Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Things happened last week that will affect politics (and business) for some time to come. The effects include a Democrat-controlled Senate, the loss of stature of several members of Congress (including a few Senators) and improved prospects for […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: As the nation (and the world) prepares for the inauguration of Joe Biden as the new president, many groups are releasing position papers telling the new administration what it should do about trade-related issues. They run the gamut from […]
I’m looking forward to next month’s Tampa Steel Conference, where we will discuss lots of steel-related policy issues. The conference provides an opportunity to weigh the importance of the steel industry in the American economy and the global economy. We cannot realistically discuss what to do about steel (or any industry) from either a government […]
Can we measure the relative importance of steel-producing versus steel-consuming industries? Last week, I looked at some ways to measure the steel industry’s importance to the economy and national defense today and in the past. Today, I explore another major point of comparison—the economic and strategic importance of steel production and steel-consuming industries economically and […]
There seems to be an erratic but discernible move toward more normal international trade policy. The last four years was anything but normal. Consider the following: • After World War II, the United States found itself in a preeminent position in the world. Nearly half of the production of goods and services in the world […]
Lately there has been a great deal of news on the legal front. Readers of this column have asked a lot of questions. Today I will try to get to at least some of them. Most of the recent court decisions relate to the Section 232 tariffs, so that is a good place to start. To […]
Steel price levels are in uncharted territory these days. The current prices, especially in an economy where interest rates are near zero and inflation remains low, are truly remarkable. How did this happen and when will it end? The short answer is that nobody really knows—but we can analyze the events surrounding the spike and […]
Eyes often glaze over when trade lawyers talk about the intricacies of antidumping law to what lawyers sometimes patronizingly call “laymen.” With a clear understanding of that risk, today’s piece dives into a recent decision by the Court of International Trade dealing with the Commerce Department’s treatment of Section 232 duties on steel in antidumping […]
Last Thursday, policy wonks observed the confirmation hearing of Katherine Tai to be the new United States Trade Representative, replacing Robert Lighthizer. When a new administration takes over, the previous leadership departs at noon on Jan. 20 and “acting” leadership assumes authority, but generally not much power. The new team is nominated, typically on Jan. […]
International trade problems and their resolutions inherently deal with the most parochial and global interests. Opponents of trade liberalization decry “bad deals” that rob the United States of good-paying American jobs. Proponents support trade deals because they make consumers in America and the world over better off (“save money, live better”). In the 1990s, the […]
“Life’s full of tough choices, innit?” Ursula, The Little Mermaid (1989) That memorable cinematic line brings to mind the dilemmas of trade, diplomacy and national security. Economic interests sometime interfere with military and human rights considerations. Add the COVID pandemic into the mix, which has profoundly affected international commerce. First, the changes in international trade […]
An interesting feature of trade remedy law, by which I refer to as antidumping, countervailing duty, safeguards and Section 232 import “adjustments,” is alleged circumvention of these orders. Readers have asked questions about this subject, which can catch downstream users and importers unawares. Circumvention refers to processing goods that are subject to trade restrictions (duties […]
When nations go to war, trade between them, at least in modern times, is supposed to stop. There was little complaint after Pearl Harbor, for example, about legislative and executive actions to stop all commerce between the United States on the one hand, and Germany, Italy and Japan on the other. We used to assume […]
A court decision last week highlights the limits Congress placed on presidential authority under Section 232 of the Trade Expansion Act. In PrimeSource Building Products v. United States (decided April 5), the Court of International Trade ruled that presidential Proclamation 9980 (issued Jan. 24, 2020), imposing tariffs on certain steel and aluminum “derivative products” was […]
Every so often there are ideas (but rarely new ones) to “reform” international trade laws. Mostly, the interests that have the ear of Congress (domestic producers of steel, for example, and organized labor) put forward their ideas. Less often, interests that employ more Americans in manufacturing put theirs forward. The two sides of the divide […]
In December 2020, Congress passed a massive spending bill, which is the way appropriations have been done in Washington for the last 20 years or so. One new provision with international implications is the requirement for the Director of National Intelligence (DNI) to prepare an annual threat assessment report. This new report, issued recently by […]
As many countries and trading blocs like the EU focus on keeping production “at home” to prevent shortages in emergencies, America is joining in. “Buy America” as a slogan and a policy has been around for many years in many forms. But the allure of Buy America runs into practical problems; and that dilemma has […]
The right to profit from invention has been protected since the inception of the country. Just look at the Constitution. But for just as long it has been controversial. A few days ago the Biden administration reversed the long-held position of the U.S. course and announced its support for waivers of patent rights and other […]
Many of you may have sat, like me, in a line to get gasoline this week. It brought back memories of the Arab Oil Embargo of 1973 and the Iranian boycott of 1979. This time, a gasoline pipeline supplying about half of that product to the eastern United States was closed, allegedly due to a […]
Count me as an optimist—that events move, sporadically and inconsistently, but generally toward progress. I received a lot of messages during the past week that wondered openly whether talks between the United States and the European Union might lead to an end to the steel and aluminum tariffs that have been in effect since 2018. […]
Two phenomena that we have not seen in a long time have recently appeared. Whether they are short-term events or long-term realities is provoking debate. I am speaking of the distinct but related issues of inflation and shortages of, it seems, nearly everything. Inflation was a major factor in the U.S. economy throughout the 1970s. […]
As we enter the New Year (goodbye 2020, welcome 2021), you will notice changes to Steel Market Update. One of the very first things you will notice is that our newsletters will have more relevant content in them. This is due to the addition of Michael Cowden who joins us after spending 13 years with […]
Looking back at the past year, 2020 was not the disaster many in the steel industry had feared. And looking ahead, 2021 appears even more promising, say OEM and service center executives polled by Steel Market Update last week. Despite an economy that struggled with the COVID pandemic, as well as civil unrest and an […]
2021: A New Year and New Opportunities and Adventures The coming New Year is going to be one for the ages. This year (2020) has been one where our personal, political, and professional lives got mixed together as never before. I am ready for the mundane (politics), for the pandemic to end (personal), and to […]
Sentiment among steel buyers, as measured by Steel Market Update’s Dec. 21 questionnaire, saw a small dip as the year comes to a close on concerns about tight steel supplies. As one respondent said, “We need supply in order to be successful. I am not able to line that all up so far for 2021.” […]
Steel Market Update’s check of the market a few days before Christmas shows no let-up in steel demand, as prices continue to rise and lead times continue to extend. With steel supplies remaining extremely tight, lead times for deliveries of hot rolled have stretched to more than eight weeks and coated steel orders to around […]
Based on Steel Market Update’s check of the market this week, hot rolled steel prices are nearing $1,000 per ton, within sight of a record high. With service centers and OEMs willing to pay such high prices in order to secure inventory in a tight market, it’s no surprise the buyers report little willingness among […]
I received a call earlier today from one of our readers who is also a consultant to companies who purchase flat rolled steel. He mentioned to me that there is some confusion with companies who think our index is the same as CRU, since we are owned by CRU. That belief is ill-advised and flat […]
Tomorrow (Monday, Dec. 21) will be the winter solstice in the Northern Hemisphere, the shortest day of the year (darkest day of the year). With the pandemic raging, and the government breaking out two vaccines to treat COVID-19, the hope is that as the daylight gets longer the pandemic will begin to fade away. For […]
Flat Rolled = 40.0 Shipping Days of Supply Plate = 45.7 Shipping Days of Supply Flat Rolled Service center flat rolled steel inventories continue to reach new lows. At the end of November, service centers carried 40 shipping days of supply, down from 43.1 days in October. November had 19 shipping days, compared to October’s […]