Manufacturing in New York State expanded in June at a faster pace than April. The Empire State Manufacturing Index jumping 4.9 points to 25.0 and its highest reading since October, said the Federal Reserve Bank of New York on Friday. New orders and shipments made solid gains, driving increases to backlogs and delivery times. The […]
U.S. steelmakers filed trade cases this week on cold rolled and corrosion resistant (CORE) steels alleging that Korea and Taiwan are guilty of using the same circumvention tactics as the Chinese–namely sending hot rolled and cold rolled substrate to Vietnam. As many predicted, the Commerce Department’s recent Chinese circumvention ruling has set a precedent that […]
Foreign-made automobiles and parts may soon be facing tariffs if the administration is successful in its investigation to determine whether imports of automobiles and auto parts threaten to impair national security. On May 23, the Commerce Department initiated a Section 232 investigation on imported automobiles and parts, noting that during the past 20 years imports […]
I am excited for you, our customers. I have been working closely with the CRU Group, and our members will begin to see some subtle changes to the articles we write. One will be the use of CRU data on such items as our Foreign vs. Domestic Price Spread articles, which we will publish in […]
Jean Carroll Kemp may have been the speaker at the Association of Steel Distributors meeting in Chicago last Thursday, but it was ASD members who really delivered the message. The event was co-hosted by the Chicago Chapter of Association of Women in the Metals Industry (AWMI). Kemp is the Senior VP of Government Affairs and […]
Both manufacturing companies and steel service centers reported a rebound in support for higher spot prices out of the distributors to their end customers. Respondents to our inquiries on the subject reported to SMU that the elimination of the exclusion status for Canada, Mexico and the European Union was the main culprit impacting flat rolled […]
Steel Market Update’s sources reported that the June ferrous scrap trade produced slightly higher prices on prime grades of about $10 per ton and little change on obsolete grades. “There was a significant supply of shredded and cut grades offered into the market, which is not unusual for a June trade. Under market conditions like […]
I am finally home long enough to gather my thoughts and hopefully get back to providing some insights into the flat rolled, plate and scrap markets from my perspective. There is obviously a lot of uncertainty connected to the Section 232 tariffs in both steel and aluminum. The Trump administration appears to have an intense […]
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Director of Risk Management, 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 […]
A new wrinkle has been revealed for those manufacturers seeking exclusions for steel and aluminum products from Brazil, South Korea and Argentina. The three countries, which have agreed to quotas in lieu of tariffs, are not eligible for any product exemptions. A spokesperson for the Commerce Department confirmed the restriction in an email to Inside […]
As a trade war continues to build over the Section 232 steel and aluminum measures, some senators are looking to curb the president’s authority to unilaterally impose tariffs. Sen. Bob Corker (R-TN) is leading the effort along with Sen. Pat Toomey (R-PA) to challenge President Trump’s ability to levy trade restrictions on the grounds of […]
Canada’s Samuel, Son & Co., a leading metals distributor and industrial products manufacturer, has invested $18 million in its Brantford, Ontario, automotive metals processing center. It expects to complete the expansion by the fourth quarter, ramping to full production in early 2019. Samuel’s Brantford facility is currently a 141,000-square-foot metals processing operation equipped with blanking […]
In the last 12 months, manufacturing employment has grown by 2.1 percent and construction employment by 4.1 percent, according to Bureau of Labor Statistics data—both positive indicators of future steel sales. Table 1 breaks total employment down into service and goods-producing industries and then into private and government employees. Most of the goods-producing employees work […]
Net job creation in May hit 223,000 seasonally adjusted. Year over year, 2,363,000 jobs have been created, an increase of 1.6 percent, according to Bureau of Labor Statistics employment data. Rising employment and wages are the basis of GDP growth because personal consumption accounts for almost 70 percent of GDP. Steel consumption is related to […]
Supply executives polled for the Manufacturing ISM Report on Business reported strong business conditions in May. The PMI rose 1.4 points to 58.7 percent as new orders, production and employment continued to expand. Inventories are struggling to keep pace with demand. Longer supplier lead times and freight uncertainty is impacting inventory levels, said Timothy R. […]
Global manufacturing was at a nine-month low in May, according to data from J.P. Morgan and IHS Markit, in association with ISM and IFPSM. The composite Global Manufacturing PMI dipped to 53.1 from 53.5 in April. The second-quarter PMI average shows “mild growth deceleration” compared to the first quarter, said J.P. Morgan. The U.S. outperformed […]
Commerce Secretary Wilbur Ross has made it official—there will be no tariff exemptions for Canada, Mexico, and the European Union. In a briefing on Thursday, Ross said the tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum will go into effect at midnight. Argentina, Brazil, Australia and South Korea […]
The Trump administration’s announcement today that it would not spare its closest trading partners from the 25 percent tariff on steel imports surprised many in the market. Effective at midnight, steel from Canada, Mexico and the EU countries will be subject to the same penalty as exports from China and other so-called “bad actors.” Steel […]
The American Institute for International Steel, a trade group representing foreign steelmakers, said it is deeply disappointed the Trump administration has decided to impose tariffs on steel and aluminum imports from the EU, Canada, and Mexico. “Make no mistake: restricting the raw material supply in the U.S. and imposing tariffs on imports from our closest […]
In the table below, Steel Market Update provides a snapshot of flat rolled steel pricing, commodities that affected steel prices, and economic data of importance to the flat rolled steel industry in June. Looking back at the past month, SMU’s Pricing Momentum Indicator continued to point higher as the domestic mills reacted to the Trump […]
The American iron and steel industry supports nearly two million jobs and contributes more than $520 billion to the U.S. economy, when considering the direct, indirect (supplier) and induced impacts of related commerce, claims a study released last week by the research firm John Dunham & Associates. The study also shows that the iron and […]
Manufacturing activity in the U.S. remains robust and economic indicators continue to point to a strong 2018, according to Steel Market Update’s latest analysis. This report summarizes seven data sources that describe the state of manufacturing in the United States. We have reported on most of these separately in our Steel Market Update publications, and […]
Global steel production was at an all-time high in March and declined only slightly in April. Production declined by 0.07 percent in April month over month and grew by 4.0 percent in three months through April year over year, according to the latest Steel Market Update analysis of World Steel Association data. China grew by […]
Metalforming companies in the U.S. and Canada are expecting business conditions to decline slightly in the next three months as tariffs take hold and steel prices and lead times increase. The latest Precision Metalforming Association Business Conditions report sampled 112 metalforming companies and found that 31 percent of participants forecast an improvement in economic activity […]
The Trump administration’s announced Section 232 investigation into imports of automobiles and auto parts is not sitting well with lawmakers or automotive industry analysts. Some lawmakers are calling the suggestion that automotive imports are a threat to national security an abuse of executive branch authority. Senate Finance Committee Chairman Orrin Hatch (R-UT) called the investigation […]
Orders for manufactured goods fell 1.7 percent in April to $248.5 billion, according to the latest Commerce Department data. Transportation equipment drove the decrease, declining $5.6 billion, or 6.1 percent, to $87.1 billion. Orders for commercial jets plummeted 29 percent in April after soaring 61 percent in March. Excluding transportation orders, the index rose 0.9 […]
President Trump has ordered a Section 232 investigation to determine whether imports of automobiles threaten national security interests. The investigation comes on the heels of China’s announcement that it will drop tariffs on imported vehicles from 25 percent to 15 percent and tariffs on autoparts to 6 percent. The reductions are presumably positive for the […]
A large manufacturing company that buys a tremendous amount of hot rolled in the spot markets explained to SMU what they were seeing out of the domestic steel mills this week: “The market is relatively calm at the moment. Steel prices have been hovering in the same range for the last four to five weeks. […]
Steel Market Update canvassed the market on May 22 to gather steel executives’ views on supply, demand and pricing in the current environment. Some also shared their thoughts on their biggest challenges today. Below are some of their more insightful comments: Q: Are you seeing any signs that steel prices are going to “break out” […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following update on trade issues in Washington: Greetings from the West Coast. I just attended the National Association of Foreign Trade Zones Spring conference. Foreign trade zones have been targeted by the Trump administration in the tariff proclamations, including the Section 232 tariffs on steel […]