The U.S. Department of Commerce released license data for foreign steel coming into the United States. Based on the data received and reported through April 2, March imports are expected to come in slightly higher than February at 2.6-2.7 million net tons. When removing the semi-finished (mostly slabs) licenses from the data, the finished steel […]
January apparent steel supply was calculated at 9,902,993 net tons, according to data released late last week. Apparent steel supply is determined by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports. This is the highest level seen since March 2018 when apparent supply was 9,935,479 tons. January apparent […]
Year over year, total rolled product imports in March were down by 11.2 percent, measured as a three-month moving average (3MMA). This early look at March’s import volume is based on Commerce Department license data (see explanation below). Beginning in January 2018, we expanded this import analysis to include all major steel sectors: sheet, plate, […]
Raw materials prices have lacked direction in the last month. Table 1 summarizes the price changes through March of the five materials considered in this analysis. It reports the month / month, 3 months / 3 months and 12 months / 12 months changes and tells us that iron ore and pig iron declined in […]
The U.S. International Trade Commission announced its final antidumping and countervailing duty injury determinations in the investigations concerning imports of large-diameter welded pipe from Canada, Greece, Korea and Turkey. Commerce will issue: antidumping duty orders on imports of LDW carbon and alloy steel line pipe from Canada, Greece, Korea, and Turkey; a countervailing duty order […]
Rising trade tensions took a toll on global economic growth in 2018 and will create strong headwinds in 2019 and 2020, says a new report by the World Trade Organization. Global trade grew 4.6 percent in 2017 generating optimism that an upward momentum was beginning. Data from 2018, however, showed trade underperforming, with growth of […]
The Canadian International Trade Tribunal recommended on Wednesday that five of seven provisional steel safeguards, imposed by the government following the imposition of Section 232 tariffs by the U.S., be removed. A CITT inquiry concerning the importation into Canada of heavy plate, concrete reinforcing bar, energy tubular products, hot-rolled sheet, pre-painted steel, stainless steel wire, […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel prices (delivered to U.S. ports) and domestic hot rolled coil prices (FOB domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and other costs […]
Editor’s note: Steel Market Update is sharing the following Premium content with all its readers in this issue. For more information on how to upgrade to a Premium-level subscription, email info@SteelMarketUpdate.com. Growth of U.S. GDP in fourth-quarter 2018 declined to 2.2 percent from 3.4 percent in the third quarter, according to the third and final […]
One of the primary drivers of currency change is interest rate differential between currency pairs. The March 20 announcement by the Federal Reserve will take some of the steam out of dollar appreciation that occurred last year. On March 21, the Associated Press wrote, “The Federal Reserve left its key interest rate unchanged March 20 […]
The spot price of West Texas Intermediate FOB Cushing, Okla., had a recent peak on Oct. 3 of $76.40/barrel. The price declined to $44.48 on Dec. 27, but recovered to $59.09 on March 15. The total number of operating rigs exploring for oil has declined by 61 since Jan. 4. The prices of oil and […]
Ferrous scrap prices for June are difficult to predict, report Steel Market Update sources, who disagree on the degree to which the lower tariffs on Turkish steel will affect demand for scrap exports from the U.S. Most expect scrap prices to settle sideways next month after declines for most of the year, but a small […]
Since hitting an eight-year low in December of just 1,893,568 tons, imports of steel into the United States have been up and down, according to Commerce Department data. Final January imports jumped to 3,478,865 net tons, up 83.7 percent over December—a nearly 1.6 million ton increase. Then in February, based on license data for the […]
Much attention has been given to opponents of the Section 232 tariffs, but there are those who support keeping the tariffs even after a new North American trade agreement is approved. The American Line Pipe Producers Association, makers of large-diameter welded pipe, urged the administration to continue the tariffs on LDWP imports from Canada and […]
The U.S. Court of International Trade ruled against a legal challenge to the constitutionality of Section 232 brought by the American Institute for International Steel. AIIS alleged that Section 232 violates the constitutional prohibition against Congress delegating its legislative powers to the president. The CIT denied a motion by AIIS for a summary judgment, citing […]
The decision by the U.S. Court of International Trade to deny the American Institute for International Steel’s motion for summary judgment on its constitutional challenge to Section 232 has not deterred AIIS from further action. Said AIIS President Richard Chriss: “We are heartened that the Court of International Trade recognized that Section 232, in the […]
Mexico has renewed the 15 percent tariff on imports of iron and steel products from countries with which it does not have a free-trade agreement. The tariffs cover 186 products and were originally introduced in 2015 to protect domestic producers from Asian imports. The newest renewal cites the “crisis facing the international steel market caused […]
The metals service center industry will see significant ownership turnover and consolidation over the next 10-20 years, but is likely to remain a highly fragmented, family-owned industry, said Dan Sullivan, president of Montrose Advisors, an M&A advisory firm. Speaking at the S&P Global Platts North America Conference March 15 in Chicago, Sullivan said the robust […]
Steel Market Update’s Steel Buyers Sentiment Index has registered little change so far this year, even as steel prices have seen a small uptrend. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current Index), as well as three to six […]
Steel Market Update asked: With steel imports dropping and domestic mills running close to capacity, are you concerned about where steel prices may go over the next few months? Surprisingly, nearly two out of three respondents to SMU’s market trends questionnaire earlier this week said they are unconcerned about a big swing in prices. Their […]
Bank of America Merrill Lynch predicts that billions in capital investments by domestic steelmakers over the next few years, adding more than 20 million tons of new capacity to the market, will cause a glut of supply that proves disastrous for steel prices—a phenomenon they have dubbed “Steelmageddon.” Steel Market Update canvassed the market this […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, 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 […]
Toyota hopes to prevent becoming a victim of auto tariffs by investing in its U.S. operations. The company has increased its 2017 pledge to invest $10 billion by 2021 to a new target of $13 billion. Toyota’s announcement last week includes $750 million for capacity increases and building expansions at Toyota’s plants in Huntsville, Ala., […]
An antidumping/countervailing duty investigation will continue on imports of fabricated structural steel from Canada, China and Mexico following a decision by the U.S. International Trade Commission. The USITC has determined that there is reasonable indication the U.S. industry is being materially injured by imports of fabricated structural steel from Canada, China, and Mexico that are […]
Each month, Steel Market Update produces an import analysis by region for two of the six flat rolled product groups (HRC, CRC, HDG, OMC, CTL plate and coiled plate). This month we are focusing on plate products. The intent of these regional updates is to bridge the gap between our monthly license data summaries and […]
Each month, Steel Market Update produces an import analysis by region for two of the six flat rolled product groups (HRC, CRC, HDG, OMC, cut to length (CTL) plate and coiled plate). This month we are focusing on plate products. The intent of these regional updates is to bridge the gap between our monthly license […]
This report examines the import share of sheet, plate, long and tubular products and 16 subcategories through December. Table 1 shows total supply to the market in three months through December and in 12 months through December for the four product groups and the 16 subcategories. Supply to the market is the total of domestic […]
U.S. tariffs on imports of steel, aluminum and Chinese goods have “an unmistakable negative impact” on the economy, says a new report from IHS Markit. The report, “The Economic and Industry Impact of Protectionism Tariffs on the Off-highway Equipment Sector,” estimates that Section 232 and Section 301 tariffs will result in an average GDP loss […]
It has been a year since President Trump imposed 25 percent tariffs on steel imports under Section 232, and The Wall Street Journal asked in its Sunday editorial: “How are those steel tariffs working”? The American Institute for International Steel, currently embroiled in a constitutional challenge to the use of Section 232 to regulate imports […]
As the market waits anxiously to see if President Trump gives in to the international pressure to rethink his national security tariff on steel imports, it’s clear that steel fabricators are not big fans of Section 232. Speaking at the Fabricators & Manufacturers Association annual meeting March 5 in Nashville, panelists’ comments reflected the divisive […]