Steel Market Update (SMU) concluded our early November research on the flat rolled steel market earlier today. One of the areas we queried was if those responding to our questionnaire believe that the domestic mills will raise flat rolled steel prices within the first two weeks of November. With 72 percent of the respondents responding […]
This morning’s report from the Bureau of Economic Analysis surprised on the upside with a growth of 0.7 percent from Q2 and 2.82 percent annualized. GDP in Q3 2013 was 1.65 percent higher than in Q3 2012. This data is the first estimate for the third quarter; revisions have often been substantial recently. The following […]
Global manufacturing picked up in October with production, new orders and international trade volumes all improving. The JP Morgan Global Manufacturing PMI rose to 52.1 in October from 51.8 in September. Expansion was seen all regions of the PMI composite except France, India and Greece which were still in the negative growth range below a […]
Goldman Sachs steel analysts, in a letter to their clients seen by Steel Market Update, upgraded the steel sector as they feel, “…we see the sector heading to a sustainable recovery over the coming years…” They went on to tell their clients, “The supply-demand fundamentals for steel are starting to look more appealing, particularly for […]
ISM steel buyers reported shipping levels are higher than three months ago and about the same or higher compared to 12 months ago. Inventory decreased slightly in October with most (46.2 percent) saying they have tons on hand to cover 0-1 months; 38.5 percent said they have enough for 1-2 months. Tons on hand are […]
CHARLOTTE, N.C., Nov. 5, 2013 /PRNewswire/ — Daniel R. DiMicco has announced that he is retiring from the Board of Directors of Nucor (NYSE: NUE) and from his position as Executive Chairman on December 31, 2013. In appreciation for his distinguished and exemplary service to Nucor as CEO, Chairman and Executive Chairman of the Company, […]
On Thursday, October 31st Steel Market Update adjusted our Price Momentum Indicator from Neutral to Higher. We now believe domestic flat rolled steel prices will rise over the next 30 to 60 days. We have already begun reporting prices as rising over the past three weeks. Prices on benchmark hot rolled coil had been bouncing […]
Review of Manufacturing. October 31st 2013 Each month the Steel Market Update publishes a table of what we believe to be the most significant indicators of the state of the steel market and current results in the long and flat rolled sectors. We will be discussing one section of this table in detail each month, […]
The Empire State Manufacturing Index indicated steady business conditions for New York manufacturers in October. The general business index fell 5 points to 1.5 but remained in growth status. The new orders index rose 5 points while shipping fell 3 points, suggesting modest increases for both indexes for the month. The prices paid index remained […]
The combination of higher spot prices for flat rolled steel and adjustments to contract negotiations has caused some steel buyers to seek alternatives to their normal domestic source of supply. Steel Market Update is beginning to get confirmations from both manufacturing companies and service centers of larger foreign tonnage purchases being made for 1st and […]
The ISM Manufacturing Index surprised economists with a PMI reading of 56.4 in October—the highest level in 2013. Expectations were for the index to fall to 55 this month but instead the PMI increased 0.2 percentage points from September’s reading of 56.2. The indexes for new orders, production, inventories and employment all indicated growth. Of […]
CHICAGO — The Association of Steel Distributors (ASD) recently honored James L. Wainscott, chairman, president and CEO of AK Steel, with the 2013 Captain of Industry award. The award, which was presented at the ASD Annual Fall Conference and is one of the highest honors in the steel industry, is presented to individuals who have […]
Last evening (Thursday, October 31st) Steel Market Update adjusted our Price Momentum Indicator from Neutral to Higher. We now believe domestic flat rolled steel prices will rise over the next 30 to 60 days. We have already begun reporting prices as rising over the past three weeks. Prices on benchmark hot rolled coil had been […]
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 six. The present situation of eleven of the indicators based on historical standards was positive on October 31st and thirteen were negative; […]
Last evening (Thursday, October 31st) Steel Market Update adjusted our Price Momentum Indicator from Neutral to Higher. We now believe domestic flat rolled steel prices will rise over the next 30 to 60 days. We have already begun reporting prices as rising over the past three weeks. Prices on benchmark hot rolled coil had been […]
The Chicago Business Barometer surged 10.2 points to 65.9 in October—it’s highest reading since March 2011 and its biggest monthly gain in 30 years. Double digit growth was seen in New Orders, Production and Order Backlogs. The October government shutdown seemed to have little effect on Chicago area businesses. New orders shot up to their […]
Both these data points are reported in the Federal Reserve G17 data base. The Industrial Production (IP) index was reported as 100.04 for September, up by 5.7 percent from the 99.47 result in August. This was the first month >100 since February 2008. The three month moving average (3MMA) increased by 2.5 percent year over […]
New orders for manufactured durable goods in September came in slightly above trend at $233.411 billion, (Fig 1). This monthly data is very spiky mainly due to erratic orders for civil aircraft. However it is one of the earliest indicators for US manufactured goods and though we are not involved in aviation the overall trend […]
Reliance Steel & Aluminum increased sales 18.9 percent to $2.44 billion in the third quarter 2013 from $2.06 billion in third quarter 2012. Tons sold were up 31.3 percent year-over-year to 1.45 billion tons. Net income was $95.1 million, down 3.1 percent from $98.1 million in the third quarter of 2012 and up 17.4 percent from […]
The combination of higher spot prices and adjustments to contract negotiations has caused some buyers of flat rolled steel to seek alternatives to their normal domestic source of supply. Steel Market Update is beginning to get confirmations from both manufacturing companies and service centers of larger foreign tonnage purchases being made for 1st and early […]
Net job creation in September was 148,000 of which 122,000 was service providing and 22,000 goods producing. Of the service providing 22,000 was in government. Of the goods producing, 2,000 were in manufacturing and 20,000 in construction (Table 1). Expectations had been for a gain of 180,000. Digging into the September numbers reveals weak growth […]
A decline in business activity is forecast for the next three months by metalforming companies participating in the October Precision Metalforming Association (PMA) Business Conditions Report. Survey participants also expect incoming orders to decline over the next three months. The forecast was similar to September’s predictions but PMA President William E. Gaskin indicated the pessimism […]
In our recent steel market survey which we conducted this past week, 56.4 percent of those responding to our questions (all respondents) told us the current contract negotiations on their 2014 flat rolled steel needs represented a “game changer” for the U.S. steel industry. Manufacturers We asked manufacturing companies if their contract negotiations included reduction […]
Based on responses from the Steel Market Update (SMU) mid-October steel market survey, SMU Steel Buyers Sentiment Index is +38 and is considered to represent an optimistic view of the industry by those buying and selling flat rolled steel products. The latest reading is up one point over our early October measurement but is one […]
Automotive production, sales and inventory in NAFTA through September 2013 Based on Ward’s automotive reports, total light vehicle, (LV) production was 1,390,175 units in September, down by 3.3 percent from August. Autos were down by 5.1 percent and light trucks by 1.8 percent. A better measure of direction is the three month rolling average of […]
Steel Market Update saw a letter from Majestic Steel to their customers publically announcing a price increase. Majestic, which is well known as a supplier of coated products to the HVAC and construction industries, told their customers that the price increase is due to cold rolled base prices reaching as high as $39.50/cwt and $40.50/cwt […]
Business conditions held steady for New York manufacturers according to the October Empire State Manufacturing Index. The general business index fell 5 points to 1.5 but remained in growth status. The new orders index rose 5 points while shipping fell 3 points, suggesting modest increases for both indexes for the month. The prices paid index […]
There is a lot going on regarding contracts, contract negotiations and the timing of when orders/commitments need to be placed with the domestic steel mills. SMU has had direct conversations and seen email correspondence which suggests at least one of the integrated steel mills is pushing for remaining 2013 tonnage to be placed right away […]
Gov. Robert Bentley of Alabama announced that IT-TRI LLC will build a steel tubing and manufacturing plant in Lawrence County. The Chicago-based company hopes to break ground in Trinity, Ala. this fall and begin operations in 2014. “Having two raw material suppliers in Alabama, Nucor Steel in Decatur and U.S. Steel in Birmingham, and due […]
Steel buyers surveyed in the September Institute for Supply Management’s Steel Buyer’s Forum are expecting orders to remain flat or drop in the next three months. Buyers who felt orders would remain the same increased to 53.3 percent from 41.2 percent in August; those who predicted a drop increased to 20 percent from 11.8 percent […]