The Latest Round of Price Increases by Gerdau
The latest round of price increases by Gerdau are set to become effective with September 1 shipments-on July 20.
Prices for all grade of special bar quality (SBQ) steel remained flat month on month, in the United States, but market participants anticipate an increase once recently announced mill prices hikes take effect early next month. – American Metal Market (AMM) 8/14/18
Sources downplayed the Section 232 tariffs as the most significant factor behind those announcements, instead crediting robust market conditions for driving the decision to raise prices.
These are volume increases,” one distributor source said, arguing that the price changes were exclusively demand-driven and could be absorbed by the market.”
A second distributor agreed.
It’s more demand driven than 232 driven on the SBQ side,” he said. “There might be some impact (from the tariffs), but nothing compared to the rod market.” The automobile, oil and gas and agriculture segments are performing well and helping to drive demand, he noted, commenting that “markets are just strong.”
As you know, if you are a follower of this column, I have been crediting market demand as being the reason for higher pricing and said as much when I appeared on “After the Closing Bell” with Liz Claman on Fox Business news back in April.
US Raw Steel Production Rose Last Week
US raw steel production rose 1.5% last week as the mills operated at an ACUR of 79.1% (a level not seen in a long time). In the corresponding week last year, mills operated at an ACUR of 75.8%. Thus far this year mills have produced prox 57,000,000 tons compared to the prox 55,000,000 tons produced in the like period last year.
Productivity Improved in the 2nd Quarter
Productivity improved to a 2.9 percent annualized pace in the 2nd qtr. Although that overstates the recent trend, productivity has picked up since the early years of the expansion-but not enough to mute rising cost pressures. Wells Fargo
Business Activity Remained Robust in New York State
Business activity remained robust in New York State according to firms responding to the August 2018 Empire State Manufacturing Survey. The headline general business conditions index climbed, new orders and shipments grew strongly and firms reported an increase in unfilled orders. Delivery times continued to lengthen, and inventories held steady. Labor market indicators pointed to solid gains in employment and longer workweeks.
Growth in Regional Manufacturing Activity Slowed in August
The Federal Reserve Bank of Philadelphia released its August 2018 Manufacturing Business Outlook Survey and reported growth in regional manufacturing activity slowed in August, all broad indicators remaining positive but have dipped from their July readings
US Drill Rigs Running Gained 13 Last Week
The number of drill rigs running in the USA gained 13 last week to 1,057, led by Louisiana, up six and New Mexico by five. Canadian drilling dropped by 14 rigs, to 209, compared with the previous week.
Critics & Consequences
Took long enough: The FBI on Monday fired agent Peter Strozk whose disparaging texts about Donald Trump during the 2016 campaign, cast a cloud over investigators’ work on two politically charged probes and made him a ripe target for the president’s attacks on the Justice Department.
This whole story is simply amazing. Consider the laws we already know were broken by Hillary Clinton, Obama and his administration, the IRS, the Justice Department, Susan Rice, Eric Holder, Lois Lerner, James Clapper, James Comey, John Brennan, to name a few, yet all these people are roaming around freely, selling books, making a ton of money. This clown, Strozk, as of yesterday, had started a fund me page and raised over $300,000.00 in one day! What are people thinking?
Yet, the Democrats keep pushing the same narrative of “Russian collusion” and “obstruction of justice” and yet there has been ZERO proof of any of this from conservatives. The Democrats are in fact, the ones who colluded with Russia and continue to obstruct justice. Is the corruption this deep and rampant in the swamp, on both sides of the aisle, the justice will not be served? The American people deserve to have those who have committed criminal acts, brought to swift justice.
By the way, John Brennan’s security clearance was suspended on Wednesday 8/15. Not a true patriot…
RIP Queen of Soul
On Thursday it was announced that we have lost the angelic voice of Aretha Franklin, the “Queen of Soul.” R E S P E C T
Infrastructure X (Keystone & Dakota pipelines) Regulation Reform XX 1 in 2 out
Individual Tax Reform XX Entitlement Reform
Business Tax Reform XX Education Reform X
Healthcare Reform Veterans Administration Reform X
Rebuild our Military X Trade Reform X
Secure our Borders (The Wall) XX Lead the world from the front XX
Help for the poor XX Drain the swamp X as we speak
Peace through unmatchable strength Support Israel X
Destroy ISIS XX Extreme Vetting XX
Conservative Supreme Court nominees XX American Jobs XX
I will track these campaign promises and will check them off as each is accomplished adding those I have missed as they become apparent. This is quite an agenda and will be difficult to achieve all in one term, but I believe the American people are behind him and know these things need to be done. Now, if he can get our legislators to support him instead of fighting him….
“MAKE AMERICA GREAT AGAIN”
Have a great weekend…. God bless America!
Buy American made products whenever you can, it’s good for you, good for your friends and neighbors and good for our country.
If you are hiring…try to hire a veteran…. they are loyal, disciplined, hardworking…and they deserve our support.
By the way, if you wish to comment on my rants or offer any other insights you may have, you are encouraged to email me.
TEDDY ROOSEVELT ON IMMIGRANTS IN AMERICA…1907
In the first place, we should insist that if the immigrant who comes here in good faith becomes an American and assimilates himself to us, he shall be treated on an exact equality with everyone else for it is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is predicated upon the person’s becoming in every facet an American and nothing but an American. There can be no divided allegiance here. Any man who says he is an American, but something else also, isn’t an American at all. We have room for but one flag, the American flag…We have room for but one language here and that is the English language…and we have room for but one sole loyalty and that is a loyalty to the American people.”