Flat Rolled = 51.6 Shipping Days of Supply Plate = 54 Shipping Days of Supply Flat Rolled U.S. service center flat rolled inventories continued to grow in August, while shipments rose from the lower levels seen in July. At the end of August, service centers carried 51.6 shipping days of flat rolled supply on an […]
By CRU Senior Economist Henry Hao and Principal Economist Alex Tuckett, from CRU’s Global Economics Outlook Since China rolled out the “three red lines” policies, China’s second-largest developer China Evergrande (EG) has grown to be the most indebted with more than RMB1.97 tn of liabilities. Market investors are concerned that Evergrande will collapse and default […]
Editor’s note: Steel Market Update is please to share this Premium content with Executive members. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Producer prices expanded further in August, albeit at a slower rate. The gains continued, however, maintaining the historic climb for the index and subcategories for final demand, which have […]
Steel Dynamics Inc. (SDI) forecasts a new quarterly record in the third quarter of 2021 when it comes to steel operations’ profitability, according to guidance issued Wednesday. The gains versus second-quarter results come thanks to strong steel demand and significant metal spread expansion, the electric-arc furnace (EAF) steelmaker said. “Third-quarter 2021 steel shipments are expected to be […]
The prices contractors pay for construction materials continued to increase in August, while many firms reported struggles to get those materials delivered on time, according to an analysis of government data by the Associated General Contractors of America. AGC urged Washington officials to address the challenges affecting the entire supply chain and driving the price escalations. […]
Samuel, Son & Co., Limited, is constructing a new automotive processing facility in Querétaro, Mexico. This new operation, along with an existing automotive facility in Monterrey, will position Samuel as a leading metals processor to global automotive brands and their supply chain partners operating in Mexico, the company said. Samuel expects to complete construction of […]
The Dodge Momentum Index declined for a third straight month in August, a stark contrast from the six consecutive months of gains seen since the close of 2020. The downturn suggests strong headwinds from supply-chain limitations, rising raw material prices, and labor shortages that are plaguing the nonresidential construction sector, especially new projects. The index […]
Steel Market Update is pleased to share this Premium content with Executive members. For information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. The U.S. construction sector rose in July, lifted by gains in both the private and public sectors. Overall spending rose by 0.3% following a sideways revision for the month prior, the Commerce […]
The U.S. labor market saw its worst monthly performance since January, according to the U.S. Bureau of Labor Statistics’ (BLS) August report. The latest data showed 235,000 new workers were added to payrolls in August, less than a quarter of the 1.053 million positions added in July. August’s employment report was a huge disappointment, nearly […]
Steel prices continued to climb through the month of August, marking one full year of increasing prices. Hot rolled steel prices increased $45 per ton ($2.25 per cwt) throughout the month, with the SMU index averaging $1,935 per ton ($96.75 per cwt) as of Tuesday. The SMU Price Momentum Indicator remains unchanged since the August 2020 adjustment to higher, indicating prices […]
Despite some regional shifts in commercial construction, demand remains robust – while some project delays are creating backlogs that will likely drive additional construction activity in late Q4 and into early 2022, said members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI). Demand for HVAC and other galvanized-intensive steel products remains strong, said members of […]
By CRU Aluminum Advisor Greg Wittbecker The fundamentals in the aluminum market are continuing to tighten as we complete the third quarter. Growing Deficit in 2021 Driven by Chinese and Canadian Production Excursions CRU has substantially increased the size of the global deficit for 2021, moving it from a 240,000-ton surplus to a deficit of 1,180,000 […]
We often talk a lot about hot-rolled coil prices in Final Thoughts. I’d like to take a deeper dive into coated prices today. It’s been an almost straight line up for an entire year for flat-rolled steel prices. And galvanized is no exception. Galvanized base prices are at $2,070 per ton ($103.50 per cwt). That’s […]
By CRU Principal Analyst Erik Hedborg and Senior Analyst Richard Lu, from CRU’s Steelmaking Raw Materials Monitor After reaching a new all-time high of more than $230 /dmt in May, iron ore prices held steady in the following months and traded in the $200-220 /dmt range for most of June and July. However, things have […]
By CRU Principal Analyst James Campbell, from CRU’s Steel Long Products Monitor Long product prices have fallen in most regions this month as demand was lower than expected. Part of the weakness was seasonal, but parts of Asia were also affected by further outbreaks of Covid-19. Except for the USA, the tight supply seen in […]
By CRU Principal Economist Alex Tuckett and CRU Chief Economist and Head of Sustainability Jumana Saleheen A disappointing outlook for U.S. Q3 growth, and the problems in China’s construction sector, have led us to downgrade our forecast for 2021 world growth from 5.8% to 5.4%. Our forecast for 2021 growth in Industrial Production has been revised […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Steel Trade Service, Nov. 18 The world economy is facing multiple headwinds. Supply-chain problems continue to hold back industrial sectors and elevate inflation. Meanwhile, an energy crisis is adding to the pressure on manufacturers and consumers. On the demand side, the biggest risk remains the Chinese […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook, Jan. 31 2022 has begun with tentative signs that supply chains are slowly normalizing. Business survey measures of delays, bottlenecks and price pressures in the U.S. and Europe are moderating. PPI inflation looks to have peaked. This is essential to our view that consumer price inflation […]
Ternium Mexico continues to ramp up its new hot strip mill outside of Monterrey while also eyeing potential expansions on both sides of the Rio Grande, the company’s top executive said. “We still have a lot of things to do in Mexico. But also in the States, our facility is running at 100% capacity – so we […]
The shortage of qualified workers and supply chain disruptions continue to be a drag on the U.S. construction sector, said economist Ken Simonson, who predicted continued volatility for nonresidential building in the year ahead. Speaking to the crowd of steel executives at SMU’s Steel Summit Tuesday in Atlanta, the Associated General Contractors of America’s chief economist […]
Nucor might be wrapping up an approximately $4-billion expansion campaign, but it has no intentions of stopping there, the company’s top executive said. “We’re going to be a growth company. … And we’ve got the balance sheet to continue to invest,” President and CEO Leon Topalian said. Topalian declined to specify where the company might […]
After 12 months of planning, countless hours of discussions about our agenda, whether we would be virtual, live or both, and agonizing over how to best conduct a safe live event not knowing what direction the pandemic would be taking – the bottom line is it’s showtime. The weather forecast is for no rain on […]
The infrastructure bill passed by the Senate last week is important not just for what’s in it, but also for what’s not. What’s not is a much needed increase in the fuel tax that feeds the federal Highway Trust Fund, said Jim Burg, president of James Burg Trucking Co., Warren, Mich. Burg is also co-chairman […]
Construction employment is still trailing peak pre-pandemic levels in 36 states, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. As the Delta variant threatens to hold down further gains, the AGC stressed that construction employment would benefit from new federal infrastructure investments, urging the House to quickly pass […]
Construction firms are struggling to find enough qualified workers to hire even as they continue to be impacted by pandemic-induced project delays and supply chain disruptions, according to the results of a workforce survey conducted by the Associated General Contractors of America and Autodesk. The survey results underscore how the coronavirus pandemic has created constraints […]
Roughly half of the steel executives responding to Steel Market Update’s market trends questionnaire this week believe the infrastructure legislation now working its way through Congress will have a significant impact on steel demand in the next year or two. The other half are unsure if the two parties in Washington can reach agreement even […]
Housing starts fell by 7.0% in July as supply chain and labor challenges continue. The decrease brought the seasonally adjusted annual rate to 1.53 million units, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development. The July reading includes a 4.5% decrease in single-family starts to […]
Builder confidence edged down in August to its lowest reading in 13 months due to higher construction costs, supply shortages and rising home prices, according to the NAHB/Wells Fargo Housing Market Index (HMI). The index contracted for the third time in as many months, falling five points to a reading of 75 in August, as […]
BlueScope Steel Ltd. posted record earnings in its 2021 fiscal year thanks to strong demand and record metal spreads. All told, the Australian steelmaker – the parent company of Delta, Ohio-based North Star BlueScope – recorded net profit of Australian $1.19 billion ($870 million U.S.) in its fiscal year ended June 30, 2021, up more […]
Mild weakening of monthly Key Market Indicators, as analyzed by Steel Market Update, may reflect the usual summer slowdown or perhaps growing concern over the latest COVID variant and its possible effects on the economy. Markers for the Present Situation have contracted for the second straight month and Trends have now followed after a small but positive […]