Last week, Steel Market Update (SMU) conducted one of our flat rolled steel market trends analyses as we surveyed manufacturing companies, service centers, steel mills, trading companies and toll processors. During the process, we inquired as to whether our respondents felt the newest round (and any more to come) of steel price increases were “justified.” […]
The Department of Commerce hearing Thursday on the proposed Section 232 for aluminum revealed the same big rift between supporters and opponents as in the steel industry. And for many of the same reasons, notably the effect on prices for downstream manufacturers and consumers and possible retaliation by global trading partners. Commenting on the proceedings, […]
The sentiment among buyers and sellers of flat rolled steel remains largely positive, according to Steel Market Update’s latest steel market analysis, although it has dipped a bit in the past month as the industry awaits a ruling on Section 232 and whether the government will further restrict steel imports on the basis of national […]
Steel mill flat rolled lead times, which have generally trended downward this spring, my be showing early signs of lengthening, reflecting new strength in demand for domestic steel products. Mills were successful in collecting a price increase earlier in the month. Despite SMU data that shows service center inventories at “comfortable” levels, some distributors may […]
We are continuing our investigation to quantify the players in the global trade of both HRC and CRC. We now have data for the first quarter of this year. This information is sourced quarterly from the Iron and Steel Statistics Bureau in the UK. It takes about 10 weeks after the close of a quarter […]
The U.S. Department of Commerce (DOC) released foreign steel license data on Tuesday of this week. The trend, based on the first 20 days of this month, is for June imports to be at record highs for the year. Total steel imports are trending toward 3.7-3.9 million tons which would be the highest level since […]
We are continuing our investigation to quantify the players in the global trade of both HRC and CRC. We now have data through Q1 2017. This information is sourced quarterly from the Iron and Steel Statistics Bureau in the UK. Data is not very current because many countries are slow in reporting, but we feel […]
This is only the third time we have produced a report on global scrap trade. In the future, we will report quarterly because to understand the gyrations of the domestic scrap market we should be aware of where the U.S. stands as a global player. This data is not very current as some nations are […]
New York State legislators approved an agreement this week prohibiting foreign steel to be used for New York roads and bridges. The “Buy American” legislation requires that seven identified state agencies purchase steel and iron manufactured completely in the U.S. for infrastructure projects valued at $1 million or more. Exemptions could be granted for specific […]
We are hearing reports from steel mills that their lead times have moved out and they have been able to collect some, if not most, of the $30 per ton price increase announced at the beginning of the month. Steel Market Update (SMU) is concerned as our research data is suggesting that service centers are […]
This afternoon there was a press conference in Washington hosted by the American Institute for International Steel. Many of the large press organizations attended the conference, and even though we were unable to personally attend, we did receive notes about the content and especially the questions that interested the press corps. There appears to be […]
The United States’ NATO allies are worried about the upcoming decision on the Section 232 investigation of steel imports and their impact on national security. European officials warn that restrictions on EU imports could add to the anti-American sentiment already building in Europe over Russian sanctions, the withdrawal from the Paris climate accord and President […]
ArcelorMittal and Marcegaglia have purchased Italian steel milll Ilva in a $2 billion deal expected to close June 30. The mill’s assets will be leased by the consortium AM Investco Italy Srl for $200 million per year with payments applied to the purchase price. AM Investco will receive the steel facility free of long-term debt […]
“I bet the next increase happens later this week or at the latest next Monday,” one mill executive told Steel Market Update (SMU) earlier this week. Soon, we were hearing similar comments about new flat rolled steel prices coming from others (non-mill) in the industry. As you all are well aware by now, the U.S. […]
The steel industry has a way of surprising those who use its products. This may be especially true this year as it appears the industry is about to enter a phase not seen in decades. It is mid-June 2017 and the domestic flat rolled steel mills are raising steel prices as the U.S. Department of […]
One of the suggestions being floated within the steel industry is that Wilbur Ross will recommend some form of TRQ (trade rate quota) system whereby quotas are set up based on an average period of time. To help our readers imagine what that might mean we have taken two periods of time on galvanized steel […]
The U.S. Department of Commerce reported foreign steel import data earlier this week. Based on license data through June 13, foreign steel imports are on track to once again top 3 million net tons. This would be the fourth consecutive month of imports reaching the 3 million ton mark. Steel Market Update (SMU) looks at […]
Apparent steel supply for the month of April totaled 9,132,068 net tons, according to the latest data released 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. While down over […]
Nucor Corp. expects second-quarter results to be somewhat weaker than the first quarter, but an improvement from second-quarter 2016. Results in the range of $1.00 to $1.05 per diluted share will be Nucor’s best second-quarter performance since 2008. In guidance this week, Nucor noted a decrease in the performance of its sheet and bar mills […]
The uncertainty surrounding the Section 232 national security investigation on steel has HARDI members worried about what the steel industry will be like if the ruling favors domestic steel mills and imports are sharply curtailed. In the monthly steel conference call hosted by HARDI (Heating, Air-conditioning, and Refrigeration Distributors International), members talked about “chaos” and […]
We start this report with comments made by Jun Wei Yeo on iron ore and coking coal. “In April to May alone, there was an over 30 percent drop in the price of iron ore. Iron ore mining companies such as Rio Tinto, BHP Billiton, and Brazil’s Vale are suffering simultaneous stock price declines. Most […]
MSCI, Rolling Meadows, Ill., June 12, 2017— In written testimony on NAFTA renegotiation, the Metals Service Center Institute (MSCI) explained how uniquely successful the pact has been for North American manufacturing and urged the Trump administration to upgrade, but not endanger, the trillion dollar-plus annual trading relationship that NAFTA has established between the United States, […]
We believe that misinformation (or a lack of) about regional import volumes is often used to influence purchase decisions. Our intent with this analysis of tonnage by district of entry is to describe in detail what is going on in a company’s immediate neighborhood and thus provide a negotiating advantage for our premium subscribers. We […]
The final license data for May was reported by the Steel Import Monitoring and Analysis system of the U.S. Commerce Department on June 6. An explanation of the methodology that SMU uses to analyze the trade data is given at the end of this piece. All volumes in this analysis are reported in short tons. […]
This report summarizes total steel supply from 2003 through April 2017 and year-on-year changes. It then compares domestic mill shipments with total supply to the market. It quantifies market direction by product and enables a side-by-side comparison of the degree to which imports have absorbed demand. Sources are the American Iron and Steel Institute and […]
Steel Market Update received a series of questions regarding Section 232 and its potential impact on companies that fabricate steel components. We are sharing a portion of the responses to the questions from Daniel Pearson of the Cato Institute (former International Trade Commission chairman) and trade attorney Lewis Leibowitz. Following are questions we received from […]
About 65 percent of respondents to SMU’s June 5 Steel Buyers Sentiment Index questionnaire predict steel mills will not be able to collect the full $30 per ton flat rolled steel price increase announced last week, while just 35 percent believe the hike will stick. Nearly two out of three respondents, mostly service centers and […]
China strongly condemned new antidumping and countervailing duties imposed Friday by the European Union on imports of hot-rolled flat steel from China. The EC applied definitive AD/CVD duties of up to 35.9 percent. Commerce ministry official Wang Hejun said in a statement on Friday, “The European Commission ignores the fact that China’s steel exports to Europe […]
Ships, barges, trains and trucks move the nation’s cargo. Here is this month’s look at shipping conditions by various modes. Seaborne Freight Rates have dropped in the dry bulk market recently, but may now be plateauing, according to the latest report by MID-SHIP Group. Fleet expansion was strong during the first half of 2017, growing […]
Commerce Secretary Wilbur Ross is leaning towards a Section 232 finding that national security is threatened by steel imports. On Thursday, he told a Senate Appropriations subcommittee that he believes there is “a genuine national security issue that must be considered in this case.” Results of the Section 232 investigation are expected by the end […]