Demand for architecture design services fell again in November. The Architecture Billings Index score was 49.3, down from 53.1 in October and 53.7 in September. The Index has been up and down throughout 2015. The new projects inquiry index was 58.6, up just barely from 58.5 in October. “Since architecture firms continue to report that […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments decreased by 482,000 tons in November to 2.728 million tons. Shipping days at 20, were down by two from October. On a tons per day basis (t/d) shipments decreased from 145,900 […]
Earlier this week Steel Market Update (SMU) attended the annual HARDI conference in Orlando, Florida. The well attended conference focused on a number of areas affecting the HVAC Wholesalers including presentations on the economy by Alan Beaulieu of the Institute for Trend Research (ITR) and Steel Market Update regarding the status of the galvanized sheet […]
I expect the other domestic mills to go along with price increases of their own – whether they choose to announce the move may depend on what they feel is in their best interest. I would anticipate that Nucor will come out with their own announcement. US Steel and ArcelorMittal are in the process of […]
The Dodge Momentum Index dropped 3.7 percent to 119.9 in the November report from Dodge Data and Analytics. The index spiked in July and September but lost construction planning momentum in October and November. The index is now more consistent with the “gentle upward trend in planning activity that began in 2012” says Dodge. Commercial […]
A Delaware judge invalidated a patent by ArcelorMittal in a ruling favoring AK Steel in a dispute that has been ongoing for almost six years. The original suit, filed in January 2010 by ArcelorMittal, claimed that AK Steel’s lightweight, high-strength steel Ultralume, used in automotive applications, violated ArcelorMittal’s 2001 patent (patent 6,296,805—referred to as ‘805) […]
I will have a detailed report regarding the HARDI annual conference in Thursday evening’s issue. However, the news is good for those involved in the construction industries with Alan Beaulieu, Chief Economist for HARDI and co-founder of the Institute for Trend Research, proclaiming 2016 will be better than 2015 and 2017 will be even better […]
On Friday of this past week Steel Market Update (SMU) adjusted our Price Momentum Indicator from Lower to Neutral. This move is being made as we are seeing more evidence of the domestic steel mills taking a stand and either raising spot prices (especially on coated steels) or refusing to go any lower. As one […]
The Bureau of Labor Statistics (BLS) analysis of non-farm employment reported on Friday that 211,000 jobs were added in November, which was in line with economist’s consensus expectations. Both September and October were revised up by a total of 38,000. The three month moving (3MMA) of gains through November was 218,000. The unemployment rate, U3, […]
Navigation for freighters on the Great Lakes is winding to a close. This winter is expected to be warmer which may mean less ice on the Lakes and fewer delays of ore to mills when the shipping season reopens. The past two winters saw unusually high levels of ice coverage that persisted into April and […]
Mexican steelmaker, TYASA will begin construction of a Castrip facility at its Ixtaczoquitlan site near Orizaba, Veracruz, Mexico. The excess melt capacity of TYASA’s Quantum Furnace will supply the Castrip thin-strip casting process. TYASA expects the new facility to have a production capacity of 500,000 tons of thin-gauge, high-strength, sheet steel that will supply local […]
Essar Steel Minnesota met a deadline set by Governor Mark Dayton to repay $66 million in incentives owed the state after failing to complete a $1.9 billion integrated iron ore-to-steel mill. The governor gave Essar a deadline of Friday, December 4, to make payments to vendors on the project and provide assurances that future debts […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. October data was released on Tuesday December 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
Tonight I thought I would present a question posed to me within the past couple of days and ask for your input in answering the question. How would you respond to this? Has the steel industry in the US stopped following laws of economics or are we living the great delusion of “ok” demand? Consider […]
US Steel Corp is realigning its flat-rolled operations and management as part of its Carnegie Way transformation. The flat-rolled facilities will report through three consolidated commercial entities: Automotive Solutions, Consumer Solutions, and Industrial, Service Center and Mining Solutions. “The commercial entities have worked to position our company to be best-in-class in innovation, customer service and […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
The following is the Chicago Federal Reserve statement followed by our own graphical analysis. The CFNAI is an excellent reality check for much of the economic analysis that we routinely provide in The Steel Market Update and is also a reasonably good predictor of the direction of steel demand with a six to nine month […]
Total housing starts in October were at an annual rate of 1,060,000 which was the lowest number since March. In October the three month moving average (3MMA) was 1,122,000 which was down from 1,153,000 in September and from 1,160,000 in August. August had the highest 3MMA since the recession so the sky is not falling. […]
Demand for architecture design services has been increasing for most of 2015 in nearly all construction project types, according to the American Institute of Architects. AIA’s Architecture Billings Index dropped slightly in October to a score of 53.1 from 53.7 in September. A score above 50 indicates an increase in billings and design services. The […]
Housing starts fell to a seven month low in October to a seasonally adjusted annual rate of 1.06 million, 11 percent below September’s revised rate of 1.105 million, said the Commerce Department on Wednesday. Economists at Reuters, Bloomberg and Wall Street Journal all anticipated a rate of 1.16 million for the month. Multi-family construction, including […]
New Star Metals is changing its name to Material Sciences Corporation. New Star acquired MSC in March 2014 which remained in operation under the MSC brand. “We have an aggressive growth plan and believe we should go to market as one team – Material Sciences Corporation,” said CEO Patrick Murley, CEO of New Star Metals […]
The HARDI wholesalers held their monthly galvanized steel conference call earlier today. During the call the wholesalers provided insights into business conditions affecting the companies and discussed the status of the flat rolled steel markets. HARDI wholesalers supply galvanized sheet and coil steels to the mechanical contractors associated with residential and commercial construction in North […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments increased by 104,700 tons in October to 3.201 million tons. Shipping days at 22, were up by one from September. On a tons per day basis (t/d) shipments decreased from 147,900 […]
Ryerson Holding Corp, a distributor and processor of metals, reported revenue of $790 million in third quarter, down 6 percent from second quarter and down 16.7 percent from Q3 2014. Net income was $6.7 million compared to income of $15.8 million in Q2 and a net loss of $34.7 million in Q3 2014 which included […]
For those of you who have been steady readers and members of Steel Market Update you know that the purpose of my Final Thoughts is for me to voice some of my thoughts and opinions on a wide range of topics. I am going to use this forum today to speak about what I am […]
Although the Dodge Momentum Index has been on a generally upward trend this year, it has been a roller coaster ride. The Index took a large leap of 5.2 percent in September which was nearly reversed by a decline of 4.8 percent in October. Both commercial building and institutional building indexes declined last month by […]
The Bureau of Labor Statistics (BLS) analysis of non-farm employment reported on Friday that 271,000 jobs were added in October, which was well above economist’s consensus expectations. August’s gains were revised up by 17,000, but September’s were revised down by 5,000. This followed September’s result of 137,000 which was well below consensus expectations of about […]
The Q4 2015 Senior Loan Officer Opinion Survey on Bank Lending Practices was released on November 2nd. This survey addresses changes in the standards and terms on, and demand for, bank loans to businesses and households on a quarterly basis and is based on the responses from 69 domestic banks and 23 U.S. branches and […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. September data was released on Monday November 2nd. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
The Steel Market Update (SMU) Steel Buyers Sentiment Index is continuing its downward trend, even though the Current Index is 4 points higher and the Future segment of the Index is 9 points higher than what we reported during the middle of October. The numbers we follow closely are our 3 month moving averages (3MMA) […]