Andre Marshall stated in his “futures” article this evening that perhaps the market is a little too negative. The purpose of looking at the month of June in its totality is to provide another way to look at what just happened over the past month as you prepare for the next one. SMU Price Momentum […]
Baosteel and Wuhan Iron and Steel Group (Wisco) are contemplating a merger that would unseat Hebei Iron and Steel Group as China’s largest domestic producer and rival European steelmaker ArcelorMittal. A merger of China’s second largest steelmaker Baosteel with fifth ranked Wisco would create a combined output of approximately 70 million tonnes. The merger would […]
Leaders in the steel industry reacted favorably to Friday’s affirmative decision by the International Trade Commission (ITC)’s regarding injury to the industry resulting from the import of corrosion-resistant steel from China, India, Italy, Korea, and Taiwan. Mario Longhi, President and CEO, US Steel Corp.: “United States Steel Corporation is pleased with the International Trade Commission’s […]
Both Platts and Steel Market Update saw flat rolled steel prices as dropping this past week. The question now is this the beginning of a correction or just a bump in the road? From the perspective of ArcelorMittal USA and NLMK USA this is just a bump. If the drop in steel prices continue this […]
The U.S. International Trade Commission (ITC) announced today (June 22, 2016) that it finds that unfairly priced and subsidized imports of cold-rolled steel flat products from China and Japan have hurt U.S. steel producers. All six commissioners voted in the affirmative. As a result, the antidumping and countervailing duties determined by the DOC in their […]
USW members overwhelmingly ratified a new contract with ArcelorMittal today (June 23). The new agreement covers nearly 14,000 union-represented hourly production, maintenance, and technical workers at the company’s 15 locations through Sept. 1, 2018. “We have settled our differences with management at the table, so together now we can focus on addressing the industry’s real […]
The reaction to the latest round of price increase announcements out of ArcelorMittal USA and NLMK USA got one of our readers fired up. After reading Tuesday evening’s issue of Steel Market Update they penned their thoughts on price increases and imports, especially imports out of the “2nd tier guys”: I just finished reading last […]
Today two mills began advising their customers of their intention to raise flat rolled steel prices. ArcelorMittal USA and NLMK USA both came out with increases. ArcelorMittal provided specific base price “minimums” while NLMK USA advised their customers of a flat $30 per ton increase. If all of the other mills follow, this would be […]
Flat rolled steel prices slipped this week even as ArcelorMittal USA announced new spot pricing for the month of August. Steel Market Update (SMU) has been noticing a “topping” of the market over the past few weeks and our expectation is for the market to be a little “sloppy” in the coming weeks. We do […]
Two steel mills announced price increases today. This is the beginning of the 6th round of increases since the first announcement in early December 2015. However, unlike past announcements this one just doesn’t “feel” the same. We are not seeing a rush to buy (unless it was a special deal at much less than the […]
ArcelorMittal is set to expand its portfolio of automotive steels by launching two new products in 2017, Usibor®2000 and Ductibor®1000. According to a spokesperson at ArcelorMittal , Usibor® 2000, which has been under development for some time, is a new Aluminum-Silicon coated high strength steel that will be even stronger than its predecessor Usibor® 1500. […]
Cliffs Natural Resources’ supply agreement with ArcelorMittal “put the final nail in the coffin of Essar Steel Minnesota.” That is the opinion of Star Tribune columnist, Lee Schafer. Schafer has a point, with Cliffs gobbling up Northern steel mill contracts, Essar will have no customers even if it is able to pull itself out of […]
For many years, SMU publisher John Packard sold ultra light gauge galvanized steels (.019”-.010”) into the furnace pipe manufacturers across the United States and Canada. This product is one that is not championed by the domestic steel industry as the domestic steel mills would rather run thicker steels (more tonnage per hour through their mills) […]
The new labor agreement between the United Steelworkers and ArcelorMittal USA has yet to be voted on but highlights of the contract reveal that the parties agreed to the idling of certain finishing lines at the North American operations. According to the union contract summary, the lines include the 84-inch Hot Strip Mill at Indiana […]
ArcelorMittal USA and Cliffs Natural Resources have entered into a new long-term iron ore supply agreement that will run through 2026. The new agreement replaces two existing agreements that expire Dec. 2016 and Jan. 2017 and fills the entirety of ArcelorMittal’s pellet purchase requirements from the previous contracts. Cliffs Natural Resources will supply 7 to […]
Whenever SMU speaks to steel buyers about flat rolled steel pricing cycles we inevitably hear about how the domestic steel mills have a tendency to over-correct to both the low and the high sides of the cycle (boom/bust). In the process there seems to be an assurance that market volatility will continue to be significant […]
Steel Market Update received a note from trade attorney Lewis E. Leibowitz regarding an “ex parte” memorandum from former Michigan Governor and current President of the Business Rountable, John Engler, about the AD investigation of imports of cold rolled steel from Japan. Mr. Engler was intervening on behalf of Steelcase and their subsidiary PolyVision which […]
Today, the Department of Commerce announced its affirmative final determinations in the AD investigations of imports of certain cold-rolled steel flat products (cold-rolled steel) from China and Japan, and CVD investigation of imports of cold-rolled steel from China. Commerce determined imports of cold-rolled steel from China and Japan have been sold in the U.S. at […]
“U.S. Steel Sinks as Another Wave of Cheap Imports Predicted” was the headline in Bloomberg on Friday morning. The article cites Axiom Capital Research analyst Gordon Johnson who wrote to his clients, “A boat load of imports are likely on the way.” This opinion permeates the financial community and the pessimism is, in our opinion, […]
On May 17, 2016, the Department of Commerce is scheduled to announce its final determinations in the AD investigations of imports of certain cold-rolled steel flat products from China and Japan and CVD investigation of imports of certain cold-rolled steel flat products from China. The investigations cover certain cold-rolled, flat-rolled, steel products, neither clad, plated, […]
The United Steelworkers will receive the final Contract Summary of the proposed agreement with ArcelorMittal USA starting around May 23. The summary will include a ballot and voting instructions. Ratification ballots must returned by June 21 for collection and counting on June 23, 2016. Pete Trinidad, Sr., President USW Local 6787 told members in a […]
Auto/Steel Partnership – May 11, 2016 — In an effort to assist automakers in meeting stringent fuel economy requirements, the Auto/Steel Partnership (A/SP) announced today the Hemming of Thin Gauge Advanced High-Strength Steel (AHSS) project achieved a 30 percent weight savings using thinner gauge AHSS for automotive closure panels. “The Hemming team achieved positive results […]
Scrap prices settled higher by $20 to $30 per gross ton delivered to the domestic steel mills, according to Steel Market Update (SMU) scrap sources. The rise in ferrous scrap prices has been one of the driving factors behind the flat rolled price increases announced by the domestic steel industry over the past few months. […]
ArcelorMittal narrowed its losses in first quarter 2015 to $416 million from $728 million a year ago. Total steel shipments for the company were 21.5 million tonnes. “Clearly, the market conditions have improved since we reported full year results in early February. Rising steel prices in China have supported prices globally and this has been […]
In an email to their customers earlier today, ArcelorMittal USA became the first mill to announce new base price minimums on flat rolled steel with the opening of their July order book. The new steel price minimums set by AM are as follows: Hot Rolled = $610 per ton ($30.50/cwt)Cold Rolled = $800 per ton […]
In case there is some confusion, flat rolled steel prices are moving higher and, with today’s announcement by ArcelorMittal it is only a matter of time before benchmark hot rolled breaches $600 per ton and cold rolled and coated breach $800 per ton (base plus extras). It has been a very difficult market to gauge […]
The move by ArcelorMittal USA today was anticipated and the price levels noted in their increase email to their customers are in line with expectations. I expect the rest of the mills will follow along within $10-$20 per ton of the levels suggested by AMUSA. Some of the mills may wait for scrap prices to […]
The United Steelworkers revealed highlights on Friday of its tentative contract with ArcelorMittal USA. The settlement followed eight months of negotiations while union members continued to work under the terms of the previous expired contract. The new contract does not include a pay raise but does maintain the no premium status for health care benefits […]
On April 29, 2016, the Department of Commerce initiated an antidumping duty (AD) investigation of imports of certain carbon and alloy steel cut-to-length plate (CTL plate) from Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, Korea, South Africa, Taiwan, and Turkey, and countervailing duty (CVD) investigations of imports of CTL plate from Brazil, China, and […]
Cliffs Natural Resources first quarter earnings were stronger than expected by many analysts. The company posted net income of $117 million compared to a net loss of $762 million a year ago. Lourenco Goncalves, Cliffs’ Chairman, President and Chief Executive Officer, said, “Cliffs’ first-quarter results clearly demonstrate how far we have come on our turnaround. […]