Housing starts exceeded expectations in October, jumping 4.9 percent from September to a seasonally adjusted annual rate of 1,530,000 following a revision to 1,459,000 in September. Starts were up 14.2 percent from the October 2019 rate. Single-family construction led the way with a monthly increase of 6.4 percent. Construction starts for multifamily buildings of five […]
Big River Steel has successfully started up a second electric arc furnace at its mill in Osceola, Ark., completing the Phase Two expansion that doubles the capability of the advanced steelmaking facility ahead of the original timeline. “When describing the success of our Phase Two construction efforts, I am extremely proud to be able to […]
Steel Market Update’s check of the market this week shows that the flat rolled mills are extremely busy and operating near full capacity. More than 80 percent of the service center and OEM executives responding to SMU’s questionnaire said they are seeing late deliveries from their mill suppliers. More than 60 percent expect a shortage […]
Nucor is demonstrating its environmental commitment with the signing of a 15-year Virtual Power Purchase Agreement (VPPA) for 250 megawatts of new solar energy in Texas. The agreement with EDF Renewables North America is Nucor’s first VPPA and the largest of its kind in the steel industry. EDFR plans to begin construction on the solar […]
Big River Steel is expected to roll the first coil from its new electric arc furnace sometime next week, according to U.S. Steel’s Q3 comments and other sources. The project ran ahead of the scheduled January start-up by more than two months. Although the first coil will be produced next week, full capacity won’t be […]
Planning for nonresidential construction projects continued to slow in October, says Dodge Data & Analytics. The Dodge Momentum Index fell 1.8 percent last month to 127.5 following a revised September reading of 129.8. The Index is a monthly measure of the first report for nonresidential building projects in planning, which have been shown to lead […]
Construction employment increased by 84,000 jobs in October, with jobs added in both nonresidential and residential categories, according to an analysis of government data by the Associated General Contractors of America. Association officials cautioned, however, that the pandemic is causing a growing number of construction projects to be canceled or delayed, according to a survey […]
Russel Metals’ third-quarter results showed steady gains from rising steel prices and improved demand as the market comes to grip with the coronavirus. Russel also rationalized some assets during the quarter and is taking steps to reduce its exposure to the volatile energy sector. “Although business conditions remain challenging, they are improving,” said Russel President […]
Global steelmaker ArcelorMittal narrowed its net loss to $300 million in the third quarter, an improvement on the loss of $600 million in Q2, as sales increased 20.9 percent to $13.3 billion due to higher steel shipments and a better sales mix. Worldwide shipments for the quarter totaled 17.5 million metric tons, a 17.5 percent […]
Mexican steelmaker Ternium’s operating rates are approaching full capacity after strong improvement in shipments and demand in the third quarter. Total steel shipments rose 16 percent from the second quarter to 2.8 million tons. Higher finished steel shipments partially offset lower slab shipments to third parties. Pricing recovered significantly from the trough in the second […]
Steel prices continued to climb in October as demand rose further on hot rolled, cold rolled and galvanized products. Steel Market Update’s hot rolled price index averaged $665 per ton in October, up nearly $100 over the previous month and up over $200 compared to August. The SMU Pricing Momentum Indicator remained at Higher, indicating […]
By CRU China CEO John Johnson and Economist Yingrui Wang 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. China’s Five-Year Plan (FYP) is a key guide to the strategic direction of China. In this Insight we explain the significance […]
By CRU Principal Analyst James Campbell, from CRU’s Long Products Monitor Most long product prices around the world increased this month as the recovery in demand continues. For some markets and products, the increase in supply has been outpaced by demand. Wire rod remains the strongest product right now as the increase in construction activity […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor Lack of supply and higher demand is causing sheet prices to diverge further from plate across regions, with U.S. sheet prices reaching their highest level since April 2019 this week. New lockdown announcements have not had an impact on the European market at this point, […]
By Principal Consultant Josh Spoores, from CRU’s Steel Sheet Products Monitor North American sheet prices have continued to surge after bottoming this past August. For HR coil, prices have been assessed at $712 /s.ton. Since Aug. 12, these prices have gained $237 /s.ton, or 63%. This is the fastest percent gain over three months in […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) increased by 1.5% m/m in November to 229.0. The increase in scrap prices in most regions has been driven by a continued recovery in steel prices and demand. Moving into December, we expect higher steel pricing and demand […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor The global sheet market has seen a few key trends emerge across a variety of regions. First, demand has continued to rise from the pandemic-related lows recorded earlier this year. While sheet demand continues to be driven by sequential increases in automotive demand, […]
By CRU Principal Analyst Josh Spoores and Senior Analyst Ryan McKinley, from CRU’s Steel Monitor Strong underlying demand continues to provide substantial support to finished steel prices in the USA. Sheet prices have risen at their quickest pace since CRU started tracking them and, while there was little change m/m for long products, mills have […]
By CRU Principal Analyst Josh Spoores and Senior Analyst Ryan McKinley, from CRU’s Steel Monitor Strong underlying demand continues to provide substantial support to finished steel prices in the USA. Sheet prices have risen at their quickest pace since CRU started tracking them and, while there was little change m/m for long products, mills have […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor The bullish sentiment in the Chinese steel industry has resulted in continuous strong demand for iron ore. Meanwhile, iron ore supply from Australia has been weak throughout November and inventories in China have remained at a low level as a result. On Tuesday, […]
By CRU Principal Analyst James Campbell, from CRU’s Global Steel Trade Service The recent acceleration in news of a pre-approved vaccine has led us to bring forward the economic recovery to the first half of 2021. Confidence has returned and spending is resuming. An earlier-than-expected vaccine provides upside risks to our automotive and construction outlook. […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices have continued to surge in the past week as robust Chinese demand has coincided with lower Australian exports. As a result, prices have climbed above $130 /dmt and on Tuesday, Dec. 1, CRU assessed the 62% Fe fines price at […]
By CRU Chief Economist Jumana Saleheen and Principal Economist Alex Tuckett, from CRU’s Steel Monitor In this Global Economic Outlook, we look ahead to 2021 and outline our top ten calls for the global economy. These include predictions on Covid-19 vaccines, world growth, the auto and construction sectors, the U.S. dollar, monetary and fiscal policy, […]
The ISM Manufacturing PMI exceeded expectations in October posting a score of 59.3 percent, a 3.9 percent increase from September and indicating factory growth for the fifth consecutive month. “The manufacturing economy continued its recovery in October,” said Timothy Fiore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee. “Survey committee members reported that […]
Residential construction spending continues to lead nonresidential by a wide gap, said the Associated General Contractors of America. Total construction spending in September increased 0.3 percent from August to a seasonally adjusted annual rate of $1.41 trillion. Private and public nonresidential spending fell 1.6 percent from August and 4.4 percent from a year ago. In […]
Construction is slowing, but still has positive growth driven by state and local building and infrastructure expenditures. Privately funded work is contracting. In September, construction expenditures reached an all-time high and on a three-month moving average (3MMA) basis were only slightly lower than April 2020. Steel Market Update analyzes the Commerce Department’s Construction Put in […]
Industry sentiment has rebounded to levels exceeding those seen prior to the pandemic, and steel executives polled by Steel Market Update this week have a fairly optimistic outlook on their future as well despite concerns about a second wave of COVID-19. Every two weeks, SMU asks steel buyers how they view their company’s chances for […]
Ryerson Holding Corp. reported incremental improvement in third-quarter 2020. Ryerson’s Q3 revenue increased 7.7 percent to $832 million, but the service center company posted a net loss of $39.9 million, which included a $52 million charge related to pension liabilities and 17.1 million in expenses related to the refinance of 2022 notes. Adjusted net income was […]
U.S. Steel narrowed its loss to $234 million in the third quarter from a net loss of $589 million in the second quarter. Net sales increased to $2.34 billion from $2.09 billion. “Our third-quarter results exceeded our guidance and demonstrated the power of the actions we have taken since the onset of COVID-19 with dramatically […]
When I look at the results of our flat rolled survey, sometimes I have to scratch my head. In the survey we just completed last week, we asked at what point hot rolled prices would peak. Sixty-two percent of our respondents believe prices will peak at $700 or lower. To them I ask, what is […]