By Trade Attorney Lewis Leibowitz The COP26 Glasgow conference on climate change just ended, yesterday, a day later than scheduled. The conference needed the extra day to hammer out a joint communiqué on what was agreed to and next steps. At the last moment, India threatened to torpedo the agreement because it contained strong language about phasing […]
By Trade Attorney Lewis Leibowitz Last Wednesday, it was my pleasure to join many readers on the latest Steel Market Update Community Chat. After a brief rundown of current issues affecting the steel sector and its customers, we had a lively round of questions, refereed by SMU Senior Editor Michael Cowden. We didn’t get to […]
SMU’s Community Chat webinar on Wednesday will feature veteran trade attorney Lewis Leibowitz. We’ll talk Section 232, the tariff-rate quota (TRQ) with the EU, and the changing global trade landscape. The free webinar begins at 11 a.m. ET (10 a.m. CT) on Wednesday, Nov 17. More than 250 people have already registered. You can register […]
The U.S. and Japan have officially begun talks that could lead to an easing of Section 232 tariffs on Japanese steel and aluminum exports. Those negotiations are part of a broader bilateral discussion on ways to reduce excess steel- and aluminum-making capacity globally, most of which the U.S. says is driven by China. “The United […]
Steel prices are on the way down, but not steel buyers’ optimism – at least not yet. Steel Market Update’s indexes for both Current and Future Buyers Sentiment registered lofty readings of +78 this week. Could this be industry optimism at its peak? SMU surveys buyers every two weeks and asks how they view their chances […]
Steel Market Update’s price range for plate products raised a few eyebrows this week. Allow me to point out a few facts about SMU pricing data. SMU provides a weekly range as reference points for you to review. The reference points come from steel buyers and from steel mills. However, we place the most emphasis on […]
Buyers continue to gain leverage in steel price negotiations, especially for hot rolled products. Steel Market Update asks buyers every two weeks whether mills are willing to talk price on spot orders. Nearly three out of four (72%) of the hot rolled buyers responding to this week’s poll said mills are now willing to negotiate HR […]
Lead times for orders of flat rolled and plate steel continue to shorten, as expected in a period when steel prices are declining. SMU’s latest check of the market shows the typical hot rolled lead time has now dipped below seven weeks for the first time since November 2020. That’s nearly a month shorter than […]
Steel buyers are “confused” as are some traders as to what deals are being offered into the hot rolled market right now. Steel Market Update has been advised by a couple of large HRC buyers of offers below $1,600 per ton ($80.00/cwt), while at the same time we have spoken to buyers who continue to […]
Ransomware is a growth industry, netting some $20 billion from victims in 2021. A ransomware attack can happen at any time, to any business large or small, with devastating consequences. “It’s not just the big Colonial Pipeline incidents you read in the news. It’s happening to smaller organizations as well. A lot of times it’s […]
The House has finally passed a bipartisan infrastructure bill after months of wrangling not only among Republicans and Democrats but also among factions within the Democratic party. “American steel built this country, and the industry is now ready to get to work on rebuilding this country. Repairing and modernizing our national transportation system is essential […]
By Trade Attorney Lewis Leibowitz I summarized the newly announced trade deals between the United States and the European Union last week. I use the plural because a lot of issues were addressed in the statements that followed. Today’s column evaluates a few of the trends that are visible from these statements – notably on […]
SMU’s next Community Chat webinar will feature veteran trade attorney Lewis Leibowitz. We’ll talk Section 232, the tariff-rate quota (TRQ) with the EU, and the changing global trade landscape. The free webinar begins at 11 a.m. ET (10 a.m. CT) on Wednesday, Nov 17. You can register by clicking here. Why should you listen? The […]
South Korea is pushing for “swift consultations” with U.S. trade officials about Section 232 following the negotiation of a tariff-rate quota (TRQ) with the European Union, according to local media reports. Seoul is concerned that the deal with the EU – which will allow approximately 3.6 million short tons of steel into the U.S. duty […]
Mill executives have been front and center over the past couple weeks during their earnings calls and the annual gathering of AISI and SMA members in Washington. Below is a sampling of some of their more notable remarks: • Just because the U.S. and EU managed to negotiate a quota to replace the controversial Section […]
Japan wants a waiver from the current Section 232 regime following the U.S. negotiating a tariff-rate quota (TRQ) with the European Union. The issue came up during a virtual meeting between U.S. Trade Representative Katherine Tai and Koichi Hagiuda, head of Japan’s Ministry of Economy, Trade and Industry, on Thursday, Nov. 4. Minister Hagiuda “strongly […]
U.S. mill CEOs generally praised the tariff rate quota (TRQ) agreement reached with the EU. But they stressed that enforcement would be key to its success. The United Kingdom, Japan and countries that have hard quotas – such as South Korea – are places that come to mind when one thinks of where a deal might […]
Speaking at a steel industry gathering just two days after unveiling the historic trade deal she helped negotiate with the European Union, U.S. Trade Representative Katherine Tai described the progress made in steel trade and the challenges that still lie ahead in curbing global steel overcapacity. Following are her remarks today at the General Meeting […]
The tariff-rate quota, or TRQ, replacing Section 232 tariffs on steel and aluminum imported from the European Union will go into effect on Jan. 1, 2022, per details of the agreement released by the Office of the United States Trade Representative (USTR). A 25% tariff will be still applied after the quota limit – 3.3 million […]
The deal just announced between the U.S. and EU to replace the Section 232 tariffs with a tariff rate quota and to cooperate in reducing climate-changing carbon emissions was seen as a breakthrough by many – but not all. Trade groups representing steel consumers and producers from other parts of the world expressed “disappointment” that the […]
It goes without saying, the steel industry is in a dynamic, volatile market and the only thing that is certain is the volatility will continue as we move into calendar year 2022. It is not just price we need to watch over the coming months. There are many moving pieces to this puzzle. The agreement […]
By Trade Attorney Lewis Leibowitz At the last minute, the U.S. and EU announced a deal to keep the tariff wars from getting worse. Yesterday, at the G20 meeting in Rome, the two sides announced an agreement that will prevent major retaliatory tariffs on U.S. exports to Europe from going into effect on Dec. 1. […]
We’re all on the same price roller coaster, and that’s true whether we’re talking steel, plastic or wood. But we’re not all on the same car – and so your impression of the market might be vastly different if you’re in the front car instead of the back one. That’s the impression I got while speaking […]
The U.S. and European Union (EU) announced a deal this weekend that removes Section 232 tariffs on imports from the EU and replaces them with a tariff rate quota (TRQ) system. The agreement ends a dispute dating back to 2018 when President Trump imposed Section 232 tariffs on steel and aluminum imports, and it heads […]
The U.S. and the European Union (EU) could reach a deal that would lead to the removal Section 232 tariffs from steel imports from the trade bloc as soon as this weekend, according to sources familiar with the matter. The two sides would most likely agree to a tariff rate quota, or TRQ, which would replace […]
Despite all the uncertainty over the economy and steel prices as the year nears an end, sentiment among steel buyers remains extremely optimistic versus historical levels, as measured by Steel Market Update. But this week’s check of the market saw a small decline to the lowest sentiment reading since July. SMU surveys buyers every two […]
“Business is great! Why is Steel Market Update always spreading so much gloom and doom about falling steel prices?” That’s not an actual quote, but we hear comments to that effect nearly every week. As if folks believe it will be a self-fulfilling prophecy. Of course, if prices decline, it won’t be because of some […]
Lead times for orders of flat rolled and plate steel from the mills have shortened again compared to this time last month. About 60% of the buyers responding to Steel Market Update’s survey this week describe lead times as just “slightly longer than normal.” Only 15% still consider them “highly extended.” SMU’s check of the […]
Steel Market Update data suggests buyers continue to gain some leverage in price negotiations. SMU asks buyers every two weeks if the mills are willing to talk price on spot orders. Around 50% of hot rolled buyers responding to this week’s poll said some mills are now willing to bargain to secure an order. That’s […]
I thought I’d be writing today that Steel Market Update had switched all its steel pricing momentum indicators to lower. But what you think should happen and what reality serves up are sometimes very different things. Hot-rolled coil prices continued to fall – they’re down $25 per ton compared to last week. That’s not a surprise. […]