The White House recently released the president’s 2024 federal budget proposal. It is a huge document, proposing to spend nearly $7 trillion during the year beginning Oct. 1. That is a significant increase over the FY2023 budget approved by Congress. It even surpasses federal spending during the pandemic in 2020 and 2021. For those oncerned […]
SMU polled steel buyers on a variety of subjects on Monday and Tuesday of this week, including current and future steel prices, inventory strategies, supply, demand, and new mill capacity. Rather than summarizing the comments we received, we are sharing some of them in each buyer’s own words. We want to hear your thoughts, too! […]
February license data indicate that steel imports will have totaled 2.19 million net tons last month, down 16.2% from January. February levels are also down 13.8% when compared to the previous 12-month average. Recall that monthly import levels declined nearly 17% month on month (MoM) in November, before rebounding in December and January. February figures […]
The price advantage domestic hot-rolled coil (HRC) had enjoyed over offshore hot band has evaporated as US mills drive prices higher, according to Steel Market Update’s latest foreign vs. domestic price analysis. Nucor and ArcelorMittal last week announced a target price $1,150 per ton ($57.50 per cwt) for HRC. Market contacts have told SMU that some […]
The Canadian Steel Producers Association (CSPA) has called on their government for action against rising offshore imports and to support the domestic steel industry. “Canadian steel producers are a critical component of the economy supporting workers and communities right across our country,” Catherine Cobden, president and CEO of CSPA, said in a statement on March 7. […]
We’ve just seen the biggest week-over-week increase in hot-rolled coil prices since the frenzy following Russia’s invasion of Ukraine last year. SMU’s hot-rolled coil (HRC) price is up $140 per ton ($7 per cwt) week over week. That’s our biggest such gain since prices jumped $210 per ton in mid-March of last year at the height of […]
A sheet supply squeeze is on and, according to some market participants, chances are it’s only going to get tighter. There is no one thing, a war or pandemic, that’s causing the squeeze this time. Instead, it’s a litany of comparatively smaller events that combined have created some real havoc. You know that list by […]
Mexico continues to have its problems with US relations. On March 3, former Attorney General William Barr penned a column in the Wall Street Journal about failures by Mexico to stem the drug cartels. Illegal drugs are flowing into the US over the apparently porous border. Barr recommends that the US take action reminiscent of […]
The US International Trade Commission (ITC) made a preliminary determination that the domestic steel industry has been “materially injured” by imported tin mill products. The US Commerce Department will therefore continue its investigation into the matter. The proceeding started in January when Cleveland-Cliffs and the United Steelworkers (USW) filed a trade case alleging the following […]
Both of SMU’s Steel Buyers Sentiment indices – one measures current sentiment and another future sentiment – ticked upward, according to SMU’s most recent survey data. SMU’s Steel Buyers Sentiment Indices measure how steel buyers feel about their company’s ability to be successful in the current market, as well as three to six months down […]
Despite the economic concerns that lowered consumer sentiment towards the end of 2022, aluminum products demand has held up throughout the first three months of the year. A slowdown from the frenetic post-pandemic pace is apparent. Overall, though, both rollers and extruders comment that conditions are better than expected. The new order index as released […]
Mexico has historically relied on steel sheet product imports to meet its demand as domestic suppliers, such as Ternium and AHMSA, had insufficient production capacity. But, in recent years, both Ternium and ArcelorMittal have built new capacities for hot-rolled (HR) coil in Mexico. Ternium is also in the process of building more downstream capacity and […]
Editor’s note: SMU Contributor Michael D’Angelo is a researcher and trader at Marex. In his role, Mike performs fundamental and quantitative analysis, which directly leads to actionable trading/risk management strategies across the base, precious, and ferrous metals derivative spaces. Prior to joining Marex, Mike received a BA in economics with a minor in finance from […]
Domestic hot-rolled coil (HRC) continues to lose its price advantage over imported steel. The reason: US prices continued to move higher following a wave of domestic mill price hikes that began after Thanksgiving and reached a fever pitch in February with near weekly price increases. US HRC had held a price advantage over foreign hot […]
The Congressional Steel Caucus (CSC) called on President Biden to keep Section 232 tariffs in place and to explore additional protections as well. “We encourage the Biden administration to continue to maintain the Section 232 tariffs and quotas, ensure strong trade remedy laws that address unfair trade practices, and protect our environment from high-emission foreign steel […]
February came in with a bang and went out with one too. We saw two rounds of $50-per-ton sheet price increases early in the month. Then one of $100 per ton. And finally Cleveland-Cliffs came in near the buzzer on Monday with another $100-per-ton price hike. We think that was the last shot of the […]
The Biden administration has hit Russian pig iron as well as other steel and metal products with tariffs of up to 70%. The move was made with less fanfare than the 200% tariffs on Russian aluminum announced in a presidential proclamation last week. The tariffs were included in an annex attached to that proclamation. The […]
Sometimes it’s hard to know who your friends are. What starts offs as a simple disagreement escalates. Things can soon spin out of control. And that’s just for people. When dealing with nation states like the US and Mexico, things get a bit more complex, and the stakes a whole lot higher. At the beginning […]
On the morning of Feb. 24, the White House issued a proclamation to adjust aluminum imports and taking further action under Section 232 of the Trade Expansion Act of 1962. Following the guidance of the Secretary of Commerce, the president issued an order adding a 200% duty to Russian metal coming into the US. Imported […]
SMU polled steel buyers on a variety of subjects on Monday and Tuesday of this week, including current and future steel prices, inventory strategies, supply, demand, and new mill capacity. Rather than summarizing the comments we received, we are sharing some of them in each buyer’s own words. We want to hear your thoughts, too! […]
Domestic hot-rolled coil (HRC) lost its competitive price advantage over imported steel, ending a 16-week run. The turn came as domestic mills continue to drive prices up at a faster clip than mills overseas, according to Steel Market Update’s latest foreign vs. domestic price analysis. US HRC is approximately 3% more expensive than foreign prices […]
Imported sheet and plate products’ arrival at US ports declined in December, leading their share of the US markets to edge lower, while domestic shipments gained ground during the month. That’s according to a Steel Market Update analysis of import data from the US Commerce Department and domestic shipment figures from the American Iron and […]
Total US mill shipments of steel products declined in December, easing for the second straight month after fluctuating up and down for much of the year. December was the lowest mill shipment total for 2022, falling to the lowest total since February 2021. Shipments totaled 7.27 million tons in December, a 1% decrease from November’s 7.34 […]
Sheet prices are up again. By a lot. For the third time this month. And it’s not over yet! Nucor alone is up more since Thanksgiving ($310/per ton) than they were after the invasion of Ukraine ($275/ton), according to our price increase calendar. We had obvious drivers for the last two big rallies. The snapback […]
Thirteen US senators from both major political parties wrote to top trade officials last week requesting that Section 232 tariffs be reinstated on some Mexican steel products, notably steel conduit. “In recent months, it has become clear that Mexican steel imports ‘now exceed historic volumes of trade’ and are ‘surg[ing] meaningfully” into our market,” the […]
Sheet prices continue to push higher even as buyers contacted by Steel Market Update remain divided about the state of demand. Hot-rolled coil lead times now stand at 5.41 weeks, up from 4.94 weeks in our prior survey and marking the first time this year that HRC lead times have broken out significantly above five […]
Should there be limits on the power of the US Commerce Department under the antidumping laws to impose punitive and potentially prohibitive duties on imports? Last week, the Court of International Trade (CIT) placed some limits on Commerce to do so. The CIT rejected punitive duties in an antidumping investigation of utility-scale (i.e., big) wind towers from […]
As US sheet prices continue the rally that began in late November, overall import levels remain relatively low. But lead times have extended and so too have mill asking prices. US mills are now asking for $900 per short ton ($45 per cwt) for hot-rolled coil. Market contacts in Europe note that exports from India […]
There is still a debate on whether the US will enter into a recession during 2023. The beginning of the year has been slower, but overall end-use demand has been holding up relatively well. The mid-part of the year, Q2-Q3, is where most forecasts peg a downturn. Therefore, perhaps the largest challenges are still looming. […]
Inflation indeed! Hot-rolled (HR) spot indexes have risen about $40 per short ton (ST) since the beginning of February. HR futures settlements for the period between Feb. 1 and Feb. 16 also reflect rising prices. The average weighted price for Q2’23 is up over $108/ST to $902/ST; Q3’23 up $65/ST to $853/ST; and Q4’23 up […]