When markets start to move each steel index will pick up the information in different ways. It is important to understand each index methodology, how often the markets are canvassed and how deep the reporting resources are. CRU indices are based on actual verifiable transactions from both steel mills and buyers. Platts takes into consideration […]
Even as other companies were issuing lower guidance due to weather and its impact on negatively impacting their earnings during the first three months 2014, Worthington Industries reported their fiscal year 2014 3rd Quarter results which ended on February 28, 2014 as being the best in the company’s history. The company reported earnings of $40.6 […]
Durable goods orders increased in February continuing the healthy trend that has existed since the recession (Figure 1). However the three month moving average (3MMA) declined as November’s above trend result was dropped from the calculation (Figure 2). The year over year growth rate of the 3MMA has progressively declined from 7.9 percent in November […]
The Bureau of Economic Analysis (BEA) released their third estimate of real GDP today, (March 27th) for Q4 2013. The third is normally the final estimate though there sometimes are revisions further back in time. GDP rose in the fourth quarter by 2.6 percent at a seasonally adjusted annual rate, this was an upward revision […]
Usually the news about price increase announcements is regarding the ability of the steel mills to collect all, or a portion, of the announced flat rolled price increases. With the latest announcements made last week led by ArcelorMittal on Monday and then followed by the rest of the industry as the week progressed, the question […]
Steel industry leaders met with members of the Congressional Steel Caucus this morning (March 25, 2014) to discuss the need for policy reform on trade, energy, environment and infrastructure in order to keep US industries competitive. SMU has reprinted the short version of the American Iron and Steel Institute press release below. The full testimonies […]
One of the keys watched by Steel Market Update is service center spot pricing into their customers – especially the manufacturing segment of the industry. We have found if service centers are lowering their spot prices on hot rolled, cold rolled and coated steels, especially after a price increase announcement, it is more difficult for […]
The possibility for steel prices to have, at the very least, bottomed and improving weather conditions across the United States and Canada have sparked an improvement in our Steel Market Update (SMU) Steel Buyers Sentiment Index. The index, which has been monitoring buyers and sellers of flat rolled steel since 2008, was reported earlier today […]
Both these data points are reported in the Federal Reserve G17 data base. The Industrial Production (IP) index was reported as 101.63 for February, this was the fourth consecutive month for the index to exceed the pre-recession peak of September 2007. The three month moving average, (3MMA) of the index expanded by 0.62 month on […]
HARDI steel conference call members were of the opinion it is too early to tell if the just announced price increases will stick. Steel Market Update (SMU) participated in the monthly HARDI galvanized steel conference call this morning. The wholesalers, service centers and manufacturing companies on the call felt the price announcements were “good” for […]
The March Empire State Manufacturing Survey rose slightly to 5.61 from 4.48 in February, below economist expectations of 6.0 to 7.0. New orders increased to 3.13 after contracting to -0.21 last month. Shipments rose to 3.97, up from 2.13 in February. Inventories increased during the month evidenced by an index reading of 7.06 compared to […]
Canadian manufacturing sales took its largest jump since February 2013, rising 1.5 percent to $50.4 billion. (Note all dollar amounts are Canadian: 1 Canadian dollar = $.90 US dollar.) Sales were up in 45 percent of the manufacturing sectors in January with primary metal sales leading the gains. Sales for primary metals jumped 8 percent […]
Each month the Bureau of Labor Statistics (BLS) puts out its series of producer price indexes for thousands of goods and materials. The latest release on Friday reported February results. These statistics are a useful way to evaluate any changes in the competitive position of steel against competing materials. See below for the official description […]
After a shake in confidence last month, metalforming companies are once again optimistic that business conditions will improve in the next three months, albeit only slightly. Metal companies surveyed in the March 2014 Precision Metalforming Association (PMA) Business Conditions Report, however, are anticipating new orders to fall slightly during that same period. Current average daily […]
I once asked a friend, who works for a large steel mill, how many different grades of steel they produced – he estimated the number at 1,000! On top of that, each grade can come in any gauge, any width and many may be coated. Mills make an almost unlimited number of different individual types […]
Steel Market Update has been aware for awhile that at least one, and probably more than one, domestic steel mill has been trying to convince the rest of the industry to support dumping suits on coated products. This would most likely include galvanized and Galvalume steels. The countries being mentioned include China, India, Taiwan and […]
The rumor mill has been buzzing for a number of months about the potential for flat rolled steel dumping suits on galvanized and Galvalume steels. The focus of attention seems to be on China, India, Taiwan and South Korea as being the major offenders. However, Steel Market Update, which has a long background in coated […]
One of our readers sent me an article produced by another steel-related publication about the state of Kentucky offering financial incentives to AK Steel. The Kentucky Industrial Revitalization Act is being extended with one of the hopes that AK Steel will use the incentives to help reline the Ashland blast furnace. The question asked by […]
Key Banc recently published its report entitled “The Industrial Cycle: Monthly Update on Key End Markets.” The following is a summary of findings from report that SMU readers may find interesting. Key Banc says the outlook for industrial activity remains positive for 2014. After a dismal performance in January affected by weather conditions, activity rebounded […]
For our Premium Level members – we should have a special Premium Supplemental newsletter for you by Wednesday afternoon. In it will be an article on currency values and changes and their impact on the market as well as our imports by product, port and country. We will be including slabs in our import by […]
Steel Market Update saw the percentage of manufacturing companies reporting steel service center flat rolled steel spot prices as declining increase from 20 percent in early February to 54 percent at the beginning of March. This past week Steel Market Update (SMU) conducted our early March analysis of the flat rolled steel markets. This is […]
The Bureau of Labor Statistics (BLS) report on non-farm employment beat the consensus expectation of a 150,000 gain in February by showing a net gain of 175,000 jobs. The three month moving average (3MMA) of the net gain has slowed for three consecutive months but the growth trajectory is still on track for a full […]
In an earlier article I talked about price risk in steel and several strategies to hedge that risk. Another, perhaps more important, steel buyer risk is continuity of supply. Steel making is a difficult and dangerous activity, and a global one. Unfortunately suppliers often make (and don’t catch) unusable product. Also, every year there seems […]
On Monday of this week, Steel Market Update (SMU) began our early March flat rolled steel market analysis. We sent invitations to just under 600 companies associated with the industry. Of the companies responding 44 percent were manufacturing companies (end users), 40 percent were steel service centers/wholesalers (distributors), trading companies represented 6 percent of the […]
Buyers and sellers of flat rolled steel continue to be optimistic regarding business prospects both in the current market environment as well as looking out 3 to 6 months into the future. Even so, our index was 2 points lower than the +39 measured during the middle of February and at +37 is the lowest […]
On Monday of this week Steel Market Update sent invitations to just under 600 companies to participate in our flat rolled steel market survey. The respondents to our survey consist of manufacturing companies (44 percent of the respondents), service centers/wholesalers (41 percent) and trading companies (6 percent), with the balance being steel mills, toll processors […]
Steel buyers report a softening in new orders in the latest Institute for Supply Management (ISM) Steel Buyer’s Survey. Those who expect orders to increase over the next three months dropped to 27.3 from 42.9 percent in January, 18 percent expect orders to decline, and 54.5 percent expect levels to remain the same. Current incoming […]
Manufacturing activity expanded more than expected in February after a weather related drop last month. The Institute for Supply Management (ISM) Manufacturing PMI registered 53.2 percent, up from 51.3 percent in January. A reading above 50 indicates the manufacturing economy is growing, a reading below 50 indicates contraction. The new orders index rose 3.3 points […]
Global manufacturing activity showed steady improvement during February. The JP Morgan Global Manufacturing PMI rose to 53.3 in February, inching up from 53.0 in January. Manufacturing output remained steady in February while new orders grew at a faster rate. Employment levels were higher in much of the world with staffing cuts reported in China, Russia and […]
Nucor Chairman, President and CEO John Ferriola and Louisiana Governor Bobby Jindal dedicated the completed Nucor Louisiana facility in St. James Parish on Monday. The $750 million DRI plant began production in December 2013 and is Phase 1 of a potential five phase $3.4 billion project. Construction of the plant began in March 2011 at a ground […]