Nucor Corporation plans to help the new administration bring manufacturing back to America. It is off to a good start by posting solid earnings results for fourth quarter 2016. Nucor announced consolidated net earnings of $159.6 million for fourth quarter 2016 compared to $305.4 million in third quarter and a loss of $187.5 million a […]
December service center daily shipments declined by 13.1 percent from November, a non event because since 2009 on average December has declined by 13.2 percent. Carbon steel shipments decreased by 369,100 tons, the number of shipping days was unchanged at 21, and tons per day (t/d) shipments decreased by 17,600 tons. Inventories at 6,754,200 tons […]
The headline report of GDP growth in Q4 came in at 1.88 percent a decline from 3.53 percent in the third quarter. GDP is measured and reported in chained 2009 dollars and in the first estimate of Q4 was $16.805 trillion. The growth calculation is misleading because it takes the quarter over quarter change and […]
The Keystone XL Pipeline was given approval by the new administration through executive order last Tuesday. Since that time there has been a flurry of speculation on what kind of benefit building the pipeline will provide to the U.S. steel Industry. “We are — and I am — very insistent that if we’re going to […]
Steel Dynamics announced net income of $20 million for fourth quarter 2016. Company net sales totaled $1.9 billion, down from $2.1 billion in third quarter. Operating income decreased to $239.5 million from $338.7 million in the previous quarter. Steel shipments for the quarter totaled 2.2 million; fabrication shipments totaled 131,186 tons. Average selling price for […]
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 […]
SMU Price Momentum Indicator has been pointing to Higher flat rolled steel prices since late October (12 weeks). Based on our analysis of last week’s steel market trends survey as well as direct contact with buyers today, SMU Price Momentum has not changed and our expectation is for prices to move higher over the next […]
President Donald Trump signed an executive order on Tuesday giving permission for the Keystone XL oil pipeline project to advance as quickly as possible. While the announcement prompted mixed reaction in the United States, TransCanada said it appreciates the president’s invitation to proceed and will re-submit its application to do so. “KXL creates thousands of […]
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 […]
As January comes to a close there have been plenty of changes in the U.S. with the new administration taking office and a flurry of cabinet nominations and trade decisions that could affect shipping in the U.S. and globally. Wilbur Ross is slated by the new president to lead the Department of Commerce, Robert Lighthizer […]
The Architecture Billings Index (ABI) ended 2016 at a score of 55.9, up from 50.6 in November and growing for the third consecutive month, according to the latest report by the American Institute of Architects. The new projects inquiry index stood at 57.2 in December from 59.5 the previous month. The differing growth pace between […]
Housing starts rose 11.3 percent in December to a seasonally adjusted annual rate of 1,226,000 from a November revised rate of 1,102,000. Starts were up 5.7 percent year over year. Single family starts slipped 4 percent from the previous month but apartment type housing of 5 units or more rose 53.9 percent as new project […]
Steel Market Update participates in a monthly steel conference call hosted by HARDI (Heating, Air-conditioning, Refrigeration Distributors International). The call is dedicated to a better understanding of the galvanized steel market. The HARDI wholesalers are responsible for the supply of sheet steel and coil as well as other products to the mechanical contractors involved with […]
Chinese finished steel exports are beginning to drop month over month. In December, finished steel exports were down about 4 percent from November to 7.8 million tonnes. In comparison to a year ago, December exports had fallen approximately 27 percent from a record 112.4 million tonnes. Looking at the data by quarter finished steel exports […]
Essar Steel Minnesota is suing Essar Global Group for $1 billion in damages for financial misconduct related to its uncompleted iron ore-facility. Essar Minnesota alleges that parent company Essar Global Fund failed to provide necessary operating funds and make investments needed to complete the iron ore pellet plant under construction at ESML. The motion also […]
The Bureau of Labor Statistics employment reports, both national and regional, are fundamental to our understanding of where the various steel consuming sectors are headed. In this analysis we are examining multiple data sources to try to develop a broad base of understanding. This data complements other more specific information on construction and manufacturing activities […]
The Dodge Momentum Index increased 2.9 percent in December to a reading of 136.7. The index is at an eight year high although more than 25 percent below its peak in 2007. Commercial construction planning drove the increase in December, gaining 5.7 percent and offsetting a 1.7 percent decline in institutional planning. Commercial planning gained […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As Flack Steel’s director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing Futures articles for […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. November data for CPIP was released on Tuesday, January 3rd. The most notable feature of this update was the apparent response to the $305 billion infrastructure in the bill that Congress […]
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. Looking back from the […]
NLMK Group announced it has signed an agreement for purchase of the core processing equipment for the construction of a new reheating furnace at NLMK Pennsylvania. The new walking-beam reheating furnace will streamline the slab heating process at NLMK Pennsylvania and replace three outdated pusher-type furnaces currently operational at the facility. The reheating furnace, which […]
Sale of new residential homes jumped 5.2 percent in November to a seasonally adjusted annual rate of 592,000, according to the U.S. Census Bureau and the Department of Housing and Urban Development. The rate is 16.5 percent above the sales rate of 508,000 new homes in November 2015. Median sales price in November was $305,400 […]
SMU Steel Buyers Sentiment Index has reversed trend and is rising (getting more optimistic) as we prepare to move into the New Year. On Monday of this week Steel Market Update (SMU) began conducting our mid-December flat rolled steel market trends analysis. We completed our inquiries earlier today (Thursday, December 22, 2016) and we are […]
The Architecture Billings Index made a small gain in November with a score of 50.6, basically unchanged from October’s reading of 50.8. Any score above 50 indicates an increase in billings for design services. The new projects inquiry index rose to 59.5 from 55.4 in November indicating future growth in construction activity. “Without many details […]
The following analysis was done by Steel Market Update for our Premium level customers. We are sharing the article with everyone (as well as our Apparent Excess article), well, because we would like all of our readers to upgrade to Premium… The WSA released their November update of global steel production on Tuesday. Production in […]
M&M Manufacturing, a subsidiary of MiTek Industries and a leading producer of sheet metal products, for the air distribution and ventilation markets, has acquired Snappy Company. Snappy is a leading supplier of metal duct systems for the residential HVAC market, with manufacturing facilities in Detroit Lakes, MN; Medina, NY; and corporate offices in Marietta, GA. […]
Steel Dynamics is expecting fourth quarter profitability to decline from third due to lower shipments and metal spread compression. Shipments were down in both the flat and long products categories. In addition, lower steel pricing more than offset savings realized from lower ferrous scrap costs. Impairment charges for the quarter are still being assessed related […]
Housing starts retreated in November to a seasonally adjusted annual rate of 1,090,000. The rate is 18.7 percent below the revised October estimate of 1.34 million and 6.9 percent below the November 2015 rate. Sequentially, single family starts fell 4.1 percent and multifamily starts plunged 43.9 percent. On a year over year basis single family […]
November service center daily shipments declined by 3.7 percent from October which was disappointing because since 2009 on average November has declined by 2.1 percent. Carbon steel shipments decreased by 107,400 tons, the number of shipping days was unchanged at 21 and tons/day shipments decreased by 5,100 tons. Intake and shipments In November total carbon […]
Big River Steel announced that operations have begun at its melt shop and hot strip mill. The first hot rolled coil was purchased by Zekelman Industries and will be sent to Atlas Tube in nearby Blytheville, Arkansas. The coil was purchased for $100,000 with the entire amount jointly contributed by Big River and Zekelman Industries […]