Manufacturing activity expanded in December for the seventh consecutive month and rose to its second highest reading of 2013. The PMI (purchasing managers index) registered 57 percent according to the December 2013 ISM Manufacturing Report on Business. New orders, employment, supplier deliveries and prices all grew at a faster rate in December. New Orders increased […]
In the first half of 2013 the profit on one ton of steel sold in China was only 0.43 Yuan. At that rate, it took the sale of two tons to earn just enough money to buy an ice cream bar or Popsicle. A far cry from peak profits of 1000 Yuan per ton. The […]
I thought our Premium Level readers might appreciate the latest forecast from Timna Tanners, Bank of America Merrill Lynch metals and mining analyst. Timna was a little “light” in her price forecast for 2013 hot rolled coil which was originally $555 average and was upgraded during the year to $622. Tanners believes some of the […]
Detroit automaker GM and Ford are going into an expansion mode that will add nearly 6000 new US auto industry jobs in 2014. GM plans to invest $1.3 billion at five US plants in 2014 that will create or retain about 1000 jobs said retiring GM CEO Dan Akerson in his remarks on Monday to […]
Each month the Bureau of Labor Statistics puts out its series of producer price indexes, for thousands of goods and materials. The latest release on Thursday reported October results. These statistics are a useful way to evaluate any changes in the competitive position of steel against competing materials. For the purpose of this report, SMU […]
The inputs which affect steel prices increased slightly during the month of September with the exception of shredded scrap and 58% Fe Iron Ore prices. Busheling and HMS scrap prices increased by $3 to $5 per ton in the Midwest. Iron ore spot pricing – which is measured out of China – showed one product […]
Reliance Steel & Aluminum increased sales 18.9 percent to $2.44 billion in the third quarter 2013 from $2.06 billion in third quarter 2012. Tons sold were up 31.3 percent year-over-year to 1.45 billion tons. Net income was $95.1 million, down 3.1 percent from $98.1 million in the third quarter of 2012 and up 17.4 percent from […]
Global distributor A.M. Castle & Co. expects a third quarter loss of 28 to 32 cents per share and EBITDA between $4 million and $5 million according to preliminary results announced on Oct. 8. Sales are expected to range between $250 million and $255 million for the quarter. Projections were well below analyst estimates of […]
September ended with the SMU Price Momentum Indicator pointing toward Neutral. In light of the price increase announcements beginning to come out of the domestic steel mills we will continue our Neutral position allowing all the mills to announce (or not) and buyers to react before making a change toward one direction or another. SMU […]
Each month the Bureau of Labor Statistics puts out its series of producer price indexes, for thousands of goods and materials. The latest release on Friday reported August results. These statistics are a useful way to evaluate any changes in the competitive position of steel against competing materials. For the purpose of this report, Steel […]
By the end of August SMU had adjusted our Price Momentum Indicator from Higher to Neutral, SMU Steel Buyers Sentiment Index averaged +40 which is higher than the average from June and July and well within the optimistic range of our Index. Benchmark hot rolled prices moved essentially sideways as the numbers show below. […]
The main issue driving steel prices during the month of July was supply and the constraints in supply related to production issues at the North American steel producers. U.S. Steel Lake Erie Works continued to be on lockout throughout July. The 2.5 million ton a year slab and hot rolled mill was first locked out […]
The domestic steel mills paid more for their scrap during the month of July than the month prior. The higher scrap inputs were one reason behind the domestic mills announcing more price increases as the month progressed. Spot iron ore (China) pricing rose during the month of July and ended the month with 62% Fe […]
From Steel Market Update perspective there are a number of keys to watch during the month of August: • Scrap prices: Shredded scrap prices are forecast to be down $10-$20 per gross ton due to oversupply. Other scrap grades such as cut grades and prime are forecast to be sideways to down $5 per […]
Written by: Peter Wright Producer price indexes, (PPI), of sheet steel and competing materials. Each month the Bureau of Labor Statistics (BLS) puts out its series of producer price indexes, for thousands of goods and materials. The latest release on Thursday reported February results. Some of the PPI are helpful in monitoring the competitive price […]
Steel Market Update received the following information from an ArcelorMittal spokesperson this evening: On February 19, 2013, the United States Patent and Trademark Office (USPTO) posted a Notice of Allowance of a re-issue of ArcelorMittal pioneer patent US 6 296 805 on aluminum pre-coated steel product for hot stamping, worldwide known as Usibor®, confirming its […]
Reliance Steel & Aluminum announced Wednesday morning a definitive merger agreement whereby Reliance will acquire all outstanding shares of Metals USA Holdings Corporation for approximately $1.2 billion. This will make Reliance the largest service center chain in North America with assets over $6.5 billion and annual sales in excess of $10.0 billion. The transaction is […]
BALTIMORE, Md., January 1, 2013 – MoveTran, LLC will begin operations to provide transloading and logistical services for steel coil, aluminum, pipe, tube and other types of products in the Northeastern and Mid-Atlantic regions. MoveTran recently acquired a 206,700-square-foot warehouse that offers customers rail and truck access as well as easy transport for transatlantic shipments […]
The month of December was best illustrated by the SMU Price Momentum Indicator which spent the entire month stuck in Neutral as flat rolled spot prices essentially moved sideways through the month. Whether using our index or the CRU price assessments, the monthly average on hot rolled was very close to where prices were measured […]