.S. regions reporting higher gains, said the National Association of Realtors. Sales rose 1.3 percent from July to a seasonally adjusted annual rate of 5.49 million in August. Sales were up 2.6 percent from a year ago. Sales of single-family homes rose 2.9 percent […]
Nucor expects a weaker performance from its steel mills segment in the third quarter due to lower prices for sheet and plate steel. “Although we still see stability in most of the end-use markets that we serve, there has been some softening in automotive, agricultural products and power transmission markets,” said the company in guidance […]
The Empire State Manufacturing Index surprised economists by slipping to 2.0 on the general business index, a three point decline from August. The new orders index fell three points to 3.5, but remained above zero indicating only slight growth. The shipments index declined four points to 5.8 for it lowest level in nearly three years. […]
Builder confidence hit a one-year high in September, according to the latest NAHB/Wells Fargo Housing Market Index. The HMI, which measures builder perceptions of current and future sales of new single-family homes, rose one point to 68. The HMI index gauging current sales conditions increased two points to 75 and the component measuring traffic of […]
United Auto Workers called for a strike at General Motors beginning at 11:59 p.m. tonight, Sunday, Sept. 15. On Saturday evening, UAW Vice President Terry DIttes announced there would be no extension of the current 2015 collective bargaining agreement. “We stood up for General Motors when they needed us most. Now we are standing together […]
Operations at Mill Steel Co.’s Anderson, Ind., facility are winding down as the service center moves to consolidate operations at its Jeffersonville, Ind., plant. The two locations, just a couple hours apart, suffered from some redundancy, and the company determined it would be more efficient to service customers from the larger Jeffersonville facility, explained Mill […]
“If you want to be successful in this business you need to understand the market you serve,” said Cleveland-Cliffs CEO Lourenco Goncalves at the Credit Suisse Basic Materials Conference on Tuesday. Goncalves appears to know what he is doing, having transformed Cleveland-Cliffs from a failing enterprise into a solid business with a unique market position. […]
A potential strike by janitorial workers at General Motors may cause disruption at five GM plants, if autoworkers don’t strike first. The United Auto Workers is ending a contract extension on Saturday, Sept. 14, with janitorial services company Aramark, which coincides with the expiration of auto worker contracts with GM, Ford and FCA. Should a […]
A number of maintenance outages are scheduled at U.S. steel mills in the coming months with the majority to occur in October. Blast furnaces at AK Steel Dearborn, ArcelorMittal Cleveland and Burns Harbor, and U.S. Steel Gary Works are scheduled for maintenance in October, representing an estimated 495,050 tons of steel capacity temporarily removed from the […]
So far, China has held its own in the prolonged trade war with the U.S., but August saw an unexpected decline in exports. China’s exports fell 1.0 percent in August after gaining 3.3 percent in July. Imports declined 5.6 percent, resulting in an overall trade surplus of $34.84 billion, said China’s General Administration of Customs. […]
Planning activity for nonresidential construction declined in August, according to the latest report issued by Dodge Data & Analytics. The Dodge Momentum Index slid 1.3 percent to 127.8 last month primarily due to a 16.6 percent decline in the institutional component that offset a 9.1 percent gain in the commercial component. The index is a […]
Employment gains fell short of expectations in August with only 130,000 new nonfarm jobs reported by the U.S. Census Bureau. Construction employment accounted for 14,000 jobs last month and 177,000 in the past 12 months, according to the latest analysis of government data by the Associated General Contractors of America. Ken Simonson, the association’s chief […]
The remaining days for AK Steel Ashland Works are numbered. Employees received final notices on Tuesday from AK Steel regarding the permanent shutdown of the Ashland plant scheduled for Dec. 31. The letter from the company sent to about 260 employees states: “As you know on Jan. 28, 2019, AK Steel announced its plans to […]
Hurricanes are a yearly occurrence for the southern U.S., taking huge tolls on property and lives and causing major disruption for the shipping industry. Hurricane Dorian, still churning its way up the East Coast, is the latest example. In preparation for Hurricane Dorian, Florida manufacturers rushed to get goods shipped North and out of flood […]
August U.S. auto sales, minus the non-reporting Detroit Big 3, grew 12.2 percent from a year ago. Sales were strong for Asian manufacturers with most reporting double digit gains. Honda led the sales increase in August posting an 18 percent gain year-over-year. Nissan was next at 13 percent, followed by Hyundai at 12 percent and […]
Construction spending was essentially flat in July, inching up less than 0.1 percent from June, according to an analysis of U.S. Census Bureau data by the Associated General Contractors of America. Spending slid 2.7 percent from a year ago to a total seasonally adjusted annual rate of $1.289 trillion. Year-to-date, spending declined by 2.1 percent […]
The ISM Manufacturing Index fell to 49.1 percent in August from 51.2 percent in July indicating a contraction in business activity and the lowest level since the 48.0 percent reading in January 2016. “Comments from the panel reflect a notable decrease in business confidence,” said Timothy R. Fiore, chairman of the Institute for Supply Management […]
The global manufacturing sector downturn continued to worsen in August. The J.P.Morgan Global Manufacturing PMI posted a 49.5 for its fourth month of contraction. More than half of the nations surveyed by J.P.Morgan and IHS Markit had PMI readings below the neutral 50 mark last month, with Germany and the Czech Republic declining at the […]