WASHINGTON, D.C., Feb. 6, 2017 – The American Iron and Steel Institute (AISI) Board of Directors has approved a public policy agenda outlining the Institute’s aggressive pro-manufacturing policy strategies to guide advocacy for the upcoming year and highlight importance of the steel industry to the success of the American economy. “The impact public policies have […]
The following article was originally published by Daniel Pearson, Senior Fellow at the Cato Institute on January 18, 2017. Mr. Pearson will be one of our speakers at this year’s SMU Steel Summit Conference: Wilbur Ross has accomplished impressive business turnarounds during his career. His efforts in the steel, textile and automotive parts industries demonstrate […]
NLMK USA has restarted its #2 hot-dip galvanizing line at the Sharon Coating facility in Pennsylvania in response to increased domestic demand. The #2 line had been idled since 2002 due to weak demand in the U.S. galvanized steel market. The line has a capacity of approximately 226,000 metric tonnes per year (249,118 tons) and […]
Over the next few weeks we will begin rolling out our program and our speakers for this year’s SMU Steel Summit Conference. I am very excited as the program is coming together very well and I believe this will be our best conference to date. We have taken the suggestions received last year as well […]
Last week Steel Market Update (SMU) conducted our early February flat rolled steel market trends analysis which is just a long way of saying our survey. Our analysis began on Monday and ended on Thursday afternoon. We covered a large number of topics with manufacturing companies, service centers, steel trading companies, steel mills and suppliers […]
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 […]
December data for Construction Put in Place (CPIP) was released by the Department of Commerce on Wednesday February 1st 2017. We reported last month that $305 billion infrastructure to the bill that Congress passed in December 2015 might be beginning to kick in and this perception was strengthened in the December data. At SMU we […]
It is Super Bowl Sunday so I am going to keep this as short as possible. Everyone needs to remember that I lived in Atlanta for 34 years, having just moved permanently to Florida a little more than a year ago. Let’s hope for a good game and great commercials… Go Falcons! As you know […]
Steel Market Update (SMU) has been struggling to get a clear view of the current market situation as we attempt to identify which direction we see flat rolled steel prices going from here. We have been receiving mixed messages over the past two weeks and we have been advising our readers to remain vigilant and […]
Buyers and sellers of flat rolled steel are feeling good about the industry based on the results of the just completed flat rolled steel market trends analysis released by Steel Market Update (SMU). The SMU Steel Buyers Sentiment Index set another record high beating the high mark achieved just two weeks ago (an explanation of […]
US Steel said it is prepared to provide steel for the pipeline projects recently approved by the Trump administration. “The American manufacturing base on steel is fully prepared to supply what is needed for the pipelines and for the general infrastructure projects that are certainly going to come,” US Steel CEO Mario told CNBC in […]
US Steel CEO Mario Longhi has been in the limelight recently due to his meeting with President Donald Trump at the White House. During US Steel’s earnings call, he was asked to shed light on some of the trade and manufacturing issues that were discussed. Longhi was asked what kind of insight the President is […]
The ISM Report on Business indicates expansion of economic activity in the U.S. manufacturing sector and a 92nd month of growth for the overall economy. The Institute for Supply Management report showed the January manufacturing PMI at 56 percent, an increase of 1.5 percentage points from December. Almost all of the components of the PMI […]
The JP Morgan Global PMI remained steady at 52.7 in January. Global manufacturing production increased for the fifty-first consecutive month according to data collected IHS Markit. Faster expansion was noted in the US, Eurozone and UK. Manufacturing expansion slowed in Japan in January and contraction was registered in South Korea, Brazil, Turkey and Greece. At […]
The Precision Metalforming Association reports members are expecting strong business conditions through the first quarter of 2017. The Business Conditions Report for January sampled 115 metalforming companies in the U.S. and Canada. The report showed 48 percent of participants expect business activity to improve in the next three months, compared to 43 percent in December’s […]
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 […]
The Chicago Business Barometer lost 3.6 points in January, registering 50.3 from a revised 53.9 in December. The Barometer was at its lowest level since May 2016, after a strong fourth quarter averaging 54.3, said MNI Indicators. New orders fell by 7.8 points dipping into contraction and dragging down the composite index. Production fell 2.3 […]
Please see the end of this report for an explanation of data sources. The Broad Index value of the US $ is reported several days in arrears by the Federal Reserve, the latest value published was dated January 20th (Figure 1). The dollar had a recent peak of 128.9627 on January 3rd which was the […]
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 […]
Two of America’s steel industry leaders are among a team of 28 business leaders assembled by President Trump to provide ideas on how to promote job growth in the manufacturing sector. US Steel president and CEO Mario Longhi, and John Ferriola, president and CEO of Nucor will be among those consulted by the President for […]
Durable goods orders had an unexpected drop in December, falling 0.4 percent from November. Economists at Wall Street Journal had anticipated a 2.3 percent increase in overall orders. Defense related goods drove most of the decline with a 64 percent decrease in orders for defense aircraft. Orders minus transportation increased 0.5 percent. Core goods, nondefense […]
Please be advised that I will be traveling to Tampa, Florida and will be at the Port of Tampa Steel Conference on Monday and Tuesday of this week. I will return to my office on Wednesday. For those of you who have not been to a steel conference, the Port of Tampa is a good […]
Manufacturers in the Fifth and Tenth Districts were optimistic about future manufacturing growth during the next six months. The Tenth District, under the Federal Reserve Bank of Kansas City, was especially optimistic on future growth. Richmond Fed The Federal Reserve Bank of Richmond reported manufacturing activity strengthened in the Fifth District during January. The composite […]
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 […]
Allegheny Technologies Inc. reported fourth quarter sales of $796 million and net income of $10 million. Flat rolled sales increased 13.2 percent year-over-year in Q4 2016 to $18.9 million, but the segment posted an operating loss of $0.8 million, improved from a loss of $120.1 million in Q4 2015. Quarter results were impacted by “weak market […]
SMU sources advised that US Steel Great Lakes had a furnace issue due to a leaking water line and a weld gas explosion. They were down for about a shift and are now back up and working for the time being. I wrote the Price Momentum article this evening to make sure that there was […]
Manufacturing activity continued to improve in the Philadelphia area during January and is expected to continue to do so for the next six months, according to the latest Manufacturing Business Outlook Survey by the Federal Reserve Bank of Philadelphia. The index for current manufacturing index rose from 19.7 in December to 23.6 in January for […]