The Chicago Business Barometer took a giant leap in June, expanding from 59.4 in May to 65.7. The Barometer, which is designed to predict future changes in gross domestic product, was at its highest level since 2014. The average score for second quarter was 61.1, significantly stronger than the average of 55.1 in Q1. The […]
Metalforming companies are not expecting much change in business conditions in the next three months. The latest Precision Metalforming Association (PMA) Business Conditions Report indicates that only 34 percent of survey participants predict an improvement in general economic activity, while 58 percent predict no change. Orders are expected to be steady or slightly better in […]
The “will they or won’t they” drama around Section 232 and whether the Trump administration will place tariffs on steel imports is reaching a peak. The Department of Commerce is expected to announce its findings on the Section 232 investigation by the end of next week. According to CNBC, a draft of the report has been circulated […]
Worthington Industries posted a strong fourth quarter, setting record annual earnings per share and quarterly net earnings of $56.5 million. Net sales increased 18 percent year-over-year to $845.3 million. Steel processing sales rose 25 percent to $582.2 million, driven by higher average selling prices. Automotive demand is beginning to soften, said President and COO Mark […]
The American Institute of Architects reports that May indices for new project inquiries and contracts reached their highest level so far in 2017. The Architecture Billings Index (ABI) climbed 2.1 points to a score of 53.0. New project inquires increased 2.2 points for a reading of 62.4 and the new design contracts index reached 54.8 […]
Two Federal Reserve manufacturing indices came out this week showing a contrast between business conditions in the Richmond and Texas regions. Federal Reserve Bank of Richmond Manufacturing in the Fifth District improved in June with more manufacturing executives expressing optimism for the next six months. The composite index rose six points to register 7 on […]
Ryerson Holding Corp., a processor and distributor of industrial metals, said end-market shipments to most sectors improved in the second quarter, particularly in commercial ground transportation and HVAC industries. Shipments also increased to the oil and gas sector, while a quarterly year-over-year decline was seen in industrial machinery and equipment, consumer durables, and food processing […]
Schnitzer Steel, a metals recycler and steel bar producer, reported its best third quarter since FY 2012. Total revenue increased 36 percent sequentially and 25 percent year-over-year to $477 million. Net income was up 50 percent from second quarter and 51 percent from Q3 2016 to $17 million. The improvement was primarily in the company’s […]
Durable goods orders, products designed to last three or more years, slipped for a second month, falling 1.1 percent in May, according to the U.S. Commerce Department. Core capital goods orders, a category that tracks business investment, declined for the first time this year, inching down 0.2 percent. Airline orders drove the decline with commercial […]
Low housing inventory continues to drive up home prices for U.S. consumers. The latest S&P CoreLogic Case-Shiller U.S. National Home Price Index reported an annual gain of 5.5 percent in April, down from 5.6 percent in March. The 20-City Index increased 5.7 percent year-over-year compared to the previous month. The gains in April were slightly lower […]
Galvanized steel producers Bhushan Steel and Essar Steel are in serious trouble with their lenders. Banks led by the Reserve Bank of India have initiated insolvency proceedings to recoup losses on delinquent accounts through loan reorganizations. Bhushan reportedly has outstanding loans of $7.3 billion and Essar Steel $6.97 billion, according to India’s Economic Times. A […]
New home sales in May rebounded after an April decline to a seasonally adjusted annual rate of 610,000, an increase of 2.9 percent. Median sales price increased to $345,800 and the average sales price was $406,400. Median sales price reached a record high, up 16.6 percent from a year ago. Inventory at the end of […]
Existing home sales climbed 1.1 percent in May, reports the National Association of Realtors. Sales rebounded to a seasonally adjusted annual rate of 5.62 million from a downwardly revised 5.56 million in April. May sales are 2.7 percent higher than a year ago and at the third highest level for the past year. Low inventory […]
New York State legislators approved an agreement this week prohibiting foreign steel to be used for New York roads and bridges. The “Buy American” legislation requires that seven identified state agencies purchase steel and iron manufactured completely in the U.S. for infrastructure projects valued at $1 million or more. Exemptions could be granted for specific […]
The United States’ NATO allies are worried about the upcoming decision on the Section 232 investigation of steel imports and their impact on national security. European officials warn that restrictions on EU imports could add to the anti-American sentiment already building in Europe over Russian sanctions, the withdrawal from the Paris climate accord and President […]
JSW Steel (USA) has received approval from its board for a full-scale modernization of its Baytown, Texas, steel plate mill. The project is expected to take 20 months to complete and will result in a fully modern discrete plate mill with significantly more product offerings. “While perfecting the unique plate and contiguous pipe mill facility […]
ArcelorMittal and Marcegaglia have purchased Italian steel milll Ilva in a $2 billion deal expected to close June 30. The mill’s assets will be leased by the consortium AM Investco Italy Srl for $200 million per year with payments applied to the purchase price. AM Investco will receive the steel facility free of long-term debt […]
Mill Steel Co., Grand Rapids, Mich., one of the nation’s largest distributors of flat-rolled carbon steel, expanded its operations and geographic presence with the opening of a new facility in Houston. The new Texas location is now operational with slitting and cut-to-length capabilities in the 100,000-square-foot facility. This premier building houses three production lines with […]
Steel Dynamics, Inc., reported lower earnings guidance for the second quarter due to operational issues at two of its plants. An upgrade to Steel Dynamics’ galvanizing line at Butler required a three week outage, diminishing second-quarter pretax earnings by $15 million. In addition, quality issues related to start-up of the new Galvalume and paint line […]
Housing starts dipped 5.5 percent in May to a seasonally adjusted annual rate of 1,092,000, from April’s revised estimate of 1,156,000, according to data from the U.S. Commerce Department. Single family starts dropped 3.9 percent, while starts for buildings with five or more units fell 9.8 percent. Regionally, total starts were flat in the Northeast and […]
Bedrock Industries received a deal on the purchase of Canada’s Stelco, acquiring it for less than $500 million, according to a report by the Hamilton Spectator. U.S. Steel originally purchased what was then a much larger Stelco for $1.1 billion in 2007. The many transactions required to satisfy creditors, pension payouts, retiree benefits, taxes and […]
Cliffs Natural Resources announced today that it has selected Toledo, Ohio, to be the site of its first hot briquetted iron production plant. Midrex Technologies will design, engineer and procure equipment for the new plant, which will produce at least 1.6 million tons of HBI per year. The project is expected to cost approximately $700 […]
Mesabi Metallics, the former Essar Steel Minnesota, emerged from 11 months of bankruptcy on Tuesday with a new owner, Chippewa Capital Partners. Chippewa Capital is a joint venture of London-based GFG Alliance and billionaire Tom Clarke. Clarke is also the owner of Magnetation and hopes to use the taconite ore from both facilities to produce […]
Nucor Corp. expects second-quarter results to be somewhat weaker than the first quarter, but an improvement from second-quarter 2016. Results in the range of $1.00 to $1.05 per diluted share will be Nucor’s best second-quarter performance since 2008. In guidance this week, Nucor noted a decrease in the performance of its sheet and bar mills […]
Two new Federal Reserve manufacturing reports came out on Thursday, one rebounding and one slowing. Manufacturing activity shot up in New York State, while activity in the Philadelphia region continued to expand, but at a slower pace. Empire State Manufacturing Survey The general business conditions index leaped 21 points to 19.8, its highest level in […]
The uncertainty surrounding the Section 232 national security investigation on steel has HARDI members worried about what the steel industry will be like if the ruling favors domestic steel mills and imports are sharply curtailed. In the monthly steel conference call hosted by HARDI (Heating, Air-conditioning, and Refrigeration Distributors International), members talked about “chaos” and […]
While the Trump administration has proposed a complete renegotiation of the North American Free Trade Agreement, the American Iron and Steel Institute (AISI), which represents domestic steelmakers, has affirmed its support for the continuation of NAFTA, albeit with some improvements and modernization to the 23-year-old trade pact. In a letter to the United States Trade […]
MSCI, Rolling Meadows, Ill., June 12, 2017— In written testimony on NAFTA renegotiation, the Metals Service Center Institute (MSCI) explained how uniquely successful the pact has been for North American manufacturing and urged the Trump administration to upgrade, but not endanger, the trillion dollar-plus annual trading relationship that NAFTA has established between the United States, […]
Canada’s Stelco has finally arisen from the ashes of the U.S. Steel bankruptcy. The Ontario Superior Court approved the sale of the mill to Bedrock Steel on Friday, June 9. The company hopes to close the transaction by June 30 and emerge from CCAA protection. “Today marks the turning of the page on a new chapter for […]
China strongly condemned new antidumping and countervailing duties imposed Friday by the European Union on imports of hot-rolled flat steel from China. The EC applied definitive AD/CVD duties of up to 35.9 percent. Commerce ministry official Wang Hejun said in a statement on Friday, “The European Commission ignores the fact that China’s steel exports to Europe […]