A measure of the initial report of nonresidential construction projects slipped in June after an upward revision for May. The Dodge Momentum Index posted at 121.5, a 6.6 percent decline from the May index of 130.1. Planning for institutional construction dropped 11.7 percent, while the commercial component fell 3.5 percent. “The Momentum Index has shifted […]
Construction expenditures continued to show a positive but slowing year-over-year growth in May of 1.4 percent, non-seasonally adjusted. Because of the momentum that exists in most construction projects, steel consumption is likely to decline more slowly in building than in manufacturing. Steel Market Update analyzes Commerce Department Construction Put In Place (CPIP) data to provide […]
“Blunt force demand trauma.” That is how Ryerson President & CEO Eddie Lehner described the market environment as a result of the COVID-19 crisis. One really can’t use the word “unprecedented” too much when discussing the effects of the pandemic on the economy and industry, said Lehner. Losing 30 percent of demand in 30 days […]
The U.S. economy added 4.8 million jobs in June, exceeding analysts’ expectations once again, according to data released Thursday by the Bureau of Labor Statistics. May’s job gain was revised up by 160,000 to 2,699,000. Figure 1 shows the total number of nonfarm workers in the U.S. since 1990. The net loss since February’s all-time […]
Manufacturing and construction both saw positive growth in employment in June. The net change in employed persons was negative 20.8 million in April followed by positive 2.7 million in May and positive 4.8 million in June. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. Most […]
Construction spending in May declined for a third month as projects were delayed due to economic uncertainty. Construction spending fell 2.1 percent to a seasonally adjusted annual rate of $1.36 trillion, the lowest total since June 2019, said the Associated General Contractors of America in an analysis of new government data. Private construction spending dipped […]
Only eight states and the District of Columbia have recouped the severe pandemic-induced loss of construction jobs that occurred last spring, according to an analysis of government data by the Associated General Contractors of America. Association officials warn that job losses will become even more widespread unless lawmakers promptly renew and expand the loan program […]
The 2020 SMU Virtual Steel Summit Conference is coming together very nicely. Steel Market Update and our parent company the CRU Group have been working diligently on the agenda for the 2020 SMU Virtual Steel Summit Conference. We have been adding new speakers to the group we already had committed for the live event, and […]
Construction employment increased in 329 of 358 metro areas between April and May, reports the Associated General Contractors of America. A significant amount of construction takes place on the nation’s highways where a new AGC survey finds that worker safety is compromised by drivers exceeding the speed limit and paying more attention to their phones […]
Contractors Steel, a division of UPG Enterprises, has hired Jim Gould as West Region Sales Manager. In his new role, Gould is responsible for the business development of Contractors Steel’s newest service center location in Phoenix, scheduled to open in the fourth quarter. Gould joins Contractors Steel with more than 30 years of experience in […]
Keith Gunter, 62, a steel industry veteran and vice president of purchasing at McElroy Metal in Bossier City, La., died this week after a short but courageous battle with cancer. “Keith was a respected leader within the company and a valuable member of McElroy’s executive team,” said Ian McElroy, company president. “His skills, abilities and […]
The Architecture Billings Index remained in contraction in May with a score of 32.0 following a record drop in billings in April, said the American Institute of Architects. Although the monthly scores moderated slightly, billings continued to decrease, inquiries continued to decline and the value of newly signed contracts remained at near record-lows. The projects […]
Worthington Industries faced a challenging quarter as stay-at-home orders and closure of nonessential businesses impacted the markets it serves. Demand levels fluctuated depending on the market with company conditions normal in March, break even in April and profitable in May, albeit at lower levels. Although the economic outlook is still unclear, Worthington expects a return to […]
By CRU Prices Analyst George Pearson, from CRU’s Steel Monitor Steel sheet prices in the U.S. Midwest market were mixed this week with slight declines for both HR and HDG coil, while CR coil was slightly higher. Market contacts have noted that markets are weakening as demand has not come about as previously expected. Lead […]
Kate Mitchell joins the leadership team of Majestic Steel USA as executive vice president and chief marketing officer. Cleveland-based Majestic is a privately held distributor and processor of flat-rolled steel serving customers in manufacturing, construction and distribution throughout North America. Reporting to Majestic CEO Todd Leebow, Mitchell will oversee brand marketing and corporate communications, as well […]
By CRU Senior Analyst Helen O’Cleary, from CRU’s Zinc Monitor U.S. industrial production increased by only 1.4 percent in May, well short of expectations, but market sentiment is generally positive as the Fed has confirmed it will do “whatever it takes for as long as it takes” to help get the economy back on track […]
Sales of new and existing homes reflect different impacts of the COVID-19 crisis, but analysts expect both categories to contribute to a rebound for the economy. New Home Sales Rise in May New home sales rose 16.6 percent in May to a seasonally adjusted annual rate of 676,000 and were 12.7 percent higher than a […]
The Ports of Indiana has been awarded a Marine Highway Grant by the U.S. Department of Transportation’s Maritime Administration to develop a steel barge shuttle with Nucor Steel at its Jeffersonville port. The project will allow barge shipments of steel coils from Ghent, Ky., to the Port of Indiana-Jeffersonville. The $778,766 project includes the construction […]
By CRU Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service U.S. automaker restarts in May drove an increase in steel demand and helped to prop up sheet prices. There is concern, however, over whether there is enough new demand to support mills restarting or if manufacturers are mainly managing pent-up demand. We’ve heard […]
The House Transportation and Infrastructure Committee gave its approval to the INVEST in America Act on Friday, moving forward a measure that would fund much needed infrastructure work, create thousands of jobs and help the economy recover from the effects of the coronavirus pandemic. The measure is widely supported by the steel industry, as construction […]
Steel Dynamics expects its second-quarter earnings to be significantly lower than first-quarter results. Adjusted earnings per diluted share are expected to be in the range of $0.40 to $0.44, well below $0.88 per share reported in Q1. The decline in earnings is due to lower steel demand and selling prices attributed to the temporary closures […]
Construction employment rebounded in May in 45 states and D.C., according to an analysis of government data by the Associated General Contractors of America. The jump in employment follows the loss of nearly one million jobs in April, but may be short-lived, said AGC officials. “The widespread uptick in construction employment in May is welcome […]
Nucor is guiding to better-than-expected second-quarter earnings in the range of $0.10 to $0.15 per diluted share. First-quarter earnings were $0.07 per diluted share and included asset losses related to the mill’s equity method investment in Italy. Nucor’s downstream steel products segment remained strong during the quarter due to resilient demand in nonresidential construction. COVID-19 […]
Commercial Metals Co. navigated through third quarter FY 2020 pandemic challenges with almost no disruption to operations or loss of productivity, achieving net sales of $1.34 billion and earnings of $64.2 million Barbara Smith, chairman of the board, president and CEO, commented, “While the effects of the COVID-19 crisis impacted our business throughout the third […]
Big River Steel (BRS) expects to complete its capacity expansion by the end of this year more than two months ahead of expectations. The mill in Osceola, Ark., is in the process of doubling its annual steel production capacity from 1.65 million to 3.3 million tons. BRS began operations at its $1.3 billion scrap metal […]
Construction activity is returning to pre-coronavirus levels in many parts of the country and some firms are adding workers, report the Associated General Contractors of America and construction technology firm Procore, based on just-completed research. The new economic data, however, also shows some future projects are being canceled and many others are being delayed by […]
From a steel buyer’s perspective, the environment is relatively competitive now. Mills and service centers are hungry for business, said Donald Bly, managing director of Applied Value, during Wednesday’s SMU Community Chat Webinar. Mill capacity utilization is down to about 53 percent, but still better than the 2008-2009 recession, he said. “It’s a good time […]
Housing starts rose 4.3 percent in May to a seasonally adjusted annual rate of 974,000. Starts were 23.2 percent below the May 2019 rate of 1.27 million. Single-family starts were flat, increasing just 0.1 percent last month. Construction of housing with five units or more, however, jumped 16.9 percent. Regionally and on a year-over-year basis, […]
The term “sustainability” is most often associated with environmentalism. True to the word, U.S. Steel’s 2019 Sustainability Report details the steelmaker’s mission to reduce its global greenhouse gas (GHG) emission intensity by 20 percent over the next decade. But what makes a company’s success “sustainable” over the long term goes far beyond environmental considerations, said […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices held steady in the past week as Chinese demand remained robust while seaborne supply registered another strong week. After struggling for most of 2020, shipments from Vale’s Northern System reached the highest level of the year in the past week. […]