March 23 marked the one-year anniversary of the Section 232 tariffs on steel and aluminum. The Coalition of American Metal Manufacturers and Users had the following comments for the Trump Administration: “The Coalition of American Metal Manufacturers and Users urges the Trump Administration to terminate the Section 232 steel and aluminum tariffs. At their one-year […]
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 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 […]
By CRU Chief Economist Jumana Saleheen The 13th National People’s Congress (NPC), China’s Parliament, concluded its annual two-week meeting in March. The NPC is arguably the most important policy meeting in China because it is when key macroeconomic targets are announced together with the policies required to support them. This year’s NPC has drawn attention […]
General Motors will build its new electric Chevy at its Orion Township plant in Michigan. The auto manufacturer announced it will invest $300 million at the facility as part of its $1.8 billion investment strategy for the U.S. The electric vehicle, originally slated for overseas assembly, will add 400 jobs at the plant. CEO Mary […]
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 […]
In many Chicago-area neighborhoods, teens face intense pressure to join a gang and embrace a lifestyle of crime and violence. But some find their way into an unlikely rival gang, one that has been promoting integrity and achievement for more than a century—the Boy Scouts of America. With support from the metals industry, the Boy […]
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., […]
Are steel prices witnessing a dead cat bounce or the beginning of a bullish reversal? The market appears split on the feline vs. bovine analogy. In other words, there is a huge divergence of thought on what is going to happen to steel prices over the next three or four months. The benchmark price of […]
Latin American steel mill Ternium reported the highest annual EBITDA in its history last year at $2.7 billion, a 40 percent increase from 2017. Net income was $1.5 billion, driven by an 18 percent increase in sales and higher steel product shipments. Ternium’s Mexico segment shipped 6.5 million metric tons of steel in 2018, representing […]
“Your tank broke down? No problem, we’ll just 3-D print a steel replacement part.” Someday this scenario may be a reality for U.S. Army technicians in the field. Researchers at the U.S. Army Combat Capabilities Development Command’s Army Research Laboratory are working on a process that will take powdered steel and transform it with lasers […]
Air pollution is a growing concern for residents in Allegheny County near Pittsburgh. Sulfur dioxide levels and fine-particulate pollution have exceeded acceptable standards in the last several years. County health officials mostly blame emissions from U.S. Steel’s Clairton coke plant at Mon Valley Works as the cause. Allegheny County health officials report that the plant […]
U.S. Steel announced that it has accepted an award from the High-Performance Computing for Manufacturing Program (HPC4Mfg) Special Call: Steel and Aluminum, sponsored by the U.S. Department of Energy, to expand the company’s manufacturing capabilities for advanced high-strength steel. The winning U.S. Steel project, drafted by researchers Evgueni Nikitenko and Susan Farjami at U.S. Steel’s […]
Orders for manufactured durable goods increased for the third month in a row, gaining 0.4 percent in January despite economists’ predictions of a decline. Orders were driven by an increase in transportation orders, especially orders for civilian aircraft, which grew 15.9 percent. Excluding the volatile transportation category, durable goods orders declined 0.1 percent. Core capital […]
Members of the Heating, Air-conditioning and Refrigeration Distributors International, wholesalers of galvanized sheet and coil products, reported steady and strong demand in the HVAC market so far in 2019, but also growing concern about the direction of steel prices. One HARDI member on the trade group’s monthly conference call today described conditions as “somewhat fragile.” The […]
February’s employment report was not all bad news in spite of the surprisingly low job creation result. Net job creation in February at first glance was terrible, but our analysis of Friday’s reported by the Bureau of Labor Statistics (BLS) was not so bad. Job creation in February, at just 20,000, was far below […]
Construction employment was promoted by good weather in January with a reversal in February, according to the latest Bureau of Labor Statistics data. In February, 25,000 jobs were created in the private sector and government lost 5,000. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. […]
U.S. economic activity continued to expand in late January and February, but might have expanded more were it not for the government shutdown and harsh winter weather conditions, reports the Federal Reserve in its March 6 Beige Book. Ten of the Fed Districts reported slight-to-moderate growth, while Philadelphia and St. Louis reported flat economic conditions. […]
Stelco, one of the most technologically advanced integrated steelmaking facilities in North America, will take another step forward in the technology realm. Stelco has signed an agreement with Canvass Analytics to use the Canvass AI software to transform operational data into “actionable intelligence.” “By partnering with Canvass Analytics, we are systematically transforming our facilities into […]
I have been very pleased with the response we have received for the SMU Steel Summit Conference agenda, which we rolled out earlier this week. I have received multiple comments about the quality of the program and speakers. Brian Robbins of MidWest Materials told me, “It’s good!!!! If not exhausting… I am thinking of bringing […]
Flat rolled steel service centers are beginning to support the concept of higher steel prices. Distributors are raising spot pricing to their end-user customers, and in the process, they are supporting the domestic steel mill flat rolled price increase announcements. Steel Market Update canvasses the flat rolled and plate steel markets twice a month through […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: President Trump may be forced to concede some ground on his Section 232 tariffs in order to get legislators in Canada and Mexico to sign off on the new North American trade agreement. One option the administration reportedly […]
A much weaker than expected jobs report showed that only 20,000 jobs were added in the U.S. last month. The unemployment rate was 3.8 percent, dipping from 4.0 percent in January, according to the latest report from Commerce. Average earnings rose 0.4 percent in February for a year-over-year gain of 3.4 percent. In the construction […]
Today, we are rolling out more of our agenda for the 2019 SMU Steel Summit Conference. The theme behind this year’s conference is “Steel in Transition.” It will provide an important forum for discussion of the key issues affecting all companies that supply or consume flat rolled and plate steels, including the steel mills, trading […]
Today, we are rolling out more of our agenda for the 2019 SMU Steel Summit Conference. The theme behind this year’s conference is “Steel in Transition.” It will provide an important forum for discussion of the key issues affecting all companies that supply or consume flat rolled and plate steels, including the steel mills, trading […]
We live in a time when nothing is as it seems and uncertainty rules the roost. This can make for a daunting task when considering when, what and how much steel you need to purchase at any point in time. It appears the second price increase announcement out of Nucor moved some of the end […]
Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in Metal and […]
“Moderate and balanced growth” is evident across the residential, nonresidential and public construction sectors, although labor shortages continue to plague the industry, says an analysis of new government data by the Associated General Contractors of America Construction spending dipped 0.6 percent in December to a seasonally adjusted annual rate of $1.29 trillion, but increased 1.6 […]
In the recent op-ed below, American Iron and Steel Institute President and CEO Tom Gibson reiterated AISI’s support of steel tariffs and opposition to congressional legislation called “The Bicameral Congressional Trade Authority Act,” which would prematurely terminate the tariffs. “The massive overcapacity in steel still exists globally. And China in particular is producing steel at record levels—exceeding […]
The Soo Locks are scheduled to reopen on March 25 to begin the new shipping season on the Great Lakes. The last vessel through the locks was the Canadian bulk-carrier Manitoulin headed for Essar Steel on Jan. 15. The locks are currently closed for maintenance prior to the start of the 2019-20 season. During the […]