The metalforming sector continues to express uncertainty about near-term business conditions, according to the August 2019 Precision Metalforming Association Business Conditions Report. The August report shows that 27 percent of participants anticipate an improvement in economic activity during the next three months (an increase from just 16 percent in July), 46 percent expect no change […]
The Chicago Business Barometer rose six points in August after two months of contraction. The Index posted a 50.4 last month, compared to 44.4 in July. MNI Indicators still sees an overall softening in business conditions despite the gains in August. The three-month moving average, a better indicator of conditions, fell to 48.2 Supplier deliveries […]
The United Auto Workers has chosen General Motors as the lead company for labor negotiations that will set the pattern for 2019 discussions. Contracts at the Detroit Big 3 will expire at midnight on Sept. 14. “We are focused. We are prepared. And we are all ready to stand up for our members, our communities […]
Don’t get too worried about a recession just yet, advised ITR economist Alan Beaulieu at the SMU 2019 Steel Summit in Atlanta this week. The economy is slowing down and consumption will be tepid for the rest of this year and into the first half of 2020. But conditions will improve in the second half […]
Nucor has received more than 2,300 applicants for 250 positions at its $400 million steel plant in Sedalia, Mo. The rebar plant is expected to open in November. Jessica Craig, Sedalia-Pettis County economic development executive director, says 153 employees have already been hired, some coming from as far away as Columbia and Kansas City, more […]
Contract negotiations between the United Auto Workers and Ford, GM and FCA are facing unwanted outside pressures. As a precautionary strike vote is being taken at UAW locals, the FBI reportedly raided homes of UAW presidents in Ohio, California, Wisconsin, Missouri and Michigan as part of a government investigation into bribery allegations. United Auto Workers […]
Eighty percent of contractors report difficulty filling hourly craft positions, according to a new survey by the Associated General Contractors of America. Only 4 percent expect hiring conditions to be easier in the next 12 months. “Workforce shortages remain one of the single most significant threats to the construction industry,” said Stephen E. Sandherr, AGC’s […]
Steel demand from the agricultural sector is down substantially, according to a panel of steel distributor and processing CEOs at the 2019 SMU Steel Summit. North American farming profits were hit hard in 2019 by weather, high steel prices and retaliatory Section 232 and 301 tariffs, impacting the ability of farmers to invest in equipment. […]
The trucking and railroad industry shared a stage on Monday at the SMU Steel Summit. James Burg, president of James Burg Trucking Company, and Jim Schaaf, group vice president of metals and construction at Norfolk Southern, talked about the challenges facing their industries. Trucking Tribulations The trucking industry employs approximately 7.3 million people, 3.9 million […]
Steel Market Update is pleased to announce the recipient of the first SMU NexGen Leadership Award is Meredith Meade at Tempel Steel Company. Ms. Meade was presented her award by Steel Manufacturers Association CEO Philip Bell. SMA sponsored this year’s award, which attracted 21 highly qualified nominees from 18 companies. The finalists for the award were Ms. […]
Orders for durable goods increased for a second month, gaining 2.1 percent in July, according the latest data from the Commerce Department. Transportation again led the gain with a surge of 47.8 percent for aircraft and parts. Excluding the volatile transportation category, durable goods orders were down 0.4 percent. Core capital goods, non-defense minus aircraft and […]
JSW USA is delaying construction of an electric arc furnace at its Baytown facility due to current market conditions. “While JSW USA is fully under way in modernizing the Plate Mill at Baytown, Texas, given the current market conditions and the prevailing policy environment, the company has for now decided to put on hold the […]
The steel industry enjoyed a profitable first half of 2018 due to a strong economy and tariffs on imports that drove up domestic prices. The welcome windfall prompted several companies to commit large investments toward expansion and modernization of their facilities. In all, about 31 million net tons of new steel capacity could potentially come […]
U.S. Steel announced that it will idle its East Chicago Tin facility due to low capacity utilization and consolidate production from three to two facilities. The company hopes to transfer about half of the 297 employees at East Chicago to Gary Works and the Midwest plant. The statement below was sent to employees on Friday. […]
New home sales fell 12.8 percent to a seasonally adjusted annual rate of 635,000 from June’s revised rate of 728,000, acccording to the latest report from Commerce. Sales increased 4.3 percent from a year ago and were 4.1 percent higher on a year-to-date basis. The revision to sales was notable due to the upward rise […]
ArcelorMittal announced that it will lay off 100 workers at its Weirton, W. Va., tin plate plant. The company joins its competitors, U.S. Steel and NLMK USA, in cutting back production in recent weeks. ArcelorMittal said in a statement: “In order to maintain its position as a competitive and sustainable tin plate producer, ArcelorMittal Weirton […]
Home buyers in the U.S. bought more existing homes in July as mortgage rates continued to ease. The National Association of Realtors reports that existing-home sales rose 2.5 percent to a seasonally adjusted annual rate of 5.42 million after dipping in June. On a year-over-year basis, existing home sales were 0.6 percent higher last month. […]
The U.S. International Trade Commission determined on Tuesday that unfair imports of steel racks from China are causing material injury to domestic producers and should be subject to duties. The final decision follows the Department of Commerce AD/CVD determination that the racks are subsidized and sold in the U.S. at less than fair value. As […]
The Steel Manufacturers Association announced today that Big River Steel has joined the association. SMA President Philip Bell welcomed BRS as an “epicenter for steelmaking innovation.” Big River Steel is located in Osceola, Ark. It calls itself the world’s first Flex Mill, merging the wide product mix and superior grade capabilities of an integrated mill […]
Material Sciences Corp. was named as one of five winners of the 2019 Altair Enlightment Award given to honor the greatest achievement in vehicle weight savings. MSC was honored for its MSC Smart Steel, a new multilayer steel laminate engineered as a direct substitute for low carbon steel stamped vehicle body parts. Offering a 20 […]
It’s official: North Star BlueScope in Delta, Ohio, will be getting a new EAF. Australian parent BlueScope Steel announced the expansion during its FY 2019 earnings presentation. The $700 million investment will add a third electric arc furnace and second caster at the facility, boosting annual capacity by 850,000 metric tons (936,949 net tons). Commissioning […]
U.S. Steel Corp is citing lower pricing and waning demand for the temporary layoff of approximately 200 workers at its Great Lakes Works in Ecorse, Mich. In June, U.S. Steel announced that due to market conditions it would idle a blast furnace at Great Lakes as well as one at Gary Works in Indiana. At this […]
North Star BlueScope was a key contributor to FY 2019 results for Australian parent BlueScope Steel. Revenue at North Star totaled $916 million in the first half of the fiscal year and $784 million in the second half. Total FY 2019 revenue was $1.7 billion, up from $1.49 billion in FY 2018. North Star BlueScope’s […]
The trucking industry won a major victory in securing a promise from the U.S. Trade Representative’s office that it will not impose tariffs on imports of Chinese-made 53-foot domestic intermodal containers. The 10 percent tariff scheduled for imports of the intermodal containers would have cost the logistics sector an additional $63 million in the first […]
ArcelorMittal Burns Harbor has the honor of providing the steel for the first U.S.-flagged Great Lakes bulk carrier to be built in more than 35 years. Fincantieri Bay Shipbuilding held a ceremony at its shipyard to celebrate cutting the first sheet of steel to be used in the construction of the vessel for Interlake Steamship […]
Housing starts in July dipped 4.0 percent from June to a seasonally adjusted annual rate of 1,184,000, but were 0.6 percent higher than a year ago, reports the U.S. Department of Commerce. Single-family housing starts gained 1.3 percent from the previous month, while starts for buildings with five units or more fell 17.2 percent. “Despite […]
Construction jobs are plentiful but the industry says more workers are needed. The number of new jobs available indicates there is a need for new federal investments in career and technical education programs, along with immigration reform, said the Associated General Contractors of America.. Forty states added construction jobs between July 2018 and July 2019, […]
Canadian steel producer Stelco Holdings pulled off a profit for the second quarter despite significant headwinds. Second-quarter revenue decreased 39 percent from a year ago, shipping volume was down 27 percent and the average selling price per ton fell 15 percent to $761, the company reported during its earnings call on Wednesday. (All figures are […]
The following editorial is by Allan Golombek, a Senior Director at the White House Writers Group, and was published on Aug. 12, 2019 by RealClearMarkets. The steel industry should have listened to the founder of Nucor. In 1986, Ken Iverson pointed out that protectionist measures to save the American steel industry had not had the desired […]
Electric arc furnace minimills may have a cost advantage in steel production today, but there are still 19 traditional blast furnaces going strong in the United States. Blast furnaces dominate about three-fourths of global steelmaking, but only three steel producers in the U.S. currently are using BF or basic oxygen furnace technology: U.S. Steel, ArcelorMittal […]