We began sending out our sponsorship package to last year’s sponsors and will send it out to previous years sponsors as well as those who have expressed an interest in becoming a sponsor or exhibitor. We have a limited number of sponsors and already have commitments from Pacesetter, Bank of America Merrill Lynch, Magic Coil […]
Commercial Metals Co., a Texas-based long products producer and scrap recycler, reported a profitable fiscal 2017 despite imports of rebar and other products that continue to squeeze margins. CMC management is hopeful the company will get an assist from Washington in the coming year. “The need for infrastructure renewal is overwhelming, but the issue is […]
Economic indicators of manufacturing activity are still healthy overall and portend well for the balance of this year. This report summarizes seven data sources that describe the state of manufacturing in the U.S. We have reported on most of these separately in our Steel Market Update publications, and therefore will be brief in this summary. […]
Twice per month, Steel Market Update conducts an analysis on the flat rolled steel market. Our focus is on pricing and price direction, demand, inventory management, international steel, buyers’ sentiment, service center spot price direction, mill lead times and negotiations, and more. We have been conducting our market analysis going back to late 2008. The […]
The U.S. Justice Department wants to know if Americans are at risk as a result of the Kobe Steel quality scandal. The Japanese metal producer’s subsidiary, Kobe Steel USA, Inc., received a request from the Justice Department on Oct. 16 seeking related documents. Kobe officials said they plan to cooperate with the Justice investigation. Kobe […]
After greeting September with increased optimism, metalforming companies are now expecting business conditions to weaken slightly in the next three months, according to the October 2017 Precision Metalforming Association (PMA) Business Conditions Report. Metalforming companies also anticipate declines in incoming orders. “Ebbs and flows in productivity are a part of today’s manufacturing industry,” said PMA […]
Durable goods orders were stronger than anticipated in September, rising 2.2 percent and nearly double economists’ expectations. The volatile transportation sector drove much of the increase. Commercial aircraft orders jumped 64 percent after gaining 52 percent in August. Orders for core capital goods, which exclude defense and aircraft, rose 1.3 percent, and shipments of core […]
Steel Market Update (SMU) found steel buyers receptive to speaking their minds on how various steel mills are responding to the price increase announcements made last week. It appears mills with shorter lead times are perhaps a little more receptive to waiving part or all of the increases. Other mills have better order books and […]
Last week, Steel Market Update (SMU) conducted one of our flat rolled steel market trends analyses, sending invitations to 655 executives associated with the manufacturing, steel distribution, steel mills, trading companies and toll processor segments of the industry. The majority of respondents completed the questionnaire prior to the ArcelorMittal USA price increase announcement. One of […]
Wholesaler/distributors who sell galvanized steel products to the HVAC market are waiting anxiously to see what happens to prices in the coming weeks. In the monthly steel conference call hosted today by the Heating, Air-conditioning, and Refrigeration Distributors International, HARDI members asked two key questions: Will the mills be able to collect the flat roll […]
The volume of light vehicle assemblies in the U.S. and Canada is declining at more than 15 percent per year as Mexico’s volume is increasing by 7.7 percent, according to the latest Steel Market Update analysis of auto production in the NAFTA region. U.S. Vehicle Sales: U.S. new-vehicle sales surged in September to 18.6 million […]
Steel Market Update is a member of an association connected to the construction industry called HARDI, which stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and economic forecasting company ITR Economics work together to gather economic data to provide a forecast to the HARDI members in the United States and Canada. The information shared […]
China’s economy continues to show robust growth, and in August recorded its highest-ever share of total global steel production. Once each quarter, we publish the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. Currently available data is through the third quarter. Many analysts don’t believe these self-serving Party figures, […]
SMU Note–The Kobe Steel scandal regarding falsifying test certifications has had a ripple effect. Steel Market Update asked those responding to our flat rolled steel market trends questionnaire if the Kobe scandal is raising some concerns that other mills may cut corners with testing and falsify documentation. Twenty-nine percent of our respondents had concerns. From […]
Two popular appliance manufacturers, Samsung and LG, are facing potential quotas and tariffs on imports of their products to the United States. Earlier this month, following a global safeguard petition by Whirlpool, the U.S. International Trade Commission voted unanimously in a Section 201 investigation that a surge of large residential washer (LRW) imports was injuring […]
On Tuesday of this week, ArcelorMittal USA announced new “minimum” base pricing on hot rolled, cold rolled and galvanized products. On Wednesday, Nucor and North Star BlueScope followed with increase announcements of their own of $40 per ton ($2.00/cwt). This morning (Thursday), NLMK USA emailed a letter to their customers advising of their intention to […]
On Monday of this week, Steel Market Update began collecting data for our mid-October flat rolled steel market trends analysis. We invited over 600 companies to participate in our questionnaire. The vast majority of the respondents are either service centers or manufacturing companies. Based on the data collected we found that prior to any of […]
Does the Kobe Steel scandal raise the question that other steel mills, including those in the United States, might cut corners with testing and falsifying documentation? About 70 percent of buyers and sellers of steel responding to Steel Market Update’s flat rolled steel market trends questionnaire this week say no, they remain confident about the […]
The next Steel 101 steel training workshop will be held in Mobile, Ala., and will include a tour of the SSAB Mobile minimill. Registration is open, and the workshop currently is almost half full. “SMU Steel 101 is a great learning tool for anyone working in the steel industry in any position. I wish I […]
The American Automotive Policy Council is challenging data that Commerce Secretary Wilbur Ross cited in his bid to raise the NAFTA auto rules of origin. In a September report, Ross used data from 1995 to 2011 in an effort to “debunk the claim that U.S. content in the form of parts is so high that […]
Manufacturing activity in New York State has accelerated with the headline index of the October Empire State Manufacturing Survey climbing six points to 30.2. The survey was at its highest level in three years, bolstered by an 11-point gain in shipments, putting that index at 27.5. The new orders index slipped seven points, but was […]
It’s on the table: the U.S. proposal for rules of origin for NAFTA automobiles. On Friday, the Trump administration made its demand for 50 percent U.S. content in NAFTA-produced cars and trucks and an increase of North American content from 65.2 percent to 85 percent. The increase for U.S. content would be made within the […]
U.S. employment contracted in September, and there was more going on than just hurricanes. The Bureau of Labor Statistics (BLS) net job creation report released on Friday was very disappointing for more reasons than the impact of hurricanes, though they undoubtedly had a big effect. Net job creation in September was negative 33,000 positions. July […]
Responses to several subjects in last week’s Steel Market Update flat rolled steel market trends questionnaire shared a common thread. Comments on demand, pricing, purchases of foreign steel and inventory levels all tended to reflect a bearish attitude among many flat rolled and steel plate service center executives. · On the subject of steel demand, […]
The Steel Manufacturers Association is still confident that the Section 232 investigation on steel imports will bring relief to the U.S. steel industry. SMA President Philip Bell called the investigation a “really complex issue,” during a media call on Monday. Although the administration issued a self-imposed deadline of June 30, which it failed to meet, […]
Reliance Steel & Aluminum Co. and wholly-owned subsidiary Diamond Manufacturing Co. announced the acquisition of Ferguson Perforating Co., effective Oct. 2. Los Angeles-based Reliance is the largest service center company in North America. Ferguson specializes in producing highly engineered and complex perforated metal for diverse end markets ranging from aerospace and automotive to industrial machinery, […]
Over the course of the first four days of this past week (the week of Oct. 2, 2017), Steel Market Update conducted our early October flat rolled steel market trends analysis. One of the areas we track is how steel service centers are handling spot prices on flat rolled steel being sold to their customers. […]
Steel buyers and sellers appear evenly split on whether the renegotiation of NAFTA will benefit their companies. Responses to Steel Market Update’s market trends questionnaire, emailed to several hundred steel executives earlier this week, suggests that most companies don’t really know if the new NAFTA being pursued by the Trump administration will be good for […]
NAFTA negotiations are about to get even more contentious with a proposal by the Trump administration to increase U.S. domestic content in autos to 50 percent. The administration also proposes increasing the NAFTA regional content requirement to 85 percent from the current 62.5 percent, said sources to Inside U.S. Trade. The administration is facing tough […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]