By CRU North America Analyst Ryan McKinley U.S. long product prices have come under downward pressure, driven primarily by persistently high inventory levels. This inventory build-up has been compounded by an increase in import levels in March relative to the prior month, and consistently wet weather in many regions of the U.S. has delayed any […]
Residents near U.S. Steel’s Mon Valley Works are in an uproar over plans to allow New Mexico-based Merrion Oil & Gas to drill for natural gas in the Edgar Thomson Plant. U.S. Steel has leased 10 acres of land at the plant in Braddock, Pa., to Merrion Oil to construct three fracking wells that will […]
Barbara R. Smith, president and chief executive officer of Commercial Metals Company, will be named AIST Steelmaker of the Year at AISTech 2019 — The Iron & Steel Technology Conference and Exposition. One of AIST’s highest honors, the Steelmaker of the Year Award is given to an industry leader who has had significant impact on […]
By CRU China Analysts China released a slew of stimulus measures during the NPC and CPPCC meeting in March in order to avoid a material slowdown in economic growth in the short term. Further and more substantial cuts to VAT rates were one of those measures. This followed an earlier VAT reduction from 17 percent […]
Construction activity in the U.S. is at an all-time high—but slowing. The Construction Put in Place (CPIP) expenditures data for February was released on April 1. Commerce Department data releases have now recovered from the government shutdown delays. Through February, total construction has negative momentum, but state and locally funded work, including infrastructure, had strong […]
The construction industry added 16,000 jobs in March and 246,000 jobs in the past 12 months, according to an analysis of new government data by the Associated General Contractors of America. “Construction employment rebounded in March, indicating that the dip in February was probably related to extreme weather conditions and not the beginning of a […]
The Dodge Momentum Index rose a slim 0.5 percent in March to 145.5. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the initial report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. Institutional planning fell 3.0 […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel In the last month, the CME U.S. Midwest HR future front month price has declined over $40/ST. Latest indexes indicate spot […]
The Canadian International Trade Tribunal recommended on Wednesday that five of seven provisional steel safeguards, imposed by the government following the imposition of Section 232 tariffs by the U.S., be removed. A CITT inquiry concerning the importation into Canada of heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire, […]
Construction spending increased 1.0 percent in February following a 2.5 percent gain in January, reported the Associated General Contractors of America in its latest analysis of government data. Construction spending totaled $1.32 trillion in February, up 1.0 percent from the January rate and a gain of 1.1 percent compared to February 2018. Public construction accounted […]
We stuck in a couple of Premium level articles in tonight’s issue to give our Executive members an opportunity to review the level of detail we put into Premium products. With our new pricing we have exceptional membership levels on both Premium and Executive products, especially for those of you who would like to share […]
Registrations continue to grow for the 2019 SMU Steel Summit Conference, which will be held on August 26-28, 2019. In the past 24 hours we added the following companies (those with an * means more than one person will be attending): North Star BlueScope Coated Products North America, Stelco*, Walker Magnetics, Leggett & Platt, Hannibal […]
By CRU Principal Economist Lisa Morrison Data released for Q1 2019 have been largely positive. The ISM Manufacturing survey reflects a moderating rate of expansion, but the reading of 54.2 in February shows a solid level of manufacturing activity with new orders, output, employment and backlogs squarely in “expansion” territory. Housing disappointed in 2018, but […]
April saw steel prices lose momentum as hot rolled dipped to an average of $662, cold rolled to $803 and galvanized G90 to less than $900 per ton. Even plate, which has been in tight supply, has now moderated to around $964 per ton from prices near or above $1,000 earlier in the year. Steel […]
Producer Price Index data from the Bureau of Labor Statistics shows steel losing ground to rival materials. Steel continues to become less competitive against aluminum, although the rate of change is slowing. In the case of plastic pipe compared to carbon steel pipe, steel is becoming dangerously uncompetitive. Prefabricated metal buildings are still challenged by […]
On Tuesday of this week, Steel Market Update published a hot rolled price range of $650-$720 per ton, with an average of $685 per ton. The lower end of our range dropped $40 per ton ($2.00/cwt) while the upper end of our range remained the same. Our Price Momentum Indicator on hot rolled remained unchanged […]
On Tuesday of this week, Steel Market Update published a hot rolled price range of $650-$720 per ton, with an average of $685 per ton. The lower end of our range dropped $40 per ton ($2.00/cwt) while the upper end of our range remained the same. Our Price Momentum Indicator on hot rolled remained unchanged […]
Finished steel price momentum has been particularly difficult to gauge of late and what happens to ferrous scrap prices next month may be telling. Scrap for May appears to be under pressure. Despite relatively healthy U.S. steel demand and domestic mills cranking out flat rolled steel at nearly full capacity, scrap prices have seen declines […]
Finished steel price momentum has been particularly difficult to gauge of late and what happens to ferrous scrap prices next month may be telling. Scrap for May appears to be under pressure. Despite relatively healthy U.S. steel demand and domestic mills cranking out flat rolled steel at nearly full capacity, scrap prices have seen declines […]
Ferrous scrap prices for June have settled down another $30/GT, surprising a market that was expecting little or no decline this month and adding further pressure to already weak finished steel prices. Scrap prices have been on a downward trajectory since January. The drop in scrap prices this month was caused by low mill demand […]
Ferrous scrap prices for June have settled down another $30/GT, surprising a market that was expecting little or no decline this month and adding further pressure to already weak finished steel prices. Scrap prices have been on a downward trajectory since January. The drop in scrap prices this month was caused by low mill demand […]
Over the next two years, Big River Steel will expand its Osceola, Ark., flex mill with help again from German plant builder SMS Group. Big River has commissioned SMS to supply mechanical equipment, electrical and automation systems and digitalization. BRS will add a second electric arc furnace and twin-ladle furnace to the complex, increasing output […]
By CRU Chief Economist Jumana Saleheen The 13th National People’s Congress (NPC), China’s Parliament, concluded its annual two-week meeting in March. The NPC is arguably the most important policy meeting in China because it is when key macroeconomic targets are announced together with the policies required to support them. This year’s NPC has drawn attention […]
Over the next couple of years there will be approximately 20 million tons of capacity built in North America. Most of us focus on the capacity being built by Nucor, Steel Dynamics, JSW USA and others. What is overlooked is the capacity being built just south of the U.S. border in Mexico. In an effort […]
Big River Steel still considers Brownsville, Texas, an attractive site for a new EAF mill and the Port of Brownsville is ready whenever BRS greenlights the project. In his State of the Port address this week, Brownsville Navigation Chairman John Reed noted that Big River Steel extended its land lease option for another year. A […]
Commercial Metals Company reported net earnings of $14.9 million on net sales of $1.4 billion for the second quarter of its fiscal 2019 year ending Feb. 28, 2019. Revenue for the quarter increased 33 percent year-over-year due to favorable market conditions and strategic growth initiatives, including completion of the Gerdau S.A. acquisition in November. The […]
Thirty-seven states added construction jobs between February 2018 and February 2019, although construction employment increased in only 16 states between January and February, according to an analysis by the Associated General Contractors of America of Labor Department data. “Although job growth remains widespread on a year-over-year basis, the combination of exceptionally bad weather and record […]
Existing home sales jumped 11.8 percent in February for its largest month-over-month gain since December 2015. The seasonally adjusted annual rate rose to 5.51 million, strongly rebounding from January, said the National Association of Realtors. Sales compared to a year ago were down 1.8 percent. “A powerful combination of lower mortgage rates, more inventory, rising […]
Bank of America Merrill Lynch predicts that billions in capital investments by domestic steelmakers over the next few years, adding more than 20 million tons of new capacity to the market, will cause a glut of supply that proves disastrous for steel prices—a phenomenon they have dubbed “Steelmageddon.” Steel Market Update canvassed the market this […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]