ArcelorMittal and Nippon Steel Corp. have committed to building an electric arc furnace at AM/NS Calvert, reducing the mill’s reliance on imported slabs. The companies signed a definitive agreement on Monday to construct the 1.5 million MT (1.65 million ton) EAF at a cost of $775 million. Construction will begin in 2021 with initial production […]
There was no reprieve in November for architecture firms that have seen billings shrink for the past nine months. The American Institute of Architects reports the Architecture Billings Index slid to 46.3 in November, down from October. Although inquiries into new work have risen, albeit at a slower pace, the value of new design contracts […]
Construction employment remains below pre-pandemic levels in 35 states even though 31 states and D.C. added jobs from October to November, said the Associated General Contractors in an analysis of November government data. “An increase in project cancellations and postponements is forcing nonresidential contractors to lay off workers as they complete projects started before the […]
Nucor will have a new Chief Operating Officer, David A. Sumoski, effective Jan. 1, 2021. Sumoski, currently Executive Vice President of Bar, Rebar Fabrication and Construction Services, joined Nucor in 1995 as an electrical supervisor at the Berkley facility and later as Maintenance Manager. He served as Vice President and General Manager of Nucor Steel […]
By CRU Analyst Sam Grant It is now clear that Joe Biden will become the new president of the United States in January 2021, yet he will need control of the Senate to implement his economic policy agenda. As a result, the contest for two Senate seats in Georgia on Jan. 5 will be crucial. […]
Steel Dynamics Inc. reported that fourth-quarter 2020 earnings will be significantly higher than third quarter, driven by flat roll metal spreads and steady steel shipments. Average steel prices for the quarter are expected to offset increased scrap costs. Demand remains good, particularly in automotive and construction. “Strong demand coupled with historically low steel inventories throughout […]
Worthington Industries reported net sales of $731.1 million and a net loss of $74 million for the second quarter of its fiscal 2021 ended Nov. 30 after accounting for nearly $150 million in pre-tax loss related to its investment in Nikola Corp. and $11.4 million in impairment and restructuring charges. In comparison, sales were $826.6 […]
Housing starts rose 1.2 percent in November to a seasonally adjusted annual rate of 1,547,000 and were 12.8 percent higher than November 2019. Single-family housing starts flattened in November increasing just 0.4 percent to a rate of 1,186,000. Starts for buildings of five units or more rose 8.0 percent. On a year-to-date basis, single-family construction […]
Not only are wholesalers who service the HVAC and construction industries wondering how high galvanized steel prices can possibly go, they’re even more worried about how low prices could go once the market normalizes next year. In a conference call this morning, members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI) reported firm […]
Majestic Steel has completed the acquisition of P&S Metals and Supply, a Las Vegas-based steel service center and processor. The addition of P&S will extend Majestic’s footprint in Nevada and the western United States. “We are happy to welcome P&S Metals and Supply to the Majestic family,” said Todd Leebow, Majestic President and CEO. “P&S […]
Let’s play “fun facts.” Last week Steel Market Update published our average hot rolled spot price as $885 per ton ($44.25/cwt). With the domestic steel mills asking $900-$960 per ton for new orders of spot (if they are offering at all, which is a separate issue all by itself) SMU expects HRC spot prices to […]
Let’s play “fun facts.” Last week Steel Market Update published our average hot rolled steel spot price as $885 per ton ($44.25/cwt). With the domestic steel mills asking $900-$960 per ton for new orders of spot (if they are offering at all, which is a separate issue all by itself) SMU expects HRC spot prices […]
U.S. Steel has acquired the remaining 50.1 percent stake in the Big River Steel mill in Osceola, Ark., paying $774 million in cash, giving it full ownership of one of the most advanced flat-rolled minimills in the United States. U.S. Steel paid $700 million for a 49.9 percent share in BRS in 2019, making its […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor U.S. Steel announced the full buyout of Big River Steel this week, while Cleveland-Cliffs closed on its acquisition of ArcelorMittal’s U.S. assets. In any other week, these headlines would drive the news flow for steel buyers and sellers. However, news this week remains […]
Dodge Data & Analytics reports a decline in project planning for new construction in the nonresidential sector. The latest Dodge Momentum Index fell 2.6 percent in November to 123.3 The institutional component of the index fell 4.4 percent, while the commercial component slid 1.6 percent. “Since the expiration of support programs in the CARES Act, […]
The November employment report released Friday by the Bureau of Labor Statistics showed a net gain of 245,000 jobs, a positive move but only half of economists’ consensus expectations. The gain was down from October’s 610,000 new jobs. In the November data, September was revised up by 39,000 and October was revised down by 28,000. […]
Employment gains have slowed each month since June, with a disappointing result in November, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics data. The net change in employed persons in November was 245,000. Employment gains have slowed each month since June when 4.8 million jobs were recovered. The base line against […]
Construction employment gained 27,000 jobs in November due to continued strength in residential home building. Jobs in nonresidential increased at a slower rate due to pandemic-induced project cancellations, said the Associated General Contractors of America. The disparity between residential and nonresidential construction widened in November, said AGC Chief Economist Ken Simonson. Residential building and specialty […]
Total construction expenditures on a rolling 12-month basis were at an all-time high in October, but year-over-year growth has slowed from 8.1 percent in February to 0.5 percent in October. Private constriction expenditures returned to positive growth in October after declining in the months June through September. Steel Market Update analyzes Construction Put In Place […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of trading experience in financial markets and has been active in the ferrous futures space for over eight years. You can learn more at www.thefeldstein.com or add him on twitter @TheFeldstein and on Instragram at #thefeldstein. It now […]
Steel prices continued to climb in November on strong demand and tight steel supplies. Steel Market Update’s hot rolled price index reached $770 per ton by the end of November, up 10 percent from the beginning of the month. The SMU Pricing Momentum Indicator remained at Higher, indicating prices are expected to rise further over […]
Only 30 percent of construction firms in the nation’s metro areas added jobs this year, said the Associated General Contractors in a report on Wednesday. Out of 358 metro areas, construction employment fell in 209 areas and was stagnant in 40 others between October 2019 and October 2020. “The pandemic has devastated the finances for […]
2020/2021 Workshops and Conferences Schedule The next nine months will be busy for Steel Market Update as we conduct two conferences (one virtual and one live), and we have currently scheduled five workshops. We anticipate the number of workshops will grow as the year progresses. We have added new hedging workshops and the Tampa Steel […]
2020/2021 Workshops and Conferences Schedule The next nine months will be busy for Steel Market Update as we conduct two conferences (one virtual and one live), and we have currently scheduled five workshops. We anticipate the number of workshops will grow as the year progresses. We have added new hedging workshops and the Tampa Steel […]
Steel buyers continue to feel solidly optimistic about their prospects in the weeks and months ahead, though the limited availability of steel is causing widespread concern. As one service center exec commented this week: “The tightness in supply is what will hinder us from being successful. We can’t make a sale if we can’t get […]
Sales of new single-family homes were flat in October, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The seasonally adjusted annual rate of 999,000 was 0.3 percent below the September revised rate of 1,002,000, although it soared 41.5 percent above the October 2019 estimate. […]
Residential construction spending expanded for the fifth month in October, rising 2.9 percent led by a 5.6 percent jump in single-family home building. Nonresidential construction, however, was flat in October as the private sector worried about the pandemic and budgets remained tight at the state and local levels. Total construction spending for the month was […]
Construction employment is still below pre-pandemic levels in three-fourths of the nation, reveals the latest data analysis by the Associated General Contractors of Americas. Although 36 states added new construction jobs in October, the seasonally adjusted number was lower than in February before the pandemic took hold. “An increasing number of nonresidential contractors are experiencing […]
Much has changed since Flack Global Metals announced its plan a year ago to build a new painting and processing center adjacent to Big River Steel in Osceola, Ark. Minority shareholder U.S. Steel plans to buy the rest of BRS. Competitor Nucor got into the prepaint business with its purchase of Precoat Metals’ nearby Armorel, […]
Architecture firms report that project planning in October remained weak for the eighth consecutive month. The Architecture Billings Index rose slightly to 47.5 from September’s reading of 47.0, but any number below 50 indicates a decline in billings. The project inquiries index was a more promising sign for future business conditions, climbing to its highest […]