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 […]
The industries that move the nations’ freight are scrambling to find ways to mitigate risks from U.S.-imposed tariffs and foreign-imposed retaliatory tariffs that will impact supply lines and trade flow. Volatility seems to be the new normal as industries face uncertainty over international trade conflicts. Ports Prepare for Tariff Disruptions The Trump administration’s addition of […]
A Senate Foreign Relations hearing went awry when the administration sent Manisha Singh, Assistant Secretary of State for the Bureau of Economic and Business Affairs, to answer committee members’ questions about Section 232 measures. Singh was unable to provide Senate members evidence of a coherent trade strategy by the administration. Singh was asked to comment […]
The U.S. rig count, an indicator of oil country tubular goods demand, increased this week, according to July 13 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs rose by 2 to 1,054 rigs, with oil rigs unchanged at 863 rigs, gas rigs up 2 to 189 rigs, and miscellaneous […]
Add the United Steelworkers to the list of those opposed to President Trump’s nomination of Judge Brett Kavanaugh to replace retiring Justice Anthony Kennedy on the Supreme Court. President Trump announced Kavanaugh’s selection on Monday, commenting that “what matters most is not a judge’s political views, but whether they can set aside those views to […]
Global manufacturing is losing its momentum, said JP Morgan and IHS Markit in their latest Global Manufacturing PMI. The June PMI was at an 11-month low of 53.0 in June, still in expansion territory but at a gentler pace. Production grew at its slowest pace since July 2017 and new orders were at a 19-month […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: The steel product exclusion process is stuck. While more than 11,000 comments have been filed, the overwhelming majority of which are product exclusion requests, less than 100 (by my latest count) have been processed. Of […]
The U.S. rig count, an indicator of oil country tubular goods demand, fell this week, according to June 28 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs fell by 5 to 1,047 rigs, with oil rigs down 4 to 858 rigs, gas rigs down 1 to 187 rigs, and […]
Construction spending reached a record level of $1.309 trillion in May as monthly increases in residential and public investment outweighed a decline in private nonresidential outlays, according to an analysis of new government data by the Associated General Contractors of America. Association officials warned, however, that continued labor shortages and rising materials costs threaten future […]
U.S. treasury yields are surging and this is contributing to the recent advance in the value of the dollar on foreign exchange markets. The dollar has strengthened by 4.5 percent in the last three months and also by 4.5 percent since Jan. 2. Please see the end of this report for an explanation of data […]
Argentina-based Tenaris announced last week it will begin producing pipe again at its mill in Conroe, Texas. The Conroe mill has been shuttered for the past three years after operations were suspended due to the plummeting oil prices and competition from imported pipe. Select areas of the mill will be restarted beginning with the heat […]
The price of oil topped the $70 per barrel mark last month, a level that often triggers new investment. Indeed, the rig count is up significantly from last year. But the oil price has since receded a bit. The spot price of West Texas Intermediate (WTI) broke through $70 on May 7 for the first […]
Major pipeline producers are seeking tariff exclusions for imported pipe used in pipeline projects currently in progress. Of the estimated 21,000 exclusion requests submitted to Commerce, more than 500 requests are for pipe and other energy-related materials. A report released June 18 by the Interstate Natural Gas Association of America (INGAA) estimates 41,000 miles of […]
On Tuesday, the U.S. Department of Commerce reported foreign steel import license data for the first 19 days of June. The data is indicating to Steel Market Update a significant drop in imported foreign steel. Taking the daily license rate and spreading it across the 30 days of June, we see the month trending toward […]
Nucor expects earnings for its second quarter to increase significantly compared to first-quarter 2018 due to higher average selling prices and increased profitability. Deregulation, tax reform and higher, stable oil prices have contributed to stronger market conditions, said Nucor in the company’s earnings guidance statement. Profitability increased across all of Nucor’s steel mill product groups […]
Speaking in support of the Section 232 tariffs, the American Line Pipe Producers Association is challenging recent claims by U.S. pipeline developers that they are unable to source sufficient quantities of large-diameter line pipe in the United States. The large-diameter welded pipe industry in the U.S. is operating at its lowest capacity in years—well under […]
Final steel imports for the month of April were reported at 3,753,987 million net tons, according to the U.S. Department of Commerce data released yesterday. The last time import levels were this high was June 2017 with 3,923,126 tons. April imports are up 12.6 percent compared to the previous month, and up 12.0 percent compared […]
Consumers in the United States may soon see their favorite products increase in price or become harder to find. In retaliation for Section 232 tariffs on U.S. steel and aluminum, Canada plans to impose its own 25 percent and 10 percent tariffs on a wide variety of goods. The 25 percent tariff is restricted to […]
The U.S. rig count, an indicator of oil country tubular goods demand, rose this week, according to June 1 data from oilfield services company Baker Hughes. The number of active U.S. drill rigs rose by 1 to 1,060 rigs, with oil rigs up 2 to 861 rigs, gas rigs down 1 to 197 rigs, and […]
Global manufacturing was at a nine-month low in May, according to data from J.P. Morgan and IHS Markit, in association with ISM and IFPSM. The composite Global Manufacturing PMI dipped to 53.1 from 53.5 in April. The second-quarter PMI average shows “mild growth deceleration” compared to the first quarter, said J.P. Morgan. The U.S. outperformed […]
Based on the latest license data from the U.S. Department of Commerce reported earlier this week, we are expecting the trend for May steel imports to total approximatley 2.6 million net tons. That’s just over one million tons less than what was imported in April. We continue to see strength in coil and sheet plate […]
In the table below, Steel Market Update provides a snapshot of flat rolled steel pricing, commodities that affected steel prices, and economic data of importance to the flat rolled steel industry in June. Looking back at the past month, SMU’s Pricing Momentum Indicator continued to point higher as the domestic mills reacted to the Trump […]
Based on the latest license data from the U.S. Department of Commerce reported earlier this week, we are expecting the trend for May steel imports to total 2.5 million to 2.6 million net tons. We continue to see strength in plate imports, in both coil and sheet. Finished imports are trending toward 2.1 million net […]