Mesabi Metallics, the former Essar Steel Minnesota, emerged from 11 months of bankruptcy on Tuesday with a new owner, Chippewa Capital Partners. Chippewa Capital is a joint venture of London-based GFG Alliance and billionaire Tom Clarke. Clarke is also the owner of Magnetation and hopes to use the taconite ore from both facilities to produce […]
We start this report with comments made by Jun Wei Yeo on iron ore and coking coal. “In April to May alone, there was an over 30 percent drop in the price of iron ore. Iron ore mining companies such as Rio Tinto, BHP Billiton, and Brazil’s Vale are suffering simultaneous stock price declines. Most […]
The Dodge Momentum Index gained 4 percent in May posting a score of 139.1 after slipping to a revised 133.7 in April. Commercial projects in planning increased 4.8 percent while institutional project planning was up 2.9 percent, recovering partially from April’s 12.0 percent decline. Despite signs of weakening occupancies and rents, the commercial component of […]
Steel 232 Investigation—Update from the Front Lines By Lewis LeibowitzThe Law Office of Lewis E. Leibowitz To put the steel proceeding in context, I would like to acquaint you with a couple of other proceedings that are “proceeding” right now. We’ll see how all of these developments may fit together. First, there are important negotiations […]
April data for Construction Put in Place (CPIP) was released by the Department of Commerce on Thursday June 1st 2017. Total construction still has positive growth but slowed to 2.5 percent year/year in the latest three months of data. Privately funded projects are the growth engine as state and local and infrastructure both had negative […]
The Bureau of Labor Statistics (BLS) employment report for May was released on Friday and revealed a disappointing total net job creation of 138,000 which was well below analysts expectations. To make matters worse, March and April were revised down by a total of 66,000 jobs. Using a three month moving average (3MMA), the result […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. This will explain the difference between our view of the present situation which is subjective and our analysis of trends which is based on the latest facts available. We now have three […]
Steel Market Update (SMU) has been contacted by end users, distributors and steel mills regarding an article published by another trade publication on Galvalume. The article, which was published on Thursday, May 18, 2017, quoted Keith Medick, president and CEO of Union Corrugating Company, as he made the point that there is not enough light […]
The U.S. Department of Commerce advised Steel Market Update, as a member of the media, who would be speaking at tomorrow’s (Wednesday, May 24, 2017) Section 232 hearing on steel. The hearing is part of the Commerce Department’s investigation about the need for steel for national security. Here is what we received from the US […]
AISI, WASHINGTON, D.C. – The American Iron and Steel Institute’s (AISI) Board of Directors today elected John Ferriola, Chairman, President and CEO, Nucor Corporation, to serve another year as chairman of the Institute, through May 2018. “John is a recognized leader in the global and domestic steel industry. He is an outspoken advocate for the […]
HVAC wholesalers reported despite “good” demand they are seeing ultra-competitive conditions on the sales of galvanized steel they are attempting to sell into the HVAC (heating, ventilation, air-conditioning) markets. Steel Market Update participates in a monthly steel conference call hosted by HARDI (Heating, Air-conditioning, and Refrigeration Distributors International) for their member companies. The HARDI conference […]
Housing starts surprised economists by moving lower in April to a seasonally adjusted annual rate of 1,172,000. April’s tally is 2.6 percent below the March estimate of 1,203,000 but 0.7 percent higher than a year ago. Projections were for starts to reach 1.26 million in April. Starts increased 41.1 percent in the Midwest and 5.4 […]
Construction has expanded in the U.S. for over 30 quarters, and it still has legs, said Alex Carrick, Chief Economist at ConstructConnect. ConstructConnect presented a webinar May 11, entitled “Bump or Slump? 2017 Prospects for Design & Construction. AIA chief economist Kermit Baker and AGC of America Chief Economist Ken Simonson joined Carrick in discussing […]
The following article was provided and first published by ArcelorMittal USA news: After experimenting with aluminum in its luxury models, Audi’s next A8 will switch back to steel. Scheduled for release in 2018, the body structure of the new A8 will be made up of more than 40 percent steel, following the trend of automakers […]
Flatbed trucks are generally first choice to move steel products from mills to distribution centers to manufacturing clients. What determines what freights will be for this workhorse of the steel industry? Freight costs are influenced by fuel costs, weather, seasonal demand, historical costs, and load-to-truck ratios. Flatbed rates are particularly vulnerable to weather conditions in […]
The US Gross Domestic Product is the values of goods and services produced by all economic activity. The growth of GDP is a function of the growth in the number of employed people multiplied by the growth of their productivity. Steel consumption is correlated to GDP, therefore to understand the direction of the steel market […]
AIST – NASHVILLE, 9 May 2017 — Roger K. Newport, chief executive officer and board member, AK Steel, was named Steelmaker of the Year at AISTech 2017 — The Iron & Steel Technology Conference and Exposition, managed by The Association for Iron & Steel Technology (AIST). The Steelmaker of the Year Award is presented annually […]
The Dodge Momentum Index slipped 5.1 percentage points in April to a reading of 133.8. Institutional planning fell 12 percent while commercial construction planning gained only 0.1 percent. Dodge Data & Analytics sees April’s decline as part of a sawtooth pattern that has been prevalent since early 2016. Said Dodge regarding the April findings, “Despite […]
The State of Texas is attempting to lure a new flat rolled steel mill to the state. According to various press reports there appear to be two interested parties: Big River Steel and the E United Group out of Taiwan. Is Big River Steel already planning to expand? That seems to be what the Port […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. This will explain the difference between our view of the present situation which is subjective and our analysis of trends which is based on the latest facts available. We now have two […]
In summary, the March CPIP data released on May 1st, yielded mixed results. Private expenditures recorded overall growth with the exception of manufacturing, transportation and religious structures. However, State & Local and Infrastructure spending continued to contract. Data in this report is not seasonally adjusted or corrected for inflation. At SMU we analyze the CPIP […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
The Commerce Department is seeking input from American businesses on what factors contribute to the trade deficit. Commerce is collecting information to submit to President Trump as an information base for renegotiating trade deals and to deter and punish trade abuse. “Many trade abuses are well known to American companies, but because different Federal agencies […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
NLMK USA sales jumped 33 percent from fourth to first quarter on stronger demand from construction and pipe manufacturers. Sales volume totaled 562,000 tonnes. Sales revenue was $399 million, which included $186 million for HRC, $109 million for CRC, $96 million for HDG, and $1 million for slabs. Profit for first quarter was $54 million […]
Reliance Steel & Aluminum turned in a strong first quarter with sales up 17.4 percent to $2.42 billion from Q4 2016 and net income up 81 percent to $111.7 million. On a year-over-year basis sales were up 11.9 percent and income 21.1 percent. “Improved demand, higher metal pricing and continued strong execution resulted in record […]
Essar Steel Minnesota was awarded to billionaire Tom Clarke for $550 million at an auction on Wednesday. Clarke’s group Chippewa Capital Partners, which previously purchased Magnetation, plans to merge Essar Steel Minnesota, now called Mesabi Metallics, with Magnetation and finish the $1.9 taconite pellet plant at the Essar site. Clarke told the Star Tribune that Chippewa […]
Cliffs Natural Resources continues to shore up its balance sheet and focus on reducing its debt. A $72 million debt extinguishment/restructuring charge resulted in a net loss of $30 million for the quarter. Debt was reduced by $550 million during Q1 resulting in total debt at the end of the quarter of $1.6 billion. First […]
The S&P Corelogic Case-Shiller National Home Price Index reached a 32 month high in February. The Index reported a 5.8 percent annual increase in prices, up from 5.6 percent in January. The 20-City Composite reported a year-over-year gain of 5.9 percent, compared to 5.7 percent the previous month. Seattle, Portland and Dallas reported the highest […]
Steel Market Update is including the following MetalMiner article about zinc for a number of reasons. The run-up in zinc spot pricing late last year and early this year created a situation where the domestic North American steel mills felt they had no choice but to increase the coating extras used when putting zinc onto […]