The third round of NAFTA discussions ended Wednesday with consensus on small and medium enterprises. The chapter on small and medium-size enterprises will enhance “their ability to participate in and benefit from the opportunities created by this agreement, including through cooperative activities, information sharing, and the establishment of a NAFTA Trilateral SME Dialogue, involving the […]
The growth of U.S. Gross Domestic Product in second-quarter 2017 was the strongest since first-quarter 2015. On Thursday, the Bureau of Economic Analysis released the third estimate of GDP growth in the second quarter. Growth was reported to be 3.06 percent quarter on quarter and 2.21 percent year on year. Economy.com had this to say […]
The ferrous scrap market is softening and SMU’s sources expect prices to drop by $10 to $20 per gross ton in October. Domestic mills are beginning to cancel September orders that have not been completed (delivered) by the end of the month. This is a sure sign the mills believe ferrous scrap negotiations for October […]
Hurricanes Harvey and Irma were devastating for the many Americans still struggling to recover from the damage. But for the scrap metal market, contrary to common belief, the storms will be a mere blip. “Everyone’s immediate reaction to Harvey is, ‘Oh, there will be so much scrap coming out of Houston, prices will drop.’ The […]
The oil and gas drill rig count is increasing rapidly as the price of West Texas Intermediate hovers near $60 per barrel. The spot price of WTI broke through the $60 level on Dec. 29 for the first time since Dec. 18, 2014. It reached $64.22 on Jan. 12 before falling back to $59.41 on […]
Pictures of countless cars and trucks submerged in Houston floodwaters and homes shattered by high winds in the Southeast have the worth of a thousand words in describing the destruction from Hurricanes Harvey and Irma. What they say about post-storm conditions in the ferrous scrap market is less clear. For those who assume thousands of […]
Chinese steel trade data was recently released for the month of August 2017, providing updated data on iron ore imports, scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in August were 88,660,000 metric tons, an increase of 2.8 percent from the previous month and an increase of 1.1 percent from […]
Growth in Chinese steel production continues to outpace the world, according to a Steel Market Update analysis of World Steel Association data. Production in the month of August was 143,580,000 metric tons, down slightly from 143,729,000 metric tons in July. Capacity utilization was unchanged at 71.7 percent. The three-month moving averages (3MMA) that we prefer […]
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 […]
Earlier this month, foreign steel imports for September were trending toward a 2.6-million-ton month based on import licenses through the first 12 days of the month. Over the past week, the pace for import license requests has picked up. This is most likely due to the impact of the two hurricanes: Harvey in Texas and […]
“Dangerous, unintended consequences” could result from the Section 232 national security investigation of steel imports, said members of a panel hosted by the American Institute for International Steel, which represents foreign steel producers. “Our objective today is twofold,” said John Foster, AIIS chairman and president of Kurt Orban Partners, in his opening remarks, “First, to […]
Imports continued to increase their share of the steel sheet market in July. Apparent supply is a proxy for market demand. For all sheet products except other metallic coated, demand had positive momentum in three months through July. This report summarizes total steel supply from 2003 through July 2017 and year-on-year changes. It then compares […]
The U.S. Commerce Department today announced an affirmative preliminary determination in the countervailing duty investigation on exports of metal tool chests and cabinets from China. Commerce calculated preliminary subsidy rates ranging from 17.32 percent to 32.07 percent. U.S. imports of tool chests and cabinets from China were valued at an estimated $989.9 million in 2016, […]
The Metals Service Center Institute is urging the Trump administration to take “swift, decisive action on the Section 232 steel investigation to bring certainty to the marketplace.” In a letter to President Trump last Thursday, MSCI President and CEO Robert Weidner, III, and Chairman R. Holman Head, stated that “problems posed by foreign government-sponsored capacity […]
The U.S. economy should finish 2017 strong, but the leading indicators point to a downturn in the second half of 2018 followed by a mild global recession in 2019, predicts economist Alan Beaulieu, principal of ITR Economics, who addressed a sellout crowd Aug. 30 at Steel Market Update’s Steel Summit Conference in Atlanta. “You will […]
The U.S. Commerce Department today announced an affirmative preliminary determination in the countervailing duty investigation on exports of metal tool chests and cabinets from China. Commerce calculated preliminary subsidy rates ranging from 17.32 percent to 32.07 percent. U.S. imports of tool chests and cabinets from China were valued at an estimated $989.9 million in 2016, […]
Apparent steel supply for the month of July totaled 9,570,118 net tons, according to the latest data from the U.S. Department of Commerce and the American Iron and Steel Institute. Apparent steel supply is calculated by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports. July apparent steel supply […]
U.S. steel exports in July totaled 806,512 net tons (731,656 metric tons), down 11.5 percent over June, but up 9.3 percent from July 2016. Total exports have declined over the last two months after reaching a 2.5-year high in May (1,006,087 tons). The total July export figure is below the three-month moving average (average of […]
We believe that misinformation, or a lack of information, about regional import volumes is often used to influence purchase decisions. Our intent with this analysis of sheet steel imports by district of entry and source through July 2017 is to describe in detail what is going on in a company’s immediate neighborhood and thus provide […]
Total rolled steel imports increased by 10.8 percent in the three months through August compared to the three months through May. Sheet product imports rose by 14.3 percent on the same basis, according to final license data for August reported by the U.S. Commerce Department on Aug. 6. The data is reported within the Steel […]
Global manufacturing rose to a 75-month high in August. The J.P. Morgan Global Manufacturing PMI climbed to 53.1 from 52.7 in July. Most components of the PMI increased in August and at a faster rate. Future output was the only measure to remain the same as July, at a strong 63.5. Developed nations on average led […]
The chaos to commerce continues in the Houston area as a result of flooding and damage from Hurricane Harvey. Texas Governor Gregg Abbot estimates damage to the area will be in the range of $150 billion to $180 billion. A quick survey of steel service centers and distribution centers in the area found that many […]
The market’s obsessive speculation over Section 232 and possible new tariffs on steel imports has caused many to miss the big story, said Timna Tanners, research analyst for Bank of America Merrill Lynch. “Stop worrying about what’s happening in Washington and pay more attention to what’s happening in China,” she told the sellout crowd at […]
Steel Market Update (SMU) received pricing information from China this morning along with a warning that China may be building a steel price bubble that will pop. The only question is when and how much damage will it do when it does. Traders are complaining that the new Chinese numbers are too high to be […]
Economic activity in the manufacturing sector expanded again in August as the Institute for Supply Management’s PMI registered 58.8 percent, an increase of 2.5 percentage points from July. This indicates growth in manufacturing for the 12th consecutive month and is the highest reading since April 2011, reports ISM. Any reading above 50 percent indicates expansion. […]
The Commerce Department has extended the deadline for determinations in the anti-circumvention investigation of corrosion-resistant steel from China to Feb. 15, 2018. On Nov. 14, 2016, the anti-circumvention case was initiated on CORE steel products from the People’s Republic of China in response to a request from steel companies ArcelorMittal USA, Nucor, U.S. Steel, AK […]
Good evening from Atlanta, site of our 7th SMU Steel Summit Conference. We announced this morning that attendance for this conference is a new record. We are pleased to announce we registered 661 manufacturing, steel and industry executives for this year’s conference, breaking last year’s 434 record. Our “Pre-Summit” Conference program on Monday attracted approximately […]
In June and July, China registered its highest share of global steel production ever, according to World Steel Association data with analysis by Steel Market Update. Global crude steel production in the month of July totaled 143,245,000 metric tons, up from 141,331,000 metric tons in June. Capacity utilization was 71.7 percent, down from 73.0 percent […]
This article is normally reserved for our Premium members, but we are sharing it with our entire readership this month. To learn more about what our Premium members receive, click here. Steel Market Update offers this update on the currencies of the steel and iron ore trading nations through Aug. 21. The analysis of currency […]
In the last month, the price of crude oil has risen and the price of natural gas has declined slightly. The number of operating rigs exploring for both oil and gas has declined for three straight weeks. This is the first decline since the low point of June 27 last year. The prices of oil […]