The Associated General Contractors of America report that construction spending fell 0.8 percent in May to $1.143 trillion. Most of the decline was due to lower spending in private nonresidential construction. The press release from AGC follows: Construction spending dipped in May but posted strong, broad-based gains for the first five months of 2016 compared […]
ArcelorMittal has made a joint bid with Marcegaglia SpA to purchase Italian steel plant Ilva. In an announcement on June 30, the consortium outlined their plans to bring the troubled mill up to environmental standards and increase production. If successful in it its bid, ArcelorMittal plans to return the three blast furnaces at the plant […]
Global manufacturing was subdued in June according to a reading of 50.4 on the JPMorgan Global Manufacturing PMI. The PMI gained just 0.4 points with most of the solid improvement in the European Union. It should be noted that the data for the report was collated before the vote by the UK to exit the […]
The Chicago Business Barometer jumped 7.5 points to 56.8 in June for its highest reading since January 2015, according to MNI Indicators. The Chicago Business Barometer, or Chicago PMI, is a measure of economic activity in the Chicago area based on survey responses of purchasing managers in the region. Although the rebound was welcomed, it […]
Manufacturing Indexes were reported from four Federal Reserve districts in the past two weeks with mixed results. Manufacturing surveys were released from Kansas City, Philadelphia, Richmond and Dallas. The survey results from Kansas City were the most positive of the four, returning to a positive reading for its composite index for the first time in […]
A strong finish to the 2016 fiscal year drove annual earnings per share to a record $2.22 for Worthington Industries. Earnings for fourth quarter, ending May 31, 2016, were were $58.8 million with sales of $714.7 million. Net earnings were more than double Q4 2015 earnings of $28.9 million. “While we expect some headwinds to […]
The Associated General Contractors of America report that declining infrastructure investment has led to declining or stagnant construction employment in May. The latest report from AGC follows. Construction employment declined or was stagnant in 131, or 37 percent, of 358 metro areas between May 2015 and May 2016, according to a new analysis of federal […]
Metalforming companies surveyed in June are expecting little change in business conditions during the next three months. The June 2016 Precision Metalforming Association sampled 120 metalforming companies in the U.S. and found most expect economic activity to remain steady. Orders are expected to remain at stable, with 51 percent predicting no change compared to 44 […]
It appears that Essar Global has been eliminated from the bidders vying for the assets of US Steel Canada. The Hamilton Spectator is reporting that the USSC board of directors has rejected a bid from Essar Global because of concerns that the company lacks the financial resources to complete a purchase. Essar was rejected as […]
China is threatening to file a suit at the World Trade Organization against the U.S. following the latest duty assessments against imports of cold-rolled and corrosion resistant steel products from China. The Commerce Ministry said it is deeply concerned about the protectionist policies of the U.S. steel industry and fears the large anti-dumping and anti-subsidy […]
Baosteel and Wuhan Iron and Steel Group (Wisco) are contemplating a merger that would unseat Hebei Iron and Steel Group as China’s largest domestic producer and rival European steelmaker ArcelorMittal. A merger of China’s second largest steelmaker Baosteel with fifth ranked Wisco would create a combined output of approximately 70 million tonnes. The merger would […]
Home prices continued to climb in April according to the S&P/Case-Shiller Home Price Indices. Data released for April 2016 20-city composite showed a 0.5 percent month-over-month increase, and a gain of 5.4 percent year-over-year. Year-over-year rates were highest in cities in the West with Portland up 12.3 percent, Seattle up 10.7 percent, and Denver gaining […]
The U.S. International Trade Commission announced Friday that it made an affirmative decision on injury to U.S. steel producers by imports of corrosion resistant steel products from China, India, Italy, Korea, and Taiwan. The USITC determined by unanimous vote that the U.S. steel industry was materially injured by the import of corrosion-resistant steel products (galvanized, […]
Leaders in the steel industry reacted favorably to Friday’s affirmative decision by the International Trade Commission (ITC)’s regarding injury to the industry resulting from the import of corrosion-resistant steel from China, India, Italy, Korea, and Taiwan. Mario Longhi, President and CEO, US Steel Corp.: “United States Steel Corporation is pleased with the International Trade Commission’s […]
There have been a number of articles written recently regarding the move by the Chinese government to remove some of the tax incentives in the form of rebates to the Chinese steel producers who export certain steel products. Any move to remove export tax rebates on steel is seen as a positive by the rest […]
The United Kingdom surprised the world by voting for an exit from the European Union on Thursday. Steel Market Update asked John Anton, Principal Economist-Steel at IHS Global Insight to provide us his insights into what this might mean for the global market. GDP growth in the EU27 is expected to lose 0.2 percent in […]
New orders for manufactured durable goods fell 2.2 percent in May to $230.7 billion after a revised gain of 3.3 percent in April, according to the U.S. Commerce Department. A Wall Street Journal survey of economists forecast a 0.4 percent drop while Bloomberg predicted a decline of 0.5 percent. May’s decline was broad-based across almost […]
The following is the monthly report on exports by the American Institute for International Steel (AIIS): Falls Church, VA. June 24, 2016. Steel exports increased 2.5 percent from March to April, as both Mexico and Canada increased their purchases from the United States. The 794,537 net tons of exports were almost 6 percent lower than […]
The U.S. International Trade Commission (ITC) announced today (June 22, 2016) that it finds that unfairly priced and subsidized imports of cold-rolled steel flat products from China and Japan have hurt U.S. steel producers. All six commissioners voted in the affirmative. As a result, the antidumping and countervailing duties determined by the DOC in their […]
Essar Steel Algoma filed a formal motion for approval of the sale of the company to KPS Capital. The asset purchase agreement will sell the assets of Algoma for a combination of cash sufficient to pay the outstanding liabilities under the DIP facility, a credit bid of the term loan debt, and assumption of certain […]
USW members overwhelmingly ratified a new contract with ArcelorMittal today (June 23). The new agreement covers nearly 14,000 union-represented hourly production, maintenance, and technical workers at the company’s 15 locations through Sept. 1, 2018. “We have settled our differences with management at the table, so together now we can focus on addressing the industry’s real […]
The Architectural Billings Index recorded its highest score in 2016 at 53.1, according to the latest report by the American Institute of Architects. The ABI rose from 50.6 in April for its fourth consecutive month of increase in design activity. “Business conditions at design firms have hovered around the break-even rate for the better part […]
Existing home sales in May grew to their highest pace in over nine years, said the National Association of Realtors in their most recent report. Sales were up 1.8 percent to a seasonally adjusted annual rate of 5.53 million, compared to the downwardly revised April rate of 5.43 million. Existing sales, completed transactions that include […]
Sales of new single family homes were at a seasonally adjusted annual rate of 551,000, according to the latest data from the Department of Commerce. May’s sales were 6.0 percent below the revised April rate of 586,000 from the initial estimate of 619,000. Year over year sales were up 8.7 percent. A poll by Reuters […]
An explosion and fire at US Steel Edgar Thomson resulted in the evacuation of the steel plant in Braddock, Pennsylvania last night. Firefighting crews from Forest Hills and Braddock responded. No injuries were reported. US Steel released the following statement: “At approximately 7:30 p.m. last evening, an incident occurred in the steelmaking area of the […]
USW Local 1005 says it is prepared to fight for what belongs to the active workers and 20,000 pensioners at US Steel Canada. The Canadian USW Local representing Hamilton Works is angry about media reports “that there are bidders interested in purchasing Stelco and Algoma and they will not assume ‘legacy obligations’ referring to pension […]
Essar Steel Algoma announced today (June 17) that it has entered into an asset purchase agreement with KPS Capital Partners, LP. The sale is subject to approval by the Ontario Superior Court of Justice. KPS, a leading private equity firm in the manufacturing sector, has a history of transforming challenged businesses into healthy, independent companies. […]
Speculation continues to grow that KPS Capital, the suitor for Essar Steel Algoma, will also buy US Steel Canada and merge the two companies. Sources for the Globe and Mail and Hamilton Spectator say that KPS is one of the two remaining bidders for the former Stelco operations in Hamilton and Nanticoke. According to anonymous […]
Housing starts in May fell 0.3 percent from April’s revised estimate of 1,167,000 to a seasonally adjusted annual rate of 1,138,000, according to the Department of Commerce. The rate, however, was 9.5 percent above the May 2015 estimate. The month-to-month slip was due to construction of fewer multi-family housing units. “Despite May’s relatively flat report, […]
Two bidders continue to vie for purchase of the Hamilton and Nanticoke steel plants in Canada. According to the Hamilton Spectator, sources close to the sale confirm that Essar Group of India and KPS Capital Partners LP of New York are the final contenders for US Steel Canada. KPS is also interested in gaining Essar […]