A note that SMU adjusted our Price Momentum Indicator to Lower from Neutral on Friday. I have explained 10 of the reasons why (and there are more) in the first article in tonight’s newsletter. If you would like to make comments, feel free to reach out to me at John@SteelMarketUpdate.com. I will be working on […]
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 […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals Director of Risk Management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]
The U.S. Department of Commerce announced its affirmative preliminary determinations in the countervailing duty investigations of imports of cold-drawn mechanical tubing from China and India. Commerce determined exporters of cold-drawn mechanical tubing from China and India received countervailable subsidies of 33.31 to 35.69 percent, and 3.04 percent and 8.09 percent, respectively. Commerce will instruct U.S. […]
The value of the U.S. dollar on the international exchange markets has been in freefall since Dec. 12, according to Steel Market Update’s latest analysis of currencies. From Jan. 3 through Sept. 8, 2017, the Broad Index value of the U.S. dollar depreciated by 9.3 percent. The value rebounded by 2.97 percent from Sept. 9 […]
The U.S. International Trade Commission has decided not to revoke existing antidumping duties on imports of carbon and alloy seamless standard, line and pressure pipe from Japan and Romania. To do so, said the ITC, would “likely lead to continuation or recurrence of material injury within a reasonably foreseeable time.” Following the five-year sunset review, […]
Despite recent price increase announcements from major domestic mills and imports that are trending lower, wholesalers and distributors who sell galvanized steel products to the HVAC market don’t expect much change in lead times or pricing until there’s some resolution to the Section 232 and Vietnam circumvention trade actions pending in Washington. In the monthly […]
There is a wide variance between what the MSCI reported for flat rolled inventories this week and what Steel Market Update reported on Sunday. As we look at our numbers, the mega service centers tended to carry less inventories (based on months of supply, not in total tons) than the medium and smaller distributors that […]
Steel Market Update is working on a new index to measure flat rolled steel inventories in service center warehouses at the end of each month. Our goal is to assist the flat rolled steel industry to better understand inventories and their potential impact on steel mill order books and lead times. SMU will also analyze […]
Steel Market Update is working on a new index to measure flat rolled steel inventories in service center warehouses at the end of each month. Our goal is to assist the flat rolled steel industry to better understand inventories and their potential impact on steel mill order books and lead times. SMU will also analyze […]
Nucor expects earnings to be lower in third quarter compared to second quarter. Although Nucor sheet mills are operating at high utilization rates, pricing is not keeping pace with raw material costs due to pressure from imports. Plate demand has been tepid in end-use markets following a restocking of inventory in the supply chain earlier […]
“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 […]
JSW Steel, a steel plate mill in Baytown, Texas, reports a remarkable story of perseverance, ingenuity and courage as it faced the devastation of Hurricane Harvey. As the hurricane was bearing down on the coast, CEO John Hritz made the difficult decision to shut down operations at the mill. JSW’s 700 acres are situated in […]
The U.S. Department of Commerce updated foreign steel license data on Tuesday. Based on data through the first 12 days of September, foreign steel imports are trending toward a 2.6 million net ton month. If the numbers hold, the 2.6 million tons would be one million tons lower than the three-month moving average, which is […]
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. 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, […]
G-20 members are on track to hold their first official meeting of the Global Steel Forum on Excess Steel Capacity this fall. The forum was formed last year during the 2016 meetings to find “collective solutions” to remedy steel overcapacity and discourage protectionism. The group met informally at the Summit in Hamburg in July 2017. […]
Editor’s note: Following is a response from Zekelman Industries CEO Barry Zekelman to remarks by Daniel Pearson of the Cato Institute published in Steel Market Update’s Sept. 5 newsletter. Zekelman comments on his position on imports and the current state of steel-related trade into the U.S. During our exchange at the recent SMU Steel Summit […]
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 […]
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 […]
Both current and future sentiment showed a slight improvement in the latest SMU Steel Buyers Sentiment Index, based on data gathered in early September. The index measures how buyers and sellers of flat rolled steel feel about their company’s ability to be successful both in the current market environment, as well as three to six […]
Three out of four steel buyers responding to Steel Market Update’s latest market trends questionnaire believe the hurricane and flooding in Houston will have a significant impact on the steel industry, at least for the short term. Following are some insightful comments: · “It will have an impact. It will be negative in the short-term, […]
The U.S. Department of Commerce (DOC) released final census data on July foreign steel imports. The DOC advised total steel imports of 3,482,524 net tons. When semi-finished steels are removed (slabs/billets/blooms), finished steel imports totaled 2,896,389 net tons. At the same time, the DOC advised the latest license data for the month of August. As […]
Solar manufacturers are hoping for a positive determination in a Section 201 trade case that claims U.S. manufacturers are harmed by global overcapacity and the import of cheap solar modules from China. They are now getting support from the steel industry in the form of a letter to the U.S. International Trade Commission from the […]
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 […]
Steel Market Update asked four panelists at the 2018 Steel Summit to define free and fair trade and offer some solutions to what most in the industry consider unfairly traded steel imports. Philip Bell, president of the Steel Manufacturers Association representing North American EAF steel producers, said there are five components of free and fair […]
The manufacturing panel during the SMU Steel Summit Conference last week in Atlanta featured a lively exchange between Barry Zekelman (CEO, Zekelman Industries) and Dan Pearson (Cato Institute). Mr. Zekelman’s comments appeared in the Aug. 31, 2017, issue of Steel Market Update. Mr. Pearson, the former chairman of the International Trade Commission, read our article […]