The US economy shrank at a revised -0.6% in the second quarter of 2022, declining for the second straight quarter. Gross domestic production in Q2 contracted at a more moderate pace than initially though, according to the second estimate from the US Commerce Department’s Bureau of Economic Analysis (BEA). The result was a slight improvement […]
Preliminary Census data indicates that July steel imports will total 2.67 million net tons, down 6% compared to June and the lowest monthly rate since February of this year. July figures are down 14% compared to March’s 26-month high of 3.09 million tons. Import licenses for August are currently at 1.98 million tons through August […]
Although traders can sometimes get a bad rap, they play an important role in the steel industry and aren’t going anywhere anytime soon, according to a trade panel speaking at the 2022 SMU Steel Summit conference in Atlanta. As Jerry Richardson, president of CSN LLN, pointed out, traders play many roles. From complying with trade […]
The temptation to purchase foreign hot-rolled coil (HRC) at a bargain has all but faded, with adjusted foreign prices now offering little or no advantage over domestic steel, according to Steel Market Update’s latest analysis. After taking freight costs, trader margins and tariffs into consideration, foreign HRC prices for two of the three regions covered […]
We’ve concluded the second day of our Steel Summit conference in Atlanta, and I thought I’d leave you with five things I learned today. So here they are in no particular order: Say Hello to ADI, Say Goodbye to Section 232 (as we know it) It’s not official yet. But Steel Dynamics Inc. (SDI) president […]
The House of Representatives on Friday approved the Inflation Reduction Act (IRA) on a party-line vote. This legislation, with only Democratic support, passed the Senate 51-50 last weekend. The bill now goes to President Joe Biden, who will sign it into law. This is by any measure a major piece of legislation. On the surface, […]
US plate prices edged down marginally this week, declining for the third straight week. The easing was driven by a tightening of the range, though sources feel pricing has flattened. The repeated declines are not exactly a surprise given plate prices have been holding an unsustainable premium over coil, while buying remains strategic and mainly hand-to-mouth. […]
Foreign steel imports from the three regions tracked by Steel Market Update have all but lost their price advantage over domestic steel, according to our latest foreign versus domestic hot rolled steel price analysis. After taking freight costs, trader margins and tariffs into consideration, foreign HRC prices for one region are more expensive than domestic […]
The US Department of Commerce recently recalculated the dumping margins for hot-rolled steel flat imports from Japan’s Nippon Steel. And while Nippon supports the remand results, it has also filed comments with the US Court of International Trade (CIT) regarding two additional complaints. On the remand order of the CIT, Commerce recalculated Nippon’s dumping rate […]
Flat Rolled = 54.7 Shipping Days of Supply Plate = 63.8 Shipping Days of Supply Flat Rolled US service center flat rolled inventories declined slightly in July as service centers worked to align inventories with slowing demand. At the end of July, service centers carried 54.7 shipping days of supply, down from 55 shipping days […]
Imported sheet and plate products arrived at US ports at a higher clip in June, resulting in them accounting for a larger share of the domestic market, according to US Commerce Department data. Imports’ share of US sheet and plate markets peaked in December, with sheet reaching its highest level in the past 4.5 years. The trend […]
Total mill shipments of steel products shrank in June, after gaining ground the month before. June’s mill shipments totaled 8.09 million tons, a 3.5% decline from May’s 8.38 million tons. Apparent supply also declined in June, down 2.8% versus the prior month. This analysis is based on steel mill shipment data from the American Iron and Steel […]
SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. He and the firm design and execute risk management strategies for clients. They also provide process and analytical support. Before joining Metal Edge Partners, Bryan held commercial leadership roles involving purchasing, sales, and risk management […]
US plate prices edged down again this week after seeing their largest decline in nearly five years the week prior. The latest declines are not exactly a surprise given plate prices had been holding an unsustainable premium over coil and buying has been largely hand-to-mouth. But the straw that broke the camel’s back might just […]
US apparent steel supply declined 4% month-over-month to 9.05 million net tons in June, erasing May’s gains, according to the latest US Department of Commerce and American Iron and Steel Institute data. June supply is now at the second lowest monthly level seen in the past 12 months, above only the February 2022 figure. Recall […]
The temptation to purchase foreign hot-rolled coil (HRC) at a bargain remains low, with adjusted foreign prices now within $40 per ton of domestic steel, according to Steel Market Update’s latest analysis. For the past three months, the potential discount on imported products has been shrinking. After taking freight costs, trader margins and tariffs into […]
Eariler this week, SMU polled steel buyers on a variety of subjects including current and future steel prices, price increase announcements, supply, demand, and new mill capacity. Rather than summarizing the comments we received, we are sharing them in each buyer’s own words. We want to hear your thoughts, too! Contact Brett@SteelMarketUpdate.com to be included […]
Nucor announced a price hike on Monday, and our HRC price is up modestly for the first time since mid-April. It’s too early to say whether those two trends are related. Our HRC price went up $15 per ton. Nucor’s price increase was $50 per ton, and the jury is still out on whether it […]
I mentioned in my last Final Thoughts that I’d been surprised to see hot-rolled coil lead times inch up, even if only modestly so. I cautioned at the time not to make too much of just one data point or to call a trend based on just one survey. That big caveat aside, as we […]
The US International Trade Commission (ITC) recently conducted hearings on the future of the Section 232 tariffs on steel and aluminum as well as on the Section 301 tariffs on imports from China. Congress mandated the ITC investigation in response to calls for the tariffs to be reduced or eliminated to fight inflation. Unlike the […]
Final Census data shows that June steel imports totalled 2.84 million net tons, 24,000 tons higher than preliminary figures reported last week. June imports are down 8% compared to March’s 26-month high of 3.09 million tons. Import licenses for July now total 2.57 million tons through Aug. 3rd data. This is up from 2.15 million […]
Additional antidumping and countervailing duty rates on imports of corrosion-resistant steel flat products have been updated by the US Department of Commerce. In the preliminary results of an administrative review looking at the period July 1, 2020, through June 30, 2021, Commerce updated the weighted-average dumping margins for three Taiwanese companies. Preliminary rates were set […]
The appeal to purchase foreign hot-rolled coil (HRC) further faded this week, with foreign prices now in close quarters to domestic steel, according to Steel Market Update’s latest analysis. Since mid-May, US steel prices have generally declined at a faster rate than foreign prices, meaning the potential discount on imported products has been shrinking for […]
Another Russian steelmaker has been sanctioned by the US government in response to Russia’s ongoing war in Ukraine. The US Department of Treasury officially sanctioned Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) and its majority owner Viktor Filippovich Rashnikov. MMK’s subsidiaries MMK-FINANS and MMK Metalurji were added to the list as well. The companies […]
The US International Trade Commission is not afraid to air out dirty laundry. On August 3, the USITC ruled to maintain the existing antidumping duties on imports of large residential washing machines from China. The duties have been in place since 2016. Under the current order, a large residential washing machine is considered to be any […]
Ternium executives provided an update on the company’s new Pesquería hot strip mill and plans for a greenfield electric-arc furnace in North America on the company’s second quarter earnings conference call on Wednesday, August 3. Weak demand and falling prices are impacting the company, but it remains positive on its plans moving forward. Updates on […]
ArcelorMittal SA has agreed to buy Brazilian steelmaker Companhia Siderúrgica do Pecém (CSP) from Brazilian iron ore miner Vale SA and shareholders. The deal is worth $2.2 billion and is expected to be completed late this year. CSP is a joint venture between Vale, which holds a 50% stake in the company, and South Korean steelmakers […]
US plate prices were largely unchanged this week, but probably not for long now that Nucor has significantly lowered plate prices with the opening of its September plate order book. The move came after Nucor in early July kept prices flat with the opening of its August order book. Discrete plate prices, as well as prices […]
By Greg Wittbecker, Advisor, CRU Group US International Trade Commission hearings provide little direction Last week in DC, the US International Trade Commission (ITC) held a series of public meetings and hearings to take comments on current Section 232 tariffs. Representatives from throughout the value chain were in attendance. The Aluminum Association participated in a […]
Preliminary Census data indicates that June steel imports will total 2.81 million net tons, just 61,000 tons higher than May levels. June figures are down 9% compared to March’s 26-month high of 3.09 million tons. Import licenses for July are currently at 2.15 million tons through July 25th data. (July figures are expected to increase as import […]