U.S. content in NAFTA automobiles is shrinking and contributing to the trade deficit America has with Canada and Mexico, according to Secretary of Commerce Wilbur Ross. In an editorial for the Washington Post, Ross cites a new study analyzing data from 1995 to 2011 that indicates U.S.-produced content in manufactured goods imported from Canada fell […]
Steel imports are on the rise this year at ports on the Gulf and West Coast. Steel imports to the U.S. are expected to reach 39,812,592 net tons this year, an 18.6 percent increase from 2016. Port of Houston is a major hub for steel imports with 2.05 million tons of steel passing through the […]
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 […]
Steel Dynamics expects third-quarter financial results to be similar to the second quarter. Higher shipments during the quarter were somewhat offset by metal spread compression. Average quarterly pricing is expected to be consistent with the second quarter, but average scrap prices will be higher. SDI notes continued high import levels are impacting the ability of […]
The Mexican share of light truck assemblies in NAFTA is expanding rapidly at the expense of the United States. Economy.com reported that U.S. new-vehicle sales dropped nearly 6.3 percent in August, reaching their lowest level at a seasonally-adjusted annualized rate since February 2014. August marks the eighth consecutive month in which sales were lower on […]
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, […]
Weakening federal vehicle fuel economy standards would not relieve the auto industry of burdensome regulation, but rather would hurt job growth, as well as the environment, maintains the BlueGreen Alliance (BGA), a coalition of American labor unions and environmental organizations whose mission is to “work together to solve today’s environmental challenges in ways that create […]
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, […]
ArcelorMittal is on a mission to make sure that steel remains the material of choice for a modern world. The steelmaker invited state and local dignitaries, staff and members of the media to an open house on Wednesday to commemorate the 50th anniversary of the ArcelorMittal Global Research and Development Center in East Chicago, Ind. […]
What happens to all those autos ruined by the double whammy of hurricanes in the South? Cox Automotive estimates 300,000 to 500,000 cars were damaged by Hurricane Harvey. Auto-market researcher Black Book puts the total in Texas closer to one million. And millions more could be added to the toll after Hurricane Irma is tallied. […]
What happens to all those autos ruined by the double whammy of hurricanes in the South? Cox Automotive estimates 300,000 to 500,000 cars were damaged by Hurricane Harvey. Auto-market researcher Black Book puts the total in Texas closer to one million. And millions more could be added to the toll after Hurricane Irma is tallied. […]
Kloeckner Metals Corp. announced the appointment of a new chief executive officer and chief operating officer on Thursday. Beginning Jan. 1, John Ganem will serve as CEO and Bart Clifford as COO. Ganem will succeed Bill Partalis who will retire at the end of this year. Partalis is a 34-year veteran at Kloeckner and served […]
Employment growth in both construction and manufacturing was strong in August. The Bureau of Labor Statistics (BLS) net job creation report released on Friday was disappointing in total, but unusual in the detail. Disappointing because employment growth was worse than normal for August. Unusual in that the ratio of goods-producing to service-industry job growth was […]
Round two of NAFTA negotiations wound up today, with no resolution in sight. Among the many issues being debated, the topic of rules-of-origin is proving to be contentious for Canadian and Mexican negotiators, as well as auto producers. U.S. negotiators are proposing that U.S. content in NAFTA-eligible vehicles be raised to between 35-50 percent, according […]
All facilities at the Port of Houston are still closed as of Thursday, Aug. 31, following the devastation of Hurricane Harvey. The Coast Guard has cleared ports in the area for restricted vessel access for ships waiting offshore. Drafts cannot exceed 33 feet at the ports of Texas City, Galveston and Freeport, and no more […]
SMU’s Steel Summit 2017 kicked off its first full day with heartfelt empathy for those colleagues in the Houston region who were unable to make it to the conference in the wake of destruction left by Hurricane Harvey. The devastating floods along the Gulf Coast and in Houston may have a lasting impact on the […]
U.S. manufacturing continued to perform well through July. This Premium content, which is being offered to all subscribers, summarizes seven data sources that describe the state of manufacturing in the U.S. We have reported on most of these separately in our Steel Market Update publications, therefore will be brief in this summary. We don’t expect […]
Researchers in Asia claim they have developed a new way to make steel that offers a high degree of strength without sacrificing ductility, creating a strong but formable material that could prove useful in the production of lighter, more fuel-efficient vehicles, among many other applications. Typically, making steel stronger decreases its formability. The Hong Kong-Beijing-Taiwan […]
The first round of talks to upgrade the North American Free Trade Agreement concluded on Sunday, with officials from the U.S., Canada and Mexico pledging to continue negotiations at a rapid pace, possibly concluding by year’s end. President Trump inserted some added drama into the situation with comments at a campaign-style rally in Arizona on […]
Two Federal Reserve manufacturing indexes were released this week with both regions showing strong activity in August. Richmond manufacturing remained relatively steady in August, while Kansas activity rebounded from a weaker July. Fifth District (Federal Reserve Bank of Richmond) The composite manufacturing index in the Fifth District was unchanged in August at a solid reading […]
Light vehicle assemblies in NAFTA declined sharply in July, according to data from Ward’s Automotive. Economy.com reported that U.S. vehicle sales totaled fewer than 17 million units at a seasonally adjusted annualized rate (SAAR) in July for the fifth consecutive month. Sales were 16.76 million units annualized in July, down 5.9 percent on a year-ago […]
Rules of origin for automobiles continue to confound NAFTA negotiators. Currently, 62.5 percent of an automobile must be made in North America to qualify for duty-free status within the NAFTA region. Trade Representative Robert Lighthizer wants to push that percentage higher to reduce content coming from Europe and Asia. However, Lighthizer’s obsession with reducing the […]
BlueScope Steel, the parent of North Star BlueScope, will have a change in command. Mark Vassella has been appointed the new managing director and chief executive officer following retirement by outgoing CEO Paul O’Malley effective Dec. 31, 2017. O’Malley has been at the helm of BlueScope Steel the past 10 years of his 12-year tenure. […]
The “woodie” automobile, popular in the 1940s and ’50s, may be on its way back, but in a seriously different mode. Japanese researchers are developing the latest challenge to automotive steel, a super-strength, lightweight product that uses wood as a raw material. Cellulose nanofiber, made from wood pulp, is mixed into plastics forming a product […]
The “woodie” automobile, popular in the 1940s and ’50s, may be on its way back, but in a seriously different mode. Japanese researchers are developing the latest challenge to automotive steel, a super-strength, lightweight product that uses wood as a raw material. Cellulose nanofiber, made from wood pulp, is mixed into plastics forming a product […]
Nucor Corporation announced today that it will acquire St. Louis Cold Drawn, Inc., a manufacturer of cold finished steel bar. The company’s cold drawn rounds, hexagons, squares, and special sections serve the U.S. and Mexican automotive and industrial markets and will add to Nucor’s value-added product portfolio. “This acquisition fits with our planned growth strategy […]
NAFTA renegotiations are under way and automakers are concerned about changes to rules of origin for automobiles. Strengthening the rules could make U.S. auto and manufacturing sectors less competitive globally, warned speakers at a Motor & Equipment Manufacturers Association (MEMA) event on Wednesday. Representatives of American and international automotive producers charged that stronger rules of […]
Ferrous scrap prices are up about $20 per ton across the board on strong domestic demand and scrap export markets “that are on fire,” say SMU’s scrap sources. One scrap metal processor with locations across the country reports HMS at $300, shred at $315 and busheling at $390 per gross ton for August delivery. Export […]
Despite getting pressure to adjust our SMU Price Momentum Indicator due to uncertainty associated with the Section 232 investigation and the lack of a recommendation to date, along with small signs of a need by one or two steel mills for orders on galvanized, SMU is continuing to reference flat rolled steel prices as moving […]
Olympic Steel celebrated a particularly strong second quarter. Net sales jumped 30 percent year-over-year to $356.2 million on higher shipping volume and selling prices. Net income grew 35 percent for the quarter to $4.8 million. Carbon flat product sales increased 37 percent to $237 million from Q2 2016 sales of $173 million. Shipments increased 13 […]