Last week, the Senate passed the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA). The bill contains important provisions of the Enforcing Orders and Reducing Customs Evasion (ENFORCE) Act that have been promoted by the U.S. steel and manufacturing industries to combat evasion of antidumping and countervailing duties . Evasion is defined as failing […]
On Sunday Steel Market Update published an article about the Carrier announcement that they would be moving their manufacturing and distribution facilities from Indianapolis, Indiana to Mexico. The announcement got the attention of Donald Trump who mentioned it during the debates on Saturday. Our article and the news also got the attention of a number […]
Business activity continued to decline for New York manufacturers in the latest Empire State Manufacturing Survey. The general business conditions index picked up 3 points registering -16.6, its seventh consecutive month in contraction. The index was weaker than economist estimates of 10.0 to 10.50. Most indexes in the survey remained in contraction in February but […]
Figure 1 shows published data for the growth of Chinese GDP, industrial production and consumer prices through the fourth quarter of 2015. The GDP and industrial production portions of this graph are three month moving averages. The growth of GDP was 6.8 percent in the 4th quarter, and decelerating to its slowest pace since the […]
Carrier, a leading manufacturer of heating, ventilating and air conditioning products, announced on February 10 plans to relocate its Indiana manufacturing operations to Monterrey, Mexico. The move will affect about 1,400 employees and will occur in phases from 2017 through 2019. Chris Nelson, President, HVAC Systems and Services North America, said, “This move is intended […]
I was very disappointed to hear the news that Carrier Corporation has decided to move their manufacturing and distribution operations in Indianapolis, Indiana to Monterrey, Mexico. As I heard the news I thought about the 2016 AHR Expo show (co-sponsored by ASHRAE and the AHRI) that I attended at the end of January. That show […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Assisting Andre with tonight’s article is Jack Marshall also associated with CrunchRisk. Here is how Andre and Jack saw trading […]
The Trade Facilitation and Trade Enforcement Act of 2015 passed by a margin of 75-20 in the Senate this morning. The customs bill has been advocated by the steel industry to strengthen measures to combat unfairly traded and subsidized imports. The bill now moves to the President for anticipated approval and signature. The American Iron […]
This report summarizes total steel supply annually from 2007 through 2015 and year on year changes. It then compares domestic mill shipments and total supply to the market. It quantifies market direction by product and enables a side by side comparison of the degree to which imports have absorbed demand. Sources are the American Iron […]
China’s Ministry of Commerce says it will take will take definitive steps to cut steel production over the next five years by 100 to 150 million tonnes. China’s excess steel capacity has been has been estimated to be around 300 million tonnes. With domestic demand down, steel production has found its way into exports that […]
WASHINGTON, D.C. – The American Iron and Steel Institute (AISI) Board of Directors this week approved the Institute’s 2016 Public Policy Agenda during its meeting in Washington, D.C. The Agenda outlines aggressive pro-manufacturing policy strategies to guide advocacy for the upcoming year and highlights the importance of the steel industry to the U.S. economy and […]
Mill Steel Co., one of the nation’s largest distributors of flat-rolled carbon steel, has acquired certain assets of S&S Steel Services, Inc. (S&S), an Indianapolis/Anderson based supplier of carbon flat-rolled steel service. Terms of the deal, which closed on January 11, 2016, were not disclosed. S&S Steel services manufacturing customers in the Midwest, Mid-South and […]
The Bureau of Labor Statistics (BLS) reported on Friday in their analysis of non-farm employment that 151,000 jobs were added in January, down from 262,000 in December. According to the Wall Street Breakfast, “consensus had called for 190,000 jobs to be added, with the unemployment rate holding steady at 5 percent. Traders in interest rate […]
Each month the Commerce Department issues its construction put in place (CPIP) data, usually on the first working day covering activity two months earlier. December data was released on Monday February 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In […]
Buyers and sellers of flat rolled steel and the companies that use the products are becoming more optimistic about both the short term and medium term success for their companies. Earlier this week we began the process of collecting data regarding various trends involved with the flat rolled steel industry. One of the key proprietary […]
After five years of negotiations, the twelve nations of the Trans Pacific Partnership signed the trade agreement in a ceremony in New Zealand on February 4. The signing was celebrated by the trade ministers but the agreement must still be officially approved by the individual nations. The countries have two years to ratify TPP through […]
Factory orders continued to slide downwards in December, decreasing $13.5 billion or 2.9 percent to $456.5 billion according to data released by the U.S. Census Bureau. Orders have been down four of the last five months and follow a decrease of 0.7 percent in November. Orders for transportation equipment, in particular commercial aircraft, led 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 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
USW members ratified a new three year contract with US Steel on Monday. The ratification passed by a 2-1 margin and will take effect immediately. “I am extremely proud of the solidarity and the commitment to fairness that the Steelworkers showed throughout this process,” said USW International Vice President Tom Conway, who led the union’s […]
The Institute for Supply Management reports that manufacturing activity in January remained in contraction for the fourth consecutive month. The January PMI was 48.2, signaling continued weakness in the manufacturing sector despite overall growth for the economy. The reading was no surprise to economists, coming in just above expectations of 48.1 in a poll by […]
Caterpillar says it plans to close five plants in the U.S. as part of a cost-cutting strategy it began last year. The closures at the mining and construction equipment company will mean layoffs for about 670 employees. In September 2015, Caterpillar said global restructuring actions would cut as many as 18,000 jobs through 2018. “Cost […]
We ended the month of January on a positive note. SMU Price Momentum Indicator continues to point toward higher prices over the next 30 days. Our Sentiment Index broke through an extended downward (growing pessimism) trend and is now heading higher (more optimistic). We believe a portion of the improvement is due to flat rolled […]
Mexican steelmaker, TYASA, plans to build the first Castrip® mill outside of Nucor at its mini-mill in Ixtaczoquitlan. The new facility will have the capability to produce 500,000 tons of thin-gauge, high-strength. The TYASA steel campus in the state of Veracruz, Mexico is designed to be highly efficiently with environmentally-friendly low emissions. The Simetal EAF […]
The following is the Chicago Federal Reserve statement followed by our own graphical analysis. The CFNAI is an excellent reality check for much of the economic analysis that we routinely provide in The Steel Market Update and is also a reasonably good predictor of the direction of steel demand with a six to nine month […]
Yesterday (Monday, January 25th) I visited the AHR Expo (ASHRAE for us old timers) in Orlando. I had not attended one of these shows for probably six years or more. This show used to be a mandatory visit for me when I was a salesman peddling galvanized steel. I remember when the Carrier Corporations, York-Borg […]
In the market analysis questionnaire concluded late last week we asked a number of questions regarding foreign steel and the potential for another uptick in foreign market penetration with the domestic mills raising flat rolled steel prices. We asked if the mill price announcements were opening the door and making foreign steel prices more competitive? […]
China’s economy, the second largest in the world behind the U.S., grew at 6.9 percent in 2015. That was pretty close to its target of 7 percent for the year but also the slowest rate since 1990. Data released by the Chinese government shows fourth quarter growth at 6.8 percent. As recently as 2007 China’s […]
Twice per month, Steel Market Update (SMU) produces our flat rolled steel market analysis. This is done through the use of an online questionnaire which is accessed by an invitation only link. SMU invites just under 600 companies associated with the flat rolled industry with a major focus on manufacturing companies and steel distributors. Our […]
I will be at the AHR Expo on Monday of this week (January 25th). I will only be there for one day due to other conflicts on my schedule. If you are planning on attending and would like to meet with me, the best way to find me is either through text or a phone […]
Buyers and sellers of flat rolled steel are beginning to feel more optimistic about their company’s ability to be successful both in the current market environment as well as three to six months out into the future. Those in the industry seem to be bucking the national pessimistic trend we see on television every night […]