Final Thoughts
TimkenSteel Joins SMA
March 20, 2023
The Steel Manufacturers Association (SMA) announced that TimkenSteel has joined the Washington, D.C.-based steel association.
Additionally, SMA said Mike Williams, president and CEO of TimkenSteel, has joined SMA’s board of directors.
“We look forward to partnering with our fellow SMA member companies to pursue smart policy on trade and regulation while strengthening the American steel industry’s global leadership in sustainability and environmental justice,” Williams said in a statement on Monday.
TimkenSteel is a provider of specialty steel, including special bar quality steel and seamless mechanical tube products, manufactured components, and supply chain solutions.
The Canton, Ohio-based company has an annual melt capacity of 1.2 million tons and a ship capacity of 900,000 tons. It has steelmaking operations in Canton, manufacturing facilities in Eaton, Ohio, and Columbus, N.C., and a distribution center in Mexico.
SMA president Philip K. Bell welcomed TimkenSteel to the association, noting that the company “will add to the growing group of American steelmakers committed to innovation, a lower carbon future, and 21st century steelmaking.”
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Final Thoughts
Final Thoughts
Steel equities and steel futures fell hard after news broke earlier this week that the US and Mexico might reach an agreement that would result in the 50% Section 232 tariff coming off Mexican steel. The sharp declines didn’t make much sense, especially if, as some reports indicate, Mexico might agree to a fixed quota. They didn't make sense even if steel flows between the US and Mexico remain unchanged.
Final Thoughts
Even before the news about Mexico, I didn’t want to overstate the magnitude of the change in momentum. As far as we could tell, there hadn’t been a frenzy of new ordering following President Trump’s announcement of 50% Section 232 tariffs. But higher tariffs had unquestionably raised prices for imports, which typically provide the floor for domestic pricing. We’d heard, for example, that prices below $800 per short ton for hot-rolled (HR) coil were gone from the domestic market – even for larger buyers.
Final Thoughts
I want to draw your attention to SMU’s monthly scrap market survey. It’s a premium feature that complements our long-running steel market survey. We’ve been running our scrap survey since late January. And over just that short time, it’s become a valuable way not only for us to assess where scrap prices might go but also to quantify some of the “fuzzy” indicators - like sentiment and flows - that help to put the price in context.
Final Thoughts
I think there is an obvious case for sheet and plate prices going higher from here. That’s because, on a very basic level, the floor for flat-rolled steel prices, which is typically provided by imports, is now significantly higher than it was a week ago.
Final Thoughts
We're about to hit 50% Section 232 steel tariffs. What could happen?