Is Canada really guilty of the trade inequity that President Trump charges? We looked at two product targets of the administration—dairy and automobiles—to find out. The office of the U.S. Trade Representative estimates trade with Canada in 2017 totaled $673.9 billion–$341.2 billion in exports and $332.8 billion in imports, for a goods and services trade […]
I (and the SMU team) are firmly ensconced in trying to learn all we can about our new owners the CRU Group, while at the same time answering questions from them about our products and services and how we can provide the most value to our members. One of the first things that came up […]
Are the markets’ fears of a trade war exaggerated or are their concerns justified? Popular economist Alan Beaulieu, president of ITR Economics, offers the following macroeconomic perspective: Section 232 tariffs on steel and aluminum coming into the U.S. from Canada, Mexico and the EU are a hot topic, and with good reason. The extension of […]
Meetings last week between the House Ways and Means Committee and U.S. Trade Representative Robert Lighthizer failed to reassure congressional members that a clear strategy on trade exists within the administration. Neither Republican nor Democrats’ concerns were assuaged after discussions with Lighthizer on trade issues that included China, NAFTA negotiations, and Section 232 tariffs on […]
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 SMU Steel Buyers Sentiment Index, which measures how buyers and sellers of flat rolled and plate steels feel about their companies’ ability to be successful both now and three to six months into the future, was slightly lower this week. Demand has stayed strong, and buyers and sellers of flat rolled steel generally remain […]
NLMK USA has requested tariff exclusion on the import of slabs under Section 232, but has received blowback from several U.S. steel mills. Nucor, U.S. Steel and AK Steel have filed objections to the request, arguing that there is sufficient slab supply in the United States to supply NLMK yet the company continues to buy […]
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 […]
Nearly three out of four respondents to Steel Market Update’s market trends questionnaire this week say they predict flat rolled steel prices will move even higher from here. No doubt views were influenced by the Trump administration’s decision to stand firm on tariffs, even on imports from close trading partners in Canada, Mexico and the […]
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 […]
United States Steel Corp. announced Tuesday that it will restart the second of two blast furnaces at its Granite City Works, an integrated steelmaking plant in Granite City, Ill. The restart of the “A” blast furnace will support increased demand for steel manufactured in the United States, while allowing the company to continue to support […]
The U.S. packaging industry, which relies on imports of tinplate, is among the many concerned about the effects of President Trump’s tariffs on steel and aluminum imports. The Can Manufacturers Institute estimates that 42 percent of tinplate steel needs to be imported to manufacture food cans for American consumers. More than 60 percent of primary aluminum […]
With the Trump administration eliminating the Section 232 tariff exclusions for Canada, Mexico and the European Union, it is our opinion that the squeeze on supply coupled with higher prices due to the tariff will provide cover for the domestic steel mills to raise flat rolled and plate steel prices. SMU last moved our Price […]
Steel Market Update ferrous scrap sources expect a sideways to slightly higher domestic market, while the export markets see some pricing pressure. The following is what one of our scrap and pig iron sources had to say about the domestic market as of this weekend: “The U.S. scrap market should be characterized as firm for […]
Consumers in the United States may soon see their favorite products increase in price or become harder to find. In retaliation for Section 232 tariffs on U.S. steel and aluminum, Canada plans to impose its own 25 percent and 10 percent tariffs on a wide variety of goods. The 25 percent tariff is restricted to […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following update on trade events in Washington: As briefly stated by the Trade Commissioner of the European Union, Cecilia Malmstrom, “Today is a bad day for world trade.” Malmstrom was referring to the announcement by President Trump that the 25 percent tariffs on steel […]
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 […]
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 […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following update on trade issues in Washington, including China, NAFTA, and a new Section 232 investigation on automotive imports: • The White House reported that 25 percent tariffs on $50 billion worth of imports from China will be announced by June 15, and […]
The Canada Border Services Agency initiated an investigation on May 25 into the dumping and subsidizing of certain cold-rolled steels in coils or cut lengths from China, South Korea, and Vietnam. The investigation was prompted by a complaint from ArcelorMittal Dofasco. Cold rolled imports under the investigation increased from 85,075 metric tons in 2015 to […]
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 […]
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 […]
India is disputing the legality of Section 232 tariffs and quota arrangements by the United States, claiming violations of the GATT and Safeguards Agreement. India filed an official request with the World Trade Organization for dispute settlement consultations with the United States. India joins several other nations which dismiss the claim that imports of aluminum […]
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. […]
This morning, World Trade Online reported Brazil as “pushing back on Section 232 quota deal with the U.S.” I did some research on my own to see if traders associated with Brazil, Argentina or other markets that may have verbal agreements with the Trump administration regarding quotas were having issues due to negotiations with the […]
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 […]
Marking a win for U.S. steelmakers, the Commerce Department on Monday officially slapped duties on corrosion-resistant steel (CORE) and certain cold rolled steel products imported from Vietnam that were produced from substrate originating in China. Commerce determined that even though the products underwent some processing in Vietnam, they should still be subject to the same […]
Marking a win for U.S. steelmakers, the Commerce Department on Monday officially slapped duties on corrosion-resistant steel (CORE) and certain cold rolled steel products imported from Vietnam that were produced from substrate originating in China. Commerce determined that even though the products underwent some processing in Vietnam, they should still be subject to the same […]
Metal manufacturers and users are calling the Section 232 product exclusion process “onerous” and “chaotic.” The Coalition of American Metal Manufacturers and Users expressed their concern about the tariff exclusion process in a letter to Secretary of Commerce Wilbur Ross on May 18. More than 8,200 exclusion requests have been filed with Commerce with no […]