Figure 1 shows historical gas and oil prices since January 2000. The daily spot price of West Texas Intermediate (WTI) closed at $31.42 on January 11th, down from $36.31 on December 14th, according to the latest daily figure available from the Energy Information Administration (EIA). There have been reports in the press that oil broke […]
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 November 2015. 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 2015 decreased 17.3 percent […]
The following article is written by Spencer Johnson of FC Stone LLC. With six years of experience, Spencer provides his customers strategic and tactical advice on protecting themselves against commodity price volatility in the steel markets. Spencer rotates weekly futures articles with Andre Marshall of Crunch Risk, LLC. Spencer can be reached at spencer.johnson@intlfcstone.com. In […]
Nucor Sheet Mill Group got the flat rolled pricing ball rolling earlier today as they advised their customers by emailed letter that base prices will rise on new spot orders by a minimum of: Hot Rolled: $20 per ton ($1.00/cwt)Cold Rolled: $30 per ton ($1.50/cwt)Galvanized: $30 per ton ($1.50/cwt) Nucor did not advise of any […]
In the first eleven months of 2015 bulk scrap exports were 11,762,000 tonnes for an annual rate of 12,831,000 tonnes, down by 17.5 percent from the first eleven months of 2014. The tonnages shown in Figure 1 are based on three month moving averages (3MMA) for 2015 and on the annual monthly average for previous […]
The Bureau of Labor Statistics (BLS) analysis of non-farm employment reported on Friday that 292,000 jobs were added in December, which was better than economist’s consensus expectations. October was revised up by 9,000 and November up by 41,000. The three month moving (3MMA) of gains through December was 284,000. The unemployment rate, U3, calculated from […]
Steelworkers in Lorain, Ohio are having a dismal start to 2016. In addition to this week’s announcement by Republic Steel that it would idle operations at its rolling mill, US Steel confirmed layoffs are coming to Lorain Tubular. A union official reports 261 workers at US Steel’s Lorain Tubular Operations will be laid off beginning […]
According to Baker Hughes data from January 8, 2016, the U.S rig count for the week was 664 rigs exploring for or developing oil or natural gas. This is a decrease of 34 rigs compared to last week, with oil rigs down 20 to 516 rigs, gas rigs down 14 to 148 rigs, and miscellaneous […]
The Associated General Contractors of America released the results from their 2016 Construction Hiring and Business Outlook Report. Survey responses from more than 1,500 construction firms indicate that the construction industry is optimistic about business opportunities for 2016. A mix of private and public sector market segments are expected to drive demand for construction in […]
Manufacturing ended the year with general global slowing as production and new orders declined. The JP Morgan Global Manufacturing PMI registered 50.9 in December, down from 51.2 in November. The global PMI average for 2015 failed to surpass the average reading for the prior two years. PMI indices for China, India, Brazil, Russia, Indonesia and […]
Each month the Commerce Department issues its Construction Put in Place (CPIP) data, usually on the first working day covering activity two months earlier. November data was released on Monday January 4th and data for private construction was revised back to January 2005, almost eleven years. Construction Put in Place is based on spending work […]
The flat rolled steel price roller coaster did not do the steel mills or companies holding inventory any favors this past year. We saw hot rolled prices drop from just below $650 per net ton (average) at the beginning of the year to the low point of $360 per ton achieved the week of December […]
Last year was a major year for labor contracts that affected the steel industry. After months of slowdowns and contentious negotiations on the West Coast in 2014, the PMA/ILWU finally ratified a contract in May of 2015. The labor dispute caused delay of steel shipments and other products, congestion on the docks, and shifted some […]
Based on the Preliminary License Data recently released by the U.S. Department of Commerce, foreign steel imports for the month of November were 2,350,942 net tons. This is the lowest total seen for any month since December 2011 when 2,064,143 net tons were reported. November 2015 imports were 1,343,207 tons less than November 2014 when […]
The Texas Manufacturing Outlook Survey, conducted by the Dallas Fed, showed mixed results in December. The general business activity index plunged to -20.1 from -4.9 in November indicating a continued weakness in manufacturing. Analysts expected a decrease but only to around -6.0. In contrast, the index for production rose 8.2 points to 13.4 during the […]
On December 16th the Federal Reserve raised the federal funds rate for the first time in almost a decade. In the United States, the federal funds rate is “the interest rate” at which depository institutions (banks and credit unions) actively trade balances held at the Federal Reserve, called federal funds, with each other, usually overnight, […]
US Steel Corp announced it will postpone construction of the electric arc furnace at its Fairfield Works operation in Alabama due to “continued challenging market conditions in both the oil and gas and steel industries.” The $230 million EAF was scheduled for completion next year, giving US Steel the flexibility of its first EAF. The […]
Figure 1 shows historical gas and oil prices since January 2000. The daily spot price of West Texas Intermediate closed at $36.31 on December 14th, down from $45.91 on October 17th, according to the latest daily figure available from the Energy Information Administration (EIA). Brent closed at $36.51 on December 14th. WTI was down from […]
Both of these data points are reported in the Federal Reserve G17 data base. The index had an all-time high of 107.9108 in November last year but on a month over month (m/m) basis has declined for nine of the first eleven months of 2015. This contrasts sharply with last year when in only one […]
The following article is written by Spencer Johnson of FC Stone LLC. With six years of experience, Spencer provides his customers strategic and tactical advice on protecting themselves against commodity price volatility in the steel markets. Spencer will rotate weekly futures articles with Andre Marshall of Crunch Risk, LLC. Spencer can be reached at spencer.johnson@intlfcstone.com. […]
Late Tuesday afternoon the U.S. Department of Commerce released updated import license data for December. Based on the data through the first 15 days of the month it appears December imports will be very similar to November. We remind our readers that license data this early in the month should be taken with a grain […]
Worthington Industries posted net sales of $699.8 million and net earnings of $23.2 million for second quarter 2016 ending November 30, 2015. CEO John McConnell called it a “solid performance for the quarter in the face of some market weakness.” Sales were down 19.7 percent compared to the prior year’s second quarter as result of […]
Layoffs at US Steel Granite City Works are expected to begin December 27, according to reports by USW leaders in the Dec. 10 Bellville News-Democrat. US Steel announced in October that it was considering idling the steel plant in Granite City and issued WARN notices to over 2000 workers. Shortly before Thanksgiving the company confirmed […]
According to Baker Hughes data from December 11, 2015, the U.S rig count for the week was 709 rigs exploring for or developing oil or natural gas. This is a decrease of 28 rigs compared to last week, with oil rigs down 21 to 524 rigs, gas rigs down 7 to 185 rigs, and miscellaneous […]
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 2015. 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 2015 decreased 21.0 percent […]
Earlier this week Steel Market Update (SMU) attended the annual HARDI conference in Orlando, Florida. The well attended conference focused on a number of areas affecting the HVAC Wholesalers including presentations on the economy by Alan Beaulieu of the Institute for Trend Research (ITR) and Steel Market Update regarding the status of the galvanized sheet […]
In the first ten months of this year bulk scrap exports were 10,889,000 tonnes for an annual rate of 14,519,000 tonnes, down by 15.6 percent from the first ten months of last year. The tonnages shown in Figure 1 are based on three month moving averages (3MMA) for 2015 and on the annual monthly average […]
The Bureau of Labor Statistics (BLS) analysis of non-farm employment reported on Friday that 211,000 jobs were added in November, which was in line with economist’s consensus expectations. Both September and October were revised up by a total of 38,000. The three month moving (3MMA) of gains through November was 218,000. The unemployment rate, U3, […]
According to Baker Hughes data from December 4, 2015, the U.S rig count for the week was 737 rigs exploring for or developing oil or natural gas. This is a decrease of 7 rigs compared to last week, with oil rigs down 10 to 545 rigs, gas rigs up 3 to 192 rigs, and miscellaneous […]
The U.S. Department of Commerce released license data collected through December 1st for the month of November. Based on license data (which can vary from the final census numbers) November foreign steel imports should be approximately 2.5 million net tons. If correct, this would be the lowest level seen since December 2013 which was the […]