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 [...]

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, [...]