U.S. Trade Representative Robert Lighthizer offered a stern assessment of the United States’ goals for an updated trade agreement with Canada and Mexico as talks began Wednesday to renegotiate NAFTA. Canadian Foreign Affairs Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo Villarreal joined Lighthizer in Washington for negotiations on the North American Free Trade […]
Steel shipments by Canadian service centers in July totaled 346,500 net tons, down 11.7 percent from the previous month, but up 8.7 percent from July 2016, reports the Metals Service Center Institute (MSCI). On a daily basis, total shipments were 17,300 tons per day in July (a 20-day month), down from 17,800 tons per day […]
Manufacturing activity jumped sharply in New York State in August. The general business index of the Empire State Manufacturing Survey leapt 15.4 points to 25.2, its highest reading since September 2014. The new orders index rose seven points to 20.6 and shipments gained nearly two points for a reading of 12.4. Delivery times increased slightly, […]
The following steel mills are registered to attend this year’s SMU Steel Summit Conference at the end of this month: ArcelorMittal Mexico, ArcelorMittal Dofasco, ArcelorMittal/Nippon Sumitomo Calvert, Ternium USA, Ternium Mexico, NLMK USA, Nucor, Nucor Mexico, Nucor Canada, Kandil Steel (Egypt), California Steel Industries, AK Steel, CSN USA, North Star BlueScope, Steel Dynamics Inc., The […]
Like in the United States, steelmakers in the European Union are using their trade laws to fight back against steel imports that are unfairly subsidized by the governments in China and other countries. On Aug. 9, the European Union imposed provisional import duties of up to 28.5 percent on certain Chinese corrosion-resistant steels. The eight-month […]
The Trump administration’s effort to renegotiate the North American Free Trade Agreement and secure “a better deal for America” begins this week with talks between Canada, Mexico and the United States. The opening round will be in Washington on Aug. 16-20. The second round will take place in Mexico City around Sept. 10. Canada will […]
I was advised late on Friday afternoon that we should expect a Nucor price increase early next week. With scrap prices firming $10 to $30 per ton our expectation is for the increase to be $25-$30 per ton. Then the question will be will the industry support another increase after tepid (at best) support for […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Nucor Corporation announced today that it will acquire St. Louis Cold Drawn, Inc., a manufacturer of cold finished steel bar. The company’s cold drawn rounds, hexagons, squares, and special sections serve the U.S. and Mexican automotive and industrial markets and will add to Nucor’s value-added product portfolio. “This acquisition fits with our planned growth strategy […]
Steel Market Update received the following letter to the editor which was in response to comments made in a recent article by an un-named steel mill executive: I read your report “U.S. Steelmakers: We’re Not Protectionist” with interest, but also with a little bit of a smile. Since the mid-1960s, the U.S. steel industry has […]
On Monday, the futures markets surged 7 percent in China. We reached out to one of our trading contacts in China to see what we could learn about physical steel trading prices into the export markets out of China: Future’s market jumped 7% yesterday but only on Hot Money influx. Spot market was up RMB15 […]
China domestic demand is driving a tandem rise in iron ore and steel pricing. Iron ore prices are at their highest level since April as Chinese steel producers gobble ore to take advantage of high margins and surging summer steel prices. Although China is ahead of its target for reducing steel capacity this year, Chinese […]
In their pursuit of free and fair trade, U.S. steelmakers are often called protectionist—a label they increasingly resent. Steel industry trade groups, including the American Iron and Steel Institute and the Steel Manufacturers Association, have urged the Trump administration to take a harder stance on steel imports. Trade action, including new tariffs or quotas under […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel This week HR futures markets experienced continued price consolidation along the curve as HR futures prices continued to retrace lower from […]
As a monthly average, prices on all flat rolled steel products recovered in July following a dip in June. The month of July ended with SMU’s Price Momentum Indicator continuing to point higher as the market waits to see if and when the Trump administration will act on Section 232 trade measures that could further […]
Manufacturing activity in the U.S. expanded in July, though the PMI declined 1.5 percentage points to a reading of 56.3, reports the Institute for Supply Management in its latest Manufacturing ISM Report On Business. The PMI has remained above the neutral 50.0 point for 11 consecutive months indicating growth in manufacturing. Although still at robust […]
The Chicago Business Barometer dropped nearly 7 points in July, falling to 58.9 from 65.7 in June and ending a run of five consecutive increases. All components of the indicator receded, but remained above 12-month averages. The July Barometer “should be viewed in the context of the underlying, upward trend in business sentiment witnessed since […]
The JP Morgan Global Manufacturing PMI registered 52.7 in July indicating continued manufacturing growth across the globe. During the last four months, manufacturing expansion has remained steady at 52.6 in June and May, and 52.7 in April. Growth in June was again led by European nations with eight of the ten best-performing countries in Europe. […]
This report summarizes seven data sources that describe the state of manufacturing in the U.S. We have reported on most of these separately in our Steel Market Update publications, therefore we’ll be brief in this summary. We don’t expect these data sources to all point in the same direction. Our intention in summarizing them in […]
The Bureau of Labor Statistics reports that job creation has been positive in all regions of the country since Q3 2016, in the second-quarter data it released on Friday. Economy.com summarizes as follows: “The country’s labor market ended the second quarter on a strong note, with job growth in June that was stronger and more […]
Consumers are feeling better about the present economic environment and their expectations for the future, according to data from The Conference Board, which conducts a monthly Consumer Confidence Survey. Consumer confidence is the driver of consumer spending, which is the largest component of GDP and ultimately drives a large portion of steel consumption. The composite […]
Orders for durable goods jumped 6.5 percent in June for the largest increase since July 2014, said the Commerce Department on Thursday. Most of the gain, however, was due to a 131.2 percent surge in orders for commercial aircraft. Excluding aircraft and transportation, orders rose a more modest 0.2 percent. Core capital goods, which exclude […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA ports) and domestic (USA) hot rolled coil prices (FOB Domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals director of risk management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
Metalforming companies in the U.S. and Canada are expecting steady business conditions during the next three months, but expressed concerns about potential Section 232 tariffs. The PMA Business Conditions Report, prepared by the Precision Metalforming Association, showed most members are not anticipating any changes in general economic activity or incoming orders in the coming months. […]
A mild recession will impact residential and nonresidential construction in 2019, predicts the HARDI/ITR July quarterly report. Steel Market Update is a member of an association connected to the construction industry called the Heating, Air-conditioning & Refrigeration Distributors International. HARDI and ITR Economics, an economic forecasting company, work together to gather economic data to provide […]
Architectural firms report that billings for design services increased in June despite higher construction costs for the industry and a shortage of qualified labor. The June Architecture Billings Index, published by the American Institute of Architects, registered 54.2 following a score of 53.0 in May. Billings have been on a generally upward trajectory over the […]
Steel Market Update (SMU) sources in China have provided pricing guidance on a number of steel products coming out of China. We are seeing steel prices rising in China due to higher commodity prices (example: iron ore this morning was $69.70 per dry metric ton for 62% Fe, according to The Steel Index). The following […]
Light vehicle sales are slowing and Mexico continues to take production share from the U.S. Vehicle sales in the U.S. averaged 17.0 million units at a seasonally adjusted annual rate (SAAR) in the first six months of 2017, down from 18.1 million in Q4 2016. March through June monthly sales were each below 17.0 million […]
U.S. industrial production is in Phase B, accelerating growth, but the latest HARDI/ITR quarterly construction forecast warns that the next phase of the cycle, slower growth, is on the horizon. Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. […]