Editor’s note: Steel is the largest producer of global industrial CO2 emissions. So, as stemming climate change takes on ever greater urgency, steelmakers are challenged to find production methods that emit fewer greenhouse gases. New technologies in development range from improving process efficiency to carbon capture to using hydrogen instead of coal as fuel. Following […]
The popular press often gets overly excited or depressed by a single month’s employment report, but November really was an exceptional month. Net job creation in November increased to 266,000 following upwardly revised results for September and October. September was revised up by 13,000 and October by 28,000. Rising employment and wages are the main […]
Manufacturing gained 54,000 jobs in November, more than offsetting the effects of the GM strike. Construction added 1,000 jobs last month, as well. The private sector gained 254,000 jobs in November as government gained 12,000 positions. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. Most […]
With little likelihood of a recession any time soon, the U.S. economy appears to be in better shape than many people believe. This Steel Market Update analysis attempts to provide guidance on the likelihood of a recession in the next six months. Steel demand is related to GDP, but is vastly more volatile both on […]
Commerce Department data indicates a slowdown in steel product shipments and new orders in 2019. Steel industry trade association data from the American Iron and Steel Institute (AISI) and the Metals Service Center Institute (MSCI) are most widely used to assess the state of the industry. In addition, the Census Bureau provides monthly data on […]
I have just returned from three days in New Orleans where I attended the HARDI annual conference. I spoke to the steel council on Sunday, and I referenced some of my comments in Sunday evening’s issue of Steel Market Update. I stayed until this morning because I wanted to hear Alan Beaulieu speak to see […]
The mills have succeeded in collecting a portion of their recent price increases, but how much and for how long? Steel Market Update canvassed buyers this week and opinions varied widely. Flat rolled producers raised prices by a total of $110 per ton in three rounds of announcements during October and November. Steel Market Update […]
By CRU Chief Economist Jumana Saleheen, from CRU’s Global Steel Trade Service This piece sets out insights gained from a visit to CRUs Beijing office. The trade war has been an unexpected headwind to China’s economy and there is a real concern about the risks of a sharper than desirable growth slowdown. In response the government […]
Samuel Associated Tube Group announced it will invest $29 million to build a new manufacturing facility in Jefferson County, Ala. Samuel Associated Tube, a division of Canada’s Samuel, Son & Co., is a manufacturer of small-diameter, electric-resistance-welded and fabricated carbon tubing. The new warehouse will total 284,000 square feet and is expected to be operational […]
November revealed tentative signs that global manufacturing may be poised for a recovery. The J.P. Morgan Global Manufacturing PMI rose back into growth territory posting a seven-month high of 50.3. Consumer goods led the increase with accelerated growth in new orders and production. PMIs for intermediate and investment goods remained in contraction. Eleven of the 30 […]
U.S. economic activity expanded modestly from October through mid-November and outlooks generally remained positive, according to the latest Beige Book Report from the Federal Reserve. The Fed surveys the business community eight times each year to track economic conditions in its 12 districts. The Nov. 27 Beige Book Report documents stable to modestly growing economic […]
SPS Companies and State Steel Supply Co., distributors and fabricators of steel products, will acquire the parts fabrication assets of laser process fabricator Kooima Co., located in Rock Valley, Iowa. “This new association with SPS and State will allow Kooima to continue our growth, with a primary mission of continuing to serve our customers’ needs […]
John Packard is traveling…. With President Trump making more headlines this week with his tweet calling for new tariffs on steel from Brazil and Argentina, the timing seems right to ask the question: Have the Section 232 tariffs helped your business? Your industry? Your country? Obviously, that depends entirely on the criteria each individual selects […]
Steel prices had upward momentum in November following multiple price increase announcements by the mills on flat rolled and plate products. Steel Buyers Sentiment moved upward along with the prices as service centers and OEMs anticipated a strengthening market. After bottoming in mid-October at around $480 per ton, the benchmark price for hot rolled steel […]
Manufacturing activity in the U.S. contracted at a faster rate in November, according to the latest Manufacturing ISM Report on Business. The PMI registered a 0.2 point decline for a reading of 48.1 percent and its fourth straight month in contraction. Most of the components of the PMI remained in contraction last month. Production, at […]
Trade disputes and uncertainty regarding U.S. economic growth are causing businesses to delay or cancel construction plans, said the Associated General Contractors of America in a new analysis of construction spending data. Construction spending declined 0.8 percent in October from September, but topped year-ago levels by 1.1 percent as decreases in private nonresidential, multifamily and […]
Durable goods orders rose 0.6 percent in October, beating economists’ expectations of a 1 percent or more decline. Most of the increase was due to orders for military equipment including an 18 percent increase for military aircraft. A bright spot for the metals industry in October was a 1.8 percent increase in fabricated metal product […]
This report is designed to be a big picture summary of data SMU has reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for steel buyers and sellers. See the end of this piece for an explanation of the Key Indicators […]
Last week Steel Market Update conducted our mid-November flat rolled and plate steel market analysis. We invited 480 individuals involved in manufacturing, service centers, steel mills, trading companies and toll processors to participate in our questionnaire. On purpose, the survey is heavily weighted to manufacturing companies and service centers since they purchase the vast majority […]
In what will be seen as supportive of higher domestic steel prices, ferrous scrap prices are expected to jump by $30 per ton or more in December on tight supplies and improving demand in the U.S., following on a similar increase in November. “Going into December and year end , the U.S. scrap market has […]
Editor’s note: The following commentary in support of the Trump administration steel tariffs was contributed by Barry Zekelman, chairman and CEO of Zekelman Industries, the largest steel pipe and tube manufacturer in North America. We often hear that the Trump administration’s steel tariffs are hurting the U.S. economy. News commentators certainly think so. They talk […]
The slowdown in the energy sector has resulted in the closing of a nearly 50-year-old plant. TimkenSteel, headquartered in Canton, Ohio, announced it will close its TimkenSteel Material Services facility in Houston. “We are focusing on our core strengths of making and heat treating steel and more fully utilizing our supply chain to provide the […]
A strike by 3,200 Teamster union employees at Canadian National Railway is causing disruption in both Canada and the U.S. Now in its sixth day, with no end in sight, a shortage of propane is imminent for Ontario and Quebec as well as delays to shipping across the manufacturing industry. CN transports more than CAD […]
Steel Market Update is please to share this Premium content with Executive-level subscribers. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Manufacturing output shows contraction in nine of the 10 indicators analyzed by Steel Market Update, which helps to explain the current weakness in steel demand in some sectors. This report […]
The Association of Steel Distributors has named Bill Hickey, chairman of Lapham-Hickey Steel Corp. in Chicago, as its 2019 Steel Executive of the Year. Hickey served as president of the family-owned service center for 40 years, growing the company to 10 locations and 700 employees before stepping back from day-to-day management. Son Brian now serves […]
Manufacturing activity in New York State changed very little from October to November. The general business conditions component of the Empire State Manufacturing Index posted a 2.9 for November, indicating sluggish manufacturing growth for the sixth consecutive month. The shipments index fell four points to 8.8 and new orders increased slightly to 5.5, still above […]
Manufacturers still face slowing business conditions for 2020, according to the Deloitte 2020 Manufacturing Industry Outlook. Deloitte projects that annual manufacturing GDP growth will end 2019 at 2.7 percent and at 1.3 percent for 2020, down from prior projections of 3.7 and 2.0 percent, respectively. Job growth was muted in 2019 with the manufacturing sector […]
The third quarter of 2019 saw a disappointing decrease in labor productivity. The labor productivity of nonfarm businesses decreased by 0.3 percent in the quarter. Unit labor costs increased 3.1 percent year over year, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics (BLS) data. Unit labor costs and productivity changes are […]
The mills may have announced two increases in flat rolled steel prices in the past month, but you couldn’t tell from comments by members of the Heating, Air Conditioning & Refrigeration Distributors International. The distributors of galvanized steel to the HVAC sector report little impact on prices so far, though demand remains healthy despite some […]
By CRU Research Manager Paul Butterworth, from CRU’s Global Steel Trade Service Although profitability for domestic sales in China has fallen sharply in 2019, steel exports from the country have not risen. Historically, when domestic profitability dropped, exports would rise. Prior analysis has shown that the strength of the domestic market is a key driver […]