Editor’s note: Steel Market Update is sharing the following Premium content with all its readers in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. The U.S. has strengthened its position in the global scrap market since Q1 2016. This is an analysis that we perform quarterly. We believe […]
Editor’s note: Steel Market Update is sharing the following Premium content with all its readers in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. The growth of U.S. GDP in third-quarter 2018 came in at 3.36 percent, but the mix of contributors was concerning. On Friday, the Bureau […]
Demand for long products is booming, plate products are doing OK, sheet products are flat and tubulars are cratering. This analysis by SMU staff is based on data from the American Iron and Steel Institute (AISI) and the U.S. Department of Commerce (DoC). The analysis summarizes total steel supply by product from 2003 through October […]
Editor’s note: Steel Market Update is interested in your views of the Trump administration tariffs. Following are comments shared by two SMU readers. To submit your opinions (anonymously if preferred), email John@SteelMarketUpdate.com. Q: Do you think the Section 232 and Section 301 tariffs have accomplished what the president set out to do – improve national […]
A new American Steel Index report by Business Forward shows U.S. steel prices have risen 7.4 percent since February, while foreign steel prices have fallen 9.8 percent. As a result, American manufacturers are paying 17.2 percent more for hot- and cold-rolled steel than their foreign competitors. “President Trump’s tariffs on steel and aluminum are increasing […]
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. […]
By CRU Senior Editor Ryan McKinley, from CRU’s Steelmaking Raw Materials Monitor Upward momentum for the CRU metallics price indicator (CRUmpi) slowed in July, but still rose by 2.8% m/m to 413.5. Metallics price increases were strongest in Europe amid high steel demand, with both HBI and scrap prices there rising from June levels. Scrap […]
The U.S. Chamber of Commerce announced its support of the new North American trade agreement, but urges the administration to drop the Section 232 steel and aluminum tariffs on Canada and Mexico. Chamber of Commerce President and CEO Thomas Donahue cites the onerous financial impact the tariffs have had on Chamber members and urged their […]
U.S. steel exports in October totaled 631,087 net tons (572,513 metric tons), up 7.9 percent from September, but down 28.5 percent from October 2017. Although up over the previous month, October export levels remain low in comparison to previous years. The September figure of 584,858 was the lowest monthly export figure seen in nearly 16 […]
October apparent steel supply increased to 9,557,437 net tons, according to government data released late last week. Apparent steel supply is calculated by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports. October apparent steel supply saw a 201,816 ton or 2.2 percent increase compared to the same month […]
Ferrous scrap prices declined by $30-40 per ton in January—a month that typically sees prices rebound. Some scrap experts predict the downtrend may continue. How low prices could go is a source of some disagreement. January scrap settled at the following numbers in various regions, report SMU sources: Midwest/Ohio Valley: Shred – $330-335/GT; HMS – […]
Editor’s note: The following analysis of the U.S. rod and bar market was contributed by CRU Steel Analyst Ryan McKinley. Steel Market Update will periodically expand its coverage of the steel market with long products content from CRU as an added benefit to our members. U.S. mills announced wire rod price increases of $1.50/cwt across […]
Steel Market Update is sharing this Premium content with Executive members in this issue. For more information about upgrading to a Premium-level subscription, email info@SteelMarketUpdate.com. This early look at November import license data shows that total rolled product imports declined by 17.3 percent year over year, calculated as a three-month moving average (3MMA). Imports of […]
By the CRU Group Economics Team The meeting between Chinese President Xi Jinping and President Trump on Dec. 1 turned out to be better than expected. According to the White House press release and Chinese official reports, tariffs will not rise from their current levels over the next 90 days. Both sides agreed to enter immediate […]
This is the first time we have done this analysis since our April publication and we were surprised that the results for sheet and strip products weren’t as good as we expected. Our analysis is based on data from the American Iron and Steel Institute (AISI) and the U.S. Department of Commerce (DoC). The analysis […]
Tariffs on U.S. steel and aluminum exports to Mexico may be coming if the Trump administration does not drop its Section 232 tariffs on Mexican imports, says Mexican steel association Canacero. “They already agreed, this government and the incoming one, that we will apply resounding mirror measures,” Canacero Vice President Raul Gutierrez said at a […]
After rising in October and November, ferrous scrap prices are expected to move sideways in December with the possibility of a small $10 per ton increase for some grades. But weakness overseas complicates predictions longer term, say Steel Market Update sources. “December is generally a month when scrap prices rise,” said CRU North America Steel […]
Few of the steel buyers canvassed by Steel Market Update this week expect flat roll prices to rise significantly in the first quarter. Most anticipate prices stabilizing or continuing to trend downward, especially if the Trump administration lifts the Section 232 tariffs on imports from Canada and Mexico. The promise of increased supplies from the […]
In response to widespread concerns about the pace, transparency and fairness of the Section 232 steel and aluminum tariff exclusion process, a bipartisan group of senators has requested that the Government Accountability Office conduct an independent review of the Commerce Department’s performance. In a Nov. 26 letter to the GAO, U.S. Senators Doug Jones (D-Ala.), […]
September apparent steel supply declined to 9,101,986 net tons, according to government data released late last week. This is the third lowest level of the year, above only February (8.8 million tons) and June (8.9 million tons). Apparent steel supply is calculated by adding domestic steel shipments and finished U.S. steel imports, then subtracting total […]
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 […]
Tariffs are turning out to be a boon for U.S. ports, at least temporarily, as retailers and manufacturers rush to get products to the U.S. before new tariffs on China go into effect in January. Ports reported record cargo volumes in the past few months. The Port of Los Angeles set a cargo handling record […]
U.S. steel exports in September totaled 584,858 net tons (530,575 metric tons), down 9.6 percent from August and down 35.3 percent from September 2017. Surpassing August’s low, this is now the lowest total monthly export figure seen since December 2002 when 527,659 tons were shipped out of the country. Prior to the last three months, […]
Total rolled product imports declined by 20.4 percent in October, versus the same month last year, measured as a three-month moving average, but the effects of Section 232 are still not clear. This early look at October’s import volume is based on Commerce Department license data (see explanation below). Figure 1 shows the tonnage of […]
Global trade protectionism and political uncertainty weighed heavily on manufacturing in October. Manufacturing slowed to its lowest level in almost two years, according to the J.P. Morgan Global Manufacturing PMI. The headline index registered 52.1, down from 52.2 in September. Weaker increases in new business and a contraction of new export orders muted production growth during […]
Manufacturing activity continues to be strong, according to the latest ISM Report on Business, although slowing its pace of growth as it enters the fourth quarter. The October PMI declined 2.1 percentage points from September to register 57.7 percent. Most of the components of the PMI are trending at a slower rate. The new orders […]
Real gross domestic product (GDP) increased 3.5 percent in the third quarter of 2018, according to the “advance” estimate released by the Bureau of Economic Analysis. In the second quarter of 2018, real GDP increased 4.2 percent. The growth in real GDP reflected increases in consumer spending, inventory investment, government spending and business investment. These […]
The following article was contributed by CRU North America Steel Analyst Ryan McKinley The trade dispute between the United States and Canada has caused inventories to build and put downward pressure on prices. The 25 percent duties on steel imports in place by Canada and the U.S. against one another is eroding profits and driving […]
Section 232 tariffs are coming under fire by representatives of Mexico and Canada, who say there will be no signing of the new U.S.-Mexico-Canada Agreement (USMCA) on trade in North America until the tariffs are lifted. “We need to solve that issue before the signing takes place,” said Juan Carlos Baker, Mexico undersecretary for foreign […]
Trade measures by the U.S. are causing concern for the European steel market, according to a new report by the European Union steel association EUROFER. Steel imports are growing faster than domestic shipments by EU mills, according to the Economic and Steel Market Outlook 2018-2019. “Growth is stabilizing in EU steel markets, in line with […]