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 […]
On a single data basis both our Current Steel Buyers Sentiment Index and Future Sentiment Index are at the record highs for our index. Current Sentiment, which is how buyers and sellers of flat rolled steel feel about their company’s ability to be successful in the existing market environment, came in at +71 this week. […]
January scrap negotiations have begun between the domestic (USA & Canada) steel mills and their scrap suppliers. As one large scrap company put it, “Things are slow to develop today, but I’m anticipating some movement by day’s end. This market has been sort of like a junior high dance at this point, with the reluctant […]
Global manufacturing reached a three year high in December, finishing out the year with the JPMorgan Global Manufacturing PMI at 52.7, up from 52.1 in November. After a flat first half, the second half of 2016 showed steady growth in the manufacturing sector. The December survey by IHS Markit indicates global manufacturing is growing at […]
It has been a busy (albeit short) week. I mentioned in my last newsletter that we are actively in the process of reviewing and building a new website. Beginning this evening, we have our website designers (K3 Technologies out of Atlanta) here in our Florida offices for the next few days so we can work […]
According to Baker Hughes data from December 30, 2016, the U.S rig count for the week was 658 rigs exploring for or developing oil or natural gas. This is up 5 rigs compared to last week, with oil rigs up 2 to 525 rigs, gas rigs up 3 to 132 rigs, and miscellaneous rigs unchanged […]
Vehicle sales fell slightly to 17.87 million units on a seasonally adjusted annualized basis in November, though this still beat expectations. The strengthening job market is supporting vehicle sales and will continue to do so through next year as an average of 170,000 jobs are estimated to be added per month. On the other side […]
Earlier this week the U.S. Department of Commerce released new license data on foreign steel imports into the United States for the months of November and December. At this time both months appear poised to come in just under 3.0 million net tons. We are seeing some changes in the trends regarding various products. For […]
Worthington Industries announced second quarter 2017 net earnings (ending Nov. 30, 2016) were $46.6 million on $727.8 million in net sales. In comparison Q2 earnings were down from first quarter earnings of $65.6 million but double that of Q2 2016. “We had a good second quarter with overall improving results and solid year-over-year growth,” said […]
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. On December 12th Gaurav […]
US Steel indicated it may permanently close the Lorain Tubular No. 4 seamless mill, which has been idle since April 2015, as well as the No. 1 Electric-Weld Pipe Mill at Lone Star Tubular. USW Local 1104, in Lorain, Ohio, was notified of the plan on December 14. The 90-day notice does not mean that […]
We have an unusual hot rolled futures market article tonight which will be dealt with in two segments: First, we will have an article written by Andre Marshall of Crunch Risk, LLC as he deals with the financial markets (S&P 500), oil and copper and then he has some comments about an errant trade which […]
Nucor announced today that fourth quarter results are likely to be lower than third quarter due to lower margins in the steel mills segment, particularly at the company’s sheet mills, and seasonal slower activity. The raw materials segment is also expected to decline significantly, returning to a loss position due to lower pricing at Nucor’s […]
Below is the latest release issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through October 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 October 2016 decreased 1.9 percent […]
According to Baker Hughes data from December 9, 2016, the U.S rig count for the week was 624 rigs exploring for or developing oil or natural gas. This is up 27 rigs compared to last week, with oil rigs up 21 to 498 rigs, gas rigs up 6 to 125 rigs, and miscellaneous rigs unchanged […]