General Electric is selling its GE Appliance business to AB Electrolux of Sweden for $3.3 billion. Electrolux, the parent company of US brands Electrolux and Frigadaire, expects the sale to generate annual cost synergies of approximately $300 million and enhance its position as a global player in home appliances. “The acquisition, which is our largest […]
After setting a record optimistic high of +68 at the beginning of August 2014, SMU Steel Buyers Sentiment Index has now declined for the second time and stands at +53. The most recent measurement is still well within the optimistic parameters for our index. Even so, we are concerned with the 15 point dip that […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data on the first working day covering activity two months earlier. July data was released on September 1st. Construction Put in Place is based on spending work as it occurs, estimated for a given month from a sample of projects. In effect 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 at present is thirty five, the Chicago Fed Mid-West Manufacturing Index is still on hold to enable the staff to complete a major re-vamp of the […]
Flat rolled steel prices remained holiday bound and buyers are waiting to see if there is any movement based on the latest lead times and needs that the domestic mills might have. With the combination of the Labor Day holiday on Monday of this week, coupled with inventories starting to rise at service centers (according […]
The August ISM Purchasing Manufacturing Index increased 1.9 points to a reading of 59.0, its highest reading since March 2011. Survey respondents report business is strong but expressed concern over geopolitical issues. New orders and production each increased 3.3 percent to 66.7 and 64.5, respectively. The new orders index was the highest seen since April […]
The following is a press release by the Associated General Contractors of America: ACG, Sept 2, 2014 — Growing demand for construction services comes as new study finds one-in-four construction firms turning down work because of growing labor shortages for the industry. All major categories of construction spending increased in July and total construction reached […]
Global manufacturing conditions were relatively unchanged in August, increasing to 52.6 on the JP Morgan Global Manufacturing PMI from 52.4 in July. The US continued to show strong domestic and foreign demand. The Eurozone and the UK weakened in August with the Eurozone registering its lowest PMI since July 2013. Japan rebounded while manufacturing conditions […]
Ford has begun transforming its Dearborn plant for production of the all new aluminum-bodied F-150 pickup. The last steel-bodied F-150 left the line on August 23rd and the plant was closed to start replacing the old machinery with new. The conversion will cost Ford $359 million and idle production until September 22. Ford employees, approximately […]
Ford has begun transforming its Dearborn plant for production of the all new aluminum-bodied F-150 pickup. The last steel-bodied F-150 left the line on August 23rd and the plant was closed to start replacing the old machinery with new. The conversion will cost Ford $359 million and idle production until September 22. Ford employees, approximately […]
The following is an abridged version of the Chicago Federal Reserve statement followed by our own graphical analysis. The Chicago Federal Reserve National Activity Index (CFNAI) is an excellent reality check for much of the economic analysis that we routinely provide in the Steel Market Update. An explanation of the Index is provided at the […]
Manufacturing activity continued to improve in the Fifth District in August, according to the survey of manufacturing activity conducted by the Federal Reserve Bank of Richmond. The composite index rose to 12 for its highest reading since March 2011. Shipments gained 7 points advancing to 10 while new orders gained 8 points registering 13. Employment […]
Durable goods orders increased 22.6 percent in July, or $55.3 billion to $300.2 billion, according to data released by the U.S. Census Bureau. The increase was the highest level seen since the series was first published in 1992. Excluding defense, new orders increased 24.9 percent. Transportation equipment drove the increase with a gain of 74.2 […]
The Federal Reserve Bank of Dallas reported that Texas manufacturing expanded at a slower pace in August. The production index in the Texas Manufacturing Outlook Survey registered at 6.8 in August, falling from 19.1 in July. The new orders index fell 11 points to 2.2. The shipment index registered a 16.4 point drop to 6.4, […]
Australian company BlueScope Steel announced FY 2014 underlying EBIT of AUD 104.6 million (USD 97.2 million) for its 50 percent ownership of U.S. based North Star BlueScope Steel. The increased profit, up 57 percent from FY 2013 AUD 66.7 million, was due primarily to stronger spread from higher hot rolled coil prices that were partially […]
The US International Trade Commission announced Friday that it will impose anti-dumping duties on imports from six of the nine countries accused by U.S. steel producers of dumping OCTG in the US market. The decision includes Korea, who was previously excluded in the preliminary decision, India, Taiwan, Turkey, Ukraine and Vietnam. The Philippines and Thailand […]
When I think about selling steel what I am actually doing is thinking about the sales process. The process is the various steps needed to identify, qualify, quantify, engage and close business with any prospective account. Successful salespeople, no matter what the industry or product, understand the various steps that they follow as they pursue […]
SMU Steel Buyers Sentiment, which measures how buyers and sellers of flat rolled steel feel about their company’s ability to be successful in the current market environment, continues at very optimistic levels. However, our Index has seen some erosion of enthusiasm as our Index has dropped 9 points since we recorded our record high of […]
Both manufacturing companies and service centers reported similar results regarding the status of spot pricing out of the distributors into their end user customers. Manufacturers reported distributors spot pricing as being either stable (no change) which gathered 73 percent of the responses or rising which attracted 23 percent of those manufacturing companies who responded to […]
TransCanada’s Keystone XL Pipeline has been on hold since 2008 waiting for U.S. presidential approval of the permit to allow the pipeline to cross the U.S./Canada border. President Obama has said he would approve the pipeline only if it did “not significantly exacerbate the climate problem.” Opponents of the pipeline are concerned the pipeline will […]
American Iron and Steel Insitute (AISI) President and CEO Thomas J. Gibson spoke about currency manipulation at a press conference at the City Club in Cleveland, Ohio on Thursday. American steel producers are “under attack from surging imports benefitting from unfair trade practices—like currency manipulation,” said Gibson. Gibson was joined by former Missouri Governor Matt […]
Each month the Bureau of Labor Statistics (BLS) puts out its series of Producer Price Indexes (PPI) for thousands of goods and materials. The latest release on Friday reported July results. These statistics are a useful way to evaluate any changes in the competitive position of steel against competing materials and rail vs truck transportation. […]
Current manufacturing conditions in New York slipped in August according to the latest Empire State Manufacturing Index. The headline index for general business conditions dropped 11 points to register 14.7 after reaching a four year high of 25.6 in July. The survey still indicates manufacturing growth but not as widespread as previously, said the Federal […]
Pricing in the HRC futures market has continued slightly upward this week stemming from positive economic data and a bullish outlook within the steel industry. September prices have been trading around $655-667, October prices have been trading between $640-657, and Q4 has traded between $645-651, all about $5-10 improvements week on week. Further down the […]
Metalforming companies surveyed in the August Precision Metalforming Association (PMA) Business Conditions Report are expecting growth in business activity and new orders for the next three months. The August 13 press release is as follows: CLEVELAND, OH—August 13, 2014—According to the August 2014 Precision Metalforming Association (PMA) Business Conditions Report, metalforming companies expect a spike […]
I got a note from a manufacturing company regarding the size of the Nucor move on galvanized coating extras. The comment that was made was, “Zinc average for 2014 is up 8.6% since average of 2012. Nucor increase is way too high.” This steel buyer went on to comment, “Aluminum average in same time period […]
We spent the last two days canvassing as many buyers and mill sellers of steel as we possibly could. Our goal was to gather enough information so we could speak to the development of this market and the direction prices should go from here. What we found is a market that is perhaps stronger than […]
Truck freight volume rose 7.5 percent in the last week of July according to DAT Trends. Load to truck ratios increased across all three truck categories while the average spot market rates remained stable. Flat bed truck demand increased by 6 percent while capacity declined 7.1 percent. The load to truck ratio for the week […]
Last week, Steel Market Update (SMU) conducted our early August flat rolled steel market survey. We emailed invitations to approximately 600 companies who are actively involved in either buying or selling flat rolled steels. This past week 45 percent of the respondents were from steel service centers, 43 percent were manufacturing companies, 7 percent were […]
As mentioned in a previous article in this newsletter, during our flat rolled steel market survey process we break out the different market segments into questionnaires that are dedicated to their industry. This allows us to compare market trends to see if they match. A good example is manufacturing demand. We asked manufacturing companies if […]