Construction spending inched up 0.1 percent in December and picked up a modest 4.8 percent for all of 2013. Apartments and single-family homes offset declines in private nonresidential and public projects, according to US Census Bureau data analyzed by the Associated General Contractors of America (AGC). The AGC reported: “Construction put in place totaled $930 […]
The JPMorgan Global Manufacturing PMI registered 52.9 in January, almost unchanged from December’s high of 53.0 and signaling the fourteenth straight month of expansion. Production and new orders continued upward which helped increase employment levels. New export business slowed in January. Sharp discrepancies in growth were seen between developed and emerging markets. The UK, Japan […]
Durable goods orders declined in December as did the three month moving average. Not a cause for concern at this point because even the 3MA of this indicator tends to be quite erratic (Figure 1). The year over year growth rate of the 3MMA declined from 7.9 percent in November to 5.1 percent in December. […]
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 by Steel Market Update at present is thirty six. The present situation of twelve of the indicators based on historical standards was positive on January 28th […]
Late last week Steel Market Update concluded our mid-January market survey of the flat rolled steel market in Canada and the United States. The survey is conducted by invitation only and is sent to slightly less than 600 companies. The breakout of the respondents was: 48 percent manufacturing companies, 42 percent service centers/wholesalers, 5 percent […]
Nucor reported fourth quarter earnings of $170.5 million, compared to 147.6 million in Q3 and $136.9 million in fourth quarter 2012. Full year consolidated net earnings for 2013 were $488.0 million, compared with net earnings of $504.6 million for 2012. Earnings for the year were impacted by charges associated with the dome collapse at Nucor […]
We are beginning to capture signs of a fracture in the resolve of the service centers to push higher steel prices into their end user accounts. With flat rolled steel spot prices trading within a fairly narrow and stable range for the past 10 weeks according to our SMU price indices, it should not come […]
The projected forecast for Mobile, Alabama during the first week of February is for temperatures to be in the low to mid 60’s. A far cry from the temperatures which have been well below freezing in the Upper Midwest and at, or below, in the rest of the states north of the Mason-Dixon Line. Steel […]
Steel Market Update (SMU) released ourr latest Steel Buyers Sentiment Index which measures how buyers and sellers of flat rolled steel feel about their company’s ability to be successful in the current business environment. The mid-January Sentiment Index was measured over the period January 20 through February 23, 2014 and is being reported at +44. […]
HSBC Holdings and Markit released the preliminary (flash) Purchasing Managers’ Index this morning. The reading of 49.6 disappointed the financial markets as any reading below 50.0 indicates the Chinese manufacturing economy is contracting. Meanwhile, world benchmark iron ore spot prices have been falling over the past few weeks with The Steel Index (TSI) reporting 62% […]
HSBC Holdings and Markit released the preliminary (flash) Purchasing Managers’ Index this morning. The reading of 49.6 disappointed the financial markets as any reading below 50.0 indicates the Chinese manufacturing economy is contracting. Meanwhile, world benchmark iron ore spot prices have been falling over the past few weeks with The Steel Index (TSI) reporting 62% […]
Light vehicle production in NAFTA in 2013 totaled, 16,141,347 units, the best year since 2002 and an increase of 6.0 percent on 2012 (Source Wards Automotive.). In 3 months through December production was up by 6.9 percent year over year. Light trucks which include crossovers are surging faster than cars, the year over year growth […]
Contractors are expecting a better year in 2014 said the Associated General Contractors of America in their latest report, Optimism Returns: The 2014 Construction Hiring and Business Outlook. In a survey of 800 AGCA members, firms reported stronger optimism for construction demand and employment than they have since the downturn in 2008. More than 40 […]
The Chinese economy grew by 7.7 percent year-over-year (y/y) in the fourth quarter and by 7.7 percent in 2013 as a whole (Figure 1). The GDP growth rate has been in the range 7.4 percent to 7.9 percent for the last seven quarters. The Chinese economy is performing in line with the government’s goals at […]
Industrial production and manufacturing capacity utilization, December 2013. Both these data points are reported in the Federal Reserve G17 data base. The IP index was reported as 101.76 for December; this was the first month for the index to exceed the pre-recession peak of September 2007. The three month moving average (3MMA) at 101.21 was […]
Many, perhaps most, steel buyers negotiate a new price for flat rolled steel each time they place a purchase order. Other buyers will negotiate a price for all their steel needs over a fixed period (as much as a year) and then, when they require steel, release purchase orders at this fixed price. However, there’s […]
Each month the Bureau of Labor Statistics puts out its series of producer price indexes (PPI), for thousands of goods and materials. The latest release on Wednesday reported December 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 […]
Metalforming companies are expecting business conditions to accelerate in the next three months, according to the January 2014 Precision Metalforming Association (PMA) Business Conditions Report. In January, 46 percent of participants said they expected economic activity to improve, up from 41 percent in December, while 47 percent said they expect conditions will be unchanged. A leap […]
The introduction of an aluminum F-150 pickup at the Detroit auto show has the steel industry looking hard at its advanced high strength steels (AHSS) and figuring out how to insure that AHSS is the preferred material of choice for the auto industry. SMU spoke with Ronald P. Krupitzer, vice president of automotive applications for […]
Steel Market Update (SMU) has adjusted our Price Momentum Indicator from Higher to Neutral. This means we see steel market pricing at this moment as either in transition or moving sideways over the next 30 days. With ferrous scrap prices now weakening, lead times shortening and all of the available capacity back in the market […]
By the way – I think Sandy Williams did an excellent job of following the Ford F-150 aluminum story and providing some balance and depth to her article. We are going to put the article on our Blog and make it available for you to send out on social media to your contacts and friends. […]
Last week Steel Market Update conducted our first flat rolled steel market analysis (survey). Invitations were sent by email to approximately 600 companies. We received responses from 120 companies out of which 45 percent were service centers, 42 percent were manufacturing companies, 5 percent trading companies, 5 percent steel mills, 2 percent toll processors and […]
Net job creation in December was a disappointing 74,000, far below expectations. However November was revised up by 38,000 and the three month moving average of monthly job gains was hardly dented (Figure 1). This monthly result is at odds with most other economic indicators and was probably adversely affected by short term influences such […]
Essentially all of the domestic steel mills have finished maintenance on their blast furnaces. U.S. Steel is bringing back online their Fairfield furnace, Berkeley has completed the expansion of its hot strip mill and other domestic steel mill maintenance projects from 4th Quarter 2013 have been completed. Supply is available and now it is time […]
The following article is a continuation of our Steel Buyers Basics series. Today’s article was written by Mario Briccetti. There is a hidden risk in the cost of sheet steel that many buyers do not consider. Most cold rolled and coated steel sheet applications require coverage of an area at a minimum steel thickness – […]
Buyers and sellers of flat rolled steel entered the New Year in very high spirits. Our Steel Market Update (SMU) Steel Buyers Sentiment Index was measured at +42 which is the most optimistic level recorded since March 1, 2012 (+45). The rolling three month moving average (3MMA) came in at +38.33 which is a one […]
Cargill will build its eighth U.S. steel processing center in response to increased demand for carbon steel sheet & coil products used in the manufacturing and shale oil and gas industry in Northern Colorado. The hot-rolled steel processing facility, located 60 miles north of Denver in Windsor, will begin construction in early 2014 and provide […]
Schnitzer Steel Industries, a metals recycling business, reported an adjusted net loss of $5 million during the first quarter 2014, ending Nov. 30, 2013, compared to adjusted net losses of $14 million the previous quarter and $1 million a year ago. Losses reflected soft ferrous scrap prices early in the quarter and restructuring costs. “All […]
Steel buyers are expecting general economic activity to remain unchanged to slightly better in the next six months. In the December ISM Steel Buyers Survey 63.6 percent expect conditions to remain the same while 36.4 percent of those surveyed expect improvement. This compares to 66.7 percent and 26.7 percent, respectively, last month. Sales and production […]
ASD Press Release: CHICAGO — The Association of Steel Distributors (ASD) announces that James (Jim) Barnett, president of Grand Steel Products in Wixom, Mich., is the recipient of the industry’s highest honor, the Steel Man of the Year Award. This annual ASD award honors one individual who embodies leadership, dedication, service and excellence in the […]