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December 13, 2024
Written by David Schollaert
The price spread between US-produced cold-rolled (CR) coil and offshore products on a landed basis was relatively flat in the week ended Dec. 13.
Domestic CR coil tags were up marginally week on week (w/w), while offshore products saw mixed results. This kept the stateside premium over imports essentially stable.
"Now, the problem is no longer the price. The problem is having access to steel." That would have made a good lead. But I can’t take credit for it. Those (very quotable) words are from Cleveland-Cliffs Chairman and CEO Lourenco Goncalves during the steelmaker’s quarterly earnings conference call on Monday. For a while, I thought the shortages we'd been hearing about might be mostly a problem for small- and mid-sized buyers. But we’re seeing even some of the biggest steel buyers talking openly about supply problems.
U.S. Steel’s board of directors has approved a nearly $3 billion investment in a new hot strip mill (HSM) at the Edgar Thomson Plant, part of the Mon Valley Works outside Pittsburgh. The project confirms Nippon Steel's commitment to modernize the Mon Valley HSM, a pledge made before and after its acquisition of U.S. Steel. It is part of Nippon's broader $14 billion capital investment plan for the Pittsburgh-based steelmaker's facilities.
The US Department of Commerce has reduced the anti-dumping duty on corrosion-resistant steel (CORE) for some Mexican producers after a court order. On remand from the Court of International Trade (CIT), Commerce agreed that the record did not show that Galvasid SA de CV’s US customers separately negotiated or paid freight or insurance. The agency therefore removed the adjustment and recalculated the margin. As a result, the agency lowered Galvasid’s coated steel dumping rate to 14.54%, from 24.05%. The all-others rate is now 14.29%, down from 17.42%. Ternium’s rate is unchanged at 14.17%.
A steel supply constraint is affecting some production schedules at Nissan North America, the automaker confirmed to SMU. The confirmation followed a Friday report by WLBT3 News that the constraint was affecting production at Nissan’s Canton, Miss., plant. SMU asked whether the issue was affecting other facilities. “Nissan continues to manage a steel supply constraint affecting some of our production schedules,” a company spokesperson said in an email to SMU on Wednesday, Oct. 21. Nissan is working with its supplier and taking steps to limit disruption to employees, dealers, and customers, the spokesperson added. The company provided no further details.
The majority of buyers SMU polled this week expect prices to continue rising from here, supported by limited supply. Demand is said to be strong, with most remarking that it is stable to improving. Most say inventories are moving faster this year than last, attributed to tight supply, late mill deliveries, and generally leaner supply chains. Imports continue to appeal to many buyers on both price and availability, but lead times, tariffs, and other risks remain. Buyers are split on whether President Trump’s tariff policies are helping their businesses and whether they’re seeing manufacturing reshoring.