AK Steel’s net sales for the second quarter declined by 4 percent to about $1.68 billion due primarily to lower shipments to the slowing automotive market. Yet the steelmaker’s earnings for the quarter reached $66.8 million, an improvement from the $56.6 million in Q2 2018, though down from $72.9 million in the prior quarter. Hot rolled […]
Over the next couple of years there will be approximately 20 million tons of capacity built in North America. Most of us focus on the capacity being built by Nucor, Steel Dynamics, JSW USA and others. What is overlooked is the capacity being built just south of the U.S. border in Mexico. In an effort […]
Auto production in North America exhibited the normal slowdown in December. This is a new report using LMC Automotive as the data source for automotive assemblies in the U.S., Canada and Mexico. The breakdown of assemblies is “Personal” (cars for personal use) and “Commercial” (light vehicles rated at less than 6.0 metric tons gross vehicle […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Sheet Products Monitor The steel sheet market in North America is starting the second half of the year off with the same primary trends seen in the past few quarters: rising prices due to strong demand and supply that continues to be affected by unplanned disruptions. […]
The North American auto industry is urging the White House to drop the Section 232 tariffs before the official signing of the U.S.-Mexico-Canada Agreement (USMCA). During testimony last week before the International Trade Commission, the Motor and Equipment Manufacturers Association, Alliance of Automobile Manufacturers and the American Automotive Policy Council asked the administration to exempt […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest trade developments in Washington: • The Section 232 investigation into automobiles and auto parts is in the comment phase. The deadline for written comments is June 22. The hearing in the investigation is on July 19 and 20. If […]
Both the steel and aluminum sectors have made major strides in supplying automakers with new, strong-but-light materials to take weight out of vehicles and boost their miles per gallon while lowering harmful tailpipe emissions. But to meet the current federal requirements for 2025, which call for a fleetwide average of over 50 mpg, the auto […]
ArcelorMittal reported its best third-quarter shipment performance since 2008. Shipments of 21.7 million tons were 1.0 percent higher than second-quarter due to a 1.2 percent increase in Brazil shipments, a 4.3 percent increase in NAFTA shipments, and a 3.2 percent increase from the ACIS segment. Shipments from the three segments offset a decline of 3.3 […]
The ferrous scrap market is softening and SMU’s sources expect prices to drop by $10 to $20 per gross ton in October. Domestic mills are beginning to cancel September orders that have not been completed (delivered) by the end of the month. This is a sure sign the mills believe ferrous scrap negotiations for October […]
The latest data on automotive production offers potential ammo to U.S. trade officials as they work to renegotiate the North American Free Trade Agreement. Assembly of both cars and light trucks is shifting from the U.S. to Mexico, with Canada largely on the sidelines. Total light vehicle production in the U.S. and Canada has declined […]
The United Steelworkers union is calling for the United States to negotiate stronger NAFTA rules of origin. The union charges that the rules negotiated more than 25 years ago do not reflect current economic reality and sourcing patterns. Increased imported content from China and other nations has been detrimental to U.S. production in North America, […]
The United Steelworkers union is calling for the United States to negotiate stronger NAFTA rules of origin. The union charges that the rules negotiated more than 25 years ago do not reflect current economic reality and sourcing patterns. Increased imported content from China and other nations has been detrimental to U.S. production in North America, […]
AK Steel is looking for a broad application of Section 232 that will address the continued increase in unfairly traded imports. CEO Roger Newport said during the second-quarter earnings conference call that trade cases are not working the way they were designed and hopefully Section 232 will address loopholes and those who figure out how […]
Kloeckner Metals is investing $11.3 million to expand its Greenville, S.C., operations. The expansion will add 50,000 square feet to the facility to house a new high-speed slitting line capable of processing aluminum and advanced high-strength steel. The company plans to begin operating the new line by Sept. 1. “We wanted a slitting line that […]
Autoworkers in the U.S. and Canada say any renegotiation of the North American Free Trade Agreement must lead to higher wages for all three countries, reverse trade deficits with Mexico, and create new manufacturing jobs in the U.S. and Canada. In a joint statement, the United Autoworkers and Canadian association UNIFOR noted that the trade […]
Correction: In last Thursday’s issue of Steel Market Update we mistakenly referenced earnings from a previous period instead of the 1Q 2017 report. Here is what Steel Dynamics had to say in their announcement on April 19, 2017: FORT WAYNE, Ind., April 19, 2017 /PRNewswire/ — Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced first quarter […]
President Trump announced on Wednesday the rollback of fuel economy standards that were established by executive action near the end of the Obama administration. Speaking to automotive executives and workers in Detroit, MI, Trump said, “Today, I am announcing that we are going to cancel that executive action. We are going to restore the originally […]
The following article has been revised as of 1-25-2017. Net income/loss was incorrectly reported. SMU apologizes for the confusion. AK Steel reported a net loss of $62.4 million in the fourth quarter of 2016 compared to net loss of 145.4 million in Q4 2015. Sales totaled $1.42 billion with an average selling price of $998 […]
If you are a steel buyer thinking that this rash of price increase announcements has run its course you may want to re-think the market forces again. One of the major scrap exporters booked a cargo of 80/20 mix to Turkey at $296 per metric ton delivered. They also sold shredded scrap at $301 delivered. […]
As you think about your business and where you think benchmark hot rolled prices will be in 2017 and 2018 one of the areas you need to consider are the energy markets. The energy markets have been in the doldrums for the past few years due to low oil and natural gas prices. The net […]
Steel Dynamics reported higher flat rolled prices resulted in an 11 percent increase in earnings in the third quarter. Net earnings were $284 million on net sales of $2.1 billion. Adjusted net income, including a $5 million litigation settlement charge, was $157 million for the quarter. SDI steel production was at 85 percent capacity in […]
Worthington Industries delivered record earnings in the first quarter of FY 2017 (ending August 31, 2016). Net sales totaled $737.5 million for net earnings of $65.6 million. Gross margin increased $34.3 million year-over-year to $147.3 million primarily due to inventory holding gains of $17 million in Steel Processing which were partly offset by lower volume […]
SSAB Americas results in improve in second quarter due to higher volumes and prices. Sales were SEK 2.8 billion ($323 million) compared to SEK 2.4 billion ($277 million) in first quarter. Shipments improved 11 percent to 526,000 tonnes from 475,000 tonnes in Q1. The company reports good demand from steel service centers and the wind […]
Nucor Corp. and JFE Holdings of Japan will enter a joint venture to build and operate a steel processing plant in central Mexico to supply the country’s automotive market. The 50-50 venture will cost $270 million to construct and have a capacity of 400,000 tons per year of galvanized sheet steel. The substrate for processing […]
Steel Technologies LLC plans to invest $18 million in a new processing facility in Smyrna, Tennessee. The 83,000 square foot facility will create 50 new jobs and handle both steel and aluminum sheet. “This new greenfield operation expands our exposed and unexposed automotive slitting and blanking capabilities,” Steel Technologies Vice President of Operations Randall Patterson […]
Japan steelmaker JFE Holdings and Nucor Corp reportedly are in talks to build a jointly run steel plant in Mexico. JFE plans to invest $264 million in the project, according to the Nikkei Asian Review. The plant will have an annual capacity of 400,000 tons and will service the Mexican auto industry, supplying steel for […]
Total housing starts in December were at an annual rate of 1,149,000 which was down from 1,179,000 in November. Since April total monthly starts annualized have ranged from 1,062,000 to 1,211,000 with the high month being June. In December the three month moving average (3MMA) was 1,133,000 which was down from 1,153,000 in November. August […]
US Steel plans to relocate 15,000 tons of monthly automotive steel production from Hamilton Works and Lake Erie Works to its US facilities. Court monitor Alex Morrison was informed that the reallocation will take effect for customer shipments in Oct. 2015. Seventeen employees at Hamilton will be laid off and 10 others redeployed. The production […]
Flat rolled steel buyers are resigned to a steel price spot market which takes benchmark hot rolled prices below the $500 per ton ($25.00/cwt) level. One of the large hot rolled service centers this morning told Steel Market Update that they were having a difficult time keeping up with the pace of the falling numbers. […]
A lot has already been written about the dramatic decline in oil prices, the persistent high imports of energy tubulars, and related issues. What is missing, in my opinion, is some perspective and context to pull it all together. The purpose of this article is to show why the energy sector is so important to […]