Prices for Hot Roll Steel Band in the US U.S. are $465 higher than in China (compared to $471 in the last report two weeks ago), and $358 higher than in the EU (compared to $372 in the last report).
Steel in the US is 76% more expensive than in China.
Steel in the US is 49% more expensive than in the EU.
How’s steel profits?
Steel Dynamics Joins Nucor – Doubling Profits.
The next time somebody says “National Security” I am seriously gonna lose my cool!
Price information courtesy Steel Benchmarker.
Month: July 2018
“With 84 companies responding, the PMPA Business Trends Index for June 2018 held steady at 138, highest June on
record and tied with May 2018. The calendar year average remains 136. The 2018 June index of 138 is 2.2% higher
than June 2017’s 135 value. This is our Index’s highest value recorded for June, and is our second highest value ever
recorded (March 2018’s 143 was the highest ever).”- PMPA Business Trends Report- June 2018
2018 continues to set a blistering pace for the performance and sentiment indicators that we
track. June 2018 is now our second highest sales Index ever- tied with May 2018- while March 2018 was our all-time
high. Our forward- looking indicators remain strongly positive even as they reflect some softening from our current record
levels of performance. Our industry continues to outperform 5-year averages by a wide margin- ~10.4% for June!
See the full report here: https://www.pmpa.org/news/latest-news/2018/07/24/pmpa-business-trends-june-2018
P.S- Employment Sentiment: Prospects for employment are positive and strengthening with ninety-eight percent (98%)
expecting level or increased opportunities for employment!
photo credit: Life of Dad blog
PMPA Business Trends July 2018
With 83 companies responding, the PMPA Business Trends Index for July 2018 declined from 138- the highest June on record- to 128, the highest value for July on record, down 7.3% from May and June levels. The 2018 July index of 128 is 14.3% higher than July 2017’s 112 value. Our industry gets to take a breather. Our year to date average is 135, up 10 points or 8.0% over 2017’s year-end average of 125. We are at 107% year to date. The FED reported that Industrial Production (IP) “edged up 0.1 percent in July after rising at an average pace of 0.5 percent over the previous five months.
Manufacturing production increased 0.3 percent… At 108.0 percent of its 2012 average, total
industrial production was 4.2 percent higher in July than it was a year earlier. Capacity utilization for the industrial sector was unchanged in July at 78.1 percent,” Manufacturing production remains strong.
In case you were wondering how well the US Department of Commerce is taking care of the exclusion requests by American Metalworking companies, here’s some data.
Requests for exclusions for both steel and aluminum have less than a half of a percent chance of being approved- 0.35% for steel and 0.47% for aluminum.
Where else but government is this level of performance tolerated?
We will update this from time to time.
In case you were wondering how well the US Department of Commerce is taking care of the exclusion requests by American Metalworking companies, here’s some data.
Requests for exclusions for both steel and aluminum have less than a half of a percent chance of being approved- 0.35% for steel and 0.47% for aluminum.
Where else but government is this level of performance tolerated?
We will update this from time to time.
The 2017 final rule established new permissible exposure limits.
It also included provisions to protect employees from exposure to Beryllium, such as
- requirements for exposure assessment,
- methods for controlling exposure,
- respiratory protection,
- personal protective clothing and equipment,
- housekeeping,
- medical surveillance,
- hazard communication,
- recordkeeping
Do you machine Beryllium in your shop?
Have you evaluated your compliance to the above 8 points of regulatory concern?
Do you know the key regulatory enforcement and compliance dates?
If your shop machines any of the following Beryllium Copper grades, it does apply to you:
Beryllium Coppers C17000, C17200, C17300, C17410, C17500, C17510
The rule applies to occupational exposure to Beryllium in all forms, compounds, and mixtures in
general industry, construction, and shipyards.
- Employers that are covered under the rule must use engineering and work practice controls to
keep exposures at or below the PELs. - Engineering controls include using process isolation, ventilated enclosures, or local
exhaust ventilation to keep beryllium from being dispersed throughout a work area. - Examples of work practices to control beryllium exposures include keeping surfaces
clean by using a HEPA-filtered vacuum or by wetting down dust before sweeping it up. - If engineering and work practice controls cannot keep exposures at or below the PEL,
employers must provide respiratory protection to affected employees.
PMPA is providing members with sensemaking regarding this final rule, compliance dates and strategies, and helpful links to better understand their responsibilities.
PMPA Beryllium Final Rule Members Only
Photo of VR38 Nissan GTR Beryllium Copper Valve Seats courtesy of Fast Forward Race Engines on Facebook
Not a PMPA member? Contact Matthew Hooper to learn more gro.apmp@repoohm
Despite the uncertainty of the US Section 232 Tariffs on Steel and Aluminum, demonstrably higher steel prices, full employment, and trucking difficulties, US manufacturing is having a strong year, as evidenced by the June ISM PMI.
““The June PMI® registered 60.2 percent, an increase of 1.5 percentage points from the May reading of 58.7 percent… The Supplier Deliveries Index registered 68.2 percent, a 6.2 percentage point increase from the May reading of 62 percent…
“Demand remains strong, with the New Orders Index at 60 percent or above for the 14th straight month, and the Customers’ Inventories Index remaining low. The Backlog of Orders Index continued to expand, reading at 60 percent of higher for the third consecutive month. Consumption, described as production and employment, continues to expand in spite of labor, skill and material shortages.””- Timothy R. Fiore, CPSM, C.P.M., Chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee
PMPA members have reported price increases for Steel and Aluminum as a result of the imposition of the Section 232 steel tariffs, with lead times for raw materials lengthening and growing more uncertain and base steel prices up by 20 percent since March.
Steel prices are at their highest level since the 2009 recession, and the difference between US prices and foreign steel prices are at a record differential according to Steel Benchmarker.
Precision Machining Industry Sales in May second highest level on record. Our latest Business Trends Report for May 2018 showed our industry’s sales at their second highest level ever. We remain strongly positive on outlook for our manufacturing industry, confirming the ISM PMI Report.
We continue to hear reports of issues in trucking industry, including loss of routine deliveries caused by the strict adoption of electronic logs and enforcement of driver time shortening the reach of mills for deliveries out of state.
There are more job openings than people to fill them according to the JOLTS report of the Bureau of Labor Statistics.
Manufacturing in Europe and China cooling. According to Reuters “Euro zone factory growth slowed to an 18-month low in June, slipping for the sixth month in a row amid widespread concerns about trade barriers and their impact on overall economic activity, a survey showed on Monday.”Euro zone factory growth slowed to an 18-month low in June.
“Growth in China’s manufacturing sector cooled slightly in June as firms faced rising input costs and a decline in export orders amid an escalating trade dispute with the United States, a private survey showed on Monday.” Growth in China manufacturing sector ebbs in June.
Bottom line:Despite the uncertainty, US manufacturing is having a strong year, as evidenced by the June ISM PMI. This is in strong contrast to pessimistic manufacturing activity readings from Europe and China which are not at all positive. And in spite of uncertainty and challenges we face from tariffs, trucking, employment, pricing and other issues.
ISM PMI June 2018 Announcement
Steel Benchmarker Steel Price History
Graph Courtesy Calculated Risk Blog
PMPA Business Trends Report May 2018
Job Openings
July 2018 | Craftsman’s Cribsheet #68
Ten important things to know before working as a CNC Machinist.
Published July 2018
By PMPA Staff
When it was founded in 1976, H & R Screw Machine Products was no more than a single Brown & Sharpe screw machine in a small building located behind the home of founder, David Halladay.
Published July 2018
By Miles Free III
On Tuesday morning at the National Technical Conference this year, I presented during a session discussing regulatory requirements that apply to our precision machining shops. Occupational safety and environmental compliance were the two main topics of this session.