Key Market Indicators in January, indicators of the present situation, remained strong, but trends deteriorated to the weakest level in two years. This report summarizes 36 data streams that we believe critically describe the state of and provide forward guidance for the steel market. Due to the government shutdown, 13 of the 36 indicators were […]
The Chicago Business Barometer plummeted in January, falling 7.1 points to 56.7 from December’s downwardly adjusted reading of 63.8. New orders and production contributed heavily to the decline as new orders dropped to a two-year low and production to a 10-month low. Order backlogs eased to a three-month low and delivery of raw materials improved […]
Nucor Corp. surpassed expectations for 2018, reporting net earnings of $2.36 billion for the full year compared to $1.32 billion in 2017. Net sales jumped 24 percent to $25.07 billion due to a 5 percent increase in tons shipped and an 18 percent jump in the average sales price per ton. Nucor shipped 27.9 million […]
There has been a downward reversal in raw materials prices in the last month. Table 1 summarizes the price changes through January of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 months changes and tells us that price movements have been negative for all materials except […]
Editor’s note: Steel Market Update is sharing the following Premium content with all its readers in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. Table 1 summarizes the price changes through December of the five materials considered in this report. It reports the month/month, 3 months/3 months and […]
Global trade protectionism and political uncertainty weighed heavily on manufacturing in October. Manufacturing slowed to its lowest level in almost two years, according to the J.P. Morgan Global Manufacturing PMI. The headline index registered 52.1, down from 52.2 in September. Weaker increases in new business and a contraction of new export orders muted production growth during […]
Table 1 summarizes the October prices of the five materials considered in this report and the month/month, three months/three months and year/year change. Price changes have been mixed. In the last three months, coking coal and iron ore have trended up as pig iron, scrap and zinc have trended down. This was the same pattern […]
In the last 12 months, the price of coking coal and scrap have continuously trended up, zinc has continuously trended down, and iron ore and pig iron have been erratic. Table 1 summarizes the price changes through November of the five materials considered in this Steel Market Update report. It includes the month/month, 3 months/3 […]
Table 1 summarizes the August prices of the five materials considered in this report and the month/month, three months/three months and year/year change. In the last month, coking coal FOB Australia’s East Coast eked out a small gain as the other four experienced price declines. At the Jackson Hole meeting of the Fed on Friday, […]
Recent price changes have been mixed for steelmaking commodities. In the last three months, coking coal and iron ore have trended up as pig iron, scrap and zinc have trended down. Table 1 summarizes the September prices of the five materials considered in this report and the month/month, three months/three months and year/year change. Iron […]
Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this new role, he and his firm design and execute risk management strategy for clients along with providing process and analytical support. In Gaurav’s previous role, he was a Trader at Cargill spending time in Metal […]
Steel Market Update’s latest look at commodity prices shows pig iron up, iron ore and zinc down, and coking coal and scrap stable in recent trading. Table 1 summarizes the current prices of the five materials considered in this report and the year-over-year change. Iron Ore The price of 62% fines delivered North China was […]
Manufacturers saw business rise in June at the fastest pace in four months. The ISM Manufacturing Index surpassed expectations by jumping to 60.1 percent from 58.7 percent in May. A reading above 50 indicates growth. New orders expanded for the 14th consecutive month, but inventories remained too low for a fourth month as suppliers struggled […]
Commercial Metals Company net sales jumped 15 percent to $1.2 billion for earnings of $42.3 million for the third quarter of fiscal year 2018, ending May 31. Earnings and sales increased from the second quarter due to strong demand across all of CMC segments. “The CMC team delivered outstanding results in our third fiscal quarter,” […]
The MNI Chicago Business Barometer gained 5.1 points in May, jumping to 62.7 and its highest level since January. Output and orders drove the increase for manufacturers, although all five Barometer components rose this month. The production index was at a three-month high and new orders at a four-month high. The backlog index was at […]
The prices of coking coal and zinc declined in May, while iron ore FOB Australia’s East Coast and scrap priced in Chicago were unchanged. To put this raw materials commentary into perspective, Figure 1 shows the spread between Chicago #1 busheling and hot rolled coil ex works Indiana through May 18, both in dollars per […]
Key market indicators tracked by Steel Market Update are at an all-time high for April but have shown signs of weakening in the past few months. Data released in April shows that 18 of the 36 indicators are historically positive with only 5 negative. The balance is within the historically normal band. Trends took a […]
This is Steel Market Update’s first Key Market Indicators report since April as we have renegotiated some data supply contracts and made a few changes to the content. The report still summarizes 36 data streams that we believe critically describe the state of the steel market and provide forward guidance to steel buyers. Data released […]
Steel Market Update is sharing this Premium content with Executive-level readers. For more information about upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. Key market indicators in December were at an all-time high in the history of Steel Market Update’s analysis, but trends are deteriorating. This report summarizes 36 data streams that we believe critically describe […]
The prices of scrap and iron ore advanced in April, but coking coal and zinc declined. To put the raw materials analysis into perspective, Figure 1 shows the spread between Chicago #1 busheling and hot rolled coil ex works Indiana through April 13, both in dollars per net ton. The spread at $538.50 is now […]
Global manufacturing growth in March slowed to its lowest level since October 2017. The J.P. Morgan Global Manufacturing PMI posted 53.4, down from 54.1 in February. Rates of expansion fell in the consumer and intermediate goods sectors, while the investment goods PMI rose to its highest level so far this year. Manufacturing growth eased in […]
Key market indicators tracked by Steel Market Update in March remain very positive, but took a small step back from the all-time highs reported in February. Data released in March shows that 18 of the 36 indicators are historically positive with only 5 negative. The balance is within the band of historically normal. Trends deteriorated […]
Scrap and coking coal prices advanced in March. Iron ore and zinc declined. To put the raw materials analysis into perspective, we include here Figure 1, which shows the spread between Chicago #1 busheling and hot rolled coil ex works Indiana through March 9, both in dollars per net ton. March was the first time […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Global manufacturing expanded at a solid pace in February, according to the J.P.Morgan Global Manufacturing PMI. The composite PMI inched downward for the second month to 54.2, indicating solid but slower growth. Industrial nations saw growth rates decelerate somewhat in February including the U.S., Eurozone, Japan and the UK. Improvement of manufacturing conditions was brisker […]
The MNI Chicago Business Barometer fell in February to its lowest level since August 2017. The barometer slipped 3.8 points from January’s reading to 61.9. Compared to a year ago, the index was up 8 percent and was above the 2017 average of 60.8 New orders were at a six-month low and production was at […]
Key market indicators, and the trends they reveal, are the best they have ever been in Steel Market Update’s analysis. Data released in February shows that 18 of the 36 indicators are historically positive with only six negative. The balance is within the band of historically normal. Trends improved with 32 of the indicators heading […]
Scrap, iron ore and zinc prices advanced in February, while the price of coking coal has declined by $4 per ton since mid-January. To put the raw materials analysis into perspective, Figure 1 shows the spread between Chicago #1 busheling and hot rolled coil ex works Indiana through Feb. 9, both in dollars per net […]
Of the four raw materials tracked by Steel Market Update, scrap and zinc prices advanced in January, iron ore took a small step back and coking coal declined by 10 percent. Each January, Bloomberg and U.S. Global Investors compile their Periodic Table of Commodity Returns. Figure 1 shows the returns of commodities each year of […]
Steel Market Update publisher, John Packard, traded comments with a financial analysts who was of the opinion that demand was under duress and the future of the steel using markets was in doubt. This does not match our belief based on a review of the SMU Key Market Indicators. We are sharing this report with […]