The Institute of Supply Management released their January report on February 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 once again from 55.1 in December to 53.5 in January. The three month moving average has declined for […]
The United States Senate passed the Keystone XL oil pipeline bill by a vote of 62-36 on Thursday, Jan. 29. Nine Democrats joined the Republican-controlled Senate in supporting the bill. The House is expected to vote on the Senate version of the bill early next week. The Keystone XL legislation includes two energy-efficiency programs that […]
Global manufacturing continues to grow steadily with expansion in production and new orders in January. The JP Morgan Global Manufacturing PMI rose slightly last month to 51.7 from 51.5 in December. “The PMI turned higher in January, including moderate gains in the indexes of output and new orders,” commented David Hensley, Director of Global Economics […]
United Steel Workers in the oil industry went on strike on Sunday after failing to agree on new labor contracts. The strike will affect approximately 3,800 employees at nine U.S. sites. It is the largest national USW walkout since a 1980 strike that lasted three months. About 10 percent of the oil refinery capacity will […]
Steel Market Update (SMU) ferrous scrap sources are advising us that the scrap market pricing have not settled yet. It seems that every periodical wants to fan the flames of scrap price collapsing (and we do our share as well I suppose) before the final numbers are locked in. Keep that in mind when evaluating […]
SMU Price Momentum Indicator has been stuck pointing lower for a number of months, ended the month of January as it did at the end of November and December. We saw SMU Steel Buyers Sentiment Index improve by +1 point in January over the month of December. However, when looking at Sentiment based on a […]
According to The TEX Report, Japan will decrease its shipment of hot rolled coil to South Korea beginning in February. Orders from South Korea for February shipments of HRC have dropped, in some cases by nearly half, due to weakened demand for OCTG in the U.S. Last year Japan exported 2,045,000 tonnes (2,254,188 net tons) […]
Steel Market Update thought it might be worthwhile to pick out some of the comments made by Steel Dynamics CEO Mark Millett during his earnings conference call with analysts late last week. We have focused on comments made about foreign steel, scrap, energy markets and the new Columbus facility. Each of the comments made are […]
The Chicago Business Barometer rose 0.6 points in January to 59.4 from a revised reading of 58.8 in December. The increased manufacturing activity follows two consecutive months of declines. The index showed a modest increase in a new orders, order backlogs and production, driving employment to a 14-month high. Inflationary pressures eased for the fourth […]
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 […]
According to Baker Hughes data from January 30th, 2015, the U.S rig count for this week is 1,543 rigs exploring for or developing oil or natural gas. This count is a decrease of 90 rigs when compared to last week, with oil rigs down 94 to 1,223 rigs, gas rigs up 3 to 319 rigs, […]
Steel Dynamics reported a record setting year and fourth quarter 2014. Steel shipments for the quarter were up 51 percent to 2.3 million tons from 1.5 million tons in Q3 2013. Steel fabrication had operating income of $22 million following a loss of $122,000 a year ago. For the full-year 2014 steel shipments totaled 7.4 […]
Turmoil continues in the global currency markets as the European Central Bank announced a quantitative easing program last week, S&P downgraded Russian debt to junk status yesterday, the Greek national election on Sunday will result in a strong resistance to EU mandated austerity programs and the Swiss removed the currency cap vs the Euro last […]
On Monday after the financial markets closed, US Steel announced the company would temporarily reduce operations at their Lone Star Tubular Operations in Lone Star, Texas as well as their Fairfield Tubular Operations in Fairfield, Alabama. USS Fairfield Works, which is the primary flat rolled supplier of rounds to the Fairfield Tubular plant will also […]
Nucor Corp. reported net earnings of $210.4 million for the fourth quarter of 2014, compared to $245.4 million in the third quarter of 2014 and $170.5 million in the fourth quarter of 2013. The drop was expected due to typical seasonality in the fourth quarter and downward pressure on the industry from steel imports. Net […]
US Steel earnings reported 2014 net income of $102 million, attributing its Carnegie Way for its first profitable year since 2008. In 2013, US Steel reported a full-year net loss $1.645 billion that included $1.5 billion in impairment and restructuring costs. Net income for fourth quarter was $275 million, compared to $297 million in Q4 […]
According to Baker Hughes data from January 23rd, 2015, the U.S rig count for this week is 1,633 rigs exploring for or developing oil or natural gas. This count is a decrease of 43 rigs when compared to last week, with oil rigs down 49 to 1,317 rigs, gas rigs up 6 to 316 rigs, […]
Buyers and sellers of flat rolled steel continue to be optimistic about their company’s chances of being successful in both the current market conditions as well as three to six months into the future. However, there have been some clouds building as our 3MMA has been trending lower over the past four months. We have […]
US Steel told employees it will idle operations in Illinois and Indiana, laying off 545 workers. The newest cuts follow the layoff of 756 workers at its tubular plants in Ohio and Texas earlier this month due to decreased demand from oil prices and the surge in lower cost imports. Two coke ovens at Granite […]
I was conversing with a consulting friend who reported to me that steel prices are taking a beating in Europe. He referenced hot rolled prices being offered out of Russia into Europe for 365 to 375 euros. He also reported that the sales of the Italian steel mill, ILVA would not succeed and the mill […]
Benchmark hot rolled coil prices dropped again this week as buyers struggled with an oversupplied HRC market due to high service center inventories, a continuation of high foreign imports and the collapse of the OCTG and line pipe markets due to weak oil prices. Couple those three items with more domestic supply than necessary for […]
The Metal Service Center Institute (MSCI) reported steel distributor shipments and inventories on Monday. The MSCI reported U.S. shipments of all steel products totaled 3,135,700 tons during the month of December which was 6.3 percent higher than December 2013. The daily shipment rate was 142,500 tons per day. Total steel inventories (all products) were reported […]
A lot has already been written about the dramatic decline in oil prices, the persistent high imports of energy tubulars, and related issues. What is missing, in my opinion, is some perspective and context to pull it all together. The purpose of this article is to show why the energy sector is so important to […]
Gulf ports are not experiencing the horrific congestion issues seen in the West. Fleetwood Port Logistics, out of Houston and Savannah, that deals primarily in break bulk steel products, has seen little to no congestion at the primary discharge terminal of North City Docks, Port of Houston. There has been some congestion at the smaller […]
The U.S. Department of Commerce updated its import license data earlier today. January import levels continue to be at very high levels compared to November and December and very similar to what we saw in September when imports totaled 3.9 million net tons. The daily rate is about 10,000 tons per day higher than November […]
EVRAZ North America produced 1.999 million tonnes (2.2 million net tons) of crude steel in 2014, down 8.8 percent from the total in 2013. Crude steel production increased by 5.7 percent to 528,000 tonnes (582,000 tons) in the final quarter of 2014 as compared to third quarter 2014. Finished steel products slipped 8 percent y/y […]
The following article is a continuation of our Steel Buyers Basics series written by Mario Briccetti. Mario is Principal of Briccetti & Associates, a Supply Chain consulting firm, and can be reached at Mario@mbriccetti.com. Briccetti wrote the following article as part of our Steel Buyers Basics series of articles, many of which can be found […]
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 October 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 November 2014 increased 3.9 percent, […]
According to Baker Hughes data from January 16th, 2015, the U.S rig count for this week is 1,676 rigs exploring for or developing oil or natural gas. This count is a decrease of 74 rigs when compared to last week, with oil rigs down 55 to 1,366 rigs, gas rigs down 19 to 310 rigs, […]
Each quarter ITR Economics and HARDI offer a forecast on the construction industry. Steel Market Update provides a summary of that forecast on a national and regional basis. This week we are going to change our format slightly and provide the national forecast summary based on ITR’s Interactive Regional Economic Forecast Webinar. We will provide […]