Some quick housekeeping regarding this week’s schedule. On Monday I will be going out with two requests via email. The first will be for those service centers who participate in our service center inventories index. I hope to have those emails out to each of the distributors between 7:30 and 8:30 AM ET. Around 9 […]
Trade attorney Lewis E. Leibowitz has been providing updates on the Section 232 tariffs, product exclusions and country exclusions on almost a daily basis over the past couple of weeks. We have been sharing his thoughts with our readers as many of you are (or will be) impacted by the existence of tariffs and/or quotas. […]
Compared to this time last year, flat rolled lead times are highly extended – on all products. Plate lead times, which is not on our graphic, are also highly extended, but we are treating it differently as the domestic mills are on controlled order entry/allocation with their plate customers. Hot rolled lead times are averaging […]
Extended lead times will generally lead to steel mills being stingy about offering “deals” below the company pricing guidelines. Flat rolled steel prices have essentially plateaued. There may be a small number of “deals” out there (is $860 HRC really a “deal?”), but most mills are sticking to their guns. In all four products (hot […]
Argentina and South Korea will be exempt from Section 232 tariffs in exchange for agreeing to quotas on steel and aluminum products. Argentina’s steel quota will be 135 percent of the average of Argentine steel exports during the past three years. The quota will allow the import of about 180,000 tons of steel per year […]
Brazil says it will agree to quotas on finished and semi-finished steel exports to the U.S. in return for exemption from the 25 percent Section 232 tariffs, according to Inside U.S. Trade. Brazil is the latest country to capitulate to U.S. demands, agreeing to a quota of 70 percent of its three-year average exports of […]
Today, we thought we would get the final determination of the Vietnam/China circumvention complaint. Steel Market Update has been in constant contact on this subject with trade attorney Lewis Leibowitz who advised us yesterday evening, “DOC announced today that the final Vietnam circumvention determination will be May 9, extended from May 2. The determination will […]
A ruling that will assist in the enforcing measures against circumvention was approved this week by the U.S Court of Appeals for the Federal Circuit. The court ruled that the “substantial transformation analysis” is approved for use by Commerce in determining country-of-origin for products subject to antidumping and countervailing duties. The substantial transformation test determines […]
Key market indicators tracked by Steel Market Update are at an all-time high for April but have shown signs of weakening in the past few months. Data released in April shows that 18 of the 36 indicators are historically positive with only 5 negative. The balance is within the historically normal band. Trends took a […]
This is Steel Market Update’s first Key Market Indicators report since April as we have renegotiated some data supply contracts and made a few changes to the content. The report still summarizes 36 data streams that we believe critically describe the state of the steel market and provide forward guidance to steel buyers. Data released […]
Steel Market Update is sharing this Premium content with Executive-level readers. For more information about upgrading to a Premium-level subscription, email Info@SteelMarketUpdate.com. Key market indicators in December were at an all-time high in the history of Steel Market Update’s analysis, but trends are deteriorating. This report summarizes 36 data streams that we believe critically describe […]
It’s May 1st and a new month has begun. This month is going to be an important one for Steel Market Update and our readers. We will be sending out a link to a questionnaire as we strive to improve our product for our members. We are trying to learn more about who you are, […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Product Exclusions—The Latest No objections to product exclusions had been posted on the regulations.gov website as of April 29. The BIS regulations require objections to be submitted to BIS within 30 days after a request has been posted. […]
Just days before the U.S. is due to announce if it will extend the steel tariff exemptions it granted to its closest trading partners, officials in Canada announced plans to strengthen border enforcement to prevent transshipments and diversion of unfairly priced steel into North America. It’s difficult not to see a link between Canada’s announcement […]
This is going to be a crucial week for the steel industry and especially for those trading in foreign steel. As many of you know, President Trump set an expiration date to the country exclusions of May 1, 2018. That is Tuesday, so we should know more about what is going to happen over the […]
NAFTA negotiators are working feverishly to reach an agreement in principle by May 4. U.S. Trade Representative Robert Lighthizer canceled plans to meet with lawmakers from the New Democratic Coalition in favor of continuing meetings with his Canadian and Mexican counterparts. The Coalition, composed of 68 pro-trade House Democrats, hoped to have a chance to […]
Were it not for the surprisingly strong steel demand, the price hikes prompted by the Trump administration tariffs would be a disaster, say manufacturers. As it is, the effects of the Section 232 tariffs are proving troublesome for many companies. President Trump is due to announce May 1 whether his 25 percent tariff on steel […]
One quick note to those who may be thinking about attending our Steel 101 workshop in Memphis. We only have a few spots left and I expect the workshop will be sold out within the next week or so. If you have an interest in attending and you have questions about the workshop, please send […]
Steel quotas may be in the cards for Brazil as it attempts to negotiate its way into a permanent exemption from the 25 percent steel tariffs scheduled to go into effect on May 1. U.S. Commerce Secretary Wilbur Ross reportedly told Brazil’s Minister of Affairs that the quickest way to win exemptions would be to […]
It will be a busy week in Washington. Tariffs and their consequences will play a large role in this week’s events, reports trade attorney Lewis Leibowitz: • French President Emmanuel Macron is in Washington to discuss a number of issues, including the Iran nuclear deal and the Middle East. Steel and aluminum tariffs will not be at […]
President Trump’s tariffs on steel imports, designed to protect steel industry jobs, are likely to lead to a net loss in U.S. employment, at least in the short to medium run, contend economists with the Federal Reserve Bank of New York. The tariffs, and their effects on steel prices, are likely to cost more jobs […]
A new study by Martin Associates questioning the relationship between steel tariffs and mill capacity utilization was largely dismissed by the Commerce Department as industry propaganda, prompting a stern response from the American Institute for International Steel. AIIS released the analysis by Dr. John Martin on April 18 and stands behind his findings. The Secretary […]
Last month, Steel Market Update forecast flat rolled steel shipments from U.S. service centers would remain steady at 109,565 tons per day in February to 109,594 tons per day in March. The Metals Service Center Institute (MSCI) reported last week that sheet distributors shipped 107,314 tons per day, a decrease over February. Our shipment forecast […]
Once each quarter, Steel Market Update publishes the official statistics for Chinese GDP, industrial production, consumer price inflation and fixed asset investment. Many analysts don’t believe these self-serving Party figures, but we include them in our reports because of the importance of China in the global steel scene, and these numbers are all that’s available. […]
Another hectic week in the flat rolled and plate steel markets. Buyers and sellers of steel are all waiting to see what calamity awaits when the clock ticks 12:01 AM on May 1. That is when the Section 232 country exclusions are set to expire, according to the deadline set by President Trump. What he […]
Is your company at risk due to the impact of the Section 232 tariffs? Industry executives responding to Steel Market Update’s April 16 flat rolled market trends questionnaire are almost evenly split on whether the Trump administration tariffs will help or hurt their businesses. Fifty-two percent say their business is not at risk, while 48 […]
According to manufacturing companies, as well as steel service centers, the steady trend for higher flat rolled steel spot prices out of the distributors is changing. For the past four months, at least 74 percent of distributors and their manufacturing customers have been reporting spot flat rolled prices as rising. The 46 percent of the […]
Uttam Galva and its North American subsidy won an initial ruling by the U.S. Court of International Trade in an appeal of antidumping duties placed on its imports of corrosion resistant steel to the United States. In June 2015, an antidumping investigation on imports of corrosion resistant steel products from multiple countries, including India, was […]
I was asked if plate price momentum was also at neutral as we had just adjusted our flat rolled price momentum indicator away from higher to the neutral designation. To be honest, we haven’t actually incorporated plate into having its own index and it probably needs one. Plate prices don’t always move in sync with […]
We have been struggling with the decision as to when we should make an adjustment to the SMU Price Momentum Indicator. The issue that has been holding us back for the last week or two is the role the government is playing in the steel market, which muddies the water. We have made the decision […]