Steel Buyers Sentiment—how steel executives view their prospects for success—has continued to deteriorate as the market struggles with the coronavirus restrictions. Current sentiment dipped into pessimistic territory to a reading of -8 this week, the lowest level since November 2010. It is also the first time we have entered the pessimistic portion of our index […]
The month of March saw government actions to stop the spread of the coronavirus begin to take a toll on steel demand and prices. In reaction, Steel Market Update’s Buyers Sentiment Index plunged by more than 20 points. Flat rolled steel prices declined from February, with the benchmark price of hot rolled down to a […]
A battle is brewing among legislators, manufacturers and steel producers regarding whether tariff measures should be suspended on imports under Section 301 and Section 232 during the coronavirus crisis. Republican members of the Senate Finance Committee urged President Trump to ease tariff restrictions during the pandemic. In a letter on March 25, the committee exhorted […]
Steel prices saw further declines this week, but not a dramatic collapse. The benchmark price of hot rolled now averages around $560 per ton, down $5 from last week and down $50 from the mid-January high of $610. Most of the steel buyers responding to Steel Market Update’s check of the market this week expect […]
Raw materials prices are poised for a rapid decline as the dollar strengthens and the global economy slumps. Table 1 summarizes the price changes through March 18 of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 months changes on a percentage basis. This is likely our […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: I hope you all are well and complying with the stay-at-home restrictions. It’s tough, but imagine how our grandparents coped with the flu epidemic in 1918-19 with no internet and no Amazon. We will get through this. It’s […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Trade is only a part of the national and global response to the pandemic that is now sweeping the world—but in our interconnected world, it’s a pretty important part. So far, it’s not nearly as bad as other […]
Editor’s note: Various states, counties and cities have issued some form of “shelter-in-place” or “stay-at-home” orders including California, Pennsylvania, New York, New Jersey, Oregon, Ohio, Connecticut and Illinois, as well as cities such as St. Louis, Kansas City, New Orleans and some counties in Colorado, Georgia and Idaho, among others. The list grows by the […]
Pennsylvania Gov. Tom Wolf ordered all non-life-sustaining businesses in Pennsylvania to close their physical locations as of 8 p.m. Friday, March 19, to slow the spread of COVID-19. Life sustaining businesses include grocery stores, gas stations, farms and transit systems. Due to the high volume of waiver requests, enforcement actions against businesses that do not […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
In the last 12 months, the price declines of cold rolled carbon steel and aluminum sheet have been similar. This report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of the competitive position of sheet steel, aluminum, plastic and wood. The analysis includes some downstream […]
In the last 12 months the competitive position of steel sheet has improved against aluminum, plastic and wood. This report is an analysis of Bureau of Labor Statistics data and is intended to provide subscribers with a view of where sheet steel stands in terms of pricing compared with aluminum, plastic and wood. The analysis […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Does anyone else feel like riding a roller coaster for the next six months? We have been on one for about seven weeks now and there is no end in sight. The time has arrived to consider what […]
Distributor Kloeckner anticipates its continued drive to sell metals online, along with stable steel prices, will boost operating income this year. Efficiency improvements and cost savings, such as those generated through growing automation of processes through digital applications, will also play their part in raising earnings, the German company said. Kloeckner distributes carbon sheet, long, […]
Is it me, or has the world become much more complicated recently? The NBA has suspended games indefinitely. The NCAA “March Madness” basketball tournament will be played in empty stadiums. Princess Cruises just announced they are cancelling cruises for the next 60 days. Europeans will not be allowed to fly to the United States for […]
By CRU Senior Cost Economist Ross Cunningham, additional analysis by Ippolito Tarabini and Will Young The oil market is currently facing a large degree of uncertainty. Oil prices could feasibly remain around $40/bbl for a significant period of time. Three key judgements will determine CRU’s oil price forecast for 2020: (I) the extent to which […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: As I write today, the politics of trade are becoming clearer. I’ve often been asked to predict where things are going and how politics will affect the markets. Here goes. This election year, trade is more controversial than […]
“Beyond seasonally subdued,” is how Ryerson Holding CEO Eddie Lehner described demand in the fourth quarter of 2019. Ryerson shipped 541,000 tons last quarter, down 6.2 percent year-over-year and 9.5 percent lower than in the third quarter. Revenue decreased 17.1 percent to $961.5 million compared to Q4 2018 and net income was $26.4 million. Average […]
U.S. manufacturing activity grew only slightly in February, according to the latest Manufacturing ISM Report On Business. The Institute for Supply Management reported that the February PMI decreased 0.8 points to 50.1, just above the no-change mark of 50. The PMI for new orders fell into contraction at 49.8, while production dropped four points to […]
The American Institute for International Steel suffered another setback in its constitutional challenge of the Trump administration’s use of Section 232 tariffs to restrict steel and aluminum imports on the basis of national security. In a ruling on Friday, the U.S. Court of Appeals rejected the claim by AIIS that the “non-delegation doctrine” makes it […]
Raw materials prices have been negatively impacted by the coronavirus outbreak in China. Table 1 summarizes the price changes through Feb. 19 of the five materials considered in this analysis. It reports the month/month, 3 months/3 months and 12 months/12 months changes on a percentage basis. In the last 30 days, the prices of iron […]
Reliance Steel & Aluminum Co., North America’s largest metals distributor, is going after small retail customers with the launch of a new e-commerce business, FastMetals Inc. (www.fastmetals.com). Using a catalog pricing model, FastMetals offers a diverse selection of metal products including carbon, stainless, aluminum and specialty alloy steels. Located in Massillon, Ohio, FastMetals ships nationwide […]
Reliance Steel & Aluminum announced a slew of records for its performance in 2019 and an increase in net income for the fourth quarter of 2019. “We challenged ourselves to drive continuous improvements in our business in 2019 and we are extremely pleased with the outcome of our performance,” said President and CEO Jim Hoffman. […]
Writing with CRU’s Chief Economist Jumana Saleheen are Principal Consultant for Aluminum Wan Ling, Senior Analyst Richard Lu, Analyst Ruilin Wang and China office CEO John Johnson. Last week, CRU’s China offices in Shanghai and Beijing returned to work following the Chinese New Year holiday, which was extended due to the outbreak of novel coronavirus (Covid-19). This virus has had a heavy […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: First, I want to recap the World Trade Organization crisis. The Trump administration has put a big obstacle in the way of WTO dispute settlement by refusing to permit new members of the “supreme court” of the WTO […]
The office of the U.S. Trade Representative released a scathing report detailing what the U.S. believes is wrong with the dispute mechanisms of the World Trade Organization. In 174 pages, the department lays out the alleged failures of the Appellate Body to conduct business by “agreed rules.” “As detailed in this Report, the Appellate Body […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: On Feb. 4, the Commerce Department published a new regulation expanding countervailing duty law. Commerce will now for the first time entertain claims by U.S. industry that government action to “undervalue” a currency in relation to the U.S. […]
The Port of Cleveland saw a significant decline in imports from Europe in 2019 due to tariffs and supply line disruptions. An increase in shipments from Canada, however, drove a 9 percent overall increase in cargo for the year. “Our European, cross-Atlantic imports were down approximately 35 percent, and our primary import from Europe is […]
SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and […]
Manufacturing grew in January along with the overall economy, reported the Institute for Supply Management. ISM’s January PMI gained 3.1 points from December to register 50.9, above the crucial no-change mark of 50. New orders and production pulled from contraction to post respective index readings of 52.0 percent and 54.3 percent for the month, said […]