Steel production held near elevated levels in the week ended Saturday, falling 0.3% to 2.126 million tons, according to the latest data from the American Iron and Steel Institute. Capacity utilization in the steel sector stood at 89.1%, only a percentage point below the two-year high set two weeks earlier and above the 10-year average of 84.6%.
Production levels had moved higher in the summer months ahead of talks between automobile manufacturers and the United Auto Workers union, with manufacturers revving up production. Strength in exports has also been a factor; U.S. exports over the past 12 months will be roughly $500 billion more than in the same 12-month period five years ago.
The steel data are a reminder of the risks entailed in betting against industries with exposure to the global economy, where economic activity has been much stronger than in the U.S., particularly given the decline of the value of the U.S. dollar.
Tony Crescenzi Blog Good News on CP Market 10/25/2007 11:08 AM EDT A fourth consecutive week of expansion should allay some of the outlying concerns in the area.
Tony Crescenzi Blog Dollar Drop Reducing Fed Need 10/26/2007 10:11 AM EDT The Fed's trade-weighted dollar index has made a notable decline recently.
Tony Crescenzi Blog Industrial Prices Still Up 10/25/2007 3:28 PM EDT Despite financial market anxieties, the CRB hit an all-time high on Monday.
Tony Crescenzi Blog Latest Fed Rate-Cut Odds 10/26/2007 9:24 AM EDT With little economic news, the market will start looking forward to next Wednesday's Fed meeting.
Tony Crescenzi is the chief bond market strategist at Miller Tabak + Co., LLC, and advises many of the nation's top institutional investors on issues related to the bond market, the economy and other macro-related issues. At the request of the Federal Reserve, Crescenzi is a regular participant in the board's Livingston Survey of economic forecasters. He is also the author of the revised investment classic, The Money Market,
first published in 1978 by Marcia Stigum, and The Strategic Bond Investor. At the time of publication, Crescenzi or Miller Tabak had no positions in the securities mentioned in this column, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Crescenzi also is the founder of Bondtalk.com, a popular Web site covering the bond market and the economy. Crescenzi appreciates your feedback; click here to send him an email.
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