The number of active drilling rigs in the US and Canada was relatively flat in both countries this week, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of demand for oil […]
End use market demand is mixed as mid-year shipment data is reported The recession, inflation, and interest rates remain hot topics for aluminum producers and consumers. As new economic data is announced, both bright spots and points of concern emerge. First, this month’s report on inflation showed a drop month-on-month (MoM) and may signal that […]
Canadian flat-rolled steelmaker Stelco has reached a tentative agreement with one local union, and another has ratified a new, five-year labor contract with the company. The negotiating committee for United Steelworkers (USW) Local 8782 broke the news that it had agreed to tentative pact in an update to members on Wednesday, Aug. 17. USW Local […]
The Energy Information Administration’s August Short-Term Energy Outlook (STEO) remains subject to a high level of uncertainty due to the volitle global energy market. Contributing factors include Russia’s invasion of Ukraine, foreign and domestic oil production levels, and OPEC+ production decisions. Due to these variabilities, the EIA continues to warn that actual price outcomes could […]
The House of Representatives on Friday approved the Inflation Reduction Act (IRA) on a party-line vote. This legislation, with only Democratic support, passed the Senate 51-50 last weekend. The bill now goes to President Joe Biden, who will sign it into law. This is by any measure a major piece of legislation. On the surface, […]
Chicago-based Evraz North America is encouraged by its Russian parent company’s decision to divest its North American assets. The steelmaker said the move would provide increased certainty for its North American operations and employees. Evraz plc’s announcement of a sale “strengthens our long-term stability and will allow us to continue to lead in the markets where we […]
The United Steelworkers (USW) local chapter representing Stelco’s steelmaking operations will be in a legal position to strike as of 12:01 a.m. on Sunday, Aug. 22. That’s according to a negotiation update sent to members of Local 8782, which represents the Canadian flat-rolled steelmaker’s Lake Erie Works in Nanticoke, Ontario. The union said it had […]
The number of active drilling rigs in the US and Canada slightly declined in both countries this week, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of demand for oil country […]
Strong OCTG pricing and demand is driving higher sales for global pipemaker Tenaris. The Luxembourg-based company reported $2.8 billion in sales during the second quarter—an 18% rise from the previous quarter and an 83% jump from Q2 2021. Q2 net income also rose 18% sequentially and showed growth of 118% year-on-year to reach $634 million. […]
Ryerson expects “counter-cyclical business conditions” in the third quarter, with moderating demand and falling prices resulting in lower sequential sales and shipments. The Chicago-based service center made the comments in its second quarter earnings report after the market closed on Wednesday, August 3. For Q2, sales volumes of 524,000 tons were down 6% from the […]
US Steel is trying to keep a stiff upper lip despite lower flat-rolled steel selling prices, continued supply chain problems, and an uneven economic outlook. “Let’s face it. There’s a lot of uncertainty. Some people say more uncertainty than ever before,” company president and CEO David Burritt said. “I’m not so sure that’s true. But […]
Reliance Steel & Aluminum Co. “delivered an exceptional second quarter with record-setting financial performance and outstanding operational execution,” CEO Jim Hoffman said in the service center’s second quarter results release. Reliance reported record second quarter net income of $572.8 million on sales of $4.68 billion. The company’s top results were driven by “ongoing healthy demand” […]
Austal USA has been contracted to build two more towing, salvage, and rescue ships (T-ATS) for the US Navy. The latest contract for the Mobile, Ala.-based shipbuilder, valued at $156 million, is in addition to two other T-ATS contracts awarded to the company last year. The T-ATSs support the Navy fleet operations with ocean-going tug, […]
The number of total active drilling rigs in the US and Canada increased this week, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand. The […]
Producer prices rose moderately in June, maintaining a sustained 27-month growth run. Last month the headline index grew by just 3.3%, seasonally adjusted, but was up 23.4% compared to the same year-ago period, the US Labor Department reported. The wholesale level was hit hard by inflation as well in June. The producer price index (PPI), […]
The Energy Information Administration’s July Short-Term Energy Outlook (STEO) remains subject to a high level of uncertainty, driven by factors such as sanctions affecting Russia’s oil production, the production decisions of OPEC (Organization of the Petroleum Exporting Countries), and the rate at which US producers increase drilling. Due to these variabilities, the EIA continues to […]
President Biden visited the Middle East last week. He touched down at Andrews Air Force Base in Maryland early Sunday morning. Every presidential trip is and must be evaluated by what else is going on. This one was originally billed as routine: to attend a summit meeting of the Gulf Cooperation Council (GCC), a group […]
The buzz about the war in Ukraine has shifted. For the first three months of the conflict, Ukraine was hailed for a valiant struggle against a strong Russian foe. This valor is part of a larger struggle—the preservation of peace against the threat of violent conquest of weak nations by stronger ones. The stakes could […]
The number of total active drilling rigs in the US and Canada increased this week, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of oil country tubular goods (OCTG) demand. The […]
Is this a case of the summer doldrums or something more serious? That might be a more important question to answer than where the bottom is and when we might hit it. But first let’s start with a recap of where prices landed this week. SMU’s hot-rolled coil price is now at $955 per ton ($47.75 […]
The number of total active drilling rigs in the US increased again this week, while Canadian rigs decreased after multiple weekly increases, according to data from oilfield services company Baker Hughes. The number of active oil and gas drilling rigs in operation is important to the steel industry because it is a leading indicator of oil […]
I mentioned in my last Final Thoughts that you should keep your eyes open for potential catalysts for higher prices even amid all the signs that tags probably have nowhere to go but lower. It turned out we found one hiding in plain sight. It’s contract talk season in the US, with labor pacts between […]
The Energy Information Administration’s June Short-Term Energy Outlook (STEO) remains subject to a high level of uncertainty due to factors such as sanctions affecting Russia’s oil production, the production decisions of OPEC (Organization of the Petroleum Exporting Countries), and the rate at which US producers increase drilling. Due to these uncertainties, the EIA continues to […]
Steel Market Update just conducted one of our flat rolled and plate steel market surveys. The data collected consisted of responses from service centers (46% of respondents), manufacturing companies (32%), steel mills (10%), trading companies (8%), suppliers to the steel industry (4%), and toll processors (2%). We intentionally weight the number toward distributors and manufacturing […]
Steel Market Update just conducted one of our flat rolled and plate steel market surveys. The data collected consisted of responses from service centers (46% of respondents), manufacturing companies (32%), steel mills (10%), trading companies (8%), suppliers to the steel industry (4%), and toll processors (2%). We intentionally weight the number toward distributors and manufacturing […]
Antidumping and countervailing duty (“trade remedy”) cases provide a rare glimpse into tariffs on imported goods that entered the US before they were subject to these burdensome duties. In the opinion of some, retroactively applied tariffs are always unfair to importers and their downstream US customers. Others disagree, believing that they deter imports competing with […]
By CRU Principal Economist Alex Tuckett, from CRU’s Global Economic Outlook Energy costs for consumers – in the form of utility bills and the cost of filling a car – have risen sharply, but not as sharply as the cost of crude oil and natural gas. But this doesn’t necessarily mean a lot more pain […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Prior to Metal Edge Partners, Bryan held a variety of commercial […]
Spending on nonresidential construction projects declined for the second straight month in April because labor shortages suppressed construction activity, the Associated General Contractors of America (AGC) reported. “Nonresidential construction spending is being held back by a paucity of qualified workers, not a lack of projects,” AGC chief economist Ken Simonson said. “With job openings at an all-time […]
The Biden administration, picking up where the “America First” Trump administration left off, extols the virtues of increased production here at home. There are many advantages to this approach, the president says. Increased production in the US will diminish reliance on China in critical materials for electric vehicles (rare earth metals and lithium, for example). […]