U.S. construction spending in January totaled $1.68 trillion at a seasonally adjusted annual rate, boosted 1.3% by strong outlays on single-family homebuilding and private nonresidential structures, the Commerce Department reported. The gain is even more significant given December data was revised higher to show construction outlays rising 0.8% instead of 0.2% as previously reported. January’s […]
The U.S. economy has expanded at a modest pace since mid-January, the Federal Reserve said in its latest Beige Book report. Overall growth was constrained by a surge in Omicron, forcing firms to deal with heightened absenteeism and continued supply-chain bottlenecks. Consumer spending was weaker, with auto sales largely mixed and manufacturing activity expanding at […]
The war in Eastern Europe is hitting close to home for some steel buyers. Steel Market Update’s survey this week asked readers: How might the Russian invasion of Ukraine impact your business? Roughly three out of four of the service center and manufacturing executives who responded said they fear at least some fallout from the […]
Construction spending rose in January with strong gains in private nonresidential and residential construction, but mixed results for public spending, reported the Associated General Contractors of America (AGC). “Private nonresidential construction, especially for manufacturing plants, has rebounded sharply in recent months, while demand for housing remains strong,” said Ken Simonson, AGC’s chief economist. “But public […]
U.S. manufacturing activity grew in February amid stronger demand and easing supply disruptions, according to the latest U.S. Manufacturing PMI data from IHS Markit. The report noted that the strong improvement in operating conditions was driven by the sharpest expansion in new orders since last October. Stronger new sales growth spurred manufacturers to increase staffing […]
Sentiment among purchasing managers surveyed by the Institute for Supply Management remains strongly optimistic, showing growth last month following a small dip in January. February’s Manufacturing PMI edged up to a reading of 58.6% versus 57.6% the month prior. The index reading above 50% indicates growth in the manufacturing sector, thus February’s measure marks the […]
By CRU Multi Commodity Analyst Alex Christopher and Research Analyst James Mills, from CRU’s Steel Sheet Products Monitor, March 3 The sanctions imposed on Russia over its invasion of Ukraine will have direct and indirect implications for commodity markets, and their impact will be felt by everyone involved along the length of commodity value chains. […]
If you look at Steel Market Update’s headlines from the past week, it’s not difficult to see a common thread. There’s change in the wind. Cleveland-Cliffs and Nucor both announced $50-per-ton increases in sheet prices. Scrap experts forecast substantial jumps in both prime and obsolete scrap prices in March. Prices for other steelmaking raw materials […]
New orders for U.S. manufactured durable goods rose 1.6% in January, doubling earlier estimates of 0.8%, according to the Commerce Department’s report. The surprising gain came following an upward revision in December’s totals to a 1.2% gain from the prior estimate of 0.7% and represents an increase in eight of the last nine months. The […]
The next three months remain favorable for metalforming companies, though widespread supply shortages and other challenges continue, according to the February 2022 Precision Metalforming Business Conditions Report. There was little change in this month’s forecast for business conditions. Only 10% of companies predict a decrease in economic activity during the period, up slightly from 7% […]
Some North American flat-rolled steelmakers were silent when asked what the impact of the conflict between the U.S. and Russia might be on their operations. Others said their supply lines weren’t in the crossfire. One reason for the silence in some corners: Many rely heavily either on Russian slab or Russian or Ukrainian pig iron […]
By CRU Multi Commodity Analyst Alex Christopher and Research Analyst James Mills, from CRU’s Steel Monitor, Feb. 17 The only certainty about the heightened state of East-West relations playing out over Ukraine is that the stakes are high. The gulf between Russian security concerns and guiding principles of NATO, the EU, and western liberalism are […]
Distributors who sell galvanized steel products to the construction and HVAC sectors see Cleveland-Cliffs Inc.’s announcement of a price increase this week as a positive sign the market’s slide may be nearing a bottom. The Cleveland-based steelmaker notified customers this week that it is shutting down a blast furnace and will raise prices for April […]
Strong downstream demand for steel is expected through the first half of 2022, but unfilled orders and backlogs resulting from supply-chain troubles and labor shortages may wreak havoc in the second half, cautioned a panel of OEM and service center executives during the Tampa Steel Conferences last week. “We’re certainly seeing strong demand for the […]
Strong downstream demand for steel is expected through the first half of 2022, but unfilled orders and backlogs resulting from supply-chain troubles and labor shortages may wreak havoc in the second half, cautioned a panel of OEM and service center executives during the Tampa Steel Conferences last week. “We’re certainly seeing strong demand for the […]
By Trade Attorney Lewis Leibowitz At last week’s Tampa Steel Conference, I participated with three colleagues in a broad-ranging discussion on international trade issues affecting steel producers and users. We covered quite a few issues. One of these was related to so-called “overcapacity” in steel production around the world. As those who have read my […]
Ferrous scrap has been described as “the new precious metal,” as mills all over the world invest in scrap-fed electric arc furnaces as a means of lowering harmful greenhouse gas emissions. Indeed, prime scrap may prove to be even more rare and prized than most realize. In the United States alone, producers will add 5.3 […]
U.S. Steel Corp. is beginning a search for a new chief financial officer after the resignation this week of Senior Vice President and CFO Christine S. Breves, who will continue to serve as Executive Vice President-Business Transformation while the company seeks her permanent replacement. “Christie’s deep knowledge of the industry, leadership and superb insight have […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
Cleveland-Cliffs Inc. might shut a blast furnace this year, the company’s top executive said. “When we make a move, we make a move. … You might see a blast furnace going down for good still in 2022,” Cliffs Chairman, President and CEO Lourenco Goncalves said during a fireside chat at the Tampa Steel Conference this […]
Industry analyst Paul Lowrey is “bullish on the short-term outlook for steel,” but his goal as a presenter during the Tampa Steel Conference this week was “to get some of you to think differently about what is going on.” Lowrey, founder of Pittsburgh-based Steel Research Associates, is a contrarian when it comes to the common […]
Monthly Key Market Indicators improved slightly through January, showing promising signs of progress, according to the latest analysis by Steel Market Update. Following a more uncertain close to 2021, both neutral and positive indicators expanded, while negative indicators continued to ease. Though economic dynamics remain in flux, with supply-chain bottlenecks and rising inflation and producer […]
Business activity in the state of New York was little changed in February following an abrupt decline the month prior, according to the Empire State Manufacturing Survey. The headline general business conditions index is now at 3.1 (above the neutral mark of 0), moving up four points versus the -0.7-mark seen the month prior when the index […]
Ternium reported net earnings of $1.136 billion in the fourth quarter 2021, down from $1.366 billion in the prior quarter, but a 31.4% boost from $865 million in the fourth quarter of 2020. The steelmaker achieved record profitability for the full year ended Dec. 31, 2021, with earnings totaling $4.367 billion, more than a five-fold […]
Michael Cowden and I will be joining more than 400 executives from steel mills, trading companies, manufacturing, distribution, logistics, as well as various warehouses and ports this week in Tampa. On Monday afternoon, we will begin the networking portion of the Tampa Steel Conference, now celebrating its 33rd year. There is still time to register, […]
Ford, Toyota and Honda continued to see production disruptions at various factories due to ongoing protests by anti-vaxxers blocking the Ambassador Bridge, the busiest international border crossing in North America. The auto industry has struggled to get parts over the U.S.-Canada border as the protest by truck drivers at the bridge had entered its fifth […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor, Feb. 9 The global sheet market often exhibits price trends that vary by region. Occasionally, prices do move in the same direction, though on these occasions, prices typically reflect a unified trend of global costs or inventory change. In the current sheet […]
After the close of the market today, Canada’s Russel Metals reported net earnings of $432 million (U.S. $340 million) on annual revenues of $4.2 billion (U.S. $3.3 billion) for fiscal year 2021. That’s a big improvement from earnings of just $25 million (U.S. $20 million) on revenues of $2.7 billion (U.S. $2.1 billion) in 2020 […]
Steel prices may be nearing the end of the current correction, predicted Majestic Steel USA President and CEO Todd Leebow during Wednesday’s Steel Market Update Community Chat. In the great debate over where declining hot rolled prices will finally settle – back to historical averages in the $400-600 per ton range or closer to $1,000 […]
General Motors, Ford, Toyota, Honda and Stellantis have all been forced to temporarily halt production at assembly plants in the U.S. and Canada due to truckers that are blocking critical roadways in protest of COVID vaccine mandates. Detroit-based GM, the largest of the “Big Three” automakers in the U.S., was forced to cancel two production shifts […]