New orders for manufactured durable goods declined by 7.3 percent in July from the very strong June result and following three consecutive monthly increases. The decline in civil aircraft orders was the main reason for the month on month decline. The three month moving average in July rose by 0.5 percent month on month to […]
Mario Longhi is faced with the daunting task of rebuilding a US Steel afflicted with financial difficulties and labor problems under former CEO John Surma. US Steel has lost money in five of the past seven quarters, most recently $78 million in the second quarter of 2013. When the mantle is passed on September 1, […]
The percentage of service centers raising spot flat rolled steel prices dropped according to our most recent analysis of the flat rolled steel market. With flat rolled price ranges and averages stagnating at relatively high levels (compared to the lows for the year) distributors’ pricing appears to be leveling off as well. The service center […]
On Friday, August 23rd, Steel Market Update adjusted our SMU Price Momentum Indicator from “Higher” to “Neutral.” This change is meant to be an indicator of the direction we expect flat rolled steel prices to move over the next 30 days. Prior to Friday our Indicator was set at Higher for 10.5 weeks going back […]
The European economy finally seems to be on the road to recovery. In figures released by the European Commission, GDP in the second quarter rose by 0.3 percent in the Eurozone—a small but positive indicator of growth. The growth was led by Germany and France where GDP improved by 0.7 percent and 0.5 percent, respectively. […]
Buyers and sellers of flat rolled steel expressed their growing optimism through our Steel Market Update (SMU) steel survey. The SMU Steel Buyers Sentiment Index registered +42 which is the highest level so far this year exceeding the previous high of +38 posted at the beginning of the month. Our index is now at the […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The SMU Key Market Indicators and Analysis will become part of the new Premium membership when the new SMU website comes up in September. The total number of indicators considered at present […]
Manufacturing activity is improving in the Tenth Federal District that includes the western third of Missouri, Kansas, Colorado, Nebraska, Oklahoma, Wyoming and the northern half of New Mexico. The summary from the Federal Reserve Bank of Kansas City follows: Tenth District manufacturing activity improved further in August, and producers’ expectations also edged higher after easing […]
The Markit Flash U.S. Manufacturing PMI hit a five month high in August. The PMI registered 53.9 up from 53.7 in July indicating moderate growth in the manufacturing sector. New orders increased in August attributed to better demand. Export orders continued to rise this month but softened from July levels. Production output rose slightly in […]
Indicators Suggest No Significant Growth in Steel for the Balance of 2013 The Chicago Fed National Activity Index (CFNAI) and steel consumption. The following is an abridged version of the Chicago Federal Reserve statement plus graphical analysis by Steel Market Update. The index is a weighted average of 85 indicators of national economic activity drawn […]
Australian company BlueScope Steel announced EBIT of $66.7 million for its 50 percent ownership of U.S. based North Star BlueScope Steel for FY 2013 ending on June 30, 2013. Earnings for the fiscal year improved by 7 percent over FY 2012 due to improved cost control and decreased depreciation charges that offset slightly weaker spreads. […]
You will hear the term “spread” quite often when discussing the differences between flat rolled steel prices from one source to another. The term can be used when discussing domestic steel mills and their differences in pricing on the same product. It can also be used when discussing the differences between foreign steel imports and […]
Ultra light gauge galvanized (thicknesses less than .015”) have traditionally been associated with foreign steel suppliers as opposed to domestic mills. The U.S. mills have, over time, relegated the ultra light gauge markets as ones of the least interest due to the amount of line time it takes to produce these products versus running a […]
Industrial production and manufacturing capacity utilization for July 2013 – Both these data points are reported in the Federal Reserve G17 data base. The IP index was reported as 98.95 for July, up from 98.91 in June this was 1.8 percent below the peak of September 2007. Manufacturing is still making progress. The three month […]
Manufacturing continued to expand in the Philadelphia region in August but with slightly less optimism for the current pace of growth. The general economic index of The Federal Reserve Bank of Philadelphia’s Business Outlook Survey fell to 9.3 this month from 19.8 in July (its highest reading since March 2011) and has been in the […]
Mexican industrial output surprised analysts by falling 2.4 percent in June compared to the same month in 2012 according to the government’s statistic agency Instituto Nacional de Estadística y Geografía. Output was expected to grow by at least 0.1 percent year over year. Compared to June 2012, construction dropped 6.0 percent, manufacturing declined 1.2 percent […]
Written by: John Packard With other periodicals calling a top or “peak” to the market the pressure has been put on Steel Market Update to clear up the muddied waters. From our perspective, the peak is usually identified when one of the domestic mills breaks ranks and starts cutting deals at numbers less than what […]
With other periodicals calling a top or “peak” to flat rolled prices, the pressure has been put on Steel Market Update to clear up the muddied waters. From our perspective, the peak is usually identified when one of the domestic steel mills breaks ranks and starts cutting deals at numbers less than what they were […]
One of the key items watched by Steel Market Update is service center spot pricing. Service centers have the ability to support price increases or signal the market that spot increases will fail. According to the manufacturing companies participating in our mid-July steel market survey, service centers are pushing for higher prices in the spot […]
The Institute of Supply Management Purchasing Managers Index, (PMI) registered 50.9 percent in June, a decrease of 1.9 percentage points from May’s reading of 49.0 percent, but the three month moving average (3MMA) declined for the third straight month to 50.2 percent. The JPMorgan Global Manufacturing PMI indicated a sixth consecutive month of expansion in June […]
Written by: John Packard In what might be perceived to be a positive for the domestic steel industry, the steel buyers and sellers responding to the latest SMU steel market survey believe the domestic mills have at least 30 days if not longer before the current price cycle is broken. We asked those responding to […]
Written by Sandy Williams Canadian building permit values were down 10.3 percent from May at a value of $6.6 billion (CAD), dropping for the first time in six months. Canadian building permit values for residential housing dropped in June following three consecutive months of increases. Both multi and single family dwelling permits experienced declines, […]
Written by: John Packard Service centers continue to raise spot flat rolled prices to their end customers, according to our most recent steel market survey. Seventy seven (77) percent of the service centers responding to our early August questionnaire advised their company as raising prices compared to two weeks ago. The remaining distributors reported keeping […]
Written by: Sandy Williams Participants in the July ISM Steel Buyers Survey reported lean inventories and lower than desired orders for July. Buyers reported tons on hand covered shipping levels for 2 months or less. Inventory levels were considered Right by 77.8 percent of those surveyed and Too High by 37.2 percent with plans to […]
Written by Sandy Williams The Steel Manufacturers Association (SMA) has asked U.S. Trade Representative Michael Froman to protect domestic steel plate from an onslaught of imports from Europe. “We urge USTR to undertake a diplomatic initiative targeted at the European countries that are rapidly increasing their shipments of CTL plate and other products to the […]
Written by: John Packard Are we seeing early signs of prices weakening? The combination of our survey, which began on Thursday of last week and concluded earlier today, and our channel checks with both manufacturing and distributors produced a wider range in pricing than we had been seeing in recent weeks. Is this the beginning […]
Written by: John Packard Steel Market Update (SMU) Steel Buyers Sentiment Index was measured at +38 based on the results of our mid-August review of the flat rolled steel market. Sentiment continues to be at the peak of optimism displayed during calendar year 2013. Buyers and sellers of flat rolled steel continue to respond in […]
At SMU we have never previously examined the civilian participation rate or the extent to which part time employment growth is influencing the bottom line number of job creation. Since we believe that both these aspects must influence consumer confidence, consumer spending and ultimately GDP and steel consumption, we decided to dig deeper this month. […]
Written by: John Packard Steel Market Update has been conducting our twice monthly steel surveys for approximately five years now. When we started, we chose people and companies with whom we trusted and had worked with knowing we could depend on the quality of the information gathered. Having worked within the industry for over 30 […]
House Subcommittee Presentations The American Iron and Steel Institute made its presence known last week on Capitol Hill. Top steel executives encouraged members of the House Energy and Commerce subcommittee on Commerce, Manufacturing and Trade to remedy government policies on tax, energy, infrastructure, environment and trade to strengthen American jobs in steel and other manufacturing […]