US non-farm payrolls data showed stronger than expected job growth in April and a further drop in the unemployment rate. The US Bureau of Labor Statistics (BLS) reported that 253,000 jobs were created in April against an expectation of 180,000, while the unemployment rate fell slightly from 3.5% to 3.4%. US non-farm payrolls data showed […]
Private equity firm Apollo has been looking to add Arconic to its portfolio for some time. Almost since its spin-off from its upstream parent, Alcoa, in 2016, Arconic’s assets and key position in the aluminum semis value chain have been on Apollo’s radar. The deal is expected to close before the end of 2023, at […]
Nucor has announced that Brad Ford will be promoted to EVP of fabricated construction products effective May 14. “Brad is an exceptional leader who consistently delivers strong results,” Leon Topalian, Nucor chair, president, and CEO, said in a statement on Friday. “His experience in the industry for more than 20 years has positioned him well to take on this challenging […]
The CRU metallics price indicator (CRUmpi) for May fell by 6.6% month over month (m/m) to 331.0, registering its sharpest m/m decline since July 2022. While Turkish demand for metallics has stayed underwhelming due to lower-than-expected reconstruction works, steelmakers elsewhere have adopted a wait-and-see approach until steel prices stabilize. Sharp reductions in steel prices were […]
Steel prices peaked at the start of the month, with hot-rolled coil reaching $1,160 per ton ($58 pet cwt) on average on April 10. Tags began to decline near the month’s halfway mark and closed out the month $40 per ton lower at $1,120 per ton. The SMU Price Momentum Indicator for sheet products was […]
Mississauga, Ontario-based service center group Russel Metals reported sequential improvement in its business segments in the first quarter, while results weakened year over year. The company reported Q1 net income of Canadian $73.9 million (US$55.2 million) on sales of nearly CA$1.2 billion compared to net income of CA$98.7 million on sales of CA$1.34 billion in […]
The Dodge Momentum Index (DMI) declined for the second month in a row in April as office, hotel, and retail planning activity showed weakness, the latest data from the Dodge Construction Network (DCN) shows. The reading is at its lowest level in eight months. April’s DMI declined 5.1% to 180.9 from the revised March reading […]
We have a few confrontations this week. President Biden and House Speaker McCarthy are scheduled to meet this week on resolving the debt ceiling confrontation. Some sort of compromise seems likely, but a cataclysm involving government default is hardly out of the question. The time for agreement is nigh—US Treasury Secretary Janet Yellen has moved […]
A senator from West Virginia believes the US Army Corps of Engineers’ permitting process for Nucor’s planned mill in Mason County is dragging on too long. “I absolutely think it’s moving too slowly,” Sen. Shelley Moore Capito (R., W.Va), said during a virtual press conference with reporters on Thursday, according to Huntington, W.Va.’s The Herald-Dispatch. […]
The most recent cycle of destocking has ended, ArcelorMittal said, with first-quarter sales and shipments rising notably from the prior quarter, boosted by strength in the North American region. Those figures remain lower, however, compared to highs seen in the year-ago quarter. The Luxembourg-based global steelmaking giant posted Q1 net income of $1.096 billion, a […]
The US economy might be at the beginning of what looks to be a challenging second half, according to Reibus International CEO and founder John Armstrong. He sat down with SMU managing editor Michael Cowden for a Community Chat to discuss the economic outlook, its impact on Reibus, and the company’s long-term goals around digitizing how steel is […]
A year ago, the LME was $3,100 per metric ton (mt) and the Midwest Premium (MWP) was pressuring $0.39/lb. In early May 2023, the LME is resting near $2,300/mt and the MWP is settled at $0.25/lb. That marks a $0.50 /lb. reversal in underlying metal value year over year (y/y). The US Midwest premium continues […]
Startup Swedish steelmaker H2 Green Steel aims to raise more than €1.5 billion ($1.65 billion) in equity funding, a company spokesperson confirmed to SMU on Monday. H2 Green Steel aims to reduce CO2 emissions up to 95% compared to traditional steelmaking at its planned plant in Boden, in northern Sweden, according to its website. The […]
Despite high interest rates dampening demand, strength in manufacturing across the globe will drive a rebound in steel demand this year, the World Steel Association (worldsteel) said in its April 2023 Short Range Outlook. “In 2022, recovery momentum after the pandemic shock was hampered by high inflation and increasing interest rates, the Russian invasion of […]
CRU expects metallics prices to continue trending down in May 2023 as supply will continue to outpace demand in most markets. In the US, obsolete scrap prices are expected to move lower as the inflow to scrap yards will pick up seasonally, and dealers get more inclined to sell. In Europe, the macroeconomic environment will […]
Turkish pipe and tube maker Borusan Mannesmann has finalized its buy of Panama City, Fla.-based Berg Pipe for $162 million. Borusan said it has acquired 100% of the US pipe maker, which manufactures large-diameter line pipe. “By acquiring Berg Pipe, a company with a total manufacturing capacity of 550,000 tons, we have secured a strategic […]
The Dodge Momentum Index (DMI) dropped 8.6% in March to 183.7 from the revised February reading of 201.0, according to data and analytics from the Dodge Construction Network (DCN). Also last month, the commercial component of the DMI fell 6.6%, and the institutional component slumped 12.9% in the same comparison. “We are predicting the Dodge Momentum Index […]
Turkish scrap import prices fell in the last week of March as buying activity remained low and domestic supply improved, according to analysis from the CRU Group. CRU’s assessed Turkish scrap price for HMS1/2 80:20 is $443 per metric ton CFR, down by $17 week-on-week (WoW) and $7 month-on-month (MoM). Turkish buyers are taking a […]
Fresh off another rate hike from the Fed, US macro data came in mixed during the month of March. The final update for GDP in Q4 2022 showed 2.6% growth, which was down slightly month over month and below expectations. Consumer spending has also been revised down consistently over each update on the Q4 figures. […]
Both SMU’s Steel Current and Future Buyers Sentiment Indices have increased from two weeks ago, according to SMU’s most recent survey data. The Steel Buyers Sentiment Indices measure how steel buyers feel about their company’s ability to be successful in the current market, as well as three to six months down the road. Every other […]
US architecture firms reported a slip in demand for services for the fifth consecutive month in February, according to the latest report from the American Institute of Architects (AIA). The monthly AIA Architecture Billings Index (ABI) score stood at 48.0 in February, down from January’s 49.3. The ABI is an advanced economic indicator for nonresidential construction activity […]
About half of the US added construction jobs from January to February, according to Associated General Contractors of America (AGC) figures. Month over month (MoM), construction employment increased in 24 states, held constant in six states, and declined in 20 states and Washington, D.C. Year-over-year (YoY) construction employment increased in 45 states. California added the […]
We haven’t had a price increase since March 13, the Monday after Silicon Valley Bank collapsed. It’s entirely possible we’ll get another round of price hikes should mills decide the market will support it or should they want to reverse any bearish sentiment before it gains traction. It’s also possible that we won’t see another […]
The outlook for the construction industry is relatively optimistic, despite the uncertain state of the overall economy, according to Ken Simonson, chief economist of the Associated General Contractors of America (AGC). Simonson, who chatted with SMU chief editor Michael Cowden on the March 22 SMU Community Chat, provided the most recent data covering many aspects […]
The LME aluminum three-month price steadied this week despite a whirlwind of upsetting news, finding its footing near $2,300 per metric ton. That’s below the $2,500-per-ton mark we saw as 2023 opened on a more optimistic tone. The recent news from across the geopolitical and macroeconomic scene has dampened demand sentiment in the near term. […]
Commercial Metals Co.’s (CMC’s) net earnings slipped 53% in its fiscal 2023 second quarter compared with the same period a year earlier on weather issues and a planned outage. “CMC achieved strong financial results during the second quarter while managing a number of challenges, including weather-related shipment disruptions in our core geographies, costs associated with […]
Voestalpine AG is set to commission the construction of two electric-arc furnaces (EAFs) in Austria. The Linz, Austria-based company said the approval stage has been reached allowing for the investment of around €1.5 billion ($1.62 bilion) to construct one EAF in Linz and another in Donawitz. As part of its “greentec steel” plan, the plant and […]
New, single‐family home sales were up marginally in February, according to a joint report from the US Department of Housing and Urban Development and the US Census Bureau. Monthly gains were impacted by high mortgage rates and prices, while rising construction costs were also to blame. Despite dull results, signs point towards improvement later in […]
Galvanized sheet continues to experience stable demand but market sentiment is waning, according to members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI) speaking on the March 22 meeting of its Sheet Metal/Air Handling Council. Bullishness has subsided from sentiment in February. With lead times approaching eight weeks, HARDI members are experiencing tighter inventories and delayed […]
Worthington Industries reported lower net earnings in its fiscal 3Q ended Feb. 28 vs. the same period a year earlier on lower steel prices. The Columbus, Ohio-based service center and processor posted 3Q 2023 net earnings of $46.3 million, down 18% from $56.3 million a year earlier on net sales that fell 20% to $1.1 billion. […]