The following article was written by trade attorney Lewis E. Leibowitz. Whenever you hear someone say that a policy move is vital and trivial at the same time, watch your wallet. The Sunday talk shows today featured spokesmen and commentators debating the impact of steel and aluminum tariffs. Secretary of Commerce Wilbur Ross and National […]
Ferrous scrap prices for March delivery are expected to increase by around $10 per ton, report Steel Market Update’s scrap market sources. “Strong demand for raw materials both domestically and internationally are allowing little chance ferrous scrap prices will drop in March,” said one East Coast dealer. “All the mills I sell to will have […]
New rules requiring electronic logging devices (ELDs) to monitor drivers’ hours behind the wheel are having the predicted effect on the market, disrupting trucking operations, igniting fierce competition for trucking capacity and sharply raising freight rates. Under the complicated hours of service regulations that took effect Dec. 18, drivers can work no more than a […]
February shipping is fraught with higher rates, low capacity and shipping delays. The trucking industry is battling a dwindling labor pool and ELD disruptions that are making rail disruptions more difficult and even causing ocean carriers to take notice. Seaborne freight Vessel freight rates are expected to rise for contracts priced for March and April, […]
It appears that the market is being set for the next round of flat rolled price increases. With benchmark hot rolled averaging $745 per ton, which is essentially at the levels suggested by ArcelorMittal USA in their last announcement, then there is nothing to stop another increase. I heard from a buyer earlier this week […]
Distributors of galvanized steel products to the HVAC industry are concerned that steel prices could experience a correction once President Trump finally announces his decision on Section 232. “I fear that a lot of 232 is already built into the pricing, and if the [trade action] is less than people were expecting, we could see […]
In December, total construction spending expanded by 1.4 percent year over year. Viewed in the longer term, however, the growth rate is slowing. The growth of total construction on a rolling 12-month basis year over year slowed every month in 2017. On a rolling three-months basis, growth improved in October and December. On this three-month […]
In its year-end 2017 financial report, Nucor delivered its highest annual earnings since 2008. Consolidated net sales increased 25 percent to $20.25 billion, compared with $16.21 billion for fiscal 2016. Shipments to outside customers during 2017 totaled 26,492,000 tons, an increase of 9 percent from fiscal 2016. Average sales price per ton increased 15 percent. […]
Cleveland Cliffs reported another great quarter with net income of $318 million and sales of $601 million, compared to prior-year income of $81 million and sales of $754 million. For the full year, revenue totaled $2.3 billion with net income of $371 million. Adjusted EBITDA has increased for the past two years, 28 percent in […]
Last year was a record breaker for Steel Dynamics in multiple areas. The company reported records for steel shipments, fabrication shipments, net sales, operating income and EBITDA. Annual net income totaled $813 million compared to $382 million in 2016. Net sales for the full year totaled $9.5 billion compared to $7.8 million the previous year. […]
The year is beginning with numerous weather-related disruptions to shipping. Ice in the Great Lakes region has made loading of iron ore difficult, freezing port equipment and the ore itself. Sources report carriers on the Great Lakes will be expediting ore shipments to the steel mills that were shorted, once the Soo Locks reopen in […]
When Ford surprised the market by introducing an aluminum-bodied F-150 in 2014, cutting the pickup’s weight by a dramatic 700 pounds, many assumed its rivals would have to follow suit to keep pace with the fuel economy savings. Instead, they decided to wait and see if the truck would perform as promised and if it […]
Total construction spending in the United States expanded by 1.3 percent in November, versus November 2016, but in the longer term the growth rate is slowing. On a rolling 12-month basis year over year, construction spending slowed every month in 2017. On a rolling three-months basis year over year, growth improved in October and November, […]
The January buy period saw ferrous scrap prices move significantly higher, lending support to recent mill price increases. While February is historically a down month for scrap, sources predict that February prices will be as high or even higher than January’s. January ferrous markets ended higher by $30 per gross ton for obsolete grades and […]
Sectors closely associated with the steel industry have generally reacted favorably to the tax reform legislation passed on Wednesday. The Steel Manufacturers Association hopes the bill will “result in significant economic growth that improves the fiscal situation for individuals, small business and corporations.” SMA President Philip Bell said it is now time to turn to […]
Ratner Steel’s new Osceola, Ark., service center may be located near Big River Steel, but Big River is only one of the mills Ratner plans to use as a source for steel, said Steve Gottlieb, Ratner president and COO. “People think we will only do business with Big River, but our intention is to buy […]
The Georgia Port Authority is expanding the Port of Savannah to handle increased cargo demand. “A strong Southeast U.S. economy, on-terminal expansion, and investment by private logistics firms throughout the region have resulted in phenomenal growth for Georgia,” said Executive Director Griff Lynch. Total tonnage for fiscal year 2017 grew 23 percent to 33,397,357 tons […]
As the year winds down, shipping in the United States is moving along with minor complications in December. River traffic has encountered reoccurring problems with aging infrastructure as record grain harvests put pressure on capacity. Ocean freight volume is improving and rates are strong. Truckers are rushing to meet electronic logging device mandates, and the […]
Both flat rolled and plate steel distributors saw only a very modest drop in inventories as of the end of July. Inventories continue to be “balanced” at 2.7 months of supply on flat rolled and 2.1 months of supply on plate, according to Steel Market Update’s proprietary inventory data. Flat Rolled Spread Tightens Although our […]
Construction improved in October, but the longer-term trend is for a slowdown in construction spending. Construction slowed every month this year through August on a rolling three-months year-over-year basis. The slowdown in the growth rate stabilized in September and October, improving from 0.5 percent to 1.5 percent. Construction expenditures data is developed by the Department […]
It is a busy time for the shipping industries that move the nation’s goods. Shipping sectors are busy lobbying for infrastructure funds to repair aging waterways, ports and rail lines. The U.S. rail system would like relief from regulatory burdens while independent truck drivers are asking for exemption from a new regulation that requires the […]
Overall construction spending reached a record high in October, totaling a seasonally adjusted annual rate of $1.241 trillion, an increase of 1.4 percent from September. However, government data analyzed by the Associated General Contractors of America shows public-sector infrastructure investments lagging behind other public and private spending. “There was healthy growth this October in both […]
Georgia Ports Authority announced Monday the approval of $42.27 million in funding for a rail and gate project that will significantly expand capacity at its Garden City Terminal in Savannah. The project is part of the GPA’s $128 million Mason Mega Rail Terminal and will increase the Port of Savannah’s on-dock rail capacity by 100 […]
The dry bulk shipping market continues to recover from its historic lows of 2016. Carriers are reporting positive earnings and a more optimistic outlook for the next two years. Fleet growth in 2018 is expected to be at its lowest level since 1999, a mere 1 percent, according to the latest MID-SHIP Report. Spot rates […]
SMU Note: This construction market analysis article is normally reserved for our Premium members only, but it is being shared with our entire readership this month. To learn more about our Premium level membership and how it can benefit you, click here. Growth of total construction spending has almost come to a halt, according to […]
Growth of total construction spending has almost come to a halt, according to Steel Market Update’s latest analysis of Department of Commerce construction put in place (CPIP) data. Last month, we reported that total construction expenditures contracted in the three months through August year over year for the first time since November 2011. Based on […]
A rail line servicing Canada’s Algoma steel mill is in financial jeopardy over track maintenance costs. The Huron Central Railway, which connects Sault Ste. Marie and Sudbury, needs $46 million to cover infrastructure repairs over the next five years. This is the second time in the last decade that Huron Central has appealed to Ottawa […]
Total construction expenditures contracted in the three months through August year over year for the first time since November 2011, according to August data for construction put in place (CPIP) released by the Department of Commerce on Monday. Privately funded projects still have positive growth on a rolling 12-month basis, but are more than negated […]
Pictures of countless cars and trucks submerged in Houston floodwaters and homes shattered by high winds in the Southeast have the worth of a thousand words in describing the destruction from Hurricanes Harvey and Irma. What they say about post-storm conditions in the ferrous scrap market is less clear. For those who assume thousands of […]
Seaborne shipping is getting a much needed rise in rates. Freight rates are gaining strength following two years of historic lows, says MID-SHIP report. The Baltic Dry index, a benchmark for overall trade volume, rose to 1470 on Sept. 21 for its highest level in two years. MID-SHIP expects the BDI to approach 2000 in […]