Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. February data was released on Friday April 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
Based on our analysis of the most recent flat rolled steel market trends survey conducted by Steel Market Update this week, we continue to find buyers and sellers of steel being very optimistic. The current market index improved to +70 which is the highest (most optimistic) number ever recorded by our Sentiment Index going back […]
On Friday and Saturday of this past week, Steel Market Update attended the Association of Steel Distributors spring meeting. The following are some of the notes made during the presentations and during discussions with ASD members. Dr. Chris Kuehl of Armada Corporate Intelligence reported that he is “a little optimistic” when it comes to the […]
Reliance Steel & Aluminum Co. has acquired custom sheet metal fabricator Best Manufacturing as of April 1, 2016. The company will operate as wholly-owned subsidiary of Reliance with current management remaining in place. Headquartered in Jones Arkansas, Best Manufacturing provides various precision fabrication services including laser cutting, shearing, CNC punching, CNC forming and rolling, as […]
Reliance Steel & Aluminum Co. has acquired custom sheet metal fabricator Best Manufacturing as of April 1, 2016. The company will operate as wholly-owned subsidiary of Reliance with current management remaining in place. Headquartered in Jones Arkansas, Best Manufacturing provides various precision fabrication services including laser cutting, shearing, CNC punching, CNC forming and rolling, as […]
A new rule from OSHA takes aim at exposure to crystalline silica. Crystalline silica exposure is a serious health hazard affecting approximately 2 million construction workers and 300,000 general industry workers in the U.S., according to estimates by the Occupational Safety and Health Administration. Crystalline silica exposure occurs when construction workers drill, cut, crush, or […]
NLMK USA was the first mill to raise prices, going up $40 per ton. I am hearing comments from both sides on whether the price increases are a good or bad thing. My personal opinion is prices got a little “over-done” last year and dropped too low. A hot rolled number closer to $500 may […]
In what is hoped to be good news for the steel industry, manufacturing as measured by the latest Manufacturing ISM Report on Business expanded for the first time in six months. The PMI, or Purchasing Managers Index, increased 2.3 percentage points to register 51.8 from a reading of 49.5, indicating expansion in manufacturing and the […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 34. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
The Bureau of Labor Statistics (BLS) reported on Friday in their analysis of non-farm employment that 215,000 jobs were added in March, down from 245,000 in February but up from 168,000 in January. January and February were revised down by a total of 1,000. An explanation of the BLS report is included at the end […]
Nucor plans to invest $4.4 million in its Decatur steel manufacturing plant to upgrade the hot metal pickle line. On Monday, the Decatur Industrial Development Board approved an abatement of about $117,545 in non-educational state, city and county taxes over a 10-year period for the project. “We appreciate Nucor’s continued investment in their Decatur operations […]
Tata Steel announced yesterday that it will consider selling off all of its British operations. In a review of its UK operations, the Tata Steel Board concluded that due to deteriorating financial performance in the past twelve months the company will “explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, […]
Members of the Precision Metalforming Association are expecting business conditions to falter a bit during the next three months. The March PMA Business Conditions Report indicated a minor downward trend with 25 percent of participants predicting that economic activity will improve in the next three months (down from 30 percent in February), 59 percent expecting […]
SMU still has a number of open spots available for our next Steel 101: Introduction to Steel Making & Market Fundamentals workshop. The workshop will be held just outside of Toledo, Ohio as part of our program will be a tour of one of the most successful flat rolled mini-mills in the United States, the […]
Flat rolled steel pricing momentum is clearly on the side of the domestic steel mills. You have a number of the integrated mills essentially out of the spot markets and lead times are extended. Even hot rolled lead times are moving out despite weakness in the energy markets. SMU Price Momentum Indicator continues to point […]
Orders for durable goods fell 2.8 percent in February for the third decline in four months. The latest report from the Commerce Department shows transportation equipment leading the decrease, down 1.2 percent last month. Civilian aircraft orders plunged 27.1 percent leading the transportation equipment descent. Inventories continued to decrease as manufacturers struggle to bring inventories […]
Orders for durable goods fell 2.8 percent in February for the third decline in four months. The latest report from the Commerce Department shows transportation equipment leading the decrease, down 1.2 percent last month. Civilian aircraft orders plunged 27.1 percent leading the transportation equipment descent. Inventories continued to decrease as manufacturers struggle to bring inventories […]
AK Steel followed the rest of the steel mills as they announced a $30 per ton price increase just 17 days after announcing their last flat rolled increase. This is the third price increase out of AK Steel so far this year. With the latest round of increases, AK Steel minimum base price levels are: […]
Manufacturing activity expanded in the Fifth District in March, according to the latest survey by the Federal Reserve Bank of Richmond. The composite manufacturing index registered 22, surging from -4 to its highest level since April 2010. Shipments and new orders both jumped this month. The shipments index gained 38 points climbing to a reading […]
The Chicago Fed National Activity Index dropped lower than expected in February for reading of -0.29 percent from +0.41 percent in January. The reading of -0.29 indicates below average growth for the national economy. The four main components of the headline index, production and income; employment, unemployment, and hours; personal consumption and housing; and sales, […]
AK Steel announced Monday that its Board of Directors has approved the following executive promotions, effective immediately: Brian K. Bishop has been named Vice President, Carbon Steel Operations. He will also assume responsibility for Manufacturing Planning. Bishop has served as Director, Carbon Steel Operations since 2015 with overall responsibility for the company’s four carbon steel […]
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 […]
Last week Steel Market Update conducted our second flat rolled steel market trends analysis for the month of March. We commit four days to canvass buyers and sellers of flat rolled steel. Then we put the vast majority (but not all) of the results into a Power Point presentation which we share with our Premium […]
Each month the Bureau of Labor Statistics (BLS) puts out its series of producer price indexes, for thousands of goods and materials. For an explanation of this program see the end of this piece. The latest release last week reported results through February. We run this analysis every three or four months to give readers […]
A quick reminder that our next Steel 101 workshop which will be held just outside of Toledo, Ohio on May 17-18th of this year, is about half full. We already have an excellent group of manufacturing companies, service centers and steel mills attending. On the afternoon of the first day we will tour the North […]
Buyers and sellers of flat rolled steel continue to smile when asked about their company’s ability to be successful both in the current market environment as well as looking out into the future three to six months. The result has taken the SMU Steel Buyers Sentiment Index higher and we are approaching record levels in […]
There is much more to each of the trade cases than the preliminary and final announcements might have you believe. There are inconsistencies in the rulings where attorneys and clients alike scratch their heads to figure out how the U.S. Department of Commerce came up with their preliminary determination deposit rates. The second item not […]
The Philadelphia Fed Manufacturing Business Outlook Survey for March rose sharply to the first positive reading in seven months. The index gained 15.2 points to register 12.4. The index for new orders jumped 21 points to 15.7, returning to growth status, while shipments climbed 20 points. Both unfilled orders and deliver times improved in March, […]
U.S. manufacturers are taking a firm stance against market economy status for China. AISI announced formation of a coalition, Manufacturers for Trade Enforcement, to oppose China’s request for market economy designation at the end of 2016. The coalition says China does not meet the established criteria for a market economy. “Our industries can compete against […]
Flat rolled steel prices continued to move higher over the past week. We are seeing even the weakest product, hot rolled, gaining traction as lead times move out due to the shutdown of US Steel and AK Steel mills (Granite City and Ashland). SMU was advised by both steel mills and steel buyers that orders […]