After months of contentious bargaining, the U.S. has reached a new trilateral trade agreement with Canada and Mexico to replace NAFTA. In last minute negotiations, Canada agreed to give the U.S. increased dairy market access while retaining the Chapter 19 trade remedy dispute settlement. The new treaty, to be called the U.S.-Mexico-Canada Agreement (USMCA), will […]
The renegotiated NAFTA, now called USMCA (the U.S.-Mexico-Canada Agreement), still needs to be ratified in Mexico, the United States and Canada, but it is generating a plethora of commentary, both supportive and cautious. The new deal reached late Sunday “provides certainty to financial markets and supports investment and job creation in our country,” said incoming […]
CSN continues to export slabs and coated steels to the United States, but tariffs and quotas make the market a challenge for the Brazilian steelmaker, reports a Steel Market Update source. Earlier this year, Steel Dynamics bought the CSN conversion mill in Terre Haute, Ind. At the time of the purchase, the company had two […]
Despite moderating prices, the outlook for the U.S. steel market is generally favorable for 2019, reported Josh Spoores, CRU Principal Analyst for North America, during a CRU Webinar on Friday. The Trump administration’s Section 232 steel tariff has limited competition from steel imports this year. Steel sheet arrivals into the U.S. are down 12 percent […]
Members of the Precision Metalforming Association are expecting business conditions to remain steady for the rest of the year. A survey of 110 metalforming companies in the U.S. and Canada showed 28 percent of participants believe economic activity will improve, 62 percent expect no change (same as last month) and 10 percent expect a decline […]
United Steelworkers at ArcelorMittal are preparing for a strike after failing to reach agreement with management over proposed concessions. “Although management certainly received the loud and clear message that we are united in solidarity and ready to fight for the fair contracts we have earned and deserve, the company continues to propose unfair and unnecessary […]
The percentage of manufacturing companies and service centers reporting distributor spot prices as weakening is nearing the SMU level of capitulation. Capitulation is the point at which steel distributors are panicking and dumping what is perceived as high-priced steel into the spot market at ever lower prices. The process feeds on itself and the distributors […]
Steel Market Update will conduct one of our popular Steel 101: Introduction to Steel Making & Market Fundamentals workshops in Toledo, Ohio, on Dec. 11-12. We are working with North Star BlueScope, which will provide attendees with a tour of their electric arc furnace, caster and hot strip mill (all of the fun stuff). The […]
On Friday, Steel Market Update received a note from one of our readers asking why foreign steel import totals have not dropped. The domestic mills have won countless antidumping and countervailing duty suits against flat rolled and plate products. The president has placed 25 percent tariffs on steel, citing national security as the reason to […]
When looking at the last four years of import data, as well as the first seven months of data available from the U.S. Department of Commerce, we are seeing a reduction in most flat rolled products. Of the past four years, 2014 was by far the biggest year for foreign steel imports into the United […]
As I mentioned in a recent newsletter, comments received from our readers will many times lead to an article, or even a series of articles. One of our goals is to dig into topics of interest to our readers from as many angles as possible, and then allow you to make your own conclusions. For […]
The SMU Steel Buyers Sentiment Index has been treading water, albeit at optimistic levels, for the past six months. However, the attitudes of buyers and sellers about conditions in the steel market might be described as anywhere from cautious to tepid, judging by the comments provided in Steel Market Update’s latest Steel Buyers Sentiment Index […]
The SMU Steel Buyers Sentiment Index has been treading water, albeit at optimistic levels, for the past six months. However, the attitudes of buyers and sellers about conditions in the steel market might be described as anywhere from cautious to tepid, judging by the comments provided in Steel Market Update’s latest Steel Buyers Sentiment Index […]
The United States’ Section 232 steel tariffs are adding to the government coffers as the increase in calculated duties on steel rose by 4,300 percent in second-quarter 2018. Earlier this week, Steel Market Update was asked if we knew how much revenue has been coming from the Section 232 tariffs on steel. We were intrigued […]
The United States’ Section 232 steel tariffs are adding to the government coffers as the increase in calculated duties on steel rose by 4,300 percent in second-quarter 2018. Earlier this week, Steel Market Update was asked if we knew how much revenue has been coming from the Section 232 tariffs on steel. We were intrigued […]
Earlier this week, the U.S. Department of Commerce released license data for the month of September. Steel Market Update takes that data, turns it into a daily average and then uses that number to project where we see the trend taking the total by the end of the month. The past few months have been […]
The U.S. Court of International Trade has granted a request by the American Institute for International Steel for a three-judge panel to hear its challenge to the constitutionality of the Section 232 tariffs on steel and aluminum imports. In a June 27 motion, AIIS argued that a three-judge panel is supported by a specific federal […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: A rather eventful few days on the tariff and legal fronts: Final list of $200 billion in trade value of imports from China: The USTR announced the final list (“list 3”) of $200 billion in […]
Distributors of products for the HVAC sector are keeping a tight rein on inventories as pricing for galvanized steel continues to weaken. The wholesalers are seeing pressure from customers postponing orders in anticipation of better prices down the road. “It appears customers are living hand to mouth, waiting to place any large orders until they […]
Steel Market Update was speaking with one of the plate mills regarding their maintenance schedules and order books, which we reported on in Thursday evening’s issue of our SMU newsletter. During the conversation, there was a discussion about what was causing the tightness in the marketplace, and the mill mentioned the drastically lower plate imports […]
Both the plate mills and their customers are advising Steel Market Update that, unlike the hot rolled markets, the plate markets are hot and are expected to continue to be hot for some time to come. The plate mills continue to be on “controlled order entry” (allocation) and all of the mills are struggling to […]
I am in Middletown, Ohio, having spent the day at AK Steel’s Research and Innovation Center as part of our new Steel 201 training workshop. The facility is impressive both in physical beauty as well as the operations and people working there. Our class is being held in an auditorium that seats about 70 people […]
SMU President & CEO John Packard will be the featured speaker at the AWMI Industry Dinner at the Carnegie Hall at Newport in Newport, Ky., on Oct. 18. The event is open to the public. The mission of the Association of Women in the Metal Industries (AWMI) is to educate, network and mentor those in […]
ArcelorMittal workers are contemplating a strike authorization after labor negotiations stalled last week. The USW complains that the company’s proposal does not measure up to the financial success that union workers helped ArcelorMittal achieve. “Rather than engaging in good faith negotiations for a fair contract, management continues to bring the same 2015 backward thinking proposals […]
Section 232 tariffs on steel and aluminum products from Canada and Mexico are back in the spotlight now that NAFTA talks are, hopefully, nearing an end. Steel associations from Canada and Mexico are calling for the tariffs to be terminated while the negotiations are under way. Mexican association Canacero has stated that a NAFTA deal […]
Are the Section 232 tariffs affecting the volume of steel imports? We will look at this several different ways, as the answer depends on what time frame is chosen for comparison. Commerce Secretary Wilbur Ross said on Aug. 10 that since the imposition of Section 232 tariffs in March, imports to the U.S. have declined […]
The Trump administration tariffs have had the expected effect on steel imports and steel pricing this year, but prices for hot rolled coil and plate could moderate a bit next year as economic growth slows and the cost of steelmaking raw materials begins to decline, forecasts Josh Spoores, principal steel analyst for the CRU Group. […]
What is in the nation’s best interest when it comes to international trade? Are the Trump administration trade policies the best approach? Speaking at the Steel Market Update Steel Summit Conference in Atlanta on Aug. 27, a spokesperson for the domestic steel industry and a Washington trade attorney offered sharply contrasting views. The Steel Manufacturers […]
August saw our SMU Price Momentum Indicator move from Neutral to Lower indicating our expectation that we will see prices drop over the next 30-60 days. The last couple of weeks of August and into early September has seen prices dropping and the trend does not appear ready to abate quite yet. Our Sentiment Index […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: I am just back from Atlanta, where I attended the SMU Steel Summit. I was pleased to be able to speak to many steel industry folks concerned about the steel tariffs, the China tariffs and […]