June data for Construction Put in Place (CPIP) was released by the Department of Commerce on Monday August 1st. In June total construction slowed for the third consecutive month on a 3MMA (three month moving average) basis. All four sectors had negative momentum. These are non-residential buildings, residential buildings, infra-structure and other, which is a […]
Manufacturing activity expanded in July for the fifth consecutive month, while the overall economy grew for the 85th consecutive month, according to supply executives surveyed in the July ISM Report on Business. The PMI registered 52.6 in July, down 0.6 percentage points from June and 2.2 percent above the 12 month average of 50.4. New […]
Global manufacturing began the second half of 2016 on a positive note, according to the JPMorgan Global Manufacturing PMI, compiled by Markit. The rate of growth for manufacturing rose at a faster rate between June and July on all of the indices that make up the composite PMI. At 51.0 in July, the PMI was […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. It is important to understand 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. The total […]
Durable goods orders fell sharply in June to $9.3 billion or a seasonally adjusted 4.0 percent. Orders were down for the second month with transportation equipment leading the decrease. May’s estimate was revised downward to 2.8 percent. Demand was weaker in June for civilian aircraft and defense, which fell 58.8 percent, and 20.7 percent, respectively. […]
China is fighting back on trade restrictions imposed on export of its steel products. On July 22, Baosteel requested the U.S. International Trade Commission to uphold the suspension of the 337 investigation brought by US Steel to block all Chinese carbon and allow steel products from the US market. Baosteel accused US Steel of trying […]
AK Steel reported net income of $17.3 million for second quarter 2016 compared to a net loss of $64.0 million a year ago. Net sales were 1.49 billion a decrease from $1.69 billion in in Q2 2015 as a result of lower automotive contract pricing as well as a decrease in shipments. Shipments totaled 1,555,500 […]
What we like to hear for our member companies: One of the largest service centers in the U.S. told us earlier this week after registering for our Steel Summit Conference, “Our guys tell me your conference is very good, I’m looking forward to attending. Also, several mills tell me that your conference is turning into […]
Since 2008, Steel Market Update has been measuring how steel buyers and sellers feel about their company’s ability to be successful in the existing market environment (which we call “Current Sentiment”). We also probe the same group of manufacturers, steel service centers, steel mills, trading companies and toll processors on how they feel about their […]
Metalforming companies are expecting somewhat weaker business conditions during the next three months. The July survey by the Precision Metalforming Association showed only 22 percent of participants are expecting an improvement in conditions (down from 27 percent in June); those expecting no change remained relatively steady in July at 56 percent compared to 55 percent […]
The spread between hot rolled and cold rolled/coated steels continues to be at dangerous (my opinion) levels. The U.S. steel industry has been systematically “building a dam” (Lewis Leibowitz words) around this country in order to prevent what they call unfairly subsidized and unfairly traded plate, hot rolled, cold rolled, galvanized and Galvalume steels. The […]
China’s State Council announced today that it will relax regulations to allow foreign companies to set up wholly-owned steel manufacturing units in four pilot free trade zones. According to a posting on the Central government website, foreign firms will no longer be subject to certain qualification requirements and stake control restrictions when investing in the […]
What impact will Brexit have on the U.S. steel industry? Not much, says Metal Miner authorities Lisa Reisman, CEO & Executive Editor and Stuart Burns, Editor at Large, during a webinar presented July 13. The exit of the UK from the European Union is not likely to impact ferrous prices said Reisman. Instead steel prices […]
Both these data points are reported in the Federal Reserve G17 data base. The index had an all-time high of 106.70 in November 2014 and has trended down ever since. The good news is that the three month moving average (3MMA) had positive growth month/month in June for the first time since September last year. […]
New York manufacturers reported flat general business conditions in the July Empire State Manufacturing Survey. The headline index fell from +6.01 points to +0.55, following the seesaw pattern seen over the past few months. The indexes for shipments and new orders both fell significantly to +0.70 and -1.82, respectively. In June they were +9.32 and […]
End users who use specialty steels that are not readily available in the United States have to be concerned about both supply and price due to the successful prosecution of the antidumping and countervailing duty trade cases by the domestic steel industry. Earlier this week Steel Market Update received a “letter to the editor” which […]
Steel buyers believe that we have reached the top of the flat rolled steel price cycle and that all of the risk is downside from here. Even so, most of the buyers with whom SMU spoke over the past couple of days are not believers in the idea that steel prices will collapse in the […]
PPG industries announced that it has completed its acquisition of MetoKote Corporation and its affiliates. MetoKote is a U.S.-based coatings services business with 2015 global sales of approximately $200 million. The transaction closed on July 1 for an undisclosed sum. MetoKote is headquartered in Lima, Ohio, and has more than 1,500 employees. MetoKote applies coatings […]
The statement of Erica L. Groshe Commissioner Bureau of Labor Statistics (BLS) released on Friday morning reads as though the increase in net non-farm employment of 287,000 in June was a fact as was the downwardly revised May number of 11,000. We at SMU don’t believe the May result has any credibility which is particularly […]
Flat rolled steel industry participants continue to be optimistic about the markets, according to the recent flat rolled market trends analysis conducted by Steel Market Update. However, we are seeing a slightly less optimistic trend for this time of year compared to what we were reporting at the same point in time in 2014 and […]
Buyers and sellers of flat rolled steel are not believers that the next move will be for higher flat rolled steel prices over the next couple of months. At least that is what the respondents to our most recent flat rolled steel questionnaire believe. Based on the analysis of last week’s survey, 60 percent of […]
Since 2008, Steel Market Update has been measuring how steel buyers and sellers feel about their company’s ability to be successful in the existing market environment (which we call “Current Sentiment”). We also probe the same group of manufacturers, steel service centers, steel mills, trading companies and toll processors on how they feel about their […]
On Tuesday of this week Steel Market Update began canvassing the flat rolled steel industry through the use of our online survey which we use twice per month. We invited slightly more than 550 people to participate as we try to analyze market trends. One of the key areas of inquiry is that of lead […]
A second key subject addressed in our flat rolled steel survey regards negotiations between the domestic steel mills and their customers. We ask manufacturing companies and steel service centers to comment on whether their domestic mill suppliers are willing to negotiate spot steel pricing on hot rolled, cold rolled, galvanized and Galvalume steels. The less […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Dave 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. […]
Michigan Governor Rick Snyder has asked the state’s members of Congress to begin the process of obtaining funding for a renovation of the Soo Locks. “The Soo Locks are crucial shipping link for some our nation’s biggest industries,” said Snyder. “The increase in outages from maintenance, redundancy and capacity issues poses significant economic consequences for […]
The PMI for the Manufacturing ISM Report on Business rose 1.9 percentage points to 53.2 in June, expanding for the fourth consecutive month. New orders gained 1.3 points and production 2.1 percentage points for readings of 57.0 and 54.7, respectively. The employment index grew 1.2 points to 50.4 percent. Inventories of raw materials registered 48.5, […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. May data was released on Friday July 1st and included revisions back to January 2014. Construction Put in Place is based on spending work as it occurs, estimated for a given […]
The Associated General Contractors of America report that construction spending fell 0.8 percent in May to $1.143 trillion. Most of the decline was due to lower spending in private nonresidential construction. The press release from AGC follows: Construction spending dipped in May but posted strong, broad-based gains for the first five months of 2016 compared […]
Global manufacturing was subdued in June according to a reading of 50.4 on the JPMorgan Global Manufacturing PMI. The PMI gained just 0.4 points with most of the solid improvement in the European Union. It should be noted that the data for the report was collated before the vote by the UK to exit the […]