The Russians are coming—to Kentucky. Russian aluminum producer United Co. Rusal plans to invest $200 million in a $1.7 billion rolling mill being built by start-up company Braidy Industries in Ashland, Ky. The investment will give Rusal a 40 percent stake in the project and a significant presence in the U.S. automotive and aerospace aluminum […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: On April 5, the WTO issued a long-awaited Panel decision in a dispute settlement case between Russia and Ukraine. Ukraine complained that Russia interfered with Ukrainian trade flows by restricting the routes that goods could travel. Russia argued […]
The World Trade Organization ruled during a dispute settlement between the Ukraine and Russia that trade restrictions imposed on the grounds of national security are reviewable by the WTO–a decision that could have ramifications for the use of national security measures under Section 232 in the United States. The ruling states that the provision for […]
For all of you golf fanatics, it was fun to see Tiger Woods win after a 14-year drought at the Masters, and after his serious back injuries that made it look doubtful if he would ever be able to play again, never mind win a Masters Championship. I don’t have the exact count of current […]
The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations made by […]
By CRU Chief Economist Jumana Saleheen The market had hoped that China would unveil a large stimulus package at the March NPC, but any expectation of a large boost to world growth and commodities demand has not come, yet. The current stimulus package is smaller, less potent and less positive for commodities demand than previous […]
A long-term feud between Boeing in the U.S. and Airbus in Europe is coming to a head. Tuesday the U.S. threatened to impose $11.2 billion of retaliatory tariffs on European goods in response to the continued subsidization of the Airbus manufacturer. “This case has been in litigation for 14 years, and the time has come […]
Raw materials prices have lacked direction in the last month. Table 1 summarizes the price changes through March of the five materials considered in this analysis. It reports the month / month, 3 months / 3 months and 12 months / 12 months changes and tells us that iron ore and pig iron declined in […]
The Canadian International Trade Tribunal recommended on Wednesday that five of seven provisional steel safeguards, imposed by the government following the imposition of Section 232 tariffs by the U.S., be removed. A CITT inquiry concerning the importation into Canada of heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire, […]
President Trump gave the Mexican government one year for them to stop the migration of immigrants, most from Central and South American countries, as well as illegal drug smuggling into the United States. The stick he is waving is not closing the border (which would decimate the U.S. economy), but instead threatening tariffs on automobiles […]
We stuck in a couple of Premium level articles in tonight’s issue to give our Executive members an opportunity to review the level of detail we put into Premium products. With our new pricing we have exceptional membership levels on both Premium and Executive products, especially for those of you who would like to share […]
Registrations continue to grow for the 2019 SMU Steel Summit Conference, which will be held on August 26-28, 2019. In the past 24 hours we added the following companies (those with an * means more than one person will be attending): North Star BlueScope Coated Products North America, Stelco*, Walker Magnetics, Leggett & Platt, Hannibal […]
The latest survey of metalforming companies by the Precision Metalforming Association revealed uncertainty about business activity during the next three months. A survey of 110 firms, in the March 2019 PMA Business Conditions Report, showed 37 percent expect improving business conditions during the period, 49 percent anticipate no change, and 14 percent expect business activity […]
Many e-commerce ventures have targeted the metals industry over the years with varying degrees of success, but one of the latest on the scene has ambitious plans to reinvent industrial business—thus its name, Reibus. Founded 10 months ago with offices in Atlanta, Reibus.com is an online business-to-business marketplace that allows buyers and sellers of steel, […]
Producer Price Index data from the Bureau of Labor Statistics shows steel losing ground to rival materials. Steel continues to become less competitive against aluminum, although the rate of change is slowing. In the case of plastic pipe compared to carbon steel pipe, steel is becoming dangerously uncompetitive. Prefabricated metal buildings are still challenged by […]
March 23 marked the one-year anniversary of the Section 232 tariffs on steel and aluminum. The Coalition of American Metal Manufacturers and Users had the following comments for the Trump Administration: “The Coalition of American Metal Manufacturers and Users urges the Trump Administration to terminate the Section 232 steel and aluminum tariffs. At their one-year […]
I want to make sure that all of you thinking of attending this year’s SMU Steel Summit Conference are aware of some of changes, so you can plan your schedules accordingly. First, the CME Group will be hosting a Price Risk Management Workshop in the Atlanta Airport Marriott Gateway Hotel (next to GICC) from 10:30 […]
The U.S. Court of International Trade ruled against a legal challenge to the constitutionality of Section 232 brought by the American Institute for International Steel. AIIS alleged that Section 232 violates the constitutional prohibition against Congress delegating its legislative powers to the president. The CIT denied a motion by AIIS for a summary judgment, citing […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Last June, the American Institute for International Steel and two steel traders filed suit against the United States, arguing that Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. § 1962, as amended) was unconstitutional. The plaintiffs […]
Mexico has renewed the 15 percent tariff on imports of iron and steel products from countries with which it does not have a free-trade agreement. The tariffs cover 186 products and were originally introduced in 2015 to protect domestic producers from Asian imports. The newest renewal cites the “crisis facing the international steel market caused […]
After traveling for the past eight days and arriving back in Florida at 1 a.m. this morning, I am back in my office. I expect to be in the office for the next two weeks before traveling to Orlando to speak to the Air Distribution Institute. Registrations for the 2019 SMU Steel Summit Conference have […]
Steel Market Update’s Steel Buyers Sentiment Index has registered little change so far this year, even as steel prices have seen a small uptrend. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current Index), as well as three to six […]
U.S. tariffs on imports of steel, aluminum and Chinese goods have “an unmistakable negative impact” on the economy, says a new report from IHS Markit. The report, “The Economic and Industry Impact of Protectionism Tariffs on the Off-highway Equipment Sector,” estimates that Section 232 and Section 301 tariffs will result in an average GDP loss […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Steel and aluminum tariffs are plainly on the table as part of the USMCA approval strategy. Canada and Mexico insist on the removal of the tariffs as part of ratification of the new “NAFTA 2.0.” U.S. Trade Representative […]
U.S. Steel announced that it has accepted an award from the High-Performance Computing for Manufacturing Program (HPC4Mfg) Special Call: Steel and Aluminum, sponsored by the U.S. Department of Energy, to expand the company’s manufacturing capabilities for advanced high-strength steel. The winning U.S. Steel project, drafted by researchers Evgueni Nikitenko and Susan Farjami at U.S. Steel’s […]
There are reports about a myriad of meetings between the USTR, Mexico and Canada as the sides try to come to some form of resolution regarding the Section 232 tariffs on steel and aluminum. I continue to hear that the move is to not reduce the traditional level of imports from these two countries. In […]
Steel Market Update asked: One year after President Trump announced the Section 232 tariffs on steel and aluminum, have the tariffs been good for your business? For a small majority, 54 percent, of those responding to SMU’s market trends questionnaire, the answer is no. For 46 percent, yes. Opinions are split nearly down the middle. […]
Mexico’s Ministry of Economy announced last week that it will renew tariffs of 15 percent on imports of steel from countries that it does not have a free trade agreement with. The tariff does not impact steel imports from the U.S. or Canada. The Ministry also stated that before signing a new North American trade […]
U.S. light vehicle sales in February missed analysts’ forecasts, falling 2.8 percent year-over-year, reported Edmunds.com. Sales were estimated at 1.26 million last month with a seasonally adjusted annual rate of 16.6 million units, down from 17.01 million a year ago. Sales are forecast to remain strong in 2019, but slower than in recent record years. […]
Manufacturing activity slowed its rate of growth in February, according to the latest Manufacturing ISM Report on Business. The headline PMI fell further than expected last month, coming in at 54.2, a 2.4 point decline, and below the general consensus of 55.0. “Production expansion continued in February, but at a slower pace compared to January,” […]