Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Each week seems to bring new surprises, economically and politically. I was struck by the monthly trade report and question from readers—I thought I’d pull them together and try to respond. The August trade report was released last […]
Global manufacturing continued its road to recovery in September. The J.P. Morgan Global Manufacturing PMI rose to a 25-month high of 52.3 from 51.8 in August, for a third consecutive month of expansion. All of the index components were solidly above the 50 neutral point except for employment, which posted a PMI of 49.5. A […]
Iron ore shipments on the Great Lakes fell by more than 40 percent in August compared to a year ago, said the Lake Carriers’ Association. Shipments transported by the U.S.-flagged fleet totaled 3.6 million tons and were 37.9 percent below the five year average for August. Year-to-date figures show a 25.9 percent decrease through August, […]
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California Steel Industries notified customers on Monday, Sept. 21, that it has raised prices on its flat rolled products by $60-70 per ton ($3.00-3.50/cwt) due to changing market conditions. Effective immediately on all unconfirmed orders, prices for hot rolled, P&O and galvanized have increased by a minimum of $60 per ton, while cold rolled is […]
U.S apparent steel supply remained flat from June to July, up 0.8 percent to 6.98 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. While June and July supply levels have both shown improvement, recall that April and May were the two lowest levels seen in […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: For international trade and politics, it’s hard to beat the past week. We saw numerous developments in the trade field—I’ll discuss a few of them: (1) an avalanche of lawsuits challenging the “Section 301” tariffs against $200 billion […]
By CRU Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service A combination of increased seasonal demand, low service center inventories, unplanned outages, spike in scrap prices and government restrictions on Brazilian slab imports have added fuel to the usual seasonal uptick and turned it into a surge. After reaching a bottom in mid-August, […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices have stayed elevated in the past week and even exceeded $130 /dmt, before falling back on Tuesday to just below that level. Weakening margins in the Chinese steel industry held prices from rising further and seaborne supply improved in the […]
The global steel industry is one of the biggest culprits in the climate change debate, responsible for some 7 percent of harmful carbon dioxide emissions each year. Every ton of steel produced in 2018 released 1.85 tons of carbon into the atmosphere. Thus the steel industry is under enormous pressure to reduce its carbon footprint. Fortunately, […]
By CRU Analyst Kevin Bai, from CRU’s Steel Sheet Products Monitor Domestic sheet prices in China continued to reach new highs for the year alongside further improvement in underlying sheet demand in combination with limited supply. Domestic CR coil prices went up by RMB290 /t to RMB4720 /t and HDG sheet by RMB140 /t to […]
By CRU Research Manager Paul Butterworth, from CRU’s Steel Raw Materials and Steel Costs CRU price and cost forecasts suggest that the steel sector generally will return close to steady-state, or “through-cycle,” levels of profitability over the five-year forecast period. However, as our analysis highlights, steady-state profitability of individual steel mills has varied widely in […]
Auto assemblies in North America have recovered rapidly since April. This report is based on data from LMC Automotive for automotive assemblies in the U.S., Canada and Mexico. The breakdown of assemblies is “Personal” (cars for personal use) and “Commercial” (light vehicles less than 6.0 metric tons gross vehicle weight rating. Heavy trucks and buses […]
Total rolled product imports in August were down by 28.0 percent on a three-month moving average (3MMA) basis. This was the 10th consecutive month in which imports were down by more than 20 percent compared to the same time last year. This early look at August’s import volume is based on Commerce Department license data […]
U.S. steel exports continued to recover in July, up 13 percent from June to 478,182 net tons, according to recent U.S. Department of Commerce data. This is up 35 percent from two months prior when exports were at the lowest levels seen in SMU’s 24-year data history. Although up, July exports remain low historically, down […]
By CRU Research Analyst Eduardo Tinti, from CRU’s Steelmaking Raw Materials Monitor The iron ore price rose further last week and is now approaching the $130 /dmt mark as demand from Chinese steel mills remains strong and seaborne supply declined w/w. On Tuesday, Sept. 8, CRU assessed the 62% Fe fines price at $128.0 /dmt, […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Metallics Monitor The CRU metallics price indicator (CRUmpi) rose by 9.9 percent m/m in September to 225.5. Rising steel demand internationally in combination with tighter markets has driven relatively large price increases in every market we assess. Market sentiment is bullish for October and, barring any […]
By CRU Research Analyst Eduardo Tinti, from CRU’s Steelmaking Raw Materials Monitor In the past week, iron ore prices remained steady. Despite somewhat lower demand from hot metal production, pre-holiday restocking activity kept iron ore port outflows at a high level while the seaborne supply registered one of the best weeks in the year so […]
Steel prices gained momentum in August as demand improved and the mills announced a new round of price increases. As of last week, Steel Market Update’s hot rolled price average had risen to $485 per ton, up $45 in just two weeks from the mid-month low, and has since topped the $500 mark. Scrap prices were flat […]
The Trump administration has announced a tightening of Brazil’s steel quota that will sharply reduce the tonnage of steel slabs imported into the U.S. for the rest of the year. “In light of recent deterioration in market conditions brought on by the COVID-19 pandemic affecting domestic steel producers, the United States has deemed it necessary […]
In response to U.S. complaints of recent surges, Mexico has agreed to strictly monitor exports of standard pipe, mechanical tubing and semifinished products through June 1, 2021. In exchange, the U.S. will maintain Mexico’s exemption from the Section 232 national security tariffs, said U.S. Trade Representative Robert Lighthizer in a statement on Monday. Section 232 […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: A number of readers have asked for particulars on the recent actions on steel trade between the United States, Brazil and Mexico. The numbers are available in some detail now. I will try to explain these for the […]
The J.P. Morgan Global Manufacturing PMI rose to a 21-month high in August, driven by the restart of production and businesses following COVID-19 shutdowns. The composite PMI rose to 51.8 in August from 50.6 in July, its second month in a row in expansion territory. Manufacturing output grew for a second month after five months […]
Claiming national security concerns over a slump in the U.S. steel market, President Trump issued a proclamation late Friday that appears to amend the quota limits on Brazil, further restricting steel imports from South American nation. While it’s unclear at this point which products will be affected and to what degree, one source tells SMU […]
The SMU Steel Summit 2020 was off to a strong start on Day 1 covering a wide variety of topics from new capacity to international trade. SMU President John Packard officially opened the conference on Monday leading a panel discussion about the steel industry in Mexico, the Middle East, Turkey and China. Ternium CEO Maximo Vedoya […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: The nation and the world saw a greater than normal number of presidential announcements in the past week. I debated Philip Bell, the president of the Steel Manufacturers Association, on issues related to Section 232 at the SMU […]
The latest CRU Global Economic Outlook indicates that Mexican auto production will not reach 2019 levels until 2023, with expectations that 2020 volumes will be down about 23 percent in 2020 and recover 19 percent in 2021. There is some near-term upside to the Mexican market as production returns to normality after the Covid-19-related shutdowns, […]
U.S apparent steel supply inched upwards in June to 6.93 million net tons, according to U.S. Department of Commerce and American Iron and Steel Institute data. While up over the previous month, April and May were the two lowest supply levels in the last 10 years at 6.54 million tons and 6.61 million tons, respectively. […]
By CRU Senior Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor Iron ore prices continued their upward trajectory and traded at $123.0 /dmt on Tuesday, Aug. 18, a $3.0 /dmt increase w/w. Chinese demand remains strong and the challenges of delivering ore from vessels to steelmakers remain in place. Chinese domestic steel prices have […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Monitor Steel markets have recovered from the depths of Covid-19 global disruption, but this has varied in pace across regions and has been stop-start in many. Indeed, as measured by CRU’s global finished steel CRUspi, finished steel prices bottomed in May at 129.3, the lowest reading […]