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 […]
Automotive sales dropped sharply for most manufacturers in July. Edmunds and WardsAuto estimate total sales for the month to be 1.42 million units. The seasonally adjusted annual rate for July is expected to be 16.9 million, according to WardsAuto. “July is historically a strong month, but with disappointing sales and inventories still building, something needs […]
This report 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 we’ll be brief in this summary. We don’t expect these data sources to all point in the same direction. Our intention in summarizing them in […]
ArcelorMittal’s NAFTA segment posted sales of $4.6 billion, a 3.3 percent decline from first quarter. Operating income decreased to $378 million from $396 million and EBITDA fell 3.3 percent to $506 million. Although average steel prices were higher in second quarter, they were offset by lower shipment volumes and higher costs, including planned maintenance at […]
Kloeckner Metals Corp., Roswell, Ga., reported a solid second quarter due largely to more favorable steel pricing in the U.S. Asked about the status of the Section 232 investigation during the second-quarter earnings call, Kloeckner CEO Bill Partalis said it’s unclear if or when President Trump will act on possible new tariffs on steel imports. […]
Reliance Steel & Aluminum Co. is expecting flat up to a 3 percent increase in pricing in third quarter after experiencing pricing pressure in second quarter. Recent price increases in June and July have held, and Reliance expects demand to carry prices higher, whether or not Section 232 action is taken. “The absence of meaningful […]
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 […]
Light vehicle sales are slowing and Mexico continues to take production share from the U.S. Vehicle sales in the U.S. averaged 17.0 million units at a seasonally adjusted annual rate (SAAR) in the first six months of 2017, down from 18.1 million in Q4 2016. March through June monthly sales were each below 17.0 million […]
Steel Dynamics, Inc., is excited about the second half and is expecting growth in all sectors through 2018. CEO Mark Millett says the flat rolled arena remains very strong despite a slight turning of the automotive market. Infrastructure is continuing to grow, as evidenced by cranes and road work funded by states, if not federal […]
Nucor CEO John Ferriola said that in the current challenging environment, he is encouraged by second-quarter results, but not satisfied. Illegally traded imports continue to be a problem in the United States for Nucor and the domestic steel industry, Ferriola said during the company’s second-quarter conference call. He cited a 15 percent year-over-year increase in […]
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 […]
John Packard, Publisher, Steel Market Update Today I spent a good portion of my time wandering around the United States and Canada soliciting information about flat rolled steel pricing, lead times, Section 232 and anything else steel buyers wanted to talk about. I thought the quote of the day was from a manufacturing company who […]
John Packard, Publisher, Steel Market Update Today I spent a good portion of my time wandering around the United States and Canada soliciting information about flat rolled steel pricing, lead times, Section 232 and anything else steel buyers wanted to talk about. I thought the quote of the day was from a manufacturing company who […]
Rising steel prices, some in anticipation of Section 232 trade action, are blurring the line between prime and secondary steel, report service center executives familiar with secondary steel products. Grand Steel Products, Wixom, Mich., sells both prime steel and secondary—material that did not meet the specifications of its initial customer but is still suitable for […]
The European steel market and economy improved in the first half of 2017, but the EU is concerned that increasing protectionist policies may lead to “disastrous trade flow distortions.” Apparent steel consumption grew 3.1 percent year-over-year in the European Union during the first quarter of 2017, according to a new report by the European Steel […]
The U.S. employment situation continues to be good. Net job creation in June, including revisions for April and May, was 269,000, and the latest number of job openings was the highest on record. The Bureau of Labor Statistics (BLS) net job creation report released on Friday exceeded economists’ expectations and was another example of why […]
Auto sales took a dive in June with the top three American automakers reporting sliding sales and foreign automakers reporting mixed results. Ford Motor Co. sales fell 5.1 percent year-over-year, while GM sales slipped 4.7 percent. FCA USA sales plunged 7 percent, in part due to a planned reduction in sales to its rental operation. […]
Stelco has been officially acquired by Bedrock Industries as of June 30. The former U.S. Steel Canada entered protection under the Companies’ Creditors Arrangement Act in September 2014 and will now stand on its own as Stelco Inc. “This is an exciting day for Stelco and for all of those who have worked so hard […]