The February ISM Report on Business indicates manufacturing activity expanded in February with the overall economy in a 93rd month of consecutive growth. The PMI was 57.7 percent, up from 56 percent in January. Looking at it from a 3 month moving average, February showed growth at 56.1, up from 54.7. Production at 62.9 gained […]
President Donald Trump says the Keystone and Dakota Access pipelines must be built from American manufactured steel. After playing with semantics for weeks, the President has now issued a mandate that will require the Keystone XL and Dakota Access pipelines to use steel pipe manufactured in the U.S., according to a report by CNBC on […]
The number of oil and natural gas rigs is moving higher and this is good news for the North American steel industry. According to Baker Hughes data from February 24, 2017, the U.S rig count for the week was 754 rigs exploring for or developing oil or natural gas. This is up 3 rigs compared […]
Please see the end of this report for an explanation of data sources. The Broad Index value of the US $ is reported several days in arrears by the Federal Reserve, the latest value published was dated February 17th (Figure 1). The dollar had a recent peak of 128.963 on January 3rd which was the […]
February 2017 steel import licenses are suggesting that foreign steel imports will be markedly higher than February 2016. Last year the U.S. imported 2.2 million tons of foreign steel. Right now, based on import licenses collected through February 21, 2017, the trend is for imports to reach 2.6 to 2.7 million net tons. This would […]
Market segments tend to run in cycles and rarely are all segments clicking at the same time. A good example is during the Great Recession, which crushed most steel consuming market segments, we learned through Priefert Manufacturing that farm, ranch and rodeo equipment were quite strong. As the economy improved cycles shifted and over the […]
North Star Bluescope Steel reported underlying EBITDA in the first half of FY 2017 of $180.2 million, an increase of 178 percent from 1H FY 2016 . Sales revenue was US$ 598.7 million. The mill operated at 100 percent capacity in the first half and benefited from lower conversion costs, particularly in utilities. Shipments for […]
According to Baker Hughes data from February 17, 2017, the U.S rig count for the week was 751 rigs exploring for or developing oil or natural gas. This is up 10 rigs compared to last week, with oil rigs up 6 to 597 rigs, gas rigs up 4 to 153 rigs, and miscellaneous rigs unchanged […]
Reliance Steel & Aluminum reported sales of $2.06 billion in fourth quarter, up 1.7 percent from fourth quarter 2015 and down 5.7 percent from Q3 2016. Tons sold at 1,365,000 were down 1.1 percent from Q4 2015 and down 5.6 percent from third quarter. Average selling price per ton sold was $1,500, essentially the same […]
The Bureau of Labor Statistics released the January employment data on Friday and introduced five years of revisions. In January the preliminary result for net job creation was 227,000. November was revised down by 40,000 and December revised up by 1,000. Using a three month moving average (3MMA), the result for January was 183,000 up […]
The prices of oil and natural gas drive the consumption of oil country tubular goods (OCTG) and related steel products. The energy markets represent a large portion of the hot rolled coil used to make welded tubular goods as well as equipment used to drill and pump oil and natural gas. Figure 1 shows historical […]
Below is the latest data release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through December 2016. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for December 2016 increased 1.3 […]
ArcelorMittal NAFTA segment results declined in fourth quarter 2016. Steel shipments decreased by 6.6 percent to 5 million tonnes from third quarter driven by an 8.5 percent decrease in flat volumes due to destocking in the United States. NAFTA sales were down 11.1 percent from the prior quarter to $3.8 billion due to lower average […]
The US Steel Granite City hot strip mill is back in action as promised. US Steel has called 225 employees back to work to restart the facility’s idled hot mill. For the present, only the hot mill will be restarted which reheats steel slabs, sourced from other US Steel mills, to process them into coil. […]
The U.S. Department of Commerce provided updated license and census data which indicates foreign steel imports are trending lower. December imports of foreign steel are totaling 2,685,641 tons while January is trending toward 2.7 million tons based on license data through the end of the month. Items that are trending lower are: Semi-finished steels of […]
According to Baker Hughes data from February 3, 2017, the U.S rig count for the week was 729 rigs exploring for or developing oil or natural gas. This is up 17 rigs compared to last week, with oil rigs up 17 to 583 rigs, gas rigs unchanged at 145 rigs, and miscellaneous rigs unchanged at […]
It is Super Bowl Sunday so I am going to keep this as short as possible. Everyone needs to remember that I lived in Atlanta for 34 years, having just moved permanently to Florida a little more than a year ago. Let’s hope for a good game and great commercials… Go Falcons! As you know […]
Please see the end of this report for an explanation of data sources. The Broad Index value of the US $ is reported several days in arrears by the Federal Reserve, the latest value published was dated January 20th (Figure 1). The dollar had a recent peak of 128.9627 on January 3rd which was the […]
According to Baker Hughes data from January 27, 2017, the U.S rig count for the week was 712 rigs exploring for or developing oil or natural gas. This is up 18 rigs compared to last week, with oil rigs up 15 to 566 rigs, gas rigs up 3 to 145 rigs, and miscellaneous rigs unchanged […]
Manufacturers in the Fifth and Tenth Districts were optimistic about future manufacturing growth during the next six months. The Tenth District, under the Federal Reserve Bank of Kansas City, was especially optimistic on future growth. Richmond Fed The Federal Reserve Bank of Richmond reported manufacturing activity strengthened in the Fifth District during January. The composite […]
President Donald Trump signed an executive order on Tuesday giving permission for the Keystone XL oil pipeline project to advance as quickly as possible. While the announcement prompted mixed reaction in the United States, TransCanada said it appreciates the president’s invitation to proceed and will re-submit its application to do so. “KXL creates thousands of […]
Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. HARDI and The Institute for Trend Research (ITR), an economic forecasting company, work together to gather economic data to provide a forecast to the HARDI members located in the United […]
Allegheny Technologies Inc. reported fourth quarter sales of $796 million and net income of $10 million. Flat rolled sales increased 13.2 percent year-over-year in Q4 2016 to $18.9 million, but the segment posted an operating loss of $0.8 million, improved from a loss of $120.1 million in Q4 2015. Quarter results were impacted by “weak market […]
The Architecture Billings Index (ABI) ended 2016 at a score of 55.9, up from 50.6 in November and growing for the third consecutive month, according to the latest report by the American Institute of Architects. The new projects inquiry index stood at 57.2 in December from 59.5 the previous month. The differing growth pace between […]
The prices of oil and natural gas drive the consumption of oil country tubular goods (OCTG) and related steel products. The energy markets represent a large portion of the hot rolled coil used to make pipe and tube as well as equipment used to drill and pump oil and natural gas. Figure 1 shows historical […]
The Environmental Protection Agency announced fuel economy standards for 2025 on Friday, rejecting appeals to roll-back miles per gallon requirements for fleet-wide fuel efficiency. The 2025 target will remain unchanged at an average of 50.8 miles per gallon. “My decision today rests on the technical record created by over eight years of research, hundreds of […]
The idled US Steel McKeesport Tubular mill in Pennsylvania is coming back to life in 2017. Dura-Bond Industries, a pipe manufacturer and coater headquartered in Export, PA, has leased the mill and plans to restart production after approval and upgrades are made. Jason Norris, president of Dura-Bond, confirmed the purchase of equipment from US Steel […]
Below is the latest data release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through November 2016. You may read the press release on their website here. Residential Storage Water Heaters U.S. shipments of residential gas storage water heaters for November 2016 increased 16.8 […]
The Bureau of Labor Statistics employment reports, both national and regional, are fundamental to our understanding of where the various steel consuming sectors are headed. In this analysis we are examining multiple data sources to try to develop a broad base of understanding. This data complements other more specific information on construction and manufacturing activities […]
According to Baker Hughes data from January 6, 2017, the U.S rig count for the week was 665 rigs exploring for or developing oil or natural gas. This is up 7 rigs compared to last week, with oil rigs up 4 to 529 rigs, gas rigs up 3 to 135 rigs, and miscellaneous rigs unchanged […]