Steel Dynamics Announced Base Price Increase
Steel Dynamics (SDI) announced a base price increase for Special Bar Quality (SBQ) products of $50/per ton ($2.50/cwt) effective with September 1 shipments.
I’m sure the other hot mills and drawing mills will follow with their own announcements soon enough.
Chicago Fed National Activity Index (CFNAI) Rebounded in June
Led by improvements in production-related indicators, the Chicago Fed National Activity Index (CFNAI) rebounded to +0.43 in June from -0.45 in May. Two of the four broad categories of indicators that make up the index increased from May. The index’s 3 month moving average (CFNAI-MA3) edged up to +0.16 in June from +0.10 in May.
What do the numbers mean?
A zero value for the monthly index has been associated with the national economy expanding at its historical trend (average) rate of growth; negative values with below-average growth (in standard deviation units); and positive values with above-average growth.
Periods of economic expansion have historically been associated with values of the CFNAI-MA3 above -0.70 and the CFNAI Diffusion Index above -0.35. Conversely, periods of economic contraction have historically been associated with values of the CFNAI-MA3 below -0.70 and the CFNAI Diffusion Index below -0.35.
An increasing likelihood of a period of sustained increasing inflation has historically been associated with values of the CFNAI-MA3 above +0.70 more than two years into an economic expansion. Similarly, a substantial likelihood of a period of sustained increasing inflation has historically been associated with values of the CFNAI-MA3 above +1.00 more than two years into an economic expansion.
Fifth District Survey of Manufacturing Activity Reports Slower Pace in July
The Federal Reserve Bank of Richmond released its Fifth District Survey of Manufacturing Activity and reports manufacturing expanded at a slower pace in July. The composite manufacturing index fell from 21 in June to 20 in July, remaining in solid expansionary territory.
U.S. Drill Rigs Running Fell Last Week
The number of drill rigs running in the USA fell by eight last week to 1046, led by Texas, down by 5. Meanwhile Canadian drilling gained 14 rigs to 211 compared to the previous week.
U.S. Raw Steel Production Rose Last Week
US raw steel production rose by 1.8 percent last week as mills operated at an ACUR of 77.4 percent. In the corresponding week last year, mills operated at an ACUR of 74.3 percent. Thus far this year mills have produced prox 52,000,000 tons compared to the prox 50,000,000 tons produced in the like period last year.
Census Bureau Monthly Advance Report on Manufacturers’ Shipments, Inventories and Orders for June 2018
- New Orders for manufactured durable goods in June increased 1.0 percent. This increase, up following two consecutive monthly decreases, followed a 0.3 percent May decrease.
- Shipments of manufactured durable goods in June, up ten of the last eleven months, increased 1.7 percent.
- Inventories of manufactured durable goods in June, down following seventeen consecutive monthly increases, decreased 0.1 percent following a 0.3 percent May increase.
New Home Sales Fell 5.3 Percent in June.
The weakness in housing is getting harder to explain away as new home inventory has been rising, however, June’s 5.7 month supply is well within historical norms. Wells Fargo
Advance Estimate of 2nd Quarter GDP Came in at 4.1%
The advance estimate of 2nd quarter GDP came in at 4.1%, the strongest pace in nearly four years, powered by a rebound in consumer spending, exports and firm business investment.
Trump Effect
Does anyone really care that President Trump screwed a Playmate 12 years ago, or whenever it was? I am jealous, but I don’t give a rat’s ass. It has nothing to do with what he is doing as president. This is all the left is offering to the people…blue wave my ass.
Speaking of President Trump, it was announced Wednesday afternoon that the EU has come to the negotiating table with the USA, aiming for zero tariffs on industrial goods, fair and free trade on soybeans and liquid natural gas, among other things, a cessation of further tariffs and the likelihood of the steel and aluminum tariffs being removed. This is great news! I am quite sure the swamp creatures are crapping their pants. No one has had the balls to do what this man is doing. Politicians want to stop him by enacting legislation to do so. Now comes this news, as I said it would. They will ALL renegotiate their trade deals with the USA because they cannot prosper without the USA. In my 67 years I have never seen an American president like Donald J. Trump. Make America Great Again…he IS doing it.
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.”
