SMU has been hearing anecdotal reports about difficulties with finding truck transport as companies try to catch up on winter weather delayed orders. The MID-SHIP Report has been reporting for months that truck availability is at a premium, mostly due to a shortage of drivers. Comments we have been hearing range from product sitting on […]
Nucor announced consolidated net earnings of $111 million for first quarter 2014, up from $84.8 million a year ago but down from $170.5 million in the previous quarter. Net sales were up 12 percent to $5.11 billion year over year and 4 percent from fourth quarter 2013. Tons shipped to outside customers increased 8 percent […]
Reliance Steel & Aluminum, the largest metals service center in the United States, announced earnings earlier today. The company reported net income of $87.2 on sales totaling $2.09 billion. Sales included the recent acquisitions of Metals USA and Haskins Steel. The company reported an 8.4 percent improvement in same store sales over the same quarter […]
Chinese statistical data is always questioned for a number of reasons, not least is, “Is the data politically motivated.” Other suspicions arise because China gets their data out faster than any other major economy and the data is never revised. However at SMU we believe that in spite of these concerns what we have is […]
We learned today that ArcelorMittal will be taking down their #7 blast furnace at Indiana Harbor for two months: June & July 2014 (scheduled maintenance). The #7 furnace is capable of producing up to 11,500 tons of molten pig iron per day when ready at full capacity. Our assumption is US Steel Gary Works should […]
Will 2014 be a breakthrough year for construction? That was the premise of a webinar presented by Reed Construction Data paneled by Bernie Markstein, US chief economist at Reed Construction Data; Kermit Baker, chief economist at the American Institute of Architects (AIA); and Ken Simonson, chief economist at Associated General Contractors of America (AGC). The […]
John Correnti is moving forward with his plans for Big River Steel with groundbreaking anticipated in June. The air permit for the mill had been challenged by neighboring steel mill Nucor, but was upheld by a Mississippi County judge in March. The Arkansas Pollution Control and Ecology Commission will vote on acceptance of the permit […]
US Steel Gary Works is not alone as the mill limps along on two of its blast furnaces operating at reduced capacities due to a lack of raw materials. According to a US Steel spokesperson nothing has changed over the past five or six days as the mill waits for further shipments coming from Northern […]
Severe winter conditions negatively impacted Steel Dynamic’s first quarter earnings causing a 25 percent drop in consolidated operating income as compared to the previous quarter. SDI reported net income of $39 million for first quarter 2014, on net sales of $1.8 billion, down from $55 million on net sales of $1.9 billion Q4 2013. Steel […]
The following is a report which is normally provided to only our Premium Level members. It is a detailed analysis of flat rolled, long products and semi-finished imports through the month of March 2014. Written by Peter Wright, we analyze how accurate license data is and provide a table using three month moving averages to […]
Steel producers and distributors can expect an influx of orders for steel plate for rail tank cars in the next several years. After several serious tanker accidents involving crude oil transport, the Association of American Railroads Tank Car Committee (AARTCC) and Railway Supply Institute Committee on Tank Cars (RSICTC) have each submitted higher safety standard […]
The following is a press release of TranSystems: The TranSystems Transportation Activity Index report for March was released this week, and we saw a flat trend between February and March, but a strong surge over March of last year. The composite reading across all transportation modes came in again at 59.2, flat against February of […]
Fulton County Processing (FCP), a joint venture with Heidtman Steel, is expanding its pickling capacity at its facility in Delta, Ohio. The $20 million project will add a new 4 tank Butech Bliss/Nelson push/pull pickling line and is scheduled for completion in fourth quarter 2014. The steel processing expansion will add 82,000 square feet and […]
In an earlier article I talked about price risk in steel and several strategies to hedge that risk. Another, perhaps more important, steel buyer risk is continuity of supply. Steel making is a difficult and dangerous activity, and a global one. Unfortunately suppliers often make (and don’t catch) unusable product. Also, every year there seems […]
A locomotive operator at the Nucor Steel Arkansas Hickman facility died from a head injury Tuesday morning after the train he was riding on derailed. Mr. Thomas Dazey, 48, who has been employed at Nucor for 18 years, was pronounced dead at the scene by Mississippi County Coroner Mike Godsey. The Blytheville Courier News reported employees […]
Leeco Steel, a supplier of carbon, HSLA, heat-treated and alloy steel plate, will open its first Florida sales and distribution center in Tampa. This will be the eleventh location for the Illinois-based company. The 98,000 square foot facility will have drive-through bays and rail service and is scheduled to be operational by April. Processing equipment […]
As we approach the end of January the expectation is for the domestic steel mills to cancel any remaining ferrous scrap orders that the yards have been unable to ship due to the weather, shortage of trucks or rail cars or just due to the dealer(s) being unable to complete the order on time. The […]
Steel Dynamics reported solid earnings on Monday with Q4 2013 net income of $55 million on net sales of $1.9 billion, somewhat short of Q4 2012 net income of $61 million on sales of $1.7 billion. Full year income was $189 million, up from $164 million in 2012. Net sales for the year totaled $7.4 […]
Flat rolled service center Alliance Steel, through one of its holding companies, Nexus AG Holdings, is in negotiations to purchase the former Delphi plant just north of Decatur, Alabama in Limestone County. Alliance will occupy 165,000 square feet of the 320,000 square foot facility. The balance of the plant will be leased out to tenants […]
In the 12 months through November the US imported 29,129,427 tons of all steel products including semi finished, exported 11,594,574 tons for a net steel trade deficit of 17,534,853 tons. The major net importer was Brazil with 3,591,401 tons. Canada and Mexico both imported more from the US than they exported to the US resulting […]
Evraz NA said it may need to lay off more than 400 steel workers at the Evraz Regina mill in Saskatchewan due to transportation problems at the Canadian Pacific and Canadian National railways. Warning notices were sent last week to approximately 420 of its 510 employees in the company’s tubular steel division. Evraz says pipe […]
Genzink Steel, located in Holland, Mich., has promoted John Maxson to chief executive officer. Maxson has served as chief operating officer of the Genzink family-owned company for the past ten years. The announcement was made by Board Chairman Ken Genzink, son of founder Donald Genzink. Maxson said the company will focus on developing more rigorous […]
Year to date net imports of all hot worked products combined was 10,025,543 tons, down by 26,420 tons from the first ten months of 2012. This reduction was entirely driven by tubulars and plate. Pipe and tube had a decline in net imports of 925,617 tons and plate a decline of 509,778 tons. All other […]
We continue to get positive feedback regarding the new SMU website. As with any new site as complicated as ours is there will be a few bugs and a learning curve to negotiate through in the early stages. We are working through those and believe we are offering a unique experience for those involved in […]
Imports of most rolled products and semi finished declined in November. The only exceptions were rail and tin plate. Sheet products were down by 21.5 percent in total but within that group coated products were down over 40 percent. An analysis of the 3 month moving averages (3MMA) of imports results in a very different […]
DELTA, Ohio – Dec. 5, 2013 – Fulton County Processing (FCP), a northwest Ohio-based, state-of-the-art steel coil processing company, has announced it will be installing a new hydrochloric push/pull pickling line set to be operational in late 2014. The $20 million project will require an 82,000 square foot expansion to the plant, which will house […]
The Chinese economy grew 7.8 percent in the third quarter, compared to 7.5 percent in the second quarter and 7.7 percent in the first quarter. Growth for the first nine months of 2013 was 7.7 percent keeping China on target for a 7.5 percent GDP for the year. According to the China National Bureau of […]
Steel Dynamics reported a strong third quarter net income of $57 million on net sales of $1.9 billion. In comparison, SDI reported $13 million net income on net sales of $1.7 billion in September 2012, and $29 million on net sales of $1.8 billion in second quarter 2013. “Our consolidated operating income increased 64 percent […]
The shipping industry is set for a profitable year for the first time since 2010 according to the September 25 MID-SHIP Report. Freight rates are continuing to rise and demand for large size ships is finally beginning to outpace supply. The industry has faced a supply glut partially due to shipyards offering vessels at low […]
Ocean Freight Ocean freight rates, as reported by the Baltic Exchange, have rebounded strongly in the last few months driven mainly by the cape-size component. The composite Baltic Dry Index has risen by 152 percent from its 2013 low point in February an increase from 737 to 1860 (Figure 1). The Capesize component has risen […]