Ryerson, a processor and distributor of metals, posted sales of $3.4 billion for 2017, a 17.7 percent increase year over year due to an 11.9 percent increase in the average selling price and a 5.1 percent gain in volume. Net income was $17.1 million for the year. Gross margins decreased to 17.3 percent in 2017 […]
Construction spending was unchanged from January compared to December, said the Associated General Contractors of America in its analysis of new government data. “Construction spending in January showed a mixed pattern, with noteworthy increases in public outlays and single-family homebuilding balancing out declines in private nonresidential and multifamily investments,” said AGC Chief Economist Ken Simonson, […]
The growth of total construction on a rolling 12-month basis year over year has slowed every month from January 2017 through January 2018. On a rolling three-month year-over-year basis, the situation is better, with growth improving every month from September through January. Hopefully, this trend will continue. Construction expenditures data is developed by the Department […]
Key market indicators, and the trends they reveal, are the best they have ever been in Steel Market Update’s analysis. Data released in February shows that 18 of the 36 indicators are historically positive with only six negative. The balance is within the band of historically normal. Trends improved with 32 of the indicators heading […]
Global steel production grew by 2.7 percent in the three months through January, though the pace of growth continued to be slowed by pollution control restrictions in China. Excluding China, the pace of growth for world steel production was 4.8 percent, according to the latest Steel Market Update analysis of World Steel Association data. On […]
The decline in value of the U.S. dollar on the international exchange markets has slowed in the last 30 days, according to Steel Market Update’s latest analysis of currencies. Please see the end of this report for an explanation of data sources. The analysis of currency trends is a highly technical undertaking. Therefore, in this […]
As much as the mills are gloating about President Trump’s decision to lay a 25 percent tariff on foreign steel, remember one thing – not one of them asked for it. When it was handed to them, they took it. They did not fight to protect those products that they don’t like to make (or […]
The SMU Steel Summit Conference is THE fastest growing steel conference in North America and THE one conference manufacturing, distribution, suppliers to the industry and steel mills want to attend. Details about the agenda, speakers, location and costs, as well as how to register, can be found on our website: www.SteelMarketUpdate.com/Events/Steel-Summit or you can contact […]
The American Institute of Architects’ Architecture Billings Index (ABI) posted its highest January score since 2007. Considered a leading economic indicator of construction activity, the ABI registered 54.7 last month, up from 52.8 in December. Scores above 50 indicate growth in billings. “Healthy conditions continue across all sectors and regions except the Northeast, where firm […]
NLMK USA’s fourth-quarter sales and shipments dropped 3 percent from the third quarter due to expected seasonality. Sales totaled $410 million on shipments of 550,000 metric tons. Prices in the fourth quarter were flat due to uncertainty surrounding the pending Section 232 investigation. For full-year 2017, NLMK USA sales increased 21 percent from 2016 to […]
Existing home sales fell for the second consecutive month in January, dropping 3.2 percent to a seasonally adjusted annual rate of 5.38 million, according to data from the National Association of Realtors. Compared to a year ago sales are down 4.8 percent, the steepest decline since 5.5 percent in August 2014. Inventory rose 4.1 percent […]
The possible forthcoming Section 232 decisions on steel and aluminum imports have alarmed nations across the globe. Commerce Secretary Wilbur Ross said he “wouldn’t be surprised if there were retaliations to the measures,” but perhaps he underestimated the negative response to his recommendations. Numerous countries have expressed concern for their own domestic markets, while others […]
Recommendations from the U.S. Commerce Department calling for potential tariffs and quotas on steel and aluminum imports under Section 232 elicited a strong global reaction including trepidation, anger and threats of retaliation. Commerce Secretary Wilbur Ross said during a conference call Friday he wouldn’t be surprised if there were retaliations to the measures, adding that […]
Housing starts in January jumped 9.7 percent from December to a seasonally adjusted annual rate of 1,326,000, according to data released by the Department of Commerce. Construction of homes of five units or more surged 19.7 percent, while single-family starts climbed 3.7 percent. Starts increased across three of the four U.S. regions, but dropped by […]
Union Partners announced plans today to build a new steel processing facility on the Osceola, Ark., campus of Big River Steel. The operations will be located directly adjacent to Big River’s Flex Mill and will include both slitting and multi-blanking lines in a new build-to-suit facility expandable to 258,000 square feet. Construction will be on […]
Reliance Steel and Aluminum Co. is seeing growing demand across all its product segments and expects that trend to continue through 2018. Reliance reported a strong fourth quarter with net sales up 15.3 percent year-over-year to $2.38 billion. Third-quarter sales were somewhat lower due to expected seasonality. Fourth-quarter shipments totaled 1,451,000 tons, up 6.3 percent […]
The employment picture looks attractive so far for 2018, particularly for construction and manufacturing. The Bureau of Labor Statistics (BLS) reported on Friday that the economy created 200,000 new nonfarm jobs in January. The BLS data included revisions for previous years, which we have incorporated into this update. There were increases in the total number […]
ArcelorMittal Mexico has contracted with Primetals Technologies for the construction of a new hot strip mill at Lázaro Cárdenas. Primetals will erect the hot strip mill and a hot skin pass mill, including power supply, mechanical equipment, drives and automation. The mill is designed for an annual capacity of 2.5 million metric tons of hot […]
SMS Group, a plant supplier to the metals industry, is partnering with Arkansas Northeastern College to create the Arkansas Steelmaking Academy. The academy in Osceola will help North American steel companies to train team members in cutting edge techniques in steelmaking and processing. Currently, training by SMS has only been available in Germany. The new […]
Nearly 90 percent of the respondents to Steel Market Update’s latest market trends questionnaire say they see flat roll prices heading even higher. The other 10 percent are uncertain and see no clear-cut price direction right now. Will steel prices keep rising? Following are some of respondents’ comments: “Hot roll yes, cold roll a slight […]
The Dodge Momentum Index fell 5.1 percent in January to 143.7 from December’s revised score of 151.5. On a year-over-year basis, the index gained 7.7 percent. The Dodge Momentum Index, published by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been […]
In December, total construction spending expanded by 1.4 percent year over year. Viewed in the longer term, however, the growth rate is slowing. The growth of total construction on a rolling 12-month basis year over year slowed every month in 2017. On a rolling three-months basis, growth improved in October and December. On this three-month […]
The steel industry stands to be a major beneficiary of the $1.5 trillion in infrastructure improvements proposed by President Trump in his State of the Union address on Tuesday, but don’t count on the extra government business anytime soon. Not unlike his plan to build a border wall paid for by Mexico rather than the […]
Construction employment and average hourly wages climbed in January, according to an analysis of government data by the Associated General Contractors of America. The industry gained 36,000 jobs in January for total construction employment of 7,099,000. Compared to January 2016, jobs were up 226,000 or 3.3 percent. Average hourly earnings in the industry climbed to […]
Bank of America Merrill Lynch sees market conditions lining up for a strong first quarter with hot rolled coil prices that could even hit $800 per ton. “Even without Section 232 support, a weaker U.S. dollar, good demand, Chinese supply curtailments and recent trade case action can support prices well through the second half,” predicts […]
Construction spending increased for the fifth consecutive month in December, but an infrastructure bill is needed to address growing deficiencies in transportation, water and wastewater infrastructure, says the Associated General Contractors of America in an analysis of new government data. “Construction spending ended the year on a high note, with gains over November levels for […]
Those who were hoping the State of the Union address would offer some indication of how President Trump will act on Section 232 were left disappointed. His speech was long on patriotism and short on specifics when it came to trade policy. The steel industry is left to speculate on whether the administration will further […]
ArcelorMittal’s NAFTA segment saw crude steel production decrease 5.2 percent to 5.6 million metric tons in the fourth quarter due to operational issues in Mexico, planned maintenance at Dofasco, and a slower U.S. market. Steel shipments declined 8.9 percent to 4.2 million metric tons, primarily driven by lower volumes in flat and long products. Sales […]
U.S. Steel announced Jan. 31 that the president of its tubular products segment, David J. Rintoul, plans to retire effective Feb. 28. Graphite electrode company GrafTech announced concurrently that Rintoul will join the company as President and CEO effective March 1. Rintoul, currently senior vice president – tubular business and president of tubular products, began […]
U.S. Steel announced Jan. 31 that the president of its tubular products segment, David J. Rintoul, plans to retire effective Feb. 28. Graphite electrode company GrafTech announced concurrently that Rintoul will join the company as President and CEO effective March 1. Rintoul, currently senior vice president – tubular business and president of tubular products, began […]