Note: this article was corrected on 5/3/2019; scrap will be down by $20-$30 per ton-in May, not falling to $230 per ton as previously stated. Ryerson Holding Corp. is expecting a better second half for the steel industry despite some weakening economic data and inventory issues. “Last year was a very unusual time for our […]
Earlier this week the U.S. Department of Commerce released the latest foreign steel import license data. Based on this data, the trend is for 2.8 million net tons of foreign steel imports to arrive in the United States during the month of April. This is essentially unchanged from March, but higher than the 2.4 million […]
Worthington Industries, Inc., has promoted Jeff Klingler to president of Steel Processing and Eric Smolenski to president of Pressure Cylinders. “Jeff and Eric are both proven leaders at Worthington; they will be excellent additions to our executive team,” said John McConnell, Chairman and CEO. “Jeff has a deep knowledge of our Steel business and has […]
Monthly oil production in the U.S. in January was second only to the all-time high set in December 2018. The price of West Texas Intermediate crude oil had recovered to $63.43/barrel on April 15, up from its recent low of $44.48 on Dec. 27. On April 23, Economy.com wrote: “Oil prices rebounded in the first […]
SSAB Americas was a strong contributor for SSAB’s global steel business in the first quarter of 2019. The Americas segment turned in a solid performance with an EBITDA margin of 23 percent and record profit of $129 million due to higher steel prices. Sales increased 45 percent from the first quarter of 2018 to $3.363 […]
By CRU Cost Economist Ross Cunningham Six months ago, the U.S. surprised the oil market by making a U-turn on its previous decision to impose sanctions on Iranian crude by providing six-month waivers to the eight biggest buyers. These waivers were one of the key reasons leading to oil prices falling by ~30 percent from […]
Caterpillar manufacturing costs escalated in first quarter by $375 million compared to a year ago on higher steel prices, freight and variable labor costs. “These higher costs, while unfavorable, were improved from the fourth quarter levels. Material costs included a direct tariff expense in the first quarter of about $70 million, in line with what […]
The U.S. active rotary rig count, an indicator of oil country tubular goods demand, decreased this week, according to oilfield services company Baker Hughes. The number of active U.S. rigs fell by 21 to 991, with oil rigs down 20 and gas rigs down 1. Compared to this time last year, the 991 count is […]
Reliance Steel & Aluminum posted a good first quarter with net sales of $2.96 billion, increasing 7.2 percent year-over-year and 4.1 percent from the fourth quarter. Net income jumped 122 percent from the fourth quarter to $190.1 million. Tons sold increased 5.2 percent from the fourth quarter to 1.5 million tons, but were slightly below […]
Global steel demand will top 1.75 billion metric tons by the end of next year, despite economic headwinds in many parts of the globe, predicts the World Steel Association in its April 2019 Short Range Outlook. Worldwide, steel demand will increase by 1.3 percent this year to 1,735 Mt, followed by further 1 percent growth […]
A long-term feud between Boeing in the U.S. and Airbus in Europe is coming to a head. Tuesday the U.S. threatened to impose $11.2 billion of retaliatory tariffs on European goods in response to the continued subsidization of the Airbus manufacturer. “This case has been in litigation for 14 years, and the time has come […]
The U.S. Department of Commerce released updated import license data on Tuesday evening, with new March license estimates up slightly to 2.76 million tons. These latest figures would be above the three-month moving average (3MMA, through final January data), but below the 12-month moving average (12MMA). When removing the semi-finished (mostly slabs) licenses from the […]
Residents near U.S. Steel’s Mon Valley Works are in an uproar over plans to allow New Mexico-based Merrion Oil & Gas to drill for natural gas in the Edgar Thomson Plant. U.S. Steel has leased 10 acres of land at the plant in Braddock, Pa., to Merrion Oil to construct three fracking wells that will […]
The U.S. Department of Commerce released license data for foreign steel coming into the United States. Based on the data received and reported through April 2, March imports are expected to come in slightly higher than February at 2.6-2.7 million net tons. When removing the semi-finished (mostly slabs) licenses from the data, the finished steel […]
The U.S. active rotary rig count, an indicator of oil country tubular goods demand, increased this week, according to oilfield services company Baker Hughes. The number of active U.S. rigs rose by 19 to 1,025, with oil rigs up 15 and gas rigs up 4. Compared to this time last year, the 1,025 count is […]
Raw materials prices have lacked direction in the last month. Table 1 summarizes the price changes through March of the five materials considered in this analysis. It reports the month / month, 3 months / 3 months and 12 months / 12 months changes and tells us that iron ore and pig iron declined in […]
Construction spending increased 1.0 percent in February following a 2.5 percent gain in January, reported the Associated General Contractors of America in its latest analysis of government data. Construction spending totaled $1.32 trillion in February, up 1.0 percent from the January rate and a gain of 1.1 percent compared to February 2018. Public construction accounted […]
By CRU Principal Economist Lisa Morrison Data released for Q1 2019 have been largely positive. The ISM Manufacturing survey reflects a moderating rate of expansion, but the reading of 54.2 in February shows a solid level of manufacturing activity with new orders, output, employment and backlogs squarely in “expansion” territory. Housing disappointed in 2018, but […]
The spot price of West Texas Intermediate FOB Cushing, Okla., had a recent peak on Oct. 3 of $76.40/barrel. The price declined to $44.48 on Dec. 27, but recovered to $59.09 on March 15. The total number of operating rigs exploring for oil has declined by 61 since Jan. 4. The prices of oil and […]
Since hitting an eight-year low in December of just 1,893,568 tons, imports of steel into the United States have been up and down, according to Commerce Department data. Final January imports jumped to 3,478,865 net tons, up 83.7 percent over December—a nearly 1.6 million ton increase. Then in February, based on license data for the […]
The U.S. Court of International Trade ruled against a legal challenge to the constitutionality of Section 232 brought by the American Institute for International Steel. AIIS alleged that Section 232 violates the constitutional prohibition against Congress delegating its legislative powers to the president. The CIT denied a motion by AIIS for a summary judgment, citing […]
Big River Steel still considers Brownsville, Texas, an attractive site for a new EAF mill and the Port of Brownsville is ready whenever BRS greenlights the project. In his State of the Port address this week, Brownsville Navigation Chairman John Reed noted that Big River Steel extended its land lease option for another year. A […]
The U.S. active rotary rig count, an indicator of oil country tubular goods demand, decreased this week, according to oilfield services company Baker Hughes. The number of active U.S. rigs fell by 10 to 1,016, with oil rigs down 9 and gas rigs down 1. Compared to this time last year, the 1,016 count is […]
Steel imports are trending up in March as license data from the U.S. Department of Commerce shows total imports tracking towards 2.9 million net tons–above the 3-month and 12-month moving averages. Based on license data through March 19, both finished and semifinished steels (mostly slabs purchased by domestic mills) are up significantly over February levels. […]
Stelco, one of the most technologically advanced integrated steelmaking facilities in North America, will take another step forward in the technology realm. Stelco has signed an agreement with Canvass Analytics to use the Canvass AI software to transform operational data into “actionable intelligence.” “By partnering with Canvass Analytics, we are systematically transforming our facilities into […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: President Trump may be forced to concede some ground on his Section 232 tariffs in order to get legislators in Canada and Mexico to sign off on the new North American trade agreement. One option the administration reportedly […]
The U.S. active rotary rig count, an indicator of oil country tubular goods demand, decreased this week, according to oilfield services company Baker Hughes. The number of active U.S. rigs fell by 11 to 1,027, with oil rigs down 9 and gas rigs down 2. Compared to this time last year, the 1,027 count is […]
“Moderate and balanced growth” is evident across the residential, nonresidential and public construction sectors, although labor shortages continue to plague the industry, says an analysis of new government data by the Associated General Contractors of America Construction spending dipped 0.6 percent in December to a seasonally adjusted annual rate of $1.29 trillion, but increased 1.6 […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, 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 […]
By CRU Principal Economist Lisa Morrison U.S. economic data for December and January are beginning to come in now that the federal government is funded for the remainder of this fiscal year, which ends Sept. 30. December housing starts showed a weak end to 2018 as the total of 1.247 million units for 2018 was […]