The multi-month decline in active U.S and Canadian gas and oil rigs seems to have flattened out, according to oilfield services company Baker Hughes. The active drill rigs count is important to the steel industry because it is a leading indicator of oil country tubular goods demand. The number of active U.S. rigs fell by […]
U.S. Steel anticipates the second quarter will “mark the trough for the year.” In earnings guidance issued on June 17, the company said it expects an adjusted EBITDA loss of $315 million, exclusive of approximately $100 million of estimated restructuring and other charges. The guidance was significantly lower than analyst consensus and nearly five times […]
Nucor is guiding to better-than-expected second-quarter earnings in the range of $0.10 to $0.15 per diluted share. First-quarter earnings were $0.07 per diluted share and included asset losses related to the mill’s equity method investment in Italy. Nucor’s downstream steel products segment remained strong during the quarter due to resilient demand in nonresidential construction. COVID-19 […]
From a steel buyer’s perspective, the environment is relatively competitive now. Mills and service centers are hungry for business, said Donald Bly, managing director of Applied Value, during Wednesday’s SMU Community Chat Webinar. Mill capacity utilization is down to about 53 percent, but still better than the 2008-2009 recession, he said. “It’s a good time […]
The term “sustainability” is most often associated with environmentalism. True to the word, U.S. Steel’s 2019 Sustainability Report details the steelmaker’s mission to reduce its global greenhouse gas (GHG) emission intensity by 20 percent over the next decade. But what makes a company’s success “sustainable” over the long term goes far beyond environmental considerations, said […]
Markets are vastly improved from where they were two months ago, said James Banker, Executive Vice President of NLMK USA, during Steel Market Update’s Community Chat on Wednesday. Conditions seem good, mostly because they are coming off a “really awful period,” he said. NLMK USA relies on its customers for information about the market, and […]
EVRAZ NA will reduce its workforce by an additional 65 employees at EVRAZ Oregon Steel as operations are idled in response to weak demand due to the coronavirus. In a Worker Adjustment and Retraining Notification to the state of Oregon, EVRAZ said it “has experienced a significant business downturn” and will permanently reduce the workforce […]
The World Steel Association (worldsteel) expects steel demand to contract by 5.4 percent in 2020 to 1.654 billion metric tons. The latest Short Range Outlook forecasts a recovery to 1.717 billion tons in 2021, a 3.8 percent increase over this year. Commenting on the outlook, Chairman of the worldsteel Economics Committee Al Remeithi said: “The […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of financial market trading experience and has been active in the ferrous futures space for eight years. David earned an MBA from the University of Chicago Booth School of Business with concentrations in economics, statistics and analytical finance. Since […]
The Institute for Supply Management’s May Report on Business showed improvement, with the manufacturing PMI rising to 43.1 percent from a reading of 41.6 percent the previous month. The PMI score was at a contraction level not seen since April 2009, but the slight uptick was a promising sign. Manufacturers, however, continue to be guarded regarding […]
The U.S. Energy Information Administration (EIA) reports that exploration and development expenditures are likely to drop significantly this year. Global expenditures related to oil and gas E&D increased $42 billion (13 percent) in 2019, totaling $361 billion, according to the aggregate financial reports for 102 publicly traded oil companies. Additions to these companies’ collective proved […]
Active U.S. and Canadian drill rigs declined yet again this past week, according to oilfield services company Baker Hughes. The active drill rigs count is important to the steel industry because it is a leading indicator of oil country tubular goods demand. The number of active U.S. rigs fell by 17 to 301, with oil […]
New data from U.S. Federal Reserve Districts shows economic activity declined in all regions of the country in April and May due to disruption caused by the COVID-19 pandemic. Almost all areas of economic activity were negatively impacted during the period. Most districts reported a severe drop in manufacturing activity with production especially weak in […]
By CRU Analysts Ryan Smith, Andrew Gadd and Ben Carstein Oil markets have had a torrid 2020, with the combination of demand losses due to Covid-19 and the breakdown of coordination between major producing countries resulting in plummeting prices. In this Insight, we assess how the oil price shock influences steelmaking costs through both raw […]
Mark Bula is well known in steel circles for his role in a past startup now known as Big River Steel. Bula recently joined a new startup whose mission is not making steel, but rather making steel more safely. Bula recently accepted a position as chief strategy officer and general manager of steel for Everguard.ai, […]
Neither rosy nor the voice of doom, IHS Markit analyst John Anton offered a realistic assessment of the U.S. economic recovery post-COVID-19 during Wednesday’s SMU Community Chat Webinar. Recovery from the current recession will not be a quick V-shaped rebound, said Anton, who is associate director of IHS Markit’s Pricing and Purchasing Service. Instead, he […]
Yesterday’s SMU Community Chat drew nearly 500 attendees to hear John Anton, associate director of the IHS Markit Pricing and Purchasing Service, give his analysis of the coronavirus pandemic’s impact on the U.S. economy and steel market. His presentation prompted nearly two dozen questions from listeners, too many to cover during the Q&A portion of […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
By CRU Analyst Nikki Ni, from CRU’s Steel Monitor Over the past month, Chinese steel demand has accelerated, resulting in lower inventories while output remained at a high level. The ongoing demand recovery has improved the Steel PMI to 45.9 in April, up by 3.7pp m/m. Despite being below the 50-mark, the consecutive m/m improvement […]
Demand for design services at architectural firms plummeted in April, dragging the Architecture Billings Index down to 29.5 and its lowest level in the history of the index, said the American Institute of Architects. The ABI follows March’s record decline of 20.1 points to 33.3. New project inquiries and design contract indices also declined significantly, […]
U.S. Steel, AK Steel (Cleveland-Cliffs), Nucor, NLMK, ArcelorMittal and UPI all announced price increases today on flat rolled. With the exception of AMUSA, all were +$40/ton. AMUSA provided specific minimum base price guidance of $540 ($27.00.cwt) on hot rolled and $740 ($37.00/cwt) on cold rolled and coated products. Some early comments from various steel service […]
Wholesalers of HVAC products have weathered the pandemic surprisingly well so far and are more concerned about construction demand months from now than they are about their near-term prospects. Consider what has happened since April as a result of the market’s response to the virus: Steel mills are operating at just above 50 percent of […]
With the expectation of higher scrap prices coming for the month of June, on top of the steep rise in ferrous scrap this month, the mills’ margins may well be squeezed, which will impact negotiations and pricing over the next few weeks. Most steel buyers anticipate a new round of price increases by late May […]
Active U.S. and Canadian drill rigs declined yet again this past week, according to oilfield services company Baker Hughes. The active drill rigs count is important to the steel industry because it is a leading indicator of oil country tubular goods demand. The number of active U.S. rigs fell by 35 to 339, with oil […]
We had to change the way we calculate the adjusted data, which will also change how we derive our analysis. Previously, we adjusted the data to mirror the exact mix of service centers that responded to the previous month’s survey. We saw a decrease in participation in the March survey, which we can understand given […]
We are in the middle of a black swan event—an event that is expected but unexpected, said Chris Kuehl, managing director of Armada Corporate Intelligence during Wednesday’s SMU Community Chat Webinar. “Viral threats are not new and have been frequent in the past few decades, but we don’t know from year to year how they […]
We are in the middle of a black swan event—an event that is expected but unexpected, said Chris Kuehl, managing director of Armada Corporate Intelligence during Wednesday’s SMU Community Chat Webinar. “Viral threats are not new and have been frequent in the past few decades, but we don’t know from year to year how they […]
We had an exceptional SMU Community Chat Webinar with Dr. Chris Kuehl of Armada Corporate Intelligence on Wednesday morning. I am getting nothing but rave reviews of our free webinars, and I encourage you to inform your management and other teammates to register and then tune in at 11 AM ET every Wednesday. Next week […]
We had an exceptional SMU Community Chat Webinar with Dr. Chris Kuehl of Armada Corporate Intelligence on Wednesday morning. I am getting nothing but rave reviews of our free webinars, and I encourage you to inform your management and other teammates to register and then tune in at 11 AM ET every Wednesday. Next week […]
By CRU Principal Consultant Laura Brooks and Senior Consultant Amir Sabet, from CRU’s Crude Steel Market Outlook The market impacts of Covid-19 are unknown in scale, varied and staggered in time across the world. The steel raw materials markets are being affected to a lesser or greater extent depending on the demand-side and supply-side regional […]