SMU previously published this article with incorrect graphics, the corrected ones are below. Our apologies for the mistake. The Bureau of Economic Analysis (BEA) released the first estimate of Q2 2015 Annual Revision of the National Income and Product Accounts on Thursday. In the big picture, the change (delta) in GDP is equal to the […]
On June 3, 2015, six U.S. steel mills filed an antidumping and countervailing duty petition against corrosion resistant (referred to as CORE, which are coated steels such as galvanized and Galvalume products) steels from: China, Taiwan, South Korea, India and Italy. Late last week, attorneys representing Nucor Corporation, US Steel, Steel Dynamics, AK Steel , […]
Trading has not yet begun but ferrous scrap dealers are expecting another move lower in the scrap markets. Many are pointing to prices moving lower by $20 per gross ton or more depending on the markets. We are hearing that the South may be the weakest markets with projections of prices moving lower by $20 […]
US Steel is expecting higher steel prices and shipments in the second half of 2015 helped by the recent trade case on cold rolled steel and an upcoming trade case on hot rolled steel. The company reported a net loss of $261 million for second quarter which included a write down of $136 million on […]
The following is a “Letter to the Editor” received from David Phelps, the immediate past president of the American Institute for International Steel (AIIS): I feel obliged to comment on the subject of the new trade cases against CR. First of all, they are ostensibly to protect American jobs and of course, profits and production […]
U.S. Steel and four other domestic steel mills filed antidumping suits on cold rolled steel against 8 countries. The following information was released to the steel community this morning (Tuesday, July 28th). In an email last night, USS incorrectly named SSAB as one of the petitioners in the CR suit. SSAB did respond to our […]
In light of the antidumping suit which was filed by five domestic steel mills earlier today (or last night if you received the USS email), we wanted to do some analysis for our readers and take a look at the eight countries named and their participation in the CRC market. As you can see by […]
As expected, five U.S. steel mills banded together and filed an antidumping petition against cold rolled steel from: China, Russia, India, South Korea, Netherlands, Japan, United Kingdom and Brazil. Reaction from steel buyers about the scope of the cold rolled suit ranged from relatively muted to surprised. Those who had a muted response expected that […]
AK Steel blamed low prices due to high levels of unfairly traded imports for its net loss of $64 million for the second quarter of 2015. Net sales for the quarter totaled $1.69, down from $1.75 billion sequentially and $1.53 billion in Q2 2014. Average selling price of $931 per ton was down 7 percent […]
Last night (Monday, July 27th) US Steel began advising some of their customers that a cold rolled trade suit had been filed against 8 foreign countries. We have learned from other mills mentioned in the text of the USS email below, that the case is actually being filed today. Here is the full text of […]
Essar Steel Algoma announced a return to profitability with income from operations of CDN $76.3 million at the closing of its fiscal year 2015 on March 31, 2015. “Fiscal 2015 marked a turnaround for Essar Steel Algoma. Through the recently announced Modernization and Expansion Program, we expect to offer a much broader range of advanced […]
I knew the cold rolled trade suits were coming this week. It had been rumored for a couple of months just as the hot rolled trade suits are being discussed for August. It doesn’t make the day of the filing (or night and day if you received one of the USS emails last night) go […]
At this point everyone wants to know if demand is growing and are inventories at a point where buyers will need to go into the market and begin buying again. The combination of growing demand and inventories that need to be replenished will be what drives flat rolled steel prices higher. Steel Market Update looks […]
Steel Market Update (SMU) has discussed with our readers, on many occasions, that there are three kinds of numbers coming out of the U.S. Department of Commerce regarding steel imports on a monthly basis. First, there are the license data requests which are published every Tuesday evening after 5 PM ET. License data is the […]
By a wide majority, buyers and sellers of flat rolled steel have little to no fear of a possible strike or lockout at either US Steel or ArcelorMittal. At least that is what we found during our most recent flat rolled market analysis conducted last week. Negotiations have started between ArcelorMittal and US Steel with […]
Nucor Corporation announced net earnings of $124.8 million for second quarter. Sales of $4.36 billion were down 1 percent from Q1 and 18 percent from Q2 2014. Total tons shipped increased by 5 percent from first quarter to 6,055,000 tons but were down 13 percent year over year. Imports pressured average sales price per ton, decreasing […]
Reliance Steel & Aluminum Company reported strong profits despite sliding sales and shipments in the second quarter. Net income was $90.2 million, a 2.4 percent drop from first quarter. Earnings per diluted share of $1.20 were above second quarter guidance. Sales of $2.42 billion slipped 7.3 percent from first quarter and 7.4 percent year over […]
A unfair trade case was filed by US pipe and tube producers on Tuesday against makers and exporters of heavy-walled rectangular steel pipes and tubes from South Korea, Mexico and Turkey. The product in question is commonly called “structural tubing” and is used in construction, transportation and farm applications. The alleged dumping margins filed by […]
Chinese steel trade data was recently released for the month of June 2015, providing updated data on iron ore imports, steel scrap imports, and flat rolled imports and exports. Chinese imports of iron ore in June were 74,960,000 metric tons, an increase of 5.8 percent from the previous month and an increase of 0.5 percent […]
SSAB Americas reported sales of SEK 3,027 million ($351 million) in second quarter, down 14 percent from first quarter and 4 percent year over year. Steel shipments of 471,000 tonnes (519,180 tons) declined 1 percent sequentially and 10 percent year over year. Crude steel production was down 2 percent from the previous quarter and 8 […]
Steel Dynamics expressed concern about imports during the company’s second quarter earnings call. “On the trade front, we’re pleased the ITC has confirmed the flood of unfairly traded imports of corrosion-resistant sheets deal has materially reduced our shipments, pricing and profitability. I believe in fair trade, but the U.S. has become a dumping ground for […]
U.S. West Coast and Gulf ports seem to be in pretty good operating condition right now. The Port of Houston received over 6 million tons of steel imports in 2014, making it a record year for the port. In a “normal” year Houston can expect to see 3.5 to 4 million tons annually. Our Houston […]
The U.S. Department of Commerce updated July license data as of 5 PM today (Tuesday, July 21st). At the moment, the license data is “suggesting” that July imports will exceed those of June (June had 22 days and July has 23 days) by 100,000 to 200,000 tons. The daily license request rate for July is […]
Figure 1 shows published data for the growth of GDP, industrial production and consumer prices through Q2 2015. The GDP and industrial production portions of this graph are three month moving averages. The growth of GDP was unchanged in the Q2 at 7.0 percent which was faster than the 6.8 percent median forecast of 39 […]
Following the exceptional rate of vehicle sales in the US in May the June rate fell from 17.8 million annualized to 17.2 million which is a more sustainable rate. The June pace was still higher than the 16.9 million units average of the past 12 months. Demand is being supported by easier credit terms, sustained […]
This piece, written by Peter Wright, combines our own data analysis with recently published opinions about the iron ore, metallurgical coal and zinc markets that we find credible. Iron Ore: The Platts IODEX of 62% Fe delivered North China recovered to $61.25 per dry metric ton (dmt) on May 22nd but by July 10th had […]
On Friday, Steel Market Update (SMU) adjusted our Price Momentum Indicator from Higher to Neutral. Now why did we go and do that? We have been stuck in a very tight trading range on most flat rolled steels since late April of this year. Benchmark hot rolled, which is used by most in the […]
Contract negotiations are currently underway between the United Steel Workers and steel companies US Steel and ArcelorMittal. The companies each met with USW bargaining committee members in Pittsburgh to begin working out details of new three-year contracts to replace the current ones expiring Sept. 1. USW Committee members are expecting the first proposal from ArcelorMittal […]
Steel Market Update recently received data from Bradford Research covering Chinese production, trade, and consumption of steel and steel related products for the first six months 2015. It probably won’t come as any surprise that steel consumption is falling in China while exports, especially for finished steel products, are up by over 30 percent compared […]
The U.S. International Trade Commission voted today to continue their investigation of coated products (corrosion-resistant) which are primarily focused on hot dipped galvanized and Galvalume steels from China, India, Taiwan, South Korea and Italy. It was a foregone conclusion that the ITC would find enough of a threat for “material injury” to continue the investigation. […]