In a concession to the Chinese as part of the phase one trade agreement signed Wednesday by President Trump and China’s Vice Premier Liu He, the U.S. will cut Section 301 duties on $120 billion in Chinese goods in half, from 15 percent to 7.5 percent, effective Feb. 14. China has agreed to increase its […]
The other day I mentioned I am open to suggestions regarding subjects to be discussed or possible speakers at this year’s SMU Steel Summit Conference. One of the suggestions I got was that we consider having a steel buyer’s panel. I like the idea and it has already been incorporated into the agenda. I have […]
The Alliance for American Manufacturing is more than a little skeptical that the China Phase One trade agreement will have value for American workers, calling it “completely inadequate” in a letter to President Trump. “The agreement does not level the playing field for American workers in the U.S. or global market,” wrote AAM President Scott […]
With a new trade deal in the works, the U.S. has declared that China is no longer a currency manipulator after labeling it one last summer. In August 2019, Treasury Secretary Steven Mnuchin, “under the auspices of President Trump,” determined that China was devaluating its currency to “gain an unfair competitive advantage in international trade.” […]
I spent today working on two projects. First was contacting and communicating with flat rolled and plate steel buyers in order to get a sense of the current spot price offers/transactions and where the markets are heading over the near term. The second project was working on the 2020 SMU Steel Summit Conference. As with […]
Using U.S. International Trade Commission (USITC) data, Steel Market Update has taken the import tonnage of cold rolled sheet and broken it down into coil and leveled, then our report breaks out four thickness ranges and identifies how much was full hard, annealed and high strength. Through November 2019, of the total cold rolled sheet […]
As the laws of economics have proven time and again, supply and demand will determine whether steel prices continue to rise in 2020. Demand is set by the marketplace; supply can be controlled by producers. Steel Market Update canvassed the market this week, asking readers: Has enough flat rolled capacity been removed to keep prices […]
Lead times for coated steels and steel plate have extended a bit, but lead times for orders of hot rolled and cold rolled have seen little change in the past few weeks. Lead times for steel delivery are a measure of demand at the mill level. The longer the lead time, the busier the mill. […]
Negotiations between steelmakers and steel buyers were mixed in early January, depending on the product. Responses to Steel Market Update’s market trends questionnaire this week indicate that talks over price have tightened considerably for plate, while loosening slightly for hot rolled and cold rolled orders. In the hot rolled segment, the majority of buyers (56 […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: We are now in the third year of the steel tariffs. On Jan. 11, 2018, the Department of Commerce transmitted its report and recommendations to President Trump. The president was waiting for the document, which gave him power […]
Following the recent attacks in Iran, President Trump has imposed new sanctions on Iran including targeting 13 Iranian steel and mining companies. Additionally, sanctions will be imposed on three Seychelles-based entities, aluminum and copper companies and the Liberian-flagged and Chinese-owned vessel Hong Xun, known to transport metal products. “We are also designating Iran’s largest metals […]
Written by: John Packard, President & CEO Steel Market Update Your customer will tell you what you need to know. The key is to listen. The key is to suppress your temptation to dominate the conversation. Brian Buckalew, Vice President of Business Development, Majestic Steel, recently wrote in a LinkedIn post: “People that are not […]
Steel buyers sentiment has seen a notable improvement as business conditions appear favorable to start the new year. Both the Current and Future Sentiment indexes had readings above +60 this week. The goal of SMU’s index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current […]
I was taking a deeper dive into some of the data compiled from last week’s flat rolled and plate steel market trends analysis. Having added about 50+ new companies to our survey, we now send invitations to 500+ individuals who actively participate in the flat rolled or plate steel markets. On purpose, we concentrate on […]
I want to take a moment to thank John Walburg and the entire California Steel Industries team for their support of our Steel 101 workshop, which we just completed. The Fontana, Calif., steel mill tour was the highlight for many of our Steel 101 workshop attendees, and I want to personally thank CSI for allowing […]
A recent study by the Federal Reserve concludes that the Trump administration tariffs are doing more harm than good to the U.S. economy and manufacturing. Federal economists Aaron Flaaen and Justin Pierce examined the impact the “unprecedented” number of tariffs imposed under the Trump administration have had on the U.S. manufacturing sector. Escalation of tariff […]
John Packard is traveling…. As always, the holiday break put the brakes on buying, making it a challenge to gauge steel prices in the first week of 2020. But it appears the upward price momentum has continued into the New Year. Steel Market Update’s survey of the market over the past two days shows flat […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Happy New Year to all. The president has imposed a host of import restrictions and sanctions since 2017. The list is extensive and the statutes under which he claims to be acting can be bewildering: Section 232, Section […]
Steel Market Update is pleased to share this Premium content with Executive level members. For more information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. Key Market Indicators showed a substantial improvement in market trends in the December data. This report is designed to be a big picture summary of data SMU has […]
For those of you who stretched out the Christmas, Hanukkah and New Year’s Holidays and are just returning to your offices – Happy New Year and welcome to the decade that promises to make the last 10 years look tame. Steel Market Update will return to our normal market analysis schedule this week, and we […]
Key Market Indicators showed a substantial improvement in market trends in the December data. This report is designed to be a big picture summary of data SMU has reported in detail during the month. It summarizes 36 data streams that describe the state of the steel market and provide forward guidance for steel buyers and […]
First issue of the New Year. For that matter, today is the first issue of the new decade. It will probably take awhile to get used to 2020 vs. 2019. Of course, with the political climate and it being an election year, maybe we will have 2020 ingrained in our heads sooner rather than later. […]
By CRU Senior Cost Economist Ross Cunningham, from CRU’s Economic Outlook Political uncertainty equals big losses for Americas currencies. During the latter half of 2019, currencies in key South American economies have lost significant ground against the dollar. Since these economies depend on commodity exports for their growth, the negative effects of the trade war […]
Welcome back from the Christmas Holidays. This is the 149th Executive level issue of Steel Market Update produced during calendar year 2019. It is also anticipated to be the last Executive issue prior to the New Year. On Monday we will publish our last Premium issue of the year, our 49th for 2019. Christmas and […]
Steel buyers sentiment has seen little change in the past several weeks as the market pauses to digest the latest price increases and looks ahead to the beginning of the new year. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today […]
In four rounds of price increases since late October, flat rolled steel mills have raised prices by a total of $150 per ton. How much are they collecting? Some, but certainly not all, according to the service center and manufacturing executives who responded to Steel Market Update’s questionnaire this week. SMU data places the average […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: The House of Representatives voted on Thursday to approve the USMCA agreement by a large bipartisan majority, 385-41. The vote sends the implementing legislation to the Senate, which is also expected to approve the agreement. It is one […]
President Trump is walking back his decision to impose tariffs on steel and aluminum imports from Brazil. After accusing Brazil and Argentina earlier this month of currency manipulation that is harming U.S. farmers, and threatening immediate tariffs in retaliation, Trump now says he will not follow through on his threat. Brazilian President Jair Bolsonaro said […]
Happy Holidays! I expect this week to be a tad on the slow side as buyers and sellers of steel celebrate Hanukkah and Christmas. One year ago, benchmark hot rolled prices were averaging $745 per ton ($37.25/cwt), down from the cycle peak achieved the week of July 23, 2018, at $915 per ton ($45.75/cwt). Since […]
After a brief hesitation early in the month, mill lead times for spot orders of flat rolled steel have continued to increase. The latest data shows slightly longer lead times for all flat rolled products except for Galvalume. Plate lead times have extended, as well. Lead times for steel delivery are a measure of demand […]