SMU NexGen Leadership Award – Nomination Deadline Aug. 1, 2019 – Award to be Given at SMU Steel Summit Conference The first SMU NexGen Leadership Award – sponsored by the Steel Manufacturers Association – will be awarded at the 2019 SMU Steel Summit Conference We are looking for qualified people in the industry (manufacturing, service […]
A new tariff on fabricated structural steel from Mexico adds another complication to U.S./Mexico relations, but is not expected to threaten ratification of the USMCA. The U.S. Department of Commerce issued a preliminary ruling in a countervailing investigation that U.S. producers are being harmed by imports of fabricated structural steel from Mexico and China. Canada […]
The Dodge Momentum Index improved in June, rising 4.0 percent to 146.1 from a revised reading of 140.5 in May. The monthly index measures the first report for nonresidential building projects in planning, which has been shown to lead construction spending by a full year. Initiation of planning for institutional building projects jumped 6.1 percent, […]
Over 800 executives are registered with just seven weeks to go before the start of the 2019 SMU Steel Summit Conference. We continue to see strong interest in this year’s event, which will be held in Atlanta, Ga., on Aug. 26-28. Once again, the Georgia International Convention Center will be the home of this, our […]
Over 800 executives are registered with just seven weeks to go before the start of the 2019 SMU Steel Summit Conference. We continue to see strong interest in this year’s event, which will be held in Atlanta, Ga., on Aug. 26-28. Once again, the Georgia International Convention Center will be the home of this, our […]
Steel Market Update asked steel buyers this week to respond to the following question: Do you believe a floor has been put on prices and they will rise from here? Here are some of the responses received: “A floor is possible, but I fear that if we see the expected downward move for scrap prices […]
Steel Market Update is please to share this Premium content with Executive-level subscribers. For more information on upgrading to a Premium-level membership, email Info@SteelMarketUpdate.com. Private construction contracted in the three-month period including March, April and May, but state and locally funded work, including infrastructure, continued to boom. The Construction Put in Place (CPIP) expenditures […]
Bellville Tube Company has a new and, as yet, undisclosed owner. The manufacturer of steel tubulars for the commercial construction, industrial, and oil and gas industries will be reopened by a U.S.-based private investment group during the third quarter of 2019. The facility is expected to expand to full annual capacity of 130,000 tons and […]
Iron ore mine Magnetation is back in the news. Last time we reported on the company, the Iron Range was a hotbed of investment. Magnetation had been rescued from bankruptcy by Tom Clarke of ERP Iron Ore who was also rekindling operations at Mesabi Metallics (formerly Essar Steel Minnesota) with Chippewa Capital Partners. ERP filed […]
Construction is among the industries suffering the most from a shortage of skilled labor, yet the Trump administration excluded construction from its proposal to expand apprenticeship programs, angering the Associated General Contractors of America. “At a time when the vast majority of construction firms report having a hard time finding qualified workers to hire, it […]
Steel Market Update’s analysis of the Key Market Indicators shows a slight improvement in both our view of the present situation and in the trend of the indicators in June. This report is designed to be a big picture summary of data on which we have reported in detail during the month. In it we […]
Global steel production hit an all-time high in April and that record was smashed in May. Global steel production in April achieved a new high annual rate of 1.880 billion metric tons (Mt). Production surged in May to an annual rate of 1.953 billion Mt. Capacity is calculated to be 2.4 billion Mt and capacity […]
Steel Market Update is pleased to share this Premium content with Executive level members. For more information on upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. The price of iron ore has surged as scrap has declined benefiting the EAF producers in the U.S. over the integrated mills. Table 1 summarizes the price changes through June […]
By CRU Analysts Kevin Bai and Ruilin Wang Chinese economic stimulus in 2018 and 2019 will add a total of 21 Mt to Chinese domestic steel demand, most of which is expected to manifest in 2019. Including this, total Chinese domestic steel demand is now expected to grow at around 3 percent this year. Other […]
Construction employment increased in 31 states and the District of Columbia from April to May, according to an analysis of Labor Department data by the Associated General Contractors of America. In the 12 months to May 2019, 39 states and D.C. added construction jobs. “Construction demand remains strong, and contractors increased their workforce in most […]
Expansion at Commercial Metals Corp. is paying off with a 33 percent increase in revenue to $1.6 billion in the third quarter of FY 2019. In November, CMC acquired Gerdau’s four rebar mills and 33 fabrication facilities in the U.S., increasing its U.S. mill capacity by 75 percent. Net earnings for CMC totaled $78.6 million. […]
The construction segment of the market is booming. This is what we heard from the HARDI steel conference call we participated in last week, and it is what we heard from many companies over the two days SMU was in New York City earlier this week. Whenever we travel, one of the things we always […]
Australian steel producer BlueScope lowered its earnings estimate for FY 2019 based on margins and market conditions. BlueScope now expects an increase in underlying EBIT of 6 percent for the year, down from previous guidance of 10 percent. EBIT for FY 2019 is expected to be around $1.35 billion and $500 million for the second […]
More than 700 executives are registered with slightly more than two months to go before the start of the 2019 SMU Steel Summit Conference. We continue to see strong interest in this year’s event, which will be held in Atlanta, Ga., on Aug. 26-28. Once again, the Georgia International Convention Center (www.gicc.com) will be the […]
More than 700 executives are registered with slightly more than two months to go before the start of the 2019 SMU Steel Summit Conference. We continue to see strong interest in this year’s event, which will be held in Atlanta, Ga., on Aug. 26-28. Once again, the Georgia International Convention Center (www.gicc.com) will be the […]
There were many questions raised earlier this week about the announced new steelmaking and rolling capacities and whether those projects would indeed continue through completion. The questions came during various steel meetings held by analysts, steel mills, CRU and others in New York City. I participated in three events and found the question brought up […]
Last night, Steel Market Update participated in the annual Bank of America Merrill Lynch dinner hosted by metals and mining analyst Timna Tanners. We also spoke at the CRU Steel Briefing a little earlier in the day. Here are some of the key takeaways from those meetings. Mill Lead Times Short Flat rolled steel mill […]
Two of the biggest steel companies in the U.S. are expecting earnings to decline in the second quarter. Nucor and Steel Dynamics both cite lower shipments and inventory destocking as contributing factors. In guidance released on Monday, Nucor forecast earnings in the range of $1.20 to $1.25 per diluted share compared to $1.63 per share […]
By CRU Principal Analyst Chris Asgill Scrap supply has continued to outpace demand in most of the key scrap supply markets and CRU’s metallics price indicator (CRUmpi) has fallen a further 4.2 percent m/m to 231.2 (see chart). This is the lowest level for the indicator since June 2017. The depth of U.S. scrap price weakness surprised the […]
Truckload volumes were a disappointment in May, said DAT Solutions in their monthly report. Truckload volumes for van trailers, which haul about 70 percent of all truckload freight, declined 12 percent from April and were down 10 percent year-over year. Volume for flatbed trucks that haul steel, heavy machinery and construction material declined 9.3 percent […]
Steel Market Update is pleased to share this Premium content with Executive-level members. For more information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Demand for long products is strong, driven by construction, while demand for sheet is declining, according to this SMU analysis of the latest data from the American Iron and […]
Private construction contracted in three months through April, but state and locally funded work, including infrastructure, is booming, according to Steel Market Update’s analysis of Commerce Department data The Construction Put in Place (CPIP) expenditures data for April was released on June 3. Through April, total construction has had negative momentum every month this year […]
The rate of job creation in the U.S. in 2019 is slowing, according to Steel Market Update’s analysis of the latest Bureau of Labor Statistics data. Net job creation in May was an unexpectedly low result of 75,000. To make matters worse, March was revised down by 36,000 and April was revised down by […]
The Bureau of Labor Statistics issued a dismal employment report for May with the U.S. economy seeing a net gain of just 75,000 nonfarm jobs. Last month, 90,000 jobs were created in the private sector while government lost 15,000 positions. To put these figures in perspective, they should be considered over a longer time frame, […]
Suppliers of steel products to the HVAC industry find themselves stuck in a good news/bad news market. Demand remains good as the construction season ramps up, but pricing on galvanized steel continues to weaken. “Demand in the Southeast is still very good, even though there has been a painful devaluation of our inventory,” said one […]