Earlier today the HARDI wholesalers conducted their May galvanized steel conference call. The wholesalers on the call service the mechanical contractors involved in the residential and commercial construction markets supplying galvanized sheet and coil and other products used in the heating and air-conditioning markets. Needless to say, the call was well attended in response to […]
Last week the Department Commerce slapped AD/CVD duties totaling over 500 percent on China cold rolled steel flat products. China immediately challenged the determination, calling for removal of the penalties and reaffirming the rebates awarded to its industry to help with solving the steel and coal overcapacity. The Chinese Ministry of Commerce confirmed that it […]
The Architecture Billings Index score was 50.6 in April, down from 51.9 in March. It is the third consecutive month the Index has been above 50 indicating increasing demand for design activity at architectural firms. The new projects inquiry index was 56.9 compared 58.1 last month. “Architects continue to report a wide range of business […]
Today, the Department of Commerce announced its affirmative final determinations in the AD investigations of imports of certain cold-rolled steel flat products (cold-rolled steel) from China and Japan, and CVD investigation of imports of cold-rolled steel from China. Commerce determined imports of cold-rolled steel from China and Japan have been sold in the U.S. at […]
The article below was published to our Premium members yesterday afternoon, but we felt it would be nice to share with our Executive members too. If you would like more information about a Premium membership or would like to upgrade, contact us at info@SteelMarketUpdate.com. Based on Steel Market Update (SMU) analysis of the recently released […]
Housing starts in April increased 6.6 percent from the previous month to a seasonally adjusted annual rate of 1,172,000, according to data from the U.S. Department of Housing and Urban Development and the Commerce Department. On a year over year basis housing start were down 1.7 percent. Single-family housing starts in April were at a […]
Based on Steel Market Update (SMU) analysis of the recently released MSCI service center inventory and shipment data, total service center carbon steel shipments decreased by 84,700 tons in April to 3.091 million tons. This decrease was driven by the number of shipping days, down by 2 to 21. On a t/d basis shipments increased […]
“U.S. Steel Sinks as Another Wave of Cheap Imports Predicted” was the headline in Bloomberg on Friday morning. The article cites Axiom Capital Research analyst Gordon Johnson who wrote to his clients, “A boat load of imports are likely on the way.” This opinion permeates the financial community and the pessimism is, in our opinion, […]
On May 17, 2016, the Department of Commerce is scheduled to announce its final determinations in the AD investigations of imports of certain cold-rolled steel flat products from China and Japan and CVD investigation of imports of certain cold-rolled steel flat products from China. The investigations cover certain cold-rolled, flat-rolled, steel products, neither clad, plated, […]
Nucor Corp. announced today that it will expand its Vulcraft/Verco Group into Canada. The new production facility, Vulcraft Canada, Inc., will be located near Hamilton, Ontario and will serve the Central and Eastern markets. The facility will produce steel joists, joist girders, and decking. Product fabrication is expected to begin later this year. “We are […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. March data was released on Monday May 2nd. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
The annualized GDP growth rate in the first estimate of the first quarter of 2016 was 0.54 percent, down from 1.38 percent, in the fourth quarter of 2015. Normally there are two revisions of the first estimate and sometimes three. Revisions to the four quarters of 2015 were +0.4 percent, +1.59 percent, +0.5 percent and […]
Economists participating last week in the CMD Webinar: Is Construction Gaining or Waning were generally optimistic about the economy and forecast for construction growth. Although some sectors of construction peaked last year, growth is continuing in almost all areas, although at a slower pace. During the webinar, chief economists Ken Simonson, Associated General Contractors of […]
The Dodge Momentum Index rose 0.6 percent in April to 116.5 from a revised March reading of 115.8. Planning for commercial construction increased 0.8 percent and institutional planning rose 0.4 percent. Institutional planning, although volatile on a month-to-month basis, continues to recover and is now seven percent above year ago levels. The pace for commercial […]
The Bureau of Labor Statistics (BLS) reported on Friday in their analysis of non-farm employment that 160,000 jobs were added in April, down from 208,000 in March. February and March were revised down by a total of 19,000. An explanation of the BLS report is included at the end of this piece. The three month […]
The Associated General Contractors of America, on May 1, released their March analysis of construction spending. Construction spending in March 2016 was at a seasonally adjusted annual rate of $1.138 trillion. SMU looked back at past March analyses and found an upward trend in spending for the month. In March 2014 construction spending totaled $943 […]
On April 29, 2016, the Department of Commerce initiated an antidumping duty (AD) investigation of imports of certain carbon and alloy steel cut-to-length plate (CTL plate) from Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, Korea, South Africa, Taiwan, and Turkey, and countervailing duty (CVD) investigations of imports of CTL plate from Brazil, China, and […]
Olympic Steel reported a narrower than expected net loss of $767,000 for first quarter 2016. Revenues were $258.3 million compared to $346 million in Q1 2015 due to lower prices and volume. First quarter shipments increased, however 16 percent from fourth quarter 2015 recapturing market share from last year’s declining marketplace. “We successfully navigated challenging […]
Last week Steel Market Update reported our Steel Buyers Sentiment Index as being at record highs. Buyers and sellers of flat rolled steel are very optimistic about their company’s ability to be successful not only in the current market but three to six months out into the future as well. When looking at Sentiment from […]
The S&P/Case-Shiller U.S. National Home Price Index indicated home prices continued to rise over the past 12 months but at a slower growth rate. The 20-City Composite gain was 5.4 percent year over year in February, down from 5.7 percent in January. The composite gained just 0.7 percent on month over month base after seasonal […]
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 American Institute of Architects (AIA) reported the March ABI score was 51.9, up from 50.3 February and indicating an increase in design services. The new projects inquiry index was 58.1, down from a reading of 59.5 the previous month. “The first quarter was somewhat disappointing in terms of the growth of design activity, but […]
First, Steel Dynamics Industries (SDI) reported an increase in steel shipments (+17%) and that they were continuing to grow, “…across all divisions but most significant in flat rolled.” They went on to report customer inventory levels are now “better aligned with actual demand, which is supporting increased domestic steel production and now also flat rolled […]
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 […]
Steel Dynamics announced a strong quarter with net income of $63 million on net sales of $1.7 billion for first quarter 2016. Steel operating income increased 104 percent to $136 million from fourth quarter due to a 17 percent improvement in shipments which totaled 2.12 million tons. Average steel selling price dropped $40 from Q4 […]
Housing starts plummeted in March, according to Commerce Department data. Housing starts fell 8.8 percent to a seasonally adjusted annual rate of 1,089,000, well below economist projections. Housing permit authorizations also declined in March by 7.7 percent, indicating a cooling of momentum during the housing construction market’s busiest season. Single family housing starts were at […]
The United Steelworkers filed a petition this week under Section 201 of U.S. trade law to attempt stem imports of primary unwrought aluminum. We are reporting on this because a number of companies/organizations having begun calling for the use of Section 201 to help stem unwanted steel imports (see article in tonight’s newsletter written by […]
NLMK USA crude steel production of 160,000 tonnes was a 94 percent increase quarter over quarter and a 68 percent increase year over year. The jump in production was due to the re-launch of steelmaking at NLMK Indiana after repairs at the end of 2015 as well as from improved steel demand. Capacity utilization improved […]
Both these data points are reported in the Federal Reserve G17 data base. This month the historical data has been revised and we have updated our files back to January 2000. The index had an all-time high of 106.40 in January 2015 but on a month over month basis has declined for 13 of the […]
There is still no light at the end of this tunnel except for coated products which have had three months of shipment growth on a tons / day, (t / d) basis. Total service center carbon steel shipments increased by 142,100 tons in March to 3.176 million tons. This increase was driven by the number […]