The prices contractors pay for construction materials and services – chiefly for new nonresidential construction – jumped by more than 21% in April versus the same year-ago period, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. The association has called for relief to hard-hit employers from tariffs, especially […]
AZZ Inc. completed the purchase of Precoat Metals from its parent, Sequa Corp., for approximately $1.28 billion. The deal continues the Fort Worth, Texas-based company’s buying spree in the coated metals space. “Today we welcome the 1,100 employees of Precoat to the AZZ family and begin the work of swiftly integrating Precoat into AZZ while leveraging […]
At the request of the House and Senate Committees on Appropriations, the US International Trade Commission has begun an investigation into the economic impact of the Section 232 and 301 tariffs on US industry. The Commission is asking for detailed information on US trade, production, and prices in the industries that have been most affected […]
We’ve gotten so used to thinking about issues as Democrat vs. Republican, us versus them, that it’s gotten hard for us to make progress even on issues that we generally agree on – like lowering carbon emissions. Renewable energy, and trade policy around renewables, are examples of an all-too-common problem facing the country: Interest groups […]
By Greg Wittbecker, Advisor, CRU Group US equities market this past week were a microcosm of how fast sentiment can change. It reminded me of a favorite statement I use to explain commodity trading to people outside our world: “Markets move on fear and greed.” Welcome to the fear cycle. This cycle has plenty of […]
Nonresidential and multifamily construction spending slumped in March as supply-chain woes and labor shortages stymied strong project demand, the Associated General Contractors of America (AGC) reported. Spending on most categories of nonresidential and multifamily construction declined from February to March, AGC said, noting that contractors struggled to find enough workers and to get timely deliveries […]
Ryerson reported sharply higher profits on increased prices and despite lower year-over-year (YoY) shipment volumes. The Chicago-based service center predicted a strong second quarter as well but forecast that average selling prices might be flat or up only modestly. “Our optimism around enduring secular drivers favoring recyclable industrial metals as a core enabler of sustainable […]
Sheet prices were flat or lower again this week on expectations of lower scrap prices and concerns about increased import competition over the summer months. Hot-rolled coil prices were down $10 per ton, cold-rolled prices were unchanged, galvanized base prices down $30 per ton, and Galvalume base prices down $35 per ton. Plate prices were […]
Steel prices were relatively steady in April, following increases in March. Hot rolled prices were at $1,460 per ton ($73 per cwt) the first week of April, the highest level seen since January 2022. Prices then bounced around within a $30 per ton range for the remainder of the month, with the SMU index averaging $1,450 per ton as […]
For the first four months of this year, the US and global economies have endured one shock after another. It’s hard to know what to expect whether you are running a business, regulating an industry, or feeding a family. This past week, the government announced that the US economy shrank in the first quarter at […]
By Greg Wittbecker, Advisor, CRU Group Since the outbreak of the war in Ukraine, the aluminum market has fixated on potential sanctions on Russia’s 3+ million metric tons of annual exports. So far, those sanction have not materialized. Several major players have announced their intention to suspend new business with Russia. Emphasis on “new business.” […]
Strong demand, growing shipment levels, and robust metals pricing allowed Reliance Steel & Aluminum Co. to achieve another record quarter with first quarter sales of $4.49 billion and gross profit of $1.39 billion. “Notwithstanding ongoing macroeconomic challenges, our performance was supported by positive underlying trends including continued strong demand with improving shipment levels in each […]
Ternium plans to continue to invest heavily in and to grow its North American presence – including in the US, company CEO Máximo Vedoya said. Case in point: The Latin American steelmaker is considering a new United States-Mexico-Canada (USMCA) compliant greenfield electric-arc furnace facility. “An announcement could still be seen in either 2022 or 2023 – we […]
Matthew Abrams, Analyst, CRU Group As costs, premiums, and prices all remain high, market participants across all sectors are all looking for the edge of the cliff. The war, Covid 19, and inflation are all part of the daily conversation. Supply disruptions and demand destruction are very real worries for all those involved. In what could […]
Earlier this week, US Steel and Big River Steel notified customers of an upward revision to their galvanized steel coating extras. New USS extras are effective May 29, 2022, while BRS extras are effective June 4, 2022. “Input costs of zinc and aluminum for our Hot Dipped Galvanized and Galvalume products have continued to rise, […]
Following record price increases in March, prices for four of the seven of the steelmaking raw materials tracked in this SMU analysis increased over the last 30 days. Through late April, pig iron prices increased 18% compared to one month prior, zinc prices rose 15%, busheling scrap prices increased 11%, and iron ore prices were up […]
The SMU Steel Summit Conference was, at its inception, about two things: networking and forecasting. Our conference aims to expand our attendees’ knowledge of the economy, the flat rolled and plate industries, and key market segments. It’s also about getting to know one another better as companies look to improve or expand their relationships with […]
I shouldn’t say put a fork in this market and call it done. It’s probably too early for that. But some of the anecdotal indicators I mentioned last week are increasingly showing up in the data we and others collect. Take a look at today’s issue: Lead times are still rising, for the most part. […]
By Greg Wittbecker, Advisor, CRU Group It is natural to speculate about how well demand for aluminum can hold up given the effects of dramatically higher prices, both on aluminum itself and the broader economy. Conversations with many of our clients’ center on concerns about demand destruction. The logic is simple: With gasoline, food and interest […]
The prices contractors pay for construction materials and services – chiefly for new nonresidential construction – jumped by more than 21% in March versus the same year-ago period, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. The association has called for relief from tariffs, urging the Biden administration […]
Shipbuilder Austal USA has officially opened its new steel manufacturing line to build steel ships for the US Navy and Coast Guard. The ultra-modern steel shipbuilding facility in Mobile, Ala., enables the simultaneous production of both aluminium and steel hulled ships, the company said. Known for its construction of aluminum vessels, the shipbuilder’s new 118-throusand-square-foot […]
President Biden on Friday signed two pieces of trade legislation that sailed through Congress: the “Ending Importation of Russian Oil Act” (HR 6968), which prohibits imports of oil, gas and other energy products from Russia, and “Suspending Normal Trade Relations with Russia and Belarus Act” (HR 7108), which imposes higher “Column 2” tariffs on imports […]
President Joe Biden on Friday signed into law a bill stripping Russia and Belarus of what’s known as “permanent normal trade relations,” or PNTR. The president also signed into law a bill prohibiting imports of energy products from Russia. President Biden’s actions came after the Senate unanimously voted on Thursday to pass a bill to remove PNTR […]
President Joe Biden on Friday signed into law a bill stripping Russia and Belarus of what’s known as “permanent normal trade relations,” or PNTR. The president also signed into law a bill prohibiting imports of energy products from Russia. President Biden’s actions came after the Senate unanimously voted on Thursday to pass a bill to remove PNTR […]
Matthew Abrams, Analyst, CRU Group The US Midwest premium on aluminum P1020 has seen consistent upward movement since the recovery from the pandemic started. Last week, it touched $0.40 per pound, a level once heavily fought. The fundamentals of the market indicated room for further upward moves, yet it is pausing here. Markets are getting […]
US President Joe Biden has officially implemented a tariff-rate quota (TRQ) that will ease Section 232 restrictions on steel from Japan. “I have determined that imports of specified volumes of eligible steel articles from Japan will no longer threaten to impair the national security,” Biden wrote in a presidential proclamation. The proclamation is dated Thursday, March […]
By Greg Wittbecker, Advisor, CRU Group Since the onslaught of the war in Ukraine last month, the aluminum market has been fixated on the timing and severity of economic sanctions on the Russian aluminum sector. This attention is warranted given the importance of Russian primary aluminum in global trade. As discussed in prior columns, Russia […]
Steel prices rose each week in March, and the increases were the first in six months. Hot rolled prices were down to $1,000 per ton ($50 per cwt) the first week of March, the lowest level seen since December 2020. Prices then surged $435 per ton throughout the month, with the SMU index averaging $1,435 per ton […]
The Supreme Court has declined to hear a case about whether former President Donald Trump had legal authority to double Turkey’s Section 232 steel tariff to 50% The high court did so by denying “certiorari” on Monday, March 28, in the matter of TransPacific Steel LLC et al v. United States et al. The move […]
Too much went on last week to limit this week’s column to a single issue. The Ukraine war touches everything these days, including almost all recent developments on the trade front. It was a week that, to paraphrase Winston Churchill, was “not entirely uneventful.” First, the NATO summit meeting took on issues that have divided Europe […]