Voters who go to the polls in Colorado next month will consider Proposition 112, a measure with serious implications for the energy industry in their state, and beyond. “If this passes, not only will it devastate our economy, but also the economies of surrounding states,” an executive from a steel fabricator in Denver told Steel […]
In the last month, the U.S. dollar has weakened against seven of the 16 currencies that Steel Market Update tracks. This was close to the performance we reported last month, but a dramatic change from the period May through August when only a few of the 16 appreciated against the dollar (just one in May, […]
Pittsburgh, PA, October 18, 2018 – Allegheny Technologies Incorporated (NYSE: ATI) announced today it has signed an agreement to provide carbon steel hot-rolling conversion services for NLMK USA at ATI’s world-class Hot-Rolling and Processing Facility, or HRPF, located in Brackenridge, PA. Slab shipments to ATI will begin immediately and increase to anticipated production levels in […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Three items of interest for today, which will be expanded upon as events warrant: WTO Disputes on Section 232 Tariffs—At least two WTO members (the EU and Norway) requested formation of a dispute settlement panel […]
This afternoon, Steel Market Update spoke with James Banker, Jr., Executive Vice President of NLMK USA, about two topics. First, the slab conversion agreement between NLMK USA and Allegheny Technologies Inc. Second, we spoke about NLMK not following the $40 per ton price increase announced by the other domestic steel mills. We will discuss both […]
Earlier today, the U.S. Department of Commerce released the latest foreign steel import license data for September and October. Based on our analysis, the import trend for October continues to be much higher than we would have anticipated. We are looking at the month trending over 3 million net tons. The biggest reason for the […]
The U.S. active 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 11 to 1,063, with oil rigs up 8 to 869 rigs, gas rigs up 4 to 193 rigs, and miscellaneous rigs down 1 to […]
ArcelorMittal announced a binding offer from Liberty House Group for the purchase of ArcelorMittal Ostrava (Czech Republic), ArcelorMittal Galati (Romania), ArcelorMittal Skopje (Macedonia) and ArcelorMittal Piombino (Italy). The transaction is part of a divestment package agreed to by ArcelorMittal with the European Commission for the €1.8 billion acquisition of Italian steel mill Ilva. The ArcelorMittal […]
Energy prices are up, but growth in the rig count has slowed, and bottlenecks in the nation’s oil fields will continue to constrain oil and gas production—and along with it demand for oil country tubular goods (OCTG), reports Rick Preckel, a principal at Preston Pipe, a Ballwin, Mo., market research and consulting firm. As of […]
In an article last week, I overstated the amount of quota Brazil had for Galvalume. One of the other traders/mills was nice enough to provide me the accurate data. The yearly quota on AZ is 49,974.44 metric tons. The other flat rolled and plate product quotas out of Brazil are as follows: Hot rolled = […]
The slowdown for global manufacturing continued in September, according to the latest J.P. Morgan Global Manufacturing PMI. The headline PMI fell to a 22-month low at 52.2, down from 52.6 in August. The PMI has been above the 50.0 neutral mark since March 2016, but has declined in each of the past five months. Output […]
The month of September saw steel prices continue a steady decline that began in August. Steel Market Update data in the table below shows the benchmark hot rolled price slid from more than $900 per ton in the summer to the current price around $854. The same for cold rolled, which went from $1,000 a […]
The U.S. active 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 1 to 1,054, with oil rigs down 3 to 863 rigs, gas rigs up 3 to 189 rigs, and miscellaneous rigs up 1 to […]
TransCanada plans to begin construction on the Keystone XL pipeline next year now that the State Department has released an environmental review for an alternative route through Nebraska. A report released Friday by the State Department concluded that it is unlikely a pipeline leak would cause major environmental damage due to extensive safeguards put in […]
The following Trade Policy & Economic Briefing was authored by CRU Principal Economist Lisa Morrison Since March 2018, there has been a broad strengthening of the U.S. dollar. This has developed because of rising U.S. interest rates and strong U.S. economic growth, which is in relative contrast to continued, historically low Eurozone interest rates […]
The following article is regularly published for our Premium users, but we decided to share it with our entire readership this month. If you are interested in upgrading to a Premium subscription, contact us at info@SteelMarketUpdate.com or 800-432-3475. Oil and gas prices have stabilized, oil inventories are declining and the number of operating rigs exploring […]
Steel Market Update is sharing this Premium-level content with all readers this month. For more information on how to upgrade to a Premium subscription, email info@SteelMarketUpdate.com. Oil production in the U.S. hit another all-time high in July, but the number of operating rigs exploring for oil and gas has not changed much in 3½ months. […]
Oil production in the U.S. set another all-time record in August and stocks are increasing. In the last month, the price of oil has dropped by $16/barrel. Wall Street Breakfast had this to say on Nov. 9: “Oil fell below the $60 level overnight, a day after slipping into a bear market. That means U.S. […]
The U.S. active 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 7 to 1,055, with oil rigs up 7 to 867 rigs, gas rigs unchanged at 186 rigs, and miscellaneous rigs unchanged at 2 rigs. […]
Future Sentiment, measured as both a single data point and as a three-month moving average (3MMA), is near its low point of the year as conflict on the trade front keeps buyers guessing. Future Sentiment registered +55 in Steel Market Update’s latest Steel Buyers Sentiment Index, down from +67 in mid-August. Current Sentiment registered +63, […]
Construction spending increased 0.1 percent from June to July and 5.2 percent for seven months of 2018 combined, with year-to-date growth for most major public and private categories, according to an analysis of new government data by the Associated General Contractors of America. Association officials said sustained growth will depend in part on contractors’ ability […]
The U.S. active 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 4 to 1,048, with oil rigs up 2 to 862 rigs, gas rigs up 2 to 184 rigs, and miscellaneous rigs unchanged at 2 […]
The spot price of West Texas Intermediate (WTI) has been erratic in the last four months with two brief spikes above $70 per barrel. The oil price was $66.50 on Aug. 20. The total number of operating rigs exploring for oil and gas was up by 11.7 percent year over year and increased by nine […]
The U.S. active 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 13 to 1,057, with oil rigs up 10 to 869 rigs, gas rigs up 3 to 186 rigs, and miscellaneous rigs unchanged at 2 […]
Emission standards set by the Obama administration in 2012 are now on the chopping block by the Trump administration. Last week the Environmental Protection Agency and Department of Transportation submitted a proposal to roll-back emission standards that are set to take effect after 2020 and freeze them at the pre-2020 levels. “We are delivering on […]
June construction spending declined 1.1 percent after an upwardly revised record level in May, according to government data analyzed by the Associated General Contractors of America. However, the first half of 2018 was marked by widespread gains in public and private investment spurred by recent tax and regulatory reform. “There appears to be plenty of […]
The U.S. active 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 2 to 1,048, with oil rigs up 3 to 861 rigs, gas rigs down 1 to 186 rigs, and miscellaneous rigs unchanged at 1 […]
Many steel buyers, and investors in steel futures, are betting that steel prices will follow the typical seasonal pattern and decline in the last few months of the year, even with the Trump tariffs boosting the market. While that may prove true for flat roll, it will most likely not be the case for steel […]
Reliance Steel & Aluminum, North America’s largest service center organization, set a new company record with net sales of $2.99 billion for the second quarter of 2018. Sales grew by 20.8 percent from a year ago and 8.4 percent from the previous quarter. Net income totaled $230.8 million, up 124.1 percent from Q2 2017 and […]
Oil prices have bounced around a bit lately, struggling to stay above the $70 per barrel mark. The spot price of West Texas Intermediate (WTI) broke through $70 on May 7 for the first time since Nov. 27, 2014, and stayed above that level through May 24 this year. The price declined to $64.75 on June […]