Olympic Steel reported that net sales jumped 12 percent year-over-year to $335 million in first quarter after all three of its operating segments reported double-digit growth. “Accelerating shipments and rising prices throughout the first quarter resulted in our highest operating income in any quarter since 2011,” said Chairman and CEO Michael Siegal. Operating income increased […]
Economic growth is expected to continue in 2018 followed by a mild recession in 2019, says ITR Economics. Concern over looming U.S. tariffs on aluminum and steel, as well as retaliatory Chinese tariffs, aligns with the HARDI/ITR quarterly forecast of macroeconomic deceleration in the U.S. economy late in 2018. Steel Market Update is a member […]
Construction spending dropped from the previous month to a seasonally adjusted annual rate of $1.285 trillion in March, but was still up compared to a year ago, according to an analysis of new Census data by the Associated General Contractors of America. AGC officials blamed the decline on drops in private sector construction as new […]
Key market indicators tracked by Steel Market Update are at an all-time high for April but have shown signs of weakening in the past few months. Data released in April shows that 18 of the 36 indicators are historically positive with only 5 negative. The balance is within the historically normal band. Trends took a […]
This is Steel Market Update’s first Key Market Indicators report since April as we have renegotiated some data supply contracts and made a few changes to the content. The report still summarizes 36 data streams that we believe critically describe the state of the steel market and provide forward guidance to steel buyers. Data released […]
Steel Market Update is sharing this Premium content with Executive-level readers. For more information about upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. Key market indicators in December were at an all-time high in the history of Steel Market Update’s analysis, but trends are deteriorating. This report summarizes 36 data streams that we believe critically describe […]
Global steel demand will reach 1,616.1 million tons in 2018, an increase of 1.8 percent over 2017, estimates the World Steel Association in its spring Short Range Outlook. In 2019, WSA forecasts global demand will grow by 0.7 percent to 1,626.7 million tons. “In the next couple of years, the global economic situation is expected […]
Steel Market Update’s scrap sources expect ferrous scrap prices to drop by at least $10-$20 per ton in May, and possibly as much as $30-$40 per ton, as spring weather increases the scrap flows and boosts supply. Adding to the downward pressure on prices, they report, is weakness in the global market. One dealer in […]
Steel Market Update’s scrap sources expect ferrous scrap prices to drop by at least $10-$20 per ton in May, and possibly as much as $30-$40 per ton, as spring weather increases the scrap flows and boosts supply. Adding to the downward pressure on prices, they report, is weakness in the global market. One dealer in […]
ITR Economics continues to expect economic growth in 2018 followed by a mild recession in 2019. Concern over looming tariffs aligns with the HARDI/ITR quarterly forecast of macroeconomic deceleration in the U.S. economy late in 2018. Steel Market Update is a member of an association connected to the construction industry called HARDI, the Heating, […]
Steel producer Ternium reported shipments of 3.5 million tons in first-quarter 2018, a 3.0 percent increase from the fourth quarter and a 42 percent jump from Q1 2017. Higher steel prices pushed revenue up $45 per ton. Higher shipments were a result of a 160,000-ton increase in Mexico that was offset by a 48,000-ton decrease […]
Big River Steel has signed an option agreement with the Board of Commissioners of the Port of Brownsville to bring a $1.6 billion steel mill and distribution facility to south Texas. The agreement gives Big River Steel the option to lease 800 acres between the Brownsville Ship Channel and State Highway 48. The facility will […]
Construction costs increased for the 18th consecutive month in April, according to the latest data from IHS Markit and the Procurement Executives Group. The IHS Markit PEG Engineering and Cost Construction Index jumped 4.1 points from March to April to register 61.8. Indexes for materials/equipment and labor were both above 50, indicating rising prices. Prices […]
Billings at architecture firms slowed in March but remained in expansion territory at an Architecture Billings Index score of 51.0, down one point from February. Inquiries and value of new design contracts remained generally strong overall, reported the American Institute of Architects, although firms reported concern about planned U.S. tariffs on steel and aluminum. The […]
Sales of single-family homes jumped 4 percent in March to a seasonally adjusted annual rate of 694,000, according to information from HUD and the Census Bureau. Sales of new homes were 8.8 percent above the March 2017 estimate of 638,000. Commerce estimates the number of new homes for sale at the end of March was […]
Is your company at risk due to the impact of the Section 232 tariffs? Industry executives responding to Steel Market Update’s April 16 flat rolled market trends questionnaire are almost evenly split on whether the Trump administration tariffs will help or hurt their businesses. Fifty-two percent say their business is not at risk, while 48 […]
Thirty-eight states and the District of Columbia added construction jobs between March 2017 and March 2018, while 29 states added construction jobs between February and March, according to an analysis by the Associated General Contractors of America of Labor Department data. Strong private-sector demand and new public-sector investments in school and airport construction contributed to […]
Both current and future sentiment among flat rolled steel buyers remain at optimistic levels, though buyers’ confidence appears to have seen some erosion as measured by the three-month moving averages in Steel Market Update’s Steel Buyers Sentiment Index. The index is designed to measure changes in buyers’ attitudes, which offers insight into their likely decision-making. […]
Steel Dynamics reported a very strong first quarter with record shipments in the flat rolled division and a 94 percent utilization rate, well above the domestic industry average of 76 percent. Demand and product pricing improved across SDI’s entire steel platform. Net sales totaled $2.6 billion for the quarter and net income was $228 million. […]
Economic activity continued to expand at a modest to moderate pace across the 12 Federal Reserve Districts in March and early April. Outlooks remained positive, but contacts in various sectors including manufacturing, agriculture and transportation expressed concern about the newly imposed or proposed tariffs on steel and aluminum. The Fed’s latest Beige Book released on […]
The high price of galvanized steel has not dampened demand, at least not yet, say distributors of HVAC products, who report continued strong market conditions. “The market is somewhat back to normal, just at dramatically higher transaction prices,” commented one member of the Heating, Air-conditioning, and Refrigeration Distributors International (HARDI), during the trade group’s monthly […]
The high price of galvanized steel has not dampened demand, at least not yet, say distributors of HVAC products, who report continued strong market conditions. “The market is somewhat back to normal, just at dramatically higher transaction prices,” commented one member of the Heating, Air-conditioning, and Refrigeration Distributors International (HARDI), during the trade group’s monthly […]
ArcelorMittal said it will sell off assets in order to secure its acquisition of Italian steel mill Ilva. The proposed divestment package includes: ArcelorMittal Piombino, the company’s only galvanized steel plant in Italy ArcelorMittal Galati, Romania ArcelorMittal Skopje, Macedonia ArcelorMittal Ostrava, Czech Republic ArcelorMittal Dudelange, Luxembourg Hot-dipped galvanizing lines 4 and 5 in Flemalle; hot-rolled […]
Housing starts increased more than expected in March due to a rebound in multi-family construction. Housing starts grew 1.9 percent from February to March to a seasonally adjusted annual rate of 1,319,000. Year-over-year, housing starts leapt 10.9 percent, reports the National Association of Home Builders. Single-family housing starts were weak in March at a rate […]
As Steel Market Update analyzed the inventory data received from flat rolled steel distributors, we found the number of months of supply that steel service centers are carrying was lower at the end of March than what we reported at the end of February. With 96 percent of our data providers reporting, the number of […]
Construction costs climbed in March on a wide range of building materials, according to an analysis of Labor Department data by the Associated General Contractors of America. The producer price index for input goods to the construction industry rose at its steepest year-over-year rate since 2011. The goods index climbed 0.8 percent in March alone […]
“Compared to one month ago, demand is declining, but to a more normal level,” commented one respondent to Steel Market Update’s market trends questionnaire last week, expressing a common view. There has been a surge in demand in recent weeks due to the Section 232 tariff decision by President Trump. Many buyers have been buying […]
Bay State Wind, a 50-50 partnership between offshore wind company Orsted and transmission builder Eversource, will partner with international steel pipe producer EEW to manufacture components for offshore wind projects at a new facility to be built in Massachusetts. EEW will collaborate with U.S.-based Gulf Island Fabrication, a fabricator of offshore and onshore steel structures […]
Cleveland Cliffs broke ground on its new $700 million hot-briquetted iron facility in Toledo, Ohio, on Thursday. “Today we are launching a new era for the iron and steel industry in the United States,” said CEO Lourenco Goncalves. “For several decades, Cleveland-Cliffs has been supplying the American steelmakers in the Great Lakes with customized pellets […]
Construction employment increased by 228,000 jobs, or 3.3 percent over the past 12 months, according to an analysis of new government data by the Associated General Contractors of America. Construction employment totaled 7,150,000 in March, a dip of 15,000 for the month attributed to weather-related conditions. The unemployment rate for the industry fell to 7.4 […]