The Institute of Supply Management released their February report on March 2nd. An explanation of this data set is given at the end of this piece. After the October surprise on the upside, the index slid back to 55.1 in December to 53.5 in January and to 52.9 in February. The three month moving average […]
Twenty-seven months of consecutive global manufacturing growth was marked by the JP Morgan Global PMI in February. The headline index rose to 52.0 from 51.7 in January. The United States continued to be the prime driver of global growth with the Markit U.S. PMI increasing to 55.1 from 53.9 in January. Mexico showed strong growth […]
The USW reported that U.S. refinery negotiations will resume on March 4. Talks stalled on Feb 20 prompting the USW to enlarge the strike, adding three refineries co-owned by Shell Oil to the walkout. Currently 6,550 workers are now on strike at 15 plants. “We can confirm that Shell and USW have agreed to speak […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
AM Castle, a global distributor of specialty metal and plastic products, reported a consolidated net loss of $39 million for Q4 and a loss of $134.7 million for the full year 2014. Results for Q4 were negatively impacted by $8.2 million of provisions for inventory reserves due to restructuring consolidation and $2.9 million of other […]
According to Baker Hughes data from February 27th, 2015, the U.S rig count for this week is 1,267 rigs exploring for or developing oil or natural gas. The count is down 43 rigs when compared to last week, with oil rigs down 33 to 986 rigs, gas rigs down 9 to 280 rigs, and miscellaneous […]
The U.S. Department of Commerce released the latest steel import licensing data for February as well as the Preliminary Census Data for the month of January 2015. January imports are being reported as being 4,250,041 net tons (3.9 million metric tons). This is up 32.6 percent compared to one year ago. Hot rolled imports, even […]
Hot rolled prices continued lower this week with the CRU down $9 to $508/ton with HRC futures following suit. Q2 has been trading around $510/ton with March trading as low as $503/ton – $13 lower than the week prior. The second half of 2015 is reasonably higher with Q3 and Q4 both trading around $535/ton. […]
Olympic Steel reported higher sales volume and demand in fourth quarter 2014, but lower steel prices reduced margins for the quarter and year. Olympic Steel reported consolidated net sales up 12.5 percent for a fourth quarter record of $326.7 million. Full year sales were also a record at $1.4 billion, up 13.7 percent from 2013. […]
Tenaris announced it will temporarily suspend operations at its welded tubes mill in Conroe, Texas. The shutdown will result in the layoff of approximately 230 employees, effective April 2015. “Record levels of unfairly traded imports of OCTG (oil country tubular goods) from South Korea and the sharp decline in the price of oil and consequential […]
Each month the Bureau of Labor Statistics, (BLS) puts out its series of producer price indexes, for thousands of goods and materials. For an explanation of this program see the end of this piece. The latest release last Wednesday reported January results. We run this analysis every three months to give readers an opportunity to […]
Global steel production in 2014 totaled 1.627 billion tonnes with a capacity of 2.2 billion tonnes which yields an average utilization for the year of 74 percent. China accounted for 51 percent of global production in 2014. Asia as a whole, including India, accounted for almost 70 percent of global production. Production in January on […]
I couldn’t escape the snow. Our offices in North Georgia were closed today due to 4″ of the white stuff which paralyzes those in its wake in the South. However, I traveled to Chicago yesterday only to find that the flurries being forecast earlier in the week became closer to 5″ of snow and much, […]
Once a month, HARDI sponsors a galvanized steel conference call with the wholesalers who sell sheet and coil to the HVAC mechanical contractors. Steel Market Update (SMU) has participated in these informative discussions for a number of years and they are very useful in our understanding of the ebb and flow of both pricing and […]
Worthington Industries Inc. has revised its six month outlook due to falling steel prices and demand. In a Feb. 23 press release, Worthington wrote, “The price of steel has dropped over $100 a ton since mid-December. The amount and speed of the decline was not anticipated. When steel prices fall, the Company typically has higher-priced […]
President Obama vetoed the Keystone XL Pipeline bill passed by the U.S. Congress. We have a full story on the veto on our website blog. We are trying to put more and more general interest stories, press releases, etc. on our website blog as opposed to publishing everything in our newsletters. This way we hope […]
United Steelworkers representing the nations refineries turned down a seventh contract offer from Shell Oil Co. Negotiations, which began January 1, took a one week hiatus before resuming on Wednesday and ending in frustration on Friday. The USW said the latest offer from Shell, which is leading the contract negotiations for the U.S. refineries, “failed […]
According to Baker Hughes data from February 20th, 2015, the U.S rig count for this week is 1,310 rigs exploring for or developing oil or natural gas. This count is a decrease of 48 rigs when compared to last week, with oil rigs down 37 to 1,019 rigs, gas rigs down 11 to 289 rigs, […]
Steel Market Update last Apparent Excess/Deficit forecast for flat rolled steel shipments and inventories called for shipments in January to exceed 2014 levels by 2 percent. Total flat rolled shipments for the month of January 2015 were projected by us to be 2,415,000 tons. In actuality, shipment levels were 1.6 percent higher than January 2014 […]
The U.S. Department of Commerce released the latest import licensing data for the license requests received through the 18th of February. Steel Market Update (SMU) then compares the daily tonnage rate against the previous four months and the daily license rate being reported during the 3rd week of that particular month. Based on that analysis, […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. We are working on adding new futures workshops in the coming months. If interested please email us at: […]
Reliance Steel & Aluminum fourth quarter consolidated sales rose 11.7 percent year over year to $2.58 billion. Tons sold increased 4.4 percent year over year to 1,469,300 tons. Carbon steel sales of $1.4 billion fell 5.9 percent sequentially with tons sold down 4.7 percent to 1,999,300 tons. The average selling price per ton of steel […]
Below is the latest data issued by the the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) regarding residential and commercial heating and cooling equipment shipments through December 2014. 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 2014 increased 12.0 percent, […]
“It’s not 2008 or 2009.” We heard this from trading companies, steel service centers and mills during the Port of Tampa Steel Conference this past week. This week we are hearing similar comments as we make our rounds talking to those active in the industry. Prices have been collapsing but there does not appear to […]
The Coface Group, a worldwide leader in credit insurance, publishes country risk assessments for 160 countries, based on its unique knowledge of company payment behavior and on the expertise of 350 underwriters located close to clients and their debtors. The following a reprint of their risk outlook for 2015. Laborious Global Recovery, Subject to Multiple […]
Steel Market Update recently attended the Port of Tampa Steel Conference in Tampa, Florida. When speaking with the service centers and traders it was apparent that we are in a period of time when buyers do not trust that the price today will be any good tomorrow. Our Comparison Price Indices report accentuates the issues […]
Phillip Bell, President of the Steel Manufacturers Association (steel mills) told those assembled at the 26th annual Port of Tampa Steel Conference, “There is a growing consensus that something just isn’t right.” What he was referring to was the domestic steel mills running at 75 percent capacity utilization rates and the industry still suffering due […]
Figure 1 shows historical gas and oil prices since January 2000. The daily spot price of West Texas Intermediate fell below $100 in August and by January 23rd was down to $44.80. By February 9th, the latest daily figure available from the Energy Information Administration (EIA), the price of WTI had recovered to $52.99. Brent […]
ArcelorMittal narrowed its net loss to $1.1 billion in FY 2014 and cut its debt to $15.8 billion, the lowest level since the company was formed in 2006. Cash flow from operations in 2014 totaled $3.9 billion. Consolidated steel shipments for 2014 were up 3 percent year over year to 85.1 million tonnes. Fourth quarter […]
The following article was taken from the Armada Corporate Intelligence Report dated February 11,2015. The report is written by Dr. Chris Kuehl and his business partner, Keith Prather. Dr. Kuehl spoke at our last Steel Summit Conference in September 2014 and will once again be a keynote speaker for our 2015 Steel Summit Conference on […]