Toyota Motor Corp. is anticipating a reduction in automotive production in the range of 40-60% in North America. Except for Toyota’s San Antonio, Texas, plant, all North American vehicle assembly plants will be affected, a company spokesperson confirmed to Steel Market Update. “Due to COVID-19 and unexpected events with our supply chain, Toyota is experiencing […]
Majestic Steel USA has acquired West Coast service center Merit Steel USA in a push to expand its presence in the region. The Cleveland-based service center said persistent supply chain constraints bolstered the case for growing its footprint west of the Rocky Mountains. Terms of the deal were not disclosed. “Merit has a strong reputation as a […]
Manufacturing growth in New York State expanded slightly in August but at a far slower rate than the record-setting pace seen the month prior, according to the data collected in the Empire State Manufacturing Survey. The general business index fell 25 points to 18.3. Indices for new orders and shipments fell by double digits from […]
Allegheny Technologies Inc. (ATI) has sold its Flowform Products business to Consolidated Boring Inc. for $55 million in cash. Proceeds from the sale of Billerica, Mass.-based Flowform will be used to boost ATI’s liquidity and to strengthen its balance sheet, the company said. “While ATI Flowform is a strong performer with a great team serving […]
BlueScope Steel Ltd. posted record earnings in its 2021 fiscal year thanks to strong demand and record metal spreads. All told, the Australian steelmaker – the parent company of Delta, Ohio-based North Star BlueScope – recorded net profit of Australian $1.19 billion ($870 million U.S.) in its fiscal year ended June 30, 2021, up more […]
On Friday, Steel Market Update sent data providers the final analysis for July of service center inventories, shipments, steel on-order, and percentage of inventories tied up for contract sales. Premium members will receive the report on Monday. As expected, after reviewing our Flash Report which is provided to data providers five days into the new […]
One Week to Go… There is now but one week to go before the doors open at the Georgia International Convention Center (GICC) in Atlanta for the 2021 SMU Steel Summit Conference on August 23. This year the conference will be unique as it will be a “hybrid” event. By this I mean we will […]
We are seeing (again) the disruption that unexpected news can bring. Just when we thought we were out of the woods (no pun intended), we see a resurgence of hospitalizations from COVID, the fall of Afghanistan, perhaps the unluckiest country in the world, a major earthquake in Haiti, perhaps the second unluckiest, and a hurricane […]
Mild weakening of monthly Key Market Indicators, as analyzed by Steel Market Update, may reflect the usual summer slowdown or perhaps growing concern over the latest COVID variant and its possible effects on the economy. Markers for the Present Situation have contracted for the second straight month and Trends have now followed after a small but positive […]
Steel Market Update is pleased to share this Premium content with our Executive members. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Producer prices accelerated into midsummer, showing no signs of slowing down. The index and subcategories for final demand have fully recovered from the COVID-driven collapse and have overtaken pre-pandemic […]
By Philip Bell, President, Steel Manufacturers Association Editor’s note: Phil Bell and SMA are now periodic contributors to Steel Market Update. Look for Phil’s insights on steel and events in Washington in future issues of SMU. Many people often mischaracterize the American steel industry as dirty and struggling to cut carbon emissions. This all-too-common misperception […]
Memorize these words, “carbon border adjustment tax,” as they are being mentioned in the Senate Budget Committee, which is working on the $3.5 trillion reconciliation package the Senate advanced on Wednesday. The idea proposed would “account for the cost incurred by U.S. businesses to comply with laws and regulations limiting greenhouse gas emissions,” based on […]
Nissan Motor Co. will halt all production lines at its Smyrna, Tenn., factory for two weeks starting Monday due to semiconductor shortages brought on by a COVID-19 outbreak in Malaysia, a company spokesperson told Steel Market Update. The global chip shortage is having a signficant impact on the consumption of steel by the automotive industry. […]
Do you have a sense that conditions in the steel market are changing? If so, you are not alone. The majority of steel buyers polled by SMU over the last two weeks feel it won’t be until the fourth quarter, if not well into next year, before there will be any significant changes in steel […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor Sheet prices in the U.S. Midwest market have continued to rise, though the rate of increase has slowed since the end of May. The price of HR coil has increased $21 /s.ton w/w and is now $126 /s.ton higher than our assessment on […]
Three companies with more than a century of experience in the U.S. steel and auto industries are teaming in a joint venture called Madison Metal Processing that will operate a new, $40 million factory near Huntsville, Ala. The companies collaborating in the venture are Toyota Tsusho America Inc., Southern Mobility Products and SteelSummit Holdings, a subsidiary of Sumitomo Corp. […]
The U.S. economy continued to accelerate in July, as hiring rose at its fastest pace in nearly a year. Nonfarm payrolls increased by 943,000 for the month, while the unemployment rate dropped to 5.4%, according to the Bureau of Labor Statistics (BLS). The payroll increase was the best since August 2020. Following sizable jumps in […]
The U.S. labor market saw its best monthly performance in nearly a year in July, reported the U.S. Bureau of Labor Statistics (BLS). The latest data shows a flood of 943,000 new workers added to payrolls in July, as the American economy roared into midsummer. With just under 3 million new jobs added from May through July, the […]
We are seeing the early signs of a market where flat rolled steel prices are either peaking or about to top out. Last week, I spoke about service center spot prices into their end customers. I mentioned that both the manufacturing companies, and the service centers themselves, were beginning to report spot prices as being […]
When we reported steel prices on Tuesday, we noted that for the first time in a year we saw mixed results with some prices rising, one remaining the same and one dropping. We did not change our Price Momentum Indicator. However, we noted that we were carefully watching the markets to see when we would […]
As scrap prices for August were settling today, obsolete grades generally traded down $20/GT, while prime grades traded sideways, sources tell Steel Market Update. Late reports indicated busheling may be down $10 in the South. Ferrous scrap prices factor into the mills’ costs and how much they charge for finished steel products. The drop in […]
Cleveland-Cliffs Inc. has reached agreement on a new three-year labor agreement with United Auto Workers (UAW) Local 600, which represents 1,000 workers at the steelmaker’s Dearborn Works near Detroit. The new contract is retroactively effective from Aug. 1, 2021, through July 31, 2024. “We are extremely pleased to continue our commitment to good-paying middle-class union […]
The Biden administration is calling for mass adoption of electric vehicles (EVs) by 2030, a target supported by major U.S. automakers such as General Motors, Ford and Stellantis. The goal, reinforced with an executive order from the president, bolsters the U.S. auto industry’s efforts to reach a 40-50% EV penetration within the next nine years. […]
Ryerson recorded its best quarterly profits since 2008 in the second quarter and expects the good times to continue into the third. “We’re not declaring an end to cyclicality in our industry, but noting strong secular growth underpinnings that have been supressed for a long time,” Ryerson President and CEO Eddie Lehner said during a […]
An offshore wind developer plans to breathe new life into Sparrows Point, former home to Bethlehem Steel, with ambitious plans for electricity-generating wind farms off the coast of Maryland. Through a long-term lease agreement with Tradepoint Atlantic, the 3,300-acre multimodal logistics and industrial center that encompasses the former mill site, US Wind is investing $77 […]
U.S. Steel plans to focus on organic growth – expanding its existing operations – rather than on mergers and acquisitions, company executives said. “Don’t be looking for us to add a bunch of capacity, look for us to build capability for profitable growth,” President and Chief Executive Officer David Burritt said during a conference call with analysts. […]
U.S. offshore wind energy is expected to grow rapidly, but bottlenecks in the market and a crucial lack of infrastructure mean that President Biden’s optimistic offshore wind target of 30GW by 2030 will almost certainly be missed, reports IHS Markit. Wind towers are a promising growth market for steel plate. IHS Markit expects U.S. offshore […]
The United States and the European Union aim to resolve their differences around Section 232 tariffs on the EU by Nov. 1, an EU official said. “On the U.S. Section 232, both sides confirmed readiness to find a solution by 1 November,” the EU official told Steel Market Update (SMU). “In terms of progress, both […]
New orders, production and employment grew in July despite a deceleration is supplier deliveries and growing backlogs, said the Institute for Supply Management in the July 2021 Manufacturing ISM Report on Business. The Manufacturing PMI fell 1.1 percentage points in July to 59.5%, still above 50% and indicating expansion in the overall economy for the […]
The U.S. manufacturing sector saw the most substantial improvement in operating conditions on record, according to July’s U.S. Manufacturing PMI data from IHS Markit. “July saw manufacturers and their suppliers once again struggle to meet booming demand, leading to a further record jump in both raw material and finished goods prices,” said Chris Williamson, chief […]