Forecasts of weakness in commercial construction have not played out as analysts expected, at least not yet, contend members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI). Robust demand for HVAC and other galvanized steel products has shown no signs of abating, said members of the wholesale trade group during their monthly conference call […]
By CRU Principal Economist Alex Tuckett and Chief Economist Jumana Saleheen from CRU’s Global Economic Outlook This month has brought good and bad news. On the one hand, vaccines are being rolled out, and further U.S. fiscal stimulus looks increasingly likely. On the other hand, the growing severity of the second wave of COVID-19 means […]
This report is an analysis of Bureau of Labor Statistics (BLS) data and is intended to provide subscribers with a view of the competitive positions of sheet steel, aluminum, plastic and wood. The analysis includes some downstream products and a comparison of truck and rail transportation. On Jan. 15, the BLS released its series of […]
The Empire State Manufacturing Survey indicated sluggish growth in January. The general business index slipped to 3.5 from 4.9 in December. Economists were expecting the index to come in at 6.0. The index for new orders rose three points to 6.6 while the shipments index dropped to 7.3 from 12.1 in the previous month, indicating […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) fell by 11.5% m/m in February to 309.8. Scrap prices in western markets came under pressure as supply increased substantially, while those in eastern markets faced additional pressure from waning demand. Although supply, especially obsolete grade scrap, has […]
By CRU Economist Ippolito Tarabini and Multi-Commodity Analyst Zanna Aleksahhina, from CRU’s Steel Sheet Products Monitor There is a global semiconductor shortage. It was ignited by strong demand for consumer electronics during the COVID-19 pandemic and it is now threatening auto production around the world. We expect it to reduce global vehicle output by around […]
By CRU Analysis Advisor Greg Wittbecker In January 2016, Bitcoin was trading at 450 to the U.S. dollar. Recent prices hit over 58,000 and are now trading around 48,000. There are investment advisors suggesting cryptocurrencies should be part of investors’ portfolios. It appears that Bitcoin and its imitators are going mainstream. While this fascination with […]
By CRU Analysis Advisor Greg Wittbecker Environmental, social and governance (ESG) is now core to most major corporations. Companies that don’t put strong emphasis on this do so at their peril. Many companies are using ESG as an opportunity to create competitive advantage. These advantages are coming through several approaches. Sustainable Production Sustainability can be […]
By Greg Wittbecker, Advisor, CRU Analysis The grounding of the MV Ever Given in the Suez Canal has multiple repercussions on the global maritime supply chain, but it is especially acute for the aluminum market. Gulf Region Production is Important The Gulf Region in terms of aluminum production comprises Bahrain, Oman, Qatar, Saudi Arabia and […]
Tex-Isle Inc. plans to build a new electric-resistance welded (ERW) pipe mill with annual capacity of 350,000 tons per year near Steel Dynamics Inc.’s (SDI’s) new flat-rolled mill in Sinton, Texas. The new pipe mill is scheduled to open in Robstown, Texas, in the third quarter of this year and will be adjacent to Tex-Isle’s […]
Economic activity rose modestly for most Federal Districts as 2020 came to a welcome end. Two Districts reported flat activity while two others noted a decline, said the Federal Reserve its January 2021 Beige Book. The recent surge in COVID-19 cases resulted in another decline for retail sales and leisure and hospitality services. More Americans […]
The U.S. steel industry has enough capacity to meet demand even if the Biden administration passes a big infrastructure bill, said the top executive of the nation’s biggest steelmaker. The United States “desperately needs” an infrastructure package worth “more than $1 trillion,” and Nucor hopes such a bill will be passed in the early days […]
I anticipate next week’s spot hot rolled and other flat rolled steel prices will be higher than what we reported on Tuesday evening (HRC = $1,080 per ton average). We received information from an end user today of hot rolled purchases of $1,140 per ton for end of March/early April production. An order for HR […]
Update on Tampa Steel Conference registrations: We are moving past 250 registered attendees for the Feb. 2 virtual conference. We fully anticipate the 32nd annual Tampa Steel Conference will attract 350-400+ attendees from manufacturing, distribution, steel mills, trading companies, logistics companies, ship lines, port facilities, toll processors and suppliers to those industries. You can learn more about the […]
Despite market challenges related to COVID-19, Commercial Metals Company reported earnings of $63.9 million on net sales of $1.4 billion for the first quarter of FY 2021. CMC is encouraged by stabilizing backlogs and a renewed enthusiasm by clients to move forward with projects. “Market uncertainty continues to persist,” said Chairman, President and CEO Barbara […]
The U.S. electric-arc furnace steelmaking industry is eager to work with the administration of President-elect Joe Biden to craft better trade, infrastructure and manufacturing policies, the head of the Steel Manufacturers Association said. And those efforts could be fruitful given Biden’s moderate positions on those issues and the moderation that will be necessary to effectively […]
The economy lost 140,000 jobs in December after seeing repeated gains month on month since May, reported the Bureau of Labor Statistics (BLS). The pace of job additions had slowed significantly in November compared to October when additions were 245,000 and 638,000, respectively. The change in direction comes as the market enters the winter months and […]
Employment gains have slowed each month since June, and after a marginal increase in November, December employment numbers retracted for the first time since March, according to Steel Market Update’s latest analysis of the U.S. Bureau of Labor Statistics (BLS) data. The net change in employed persons in December was a negative 140,000, following a disappointing […]
Overall, steel product shipments continued to improve through November, reporting an increase for the seventh consecutive month. Despite the gains, the improvement continues at a slower pace than the overall manufacturing economy. The market is still working to recover from the initial effects of the Covid-19 shutdowns back in April. As a result, despite the steady […]
By CRU Analyst Helen O’Cleary, from CRU’s Zinc Monitor January 2021 After a turbulent start to 2021 for U.S. politics, President Biden begins his term with the unenviable task of bringing the Covid-19 outbreak under control and supporting the nascent U.S. economic recovery. He plans to start with a $1.9 trillion Covid relief plan and […]
After communicating with one of our readers over the weekend, I realize it is important for our readers, and those who interact with our website, to understand what the SMU Price Momentum Indicator means. The SMU Price Momentum Indicator definition on our website clearly states that this is meant to be a visual showing where […]
Boomerang Tube has laid off 150 people at its mill in Liberty, Texas, because of a “rapid spike” in steel prices as well as in COVID-19 infections, according to documents filed with state labor officials. The layoffs were effective on Dec. 23, 2020, and affected approximately 50 salaried and 135 hourly employees, according to Worker Adjustment […]
At least two domestic steel and manufacturing lobbying groups have denounced the violence that temporarily halted the certification of President-elect Joe Biden’s victory over incumbent Donald Trump. National Association of Manufacturers President and Chief Executive Officer Jay Timmons said President Trump should be removed from office after a mob stormed the U.S. Capitol on Wednesday […]
Quality information is KEY…in steel and in life. I have been struggling on how to deal with what I saw yesterday at the U.S. Capitol. We cannot allow thugs to attack the workings of our democracy. At the same time, we should hold those who spread disinformation to the public accountable for the disservice they […]
Quality information is KEY…in steel and in life. I have been struggling on how to deal with what I saw Wednesday at the U.S. Capitol. We cannot allow thugs to attack the workings of our democracy. At the same time, we should hold those who spread disinformation to the public accountable for the disservice they […]
Global manufacturing ended 2020 with growth rates for production and new orders among the strongest of the past decade. The J.P. Morgan Global Manufacturing PMI posted 53.8, unchanged from November’s 33-month high. Output continued to expand in December, although at a slightly slower pace, and was led by growth in Germany, Brazil and India. New […]
Can we measure the relative importance of steel-producing versus steel-consuming industries? Last week, I looked at some ways to measure the steel industry’s importance to the economy and national defense today and in the past. Today, I explore another major point of comparison—the economic and strategic importance of steel production and steel-consuming industries economically and […]
Lately there has been a great deal of news on the legal front. Readers of this column have asked a lot of questions. Today I will try to get to at least some of them. Most of the recent court decisions relate to the Section 232 tariffs, so that is a good place to start. To […]
Steel price levels are in uncharted territory these days. The current prices, especially in an economy where interest rates are near zero and inflation remains low, are truly remarkable. How did this happen and when will it end? The short answer is that nobody really knows—but we can analyze the events surrounding the spike and […]
Last Thursday, policy wonks observed the confirmation hearing of Katherine Tai to be the new United States Trade Representative, replacing Robert Lighthizer. When a new administration takes over, the previous leadership departs at noon on Jan. 20 and “acting” leadership assumes authority, but generally not much power. The new team is nominated, typically on Jan. […]