Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: On Friday, President Trump signed into law the Consolidated Appropriations Act, 2019, the spending bill that averts a second government shutdown. The legislation, which funds government operations through Sept. 30, 2019, essentially keeps spending at fiscal 2018 levels, but […]
February imports are trending high, close to 3 million net tons, according to U.S. Department of Commerce license data released Feb. 12. However, looking at the data more closely, the domestic steel mills continue to bring in a tremendous amount of semi-finished steels (slabs, billets – but most are slabs). The mills are on pace […]
A strong economy and record profits are stimulating expansion in the U.S. steel industry. Often crediting President Trump for “leveling the playing field” with steel imports, companies like U.S. Steel and Nucor are taking the opportunity to reinvest their windfall in new and upgraded facilities. Adding capacity in a world that is struggling with steel […]
Steel prices are trying to rise following the $40 per ton increase announced by the mills last month, but how fast, how far and for how long remains the subject of much speculation. Comments from SMU’s market canvas this week show buyers with two basic views: Either, “Mills are very firm on pricing. We’ve got […]
As President and CEO of the American Iron and Steel Institute, Tom Gibson is the front man for an industry whose views are not always the most popular. Gibson will be a keynote speaker at Steel Market Update’s 2019 Steel Summit, scheduled for Aug. 26-28 in Atlanta. This will be Gibson’s first speaking engagement at […]
As President and CEO of the American Iron and Steel Institute, Tom Gibson is the front man for an industry whose views are not always the most popular. Gibson will be a keynote speaker at Steel Market Update’s 2019 Steel Summit, scheduled for Aug. 26-28 in Atlanta. This will be Gibson’s first speaking engagement at […]
The following op-ed in support of steel tariffs, published last week by Alabama’s AL.com, was written by Thomas Gibson, president and CEO of the American Iron and Steel Institute. Gibson will be a keynote speaker at Steel Market Update’s 2019 Steel Summit, scheduled for Aug. 26-28 in Atlanta. This will be Gibson’s first appearance at […]
Steel Market Update asked: Will the newly announced flat rolled price increase “stick” and be collected? Maybe not, said most respondents to SMU’s market trends questionnaire last week, but it will at least stop the slide. Looking at the data, very few expect the mills to collect the full $40 per ton increase they announced […]
November apparent steel supply was calculated at 9,140,649 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. November apparent steel supply saw a 417,102 ton or 4.8 percent increase compared to the same month […]
U.S. steel exports in November totaled 615,818 net tons (558,661 metric tons), down 2.4 percent from October, and down 30.2 percent from levels one year ago. After the September 2018 low of 584,858 tons, last November is the next lowest month for exports since February 2009 when 602,945 tons of steel were exported outside of […]
A recently published report by the U.S. International Trade Commission concerning the import of large diameter welded pipe from China and India had mixed results regarding injury to domestic producers. The Commission made a final affirmative determination of injury in the antidumping investigation of LDW line pipe from China, but voted to terminate the accompanying […]
Manufacturers of foodservice equipment say the Trump administration tariffs on Chinese goods and imported steel and aluminum have raised the cost of materials by 6-15 percent and made it more difficult for American companies to compete. According to a January North American Association of Food Equipment Manufacturers (NAFEM) survey, the tariffs are hurting companies whose […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Section 232 tariffs are increasingly in the news. Today, I describe two issues that are central to the prosperity (and in many cases the survival) of steel-using manufacturers. Exclusions With the end of the government shutdown, the exclusion […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Section 232 tariffs are increasingly in the news. Today, I describe two issues that are central to the prosperity (and in many cases the survival) of steel-using manufacturers. Exclusions With the end of the government shutdown, the exclusion […]
Canadian distributor Russel Metals reported strong financial results for the 2018 fourth quarter and for the year ended Dec. 31, 2018, for all three of its operating segments. The company attributed its success to growth in value-added processing and its U.S. energy field stores, as well as an improvement in its average selling price. Russel, […]
Rolled product imports increased by 4.5 percent in January, calculated as a three-month moving average (3MMA) year over year. This early look at January’s import volume is based on Department of Commerce license data (see explanation below). Beginning in January 2018, we expanded this import analysis to include all major steel sectors: sheet, plate, longs […]
By CRU Australia Analyst Ryan Smith China has traditionally dominated long product exports to the South East Asia (SEA) region. However, a change in market dynamics has reduced Chinese export volumes and created an opportunity for exporters from further afield. In Turkey, economic challenges, in combination with rising trade barriers such as EU safeguards and […]
Section 232 tariffs propelled ArcelorMittal to its best results in nearly 10 years, the company reported to analysts and investors today. The 25 percent tariffs on steel imports helped drive up steel prices, adding to company revenue from its U.S. assets. Average steel selling price in North America rose 15 percent year-over-year. Net income for […]
The following statement by Secretary of Commerce Wilbur Ross supporting the U.S. Reciprocal Trade Act was published by Fox News and the Commerce Department on Feb. 6, 2019: Americans live in a world where other countries impose high tariffs and non-tariff barriers to trade. U.S. exporters face enormous obstacles in foreign markets, and yet, we […]
By CRU North America Steel Analyst Ryan McKinley Since Section 232 tariffs have come into force, U.S. wire rod prices have increased more than other markets. As a result, domestic PC strand (prestressed concrete steel strand) producers have seen costs increase, inviting more competition from abroad. Higher Prices Affecting Competitiveness Rising U.S. domestic wire rod […]
The following statement by Secretary of Commerce Wilbur Ross supporting the U.S. Reciprocal Trade Act was published by Fox News and the Commerce Department on Feb. 6, 2019: Americans live in a world where other countries impose high tariffs and non-tariff barriers to trade. U.S. exporters face enormous obstacles in foreign markets, and yet, we […]
The U.S. Department of Commerce released all kinds of foreign steel import data late this afternoon. We are studying the numbers to see if they make sense, as one of the steel mills told SMU late today that the mechanical pipe and some of the other pipe categories appear to be out of whack. In […]
U.S. Steel Corp. plans to restart the No. 1 Electric-Weld Pipe Mill at its Lone Star Tubular Operations—a mill that had been “permanently” idled in 2016 due to the challenging conditions for tubular products created by fluctuating oil prices, reduced rig counts and high levels of imports. “We are encouraged by an improvement in market […]
A petition filed with the U.S. Commerce Department on Feb. 4 alleges that fabricated structural steel from Canada, China and Mexico is being dumped on the U.S. market and is benefitting from countervailing subsidies. Products covered by the petition include carbon and alloy (including stainless) steel products such as angles, columns, beams, girders, plates, flange […]
The European Union has initiated new safeguard measures on steel imports to replace provisional ones introduced in July 2018. The measures are designed to protect the steel industry in the EU from excessive imports diverted there as a result of the Section 232 tariffs in the United States. An investigation into the potential increase of […]
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 […]
By CRU Principal Economist Lisa Morrison The partial U.S. government shutdown, which began on Dec. 22, 2018, lasted 35 days and is the longest shutdown in U.S. history. President Trump decided to re-open the government until Feb. 15 to allow time for additional negotiations regarding the border security issues. The Congressional Budget Office estimates that […]
The manufacturing sector expanded in January following a weak December, according to the latest survey of purchasing managers by the Institute for Supply Management. ISM’s January PMI rose 2.3 points to 56.6 with new orders, production and inventories growing at a faster rate last month. A reading above 50 indicates growth. New Orders led the […]
Pointing to the temporary reprieve from the longest government shutdown in American history, the U.S. Chamber of Commerce calls on Congress and the administration to work together to keep the government open. “Our nation simply cannot afford another shutdown. Our message to Washington’s leaders is simple: do your jobs so Americans can do theirs,” wrote Chamber […]
The U.S. Department of Commerce released import license data through the month of December 2018 earlier this week. The December license data is showing a large reduction in semi-finished imports (mostly slabs going to domestic steel mills). SMU believes the lower slab numbers may be due to quotas from Brazil having been reached, thus capping […]