January 2017

US Steel Long Product Imports Licenses

December US import licenses through January 10th, as reported by the US Census Bureau’s Steel Import Monitor, totaled 440,000 tons (44 kt) a 3% increase over preliminary November long product imports. November licenses requested totaled 482 kt, yet preliminary imports totaled only 425 k, leaving 57 kt of unfulfilled import licenses. Unfulfilled licenses that could [...]

US Fabricated Steel Beam Imports

Data released by the US International Trade Commission reported fabricated beam imports rose 4.1% m/m, as year to date imports through November totaled 443,000 tons (kt), a 27% YTD y/y increase. This year over year increase was led by imports classified under HTS 730890.6000 alloy or partial alloy fabricated beams. Up 62% YTD y/y compared [...]

Rail Time Indicators Report (AAR)

At Gerdau, we follow the AAR report is because; freight railroading is a “derived demand” industry: demand for rail service occurs as a result of demand elsewhere in the economy for the products railroads haul. Thus, rail traffic is a useful gauge of broader economic activity, especially of the “tangible” economy. Total US carloads excluding [...]

US Consumer Confidence

We monitor and report on consumer confidence because it has a strong correlation with steel consumption. Consumer spending represents approximately 70% of GDP. When consumer confidence is strong, it leads to increased steel consumption. The December 2016 composite score reached its highest reading since August 2007 at 113.7, Figure 1. Figure 1 On a 3MMA, [...]

Portland Cement Shipments

We monitor and report on Portland cement shipments because it is an excellent proxy for rebar consumption as well as a good indicator of the current status of the construction market. For the 3MMA ending October, shipment volume was down 0.4% y/y, however the 12 month moving total (MMT) increased by 3.5%, (Figure 1). Figure [...]

Currency Update

The monthly Broad Index value of the US $ at the end of November was higher than at any time since April 2002, Figure 1. The daily index as of December 30th appreciated by 4.0% in the last three months of 2016 and by 1.4% in the month of December, driven by the Fed’s increase [...]

Steel Demand Indicators

Table 1 Table 1 is a snapshot of the market situation on 12/31/2016. Indicators updated since we last published two weeks ago are shaded beige. In most cases this is not December data but data that was released in December for previous months, the actual month to which the data relates is shown in the [...]