“The tariffs are working, just give it time,” say Trump administration officials. “Short term pain—long term gain,” they add, seeking to placate the concerns of the business community. But the majority of those responding to a recent poll aren’t buying it. A survey of 141 CEOs by the Business Roundtable shows 63 percent believe that […]
The number of flat rolled and plate spot transactions has dwindled over the past couple of weeks. End users are squeamish about ordering any steel other than what is needed for the work on the floor. Steel buyers are reporting a weakening of the top end of the range but firming at the lower ends. […]
The Global Forum on Steel Excess Capacity presented a report last week in Paris agreeing to reduce steel capacity wherever necessary, keep overcapacity from reoccurring in the future and eliminate subsidies and other market distortions that contribute to overcapacity. “This sends a clear message: we will not repeat the costly mistakes of the past, and […]
As I mentioned in a recent newsletter, comments received from our readers will many times lead to an article, or even a series of articles. One of our goals is to dig into topics of interest to our readers from as many angles as possible, and then allow you to make your own conclusions. For […]
The SMU Steel Buyers Sentiment Index has been treading water, albeit at optimistic levels, for the past six months. However, the attitudes of buyers and sellers about conditions in the steel market might be described as anywhere from cautious to tepid, judging by the comments provided in Steel Market Update’s latest Steel Buyers Sentiment Index […]
The United States’ Section 232 steel tariffs are adding to the government coffers as the increase in calculated duties on steel rose by 4,300 percent in second-quarter 2018. Earlier this week, Steel Market Update was asked if we knew how much revenue has been coming from the Section 232 tariffs on steel. We were intrigued […]
Lead times for most flat rolled steel products are about a week shorter than they were two months ago. Shorter lead times suggest that steel demand is easing. Lead times for steel delivery are a measure of demand at the mill level—the shorter the lead time, the less busy the mill. Lead times for hot […]
The pendulum has definitely swung back in buyers’ favor when it comes to negotiating steel prices with the mills. Steel Market Update tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. More than nine out of 10 buyers report that mills are willing to negotiate spot prices on hot rolled […]
The U.S. Court of International Trade has granted a request by the American Institute for International Steel for a three-judge panel to hear its challenge to the constitutionality of the Section 232 tariffs on steel and aluminum imports. In a June 27 motion, AIIS argued that a three-judge panel is supported by a specific federal […]
First, I must warn steel buyers that the USW may be losing patience with U.S. Steel and ArcelorMittal USA. We are monitoring the individual locals and we will report when we think something is going to break. The question right now is how long a leash is the union offering? As I said the other […]
If your company is interested in a sponsor spot at the 2019 SMU Steel Summit Conference in Atlanta (Aug. 26-28), please contact Jill Waldman at Jill@SteelMarketUpdate.com so we can get you our sponsorship package as soon as it is ready. Those companies that were sponsors this year will have first crack at committing for 2019. […]
The following analysis is from the SMU Service Center Inventories Index. This index is a proprietary product produced through data collection and interaction with a large number of flat rolled and plate service centers across the United States. This index is normally shared only with data providers and our Premium level members. If you would […]
I had originally intended to add to the Methodologies article I wrote last week, but I have decided there is not enough new relevant information to add to what was already written. I expect that we will re-visit this subject as time goes by and as questions are asked about the various indexes. Our first […]
Each month, Steel Market Update produces an import analysis by region for two of the six flat rolled product groups (HRC, CRC, HGD, OMC, CTL plate and coiled plate). This month, we are focusing on plate products. The intent of these regional updates is to bridge the gap between our monthly licensed data summaries and […]
Each month, Steel Market Update produces an import analysis by region for two of the six flat rolled product groups (HRC, CRC, HGD, OMC, CTL plate and coiled plate). This month, we are focusing on plate products. The intent of these regional updates is to bridge the gap between our monthly licensed data summaries and […]
Net job creation in August totaled 201,000 positions. Manufacturing took a small step back, but year to date the results are good, according to Steel Market Update’s latest analysis of Bureau of Labor Statistics (BLS) data. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. Most […]
There have been many comments regarding the recent article I did on steel index methodologies. Included were comments/answers from two of the price providers mentioned at the beginning of the article who were unable to get to me prior to our publication deadline. I am going to do a follow-up article on Sunday evening. What […]
The Trump administration’s negotiating objectives for NAFTA were challenged by Democrats on the House Ways and Means Committee this week. A Sept. 10 letter to U.S. Trade Representative Robert Lighthizer questioned whether the bilateral deal with Mexico was “in the spirit of the Trade Promotion Authority.” The members said they were surprised by the formal […]
I am in Middletown, Ohio, having spent the day at AK Steel’s Research and Innovation Center as part of our new Steel 201 training workshop. The facility is impressive both in physical beauty as well as the operations and people working there. Our class is being held in an auditorium that seats about 70 people […]
The Commerce Department published new regulations taking effect on Tuesday that make significant changes in product exclusion requests for the steel and aluminum tariffs. According to reports, the notice will be published in the Federal Register on Tuesday, Sept. 11. The revised rules allow for comments rebutting industry objections (with 7 days after the 30-day […]
Another busy week for me as our first Steel 201: Introduction to Advanced High Strength & Other New Steels workshop will be conducted at AK Steel on Tuesday and Wednesday (Monday is a travel day for me). We have a sold-out workshop, we have some new instructors and for the first time we will be […]
Steel demand and prices are seeing some softening, but perhaps not enough to trigger a big inventory correction yet, report respondents to Steel Market Update’s flat rolled market trends questionnaire this past week. About 27 percent of the steel buyers who responded believe demand for their products is declining. However, the majority, 58 percent, report […]
Section 232 tariffs on steel and aluminum products from Canada and Mexico are back in the spotlight now that NAFTA talks are, hopefully, nearing an end. Steel associations from Canada and Mexico are calling for the tariffs to be terminated while the negotiations are under way. Mexican association Canacero has stated that a NAFTA deal […]
Future Sentiment, measured as both a single data point and as a three-month moving average (3MMA), is near its low point of the year as conflict on the trade front keeps buyers guessing. Future Sentiment registered +55 in Steel Market Update’s latest Steel Buyers Sentiment Index, down from +67 in mid-August. Current Sentiment registered +63, […]
Lead times on most flat rolled steel products continue to shorten, according to Steel Market Update’s latest market trends data. Lead times for steel delivery are a measure of demand at the mill level—the longer the lead time the busier the mill. Shortening lead times suggest steel demand is easing. Lead times for hot rolled […]
Steel buyers appear to have considerably more leverage in mill negotiations than at any other point this year. Twice per month, in a proprietary poll, Steel Market Update tracks how buyers and sellers of flat rolled steel represent the mill negotiation position. Most buyers report that mills are willing to negotiate spot prices today. According […]
Canada is back in the NAFTA negotiations, but dispute settlement and cultural exemptions continue to be sticking points for a new agreement. Prime Minister Justin Trudeau has stressed that Canada will hold firm on requiring a dispute resolution mechanism like Chapter 19. “As I’ve said, we will not sign a deal that is bad for […]
I have received many questions regarding the variance in pricing between the various flat rolled steel indexes out there. I have been researching the methodologies between the indexes. I am asking each one to explain how their index works and to provide details or a better explanation in some of the gray areas that may […]
We sold out our first Steel 201 workshop which will be held next week at AK Steel in Middletown, Ohio. I am excited to conduct this workshop with the AK Steel team. It is the first time we have visited their Research and Innovation Center (RIC) and the fully integrated Middletown steel mill. Thank you […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: I am just back from Atlanta, where I attended the SMU Steel Summit. I was pleased to be able to speak to many steel industry folks concerned about the steel tariffs, the China tariffs and […]