Olympic Steel Inc. posted strong first quarter earnings despite falling carbon steel prices earlier in the year. And the Cleveland-based service center expects the good times to carry into the second quarter even if steel prices slip. “We’ve worked hard to diversify our business, reduce our exposure to cyclical risk, and drive operational efficiencies,” Olympic […]
The US labor market expanded at a rapid pace in April, adding 428,000 new jobs, matching the downwardly revised 428,000 increase in March. The result kept the unemployment rate unchanged month-on-month (MoM) at the pandemic-era low of 3.6%, the Bureau of Labor Statistics reported. Payroll gains were better than economists had expected amid an increasingly […]
US job growth was strong in April, exceeding early estimates by approximately 7%. Employers added 428,000 in April, matching the downgraded figure for March. The result kept the unemployment rate unchanged at 3.6% – slightly higher than estimates of 3.5%, and just a touch above pre-pandemic levels in 2020, according to the Labor Department. The […]
US construction spending in March totaled $1.730 trillion at a seasonally adjusted annual rate, just 0.1% above February’s total. Investment in construction cooled because increased spending on residential projects was offset by a decline in nonresidential investment, the Commerce Department reported. Construction spending in March missed expectations, down from a 0.5% gain in February and behind […]
Nonresidential and multifamily construction spending slumped in March as supply-chain woes and labor shortages stymied strong project demand, the Associated General Contractors of America (AGC) reported. Spending on most categories of nonresidential and multifamily construction declined from February to March, AGC said, noting that contractors struggled to find enough workers and to get timely deliveries […]
SMU is looking for the Next NexGen Leadership Award Winner. The NexGen Leadership Award process is now open and accepting nominations. What is the NexGen Leadership Award? The SMU NexGen Leadership Award, sponsored by the Steel Manufacturers Association (SMA), is awarded to an individual working in manufacturing or fabrication companies that utilize mild carbon or automotive […]
The outlook among purchasing managers surveyed by the Institute for Supply Management remains positive, and US manufacturing continued to grow April – thought at a slower rate. Last month’s Manufacturing PMI edged down to a reading of 55.4% versus 57.1% in March. The index reading above 50% indicates growth in the manufacturing sector. April’s measure […]
US manufacturing activity saw a marked improvement in April, expanding at its quickest pace in seven months despite rising inflation, according to the latest data from S&P Global’s purchasing managers survey. The seasonally adjusted S&P Global PMI posted a reading of 59.2 in April, up from 58.8 the month prior, but lower than the earlier released ‘flash’ […]
Monthly Key Market Indicators improved slightly through March, though sentiment remains cautious, according to the latest analysis by Steel Market Update. Neutral and positive indicators have increased, while negative indicators have eased. Consumers and businesses continue to spend even though economic dynamics remain in flux, with supply disruptions weighing on the economy. While inflation continues […]
Driven by strong OCTG demand in the Americas and higher line pipe shipments in Europe and South America, steel tube producer Tenaris saw a 15% sequential rise in first quarter sales to $2.367 billion. Sales were double that of the year-ago quarter. Higher pricing, increased drilling, and falling inventories drove a 20% sequential rise in […]
New orders for US manufactured durable goods rebounded in March after sinking for the first time in five months in February. Last month’s bookings for durable goods rose 0.8% following a revised 1.7% decline a month earlier, according to the Commerce Department. The value of core capital goods orders – a proxy for investment in […]
Data on US industrial production, capacity utilization, new orders and inventories continue to improve. February and March 2022 reports indicate a strengthening manufacturing sector. The health of the manufacturing economy has a direct bearing on the health of the steel industry. The Industrial Production Index The IP index is a gauge of output from factories, mines […]
Ternium reported net earnings of $877.5 million in the first quarter of 2022, down from $1.14 billion in the prior quarter but up 24.2% from $706.7 million in the first quarter of 2021. The Latin American flat-rolled steelmaker posted first quarter net sales of $4.30 billion, a 32% compared to the first quarter of last […]
First, I want to commend Michael Cowden for the outstanding Final Thoughts he has been creating for our readers. I also want to thank the SMU team for doing an excellent job over the past few weeks since Tim Triplett retired. We have new people coming soon, but in the meantime Brett Linton and David […]
Steel Market Update sources expect ferrous scrap prices to decline in May, following record high prices in March and April due to the Ukraine-Russia war. Some expect obsolete grades to decline significantly from April, with busheling prices potentially down as well. “Just looking at the export market makes me think US domestic will see significant drops for all […]
Distributors who sell galvanized steel products to the construction and HVAC sectors are still seeing strong demand despite record-high prices. But the flurry of buying that happened immediately following the outbreak of the war in Ukraine has slowed, members of the Heating, Air-Conditioning & Refrigeration Distributors International (HARDI) said in their monthly conference call on Tuesday. […]
This past week the Office of Management and Budget (OMB) issued a memorandum with details of the Buy America rules that apply to infrastructure projects governed by the infrastructure bill passed last year (the “Infrastructure Investment and Jobs Act,” or “IIJA”). This week, I detail some of the changes and their impact on the number […]
Cleveland-Cliffs Inc. expects record free cash flow this year thanks to fixed-price contracts resetting higher and a more bullish outlook on average selling prices in general. The Cleveland-based steelmaker predicts that average selling prices for the year will be $1,445 per ton ($72.25 per cwt), up $220 per ton from prior guidance of $1,225 per […]
Today we are sharing the full proposed agenda for the 2022 SMU Steel Summit Conference. As you will note there are a few programs where we are in negotiations with speakers or working on making sure the program is fresh for those who have attended our conference in the past. There are several themes we […]
Nucor expects to complete the $650 million expansion and upgrade of its Gallatin sheet mill in Ghent, Ky., in June, company executives said. And the Charlotte, N.C.-based steelmaker’s new $1.35 billion plate mill in Brandenburg, Ky. – slated to have annual capacity of 1.2 million tons – remains on track to start up late in […]
The SMU Steel Summit Conference was, at its inception, about two things: networking and forecasting. Our conference aims to expand our attendees’ knowledge of the economy, the flat rolled and plate industries, and key market segments. It’s also about getting to know one another better as companies look to improve or expand their relationships with […]
Business activity in the state of New York expanded markedly in April, following the first decline in the headline index since the onset of the global pandemic nearly two years ago, according to the Empire State Manufacturing Survey. The headline general business conditions index is now at 24.6 (above the neutral mark of 0), surging 36.4 points […]
Today we are sharing the full proposed agenda for the 2022 SMU Steel Summit Conference. As you will note there are a few programs where we are in negotiations with speakers or working on making sure the program is fresh for those who have attended our conference in the past. There are several themes we […]
Contrary to the support echoed from domestic iron and steel organizations, the new ‘Buy America’ mandates introduced by the White House have drawn strong criticism from the Associated General Contractors of America (AGC). The association suggests that such measures laid out under the guidance will undermine the nation’s ability to build and improve infrastructure. “AGC […]
The American Iron and Steel Institute (AISI) and the Steel Manufacturers Association (SMA) both praised the White House guidance to federal agencies outlining obligations to procure materials domestically for infrastructure projects. “We appreciate the commitment of the Biden-Harris administration to ensure that all federally-funded infrastructure and public works projects use iron, steel and other products that […]
Shipbuilder Austal USA has officially opened its new steel manufacturing line to build steel ships for the US Navy and Coast Guard. The ultra-modern steel shipbuilding facility in Mobile, Ala., enables the simultaneous production of both aluminium and steel hulled ships, the company said. Known for its construction of aluminum vessels, the shipbuilder’s new 118-throusand-square-foot […]
Steel Market Update has been working on the agenda for the 2022 SMU Steel Summit Conference, which will be held in Atlanta on August 22-24. This year’s conference will address many of the issues affecting the flat-rolled and plate steel markets. Over the next few issues, we will roll out our conference program, many of […]
Steel Market Update has been working on the agenda for the 2022 SMU Steel Summit Conference, which will be held in Atlanta on August 22-24. This year’s conference will address many of the issues affecting the flat-rolled and plate steel markets. Over the next few issues, we will roll out our conference program, many of […]
President Biden on Friday signed two pieces of trade legislation that sailed through Congress: the “Ending Importation of Russian Oil Act” (HR 6968), which prohibits imports of oil, gas and other energy products from Russia, and “Suspending Normal Trade Relations with Russia and Belarus Act” (HR 7108), which imposes higher “Column 2” tariffs on imports […]
Despite economic and geopolitical headwinds, there remains tremendous opportunity for steel and industrial metals distribution, Ryerson president and CEO Eddie Lehner during the most recent Steel Market Update Community Chat webinar. There might be debate over where rising finished steel prices will settle. But gone are the days of hot-rolled coil averaging around $600 per ton ($30 […]