The U.S. auto industry is facing a slew of challenges as it emerges from the COVID-19 crisis and plunges into preparations to meet USMCA compliance on July 1. The Center for Automotive Research presented a discussion with Gov. Matt Blunt, president of the American Automotive Policy Council and former governor of Missouri, on the state […]
Cargo shipments on the Great Lakes and St. Lawrence Seaway were impacted during the coronavirus pandemic, with ports seeing lower volumes. Tonnage on the St. Lawrence Seaway was down 10 percent year over year in the period from March 15 through May 31 to 7.7 million metric tons, said the Marine Chamber of Commerce. “Road […]
Cleveland-Cliffs will resume construction on its Hot-Briquetted Iron plant in Toledo earlier than expected. Construction was halted on March 20, 2020, due to the pandemic, but will resume with newly implemented safety measures. Cleveland-Cliffs plans to complete the HBI facility during the fourth quarter of this year. The Tilden mine that supplies AK Steel Middletown […]
The World Steel Association (worldsteel) expects steel demand to contract by 5.4 percent in 2020 to 1.654 billion metric tons. The latest Short Range Outlook forecasts a recovery to 1.717 billion tons in 2021, a 3.8 percent increase over this year. Commenting on the outlook, Chairman of the worldsteel Economics Committee Al Remeithi said: “The […]
John Packard is working on another project. Steel prices have been on an upward trajectory, albeit a gradual one, since bottoming out in late April when the benchmark price of hot rolled hit a low of $460 per ton. The market plunged by $120 per ton in just six weeks from its mid-March high of […]
There was positive net job creation in May following April’s disastrous report. The May jobs report was released by the Bureau of Labor Statistics on Friday, after which the N.Y. Times reported: “Employers added 2.5 million jobs in May, defying economists’ expectations of further losses and offering hope that the rebound from the pandemic-induced economic […]
Section 232 tariffs will likely remain in place no matter who is the White House in January, said trade attorney Lewis Leibowitz during the SMU Community Chat on June 3. Legal challenges to the tariff measures, however, could cause a change. Firms are challenging the Section 232 exclusion process that appears skewed toward U.S. steel […]
SMU Contributor David Feldstein is president of Rock Trading Advisors (davidfeldstein@rocktradingadvisors.com, twitter @TheFeldstein). In addition to market analysis, RTA provides price risk management not only for ferrous products, but also base metals, energy and interest rates. RTA also trains sales staff and creates the infrastructure necessary for firms to offer their customers fixed pricing on […]
We had a good webinar with Lewis Leibowitz yesterday (Wednesday). Our next SMU Community Chat webinar will be held next Wednesday, June 10, and our featured guest speaker will be James Banker, Jr., Executive Vice President, NLMK USA. Banker will be the first steel mill to participate in one of our webinars. Jim has a […]
Harry Moser’s phone and email have been ringing off the hook. Moser is the founder and president of the Reshoring Initiative, whose mission is to convince companies to bring manufacturing, and manufacturing jobs, back to America. Reshoring was already gaining momentum prior to the coronavirus outbreak, but the pandemic has infected the marketplace with a […]
Auto sales in May are expected to be up 49 percent from April as the economy starts to reopen, says Cox Automotive. Sales are forecast to finish the year around 11.4 million vehicles, better than last month’s annual rate of 8.6 million, but far below the 17.4 million level seen in 2019, said Cox. “Recent […]
The Institute for Supply Management’s May Report on Business showed improvement, with the manufacturing PMI rising to 43.1 percent from a reading of 41.6 percent the previous month. The PMI score was at a contraction level not seen since April 2009, but the slight uptick was a promising sign. Manufacturers, however, continue to be guarded regarding […]
Olympic Steel is expanding its southeastern footprint with the opening of a new 120,000-square-foot metal processing facility in Buford, Ga., that will act as a primary flat rolled fabrication hub for the region, which also includes facilities in Locust, N.C., Winder, Ga.; and Hanceville, Ala. Olympic Steel’s facilities in the Southeast offer a wide array […]
Domestic steelmakers raised prices twice during the month of May, by a total of $90-100 per ton, hoping to establish a floor and set the stage for recovery in anticipation of improving demand as coronavirus restrictions ease in June and July. Service center and manufacturing executives responding to Steel Market Update’s market trends questionnaire this […]
New data from U.S. Federal Reserve Districts shows economic activity declined in all regions of the country in April and May due to disruption caused by the COVID-19 pandemic. Almost all areas of economic activity were negatively impacted during the period. Most districts reported a severe drop in manufacturing activity with production especially weak in […]
Memorial Day 2020 When you want to know where you are in life, look in your closet. There it was, bulging at the seams yet ignored. The cloth bag is blood red. I looked up the color online and the closest match was Vallejo Game Air Bloody Red. It is suspended by a white draw […]
While it seems counterintuitive given the difficult market conditions and weak demand due to the coronavirus, domestic steelmakers have raised flat rolled prices for the second time this month. Nucor, U.S. Steel, USS-POSCO Industries (UPI), AK Steel and NLMK USA informed customers today that prices for spot orders of hot rolled, cold rolled and coated […]
Neither rosy nor the voice of doom, IHS Markit analyst John Anton offered a realistic assessment of the U.S. economic recovery post-COVID-19 during Wednesday’s SMU Community Chat Webinar. Recovery from the current recession will not be a quick V-shaped rebound, said Anton, who is associate director of IHS Markit’s Pricing and Purchasing Service. Instead, he […]
Yesterday’s SMU Community Chat drew nearly 500 attendees to hear John Anton, associate director of the IHS Markit Pricing and Purchasing Service, give his analysis of the coronavirus pandemic’s impact on the U.S. economy and steel market. His presentation prompted nearly two dozen questions from listeners, too many to cover during the Q&A portion of […]
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 […]
While it seems counterintuitive given the difficult market conditions and weak demand due to the coronavirus, domestic steelmakers have raised flat rolled prices for the second time this month. U.S. Steel, USS-POSCO Industries (UPI) and NLMK USA informed customers today that prices for spot orders of hot rolled, cold rolled and coated products have increased […]
Wholesalers of HVAC products have weathered the pandemic surprisingly well so far and are more concerned about construction demand months from now than they are about their near-term prospects. Consider what has happened since April as a result of the market’s response to the virus: Steel mills are operating at just above 50 percent of […]
With the expectation of higher scrap prices coming for the month of June, on top of the steep rise in ferrous scrap this month, the mills’ margins may well be squeezed, which will impact negotiations and pricing over the next few weeks. Most steel buyers anticipate a new round of price increases by late May […]
Our Wednesday SMU Community Chat Webinars have been a tremendous success. Each webinar is unique as we try to vary the subject matter and speakers. For those who have been tuning in to these free sessions at 11 AM ET, you already know that our speakers don’t always agree with one another as to what […]
Our Wednesday SMU Community Chat Webinars have been a tremendous success. Each webinar is unique as we try to vary the subject matter and speakers. For those who have been tuning in to these free sessions at 11 AM ET, you already know that our speakers don’t always agree with one another as to what […]
Our Wednesday SMU Community Chat Webinars have been a tremendous success. Each webinar is unique as we try to vary the subject matter and speakers. For those who have been tuning in to these free sessions at 11 AM ET, you already know that our speakers don’t always agree with one another as to what […]
The United States is beginning to go back to work. Automotive plants are scheduled to begin opening this week. The U.S. is working with Mexico to ensure automotive suppliers in Mexico are deemed “essential businesses” and return to work. From my perch here in Florida, traffic has returned to normal, restaurants are open (50 percent […]
We are in the middle of a black swan event—an event that is expected but unexpected, said Chris Kuehl, managing director of Armada Corporate Intelligence during Wednesday’s SMU Community Chat Webinar. “Viral threats are not new and have been frequent in the past few decades, but we don’t know from year to year how they […]
We are in the middle of a black swan event—an event that is expected but unexpected, said Chris Kuehl, managing director of Armada Corporate Intelligence during Wednesday’s SMU Community Chat Webinar. “Viral threats are not new and have been frequent in the past few decades, but we don’t know from year to year how they […]
Like producers and distributors of prime steel, most sellers of nonprime or secondary steel have been hard hit by the virus. Yet secondary material is still available from the mills even though their production is way down. Some distributors are doing surprisingly well, depending on their customer base and location, while others are struggling. Secondary […]