Steel Market Update has seen a bit of a yo-yo effect to flat rolled and plate steel prices over the past few weeks. Since the word got out that the Section 232 decision would not be announced any time soon, the market has taken a step back to evaluate where prices will go from here. […]
As a monthly average, prices on all flat rolled steel products recovered in July following a dip in June. The month of July ended with SMU’s Price Momentum Indicator continuing to point higher as the market waits to see if and when the Trump administration will act on Section 232 trade measures that could further […]
After a strong start to 2017, global steel prices have trended downward due to weaker demand and falling raw materials pricing. In the U.S., the impending Section 232 investigation has left the market in a state of uncertainty. All the more reason steel buyers should have a strategy for mitigating risk, says Ryan Huff, Associate […]
On Monday, August 28, the steel event of the year will kick off in Atlanta. With less than four weeks to go and 575 steel and manufacturing executives already registered, expectations are for this conference to truly be the most dynamic steel conference in North America for 2017. Welcome to the Steel Market Update Steel […]
On Monday, Aug. 28, the steel event of the year will kick off in Atlanta. With four weeks to go and 560 steel and manufacturing executives already registered, expectations are for this conference to truly be the most dynamic steel conference in North America for 2017. Welcome to the 7th Steel Market Update (SMU) Steel […]
Steel Market Update (SMU) spoke with steel trading companies and steel mills late last week in order to gauge the “mood” of the steel suppliers. We found a mostly composed group who are looking at business for the long term (although their customers may be more fickle depending on the news of the day). A […]
At a Section 232 briefing to the Ways & Means Committee on Thursday, Commerce Secretary Wilbur Ross acknowledged the complexity of initiating broad trade action against imports of steel and aluminum. A “voluntary” agreement to address steel overcapacity was suggested that would allow countries to negotiate a solution to overcapacity and the resulting import surges. […]
At a Section 232 briefing to the Ways & Means Committee on Thursday, Commerce Secretary Wilbur Ross acknowledged the complexity of initiating broad trade action against imports of steel and aluminum. A “voluntary” agreement to address steel overcapacity was suggested that would allow countries to negotiate a solution to overcapacity and the resulting import surges. […]
I had to smile on Friday when Brett in my office forwarded an email to me from one of the steel mills. Here is part of what this mill executive had to say: “I occasionally write to John just to vent. It doesn’t help him, but it makes me feel better. Section 232 is the […]
Now that it appears the Trump administration will not be acting anytime soon on the much-anticipated Section 232 trade action, what are the implications for the steel market? Steel prices are likely to decline, say some observers, though how much and how quickly is open to debate. The Wall Street Journal reported this week that […]
Foreign steel imports continue to trend well over the 3.0 million net tons mark as steel buyers placed heavy tonnage once the Section 232 investigation was announced in March (March orders = June/July delivery). The U.S. Department of Commerce (DOC) released preliminary census for June and license data for July earlier this evening. According to […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA ports) and domestic (USA) 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 […]
The following article on the hot rolled coil (HRC) futures markets 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 […]
The following is a press release on steel exports from the American Institute for International Steel (AIIS) on July 27 2017: Falls Church, VA. July 27, 2017. Steel exports swelled 17.3 percent from April to May – and were up 25.2 percent from a year earlier – to surpass 1 million net tons. More than […]
We asked trade attorney Lewis Leibowitz what impact there would be on the Section 232 investigation and timing for decisions based on the comments made by President Trump of a delay in the process. Here is what Leibowitz told us earlier today: On Tuesday, July 25, President Trump revealed that he will indefinitely postpone a […]
U.S. Steel turned around a series of losses to achieve net earnings of $261 million in second-quarter 2017. The company is focused on revitalizing operations and said it will invest an estimated $1.3 billion in its flat rolled assets in 2017. By 2020, U.S. Steel expects the revitalization program to increase hot rolled band production […]
Metalforming companies in the U.S. and Canada are expecting steady business conditions during the next three months, but expressed concerns about potential Section 232 tariffs. The PMA Business Conditions Report, prepared by the Precision Metalforming Association, showed most members are not anticipating any changes in general economic activity or incoming orders in the coming months. […]
Kloeckner Metals Corp., Roswell, Ga., reported a solid second quarter due largely to more favorable steel pricing in the U.S. Asked about the status of the Section 232 investigation during the second-quarter earnings call, Kloeckner CEO Bill Partalis said it’s unclear if or when President Trump will act on possible new tariffs on steel imports. […]
Cliffs Natural Resources is psyched to begin construction on its HBI facility. The company is currently in discussions with potential financial partners that align with Cliffs’ strategy for growth. CEO Lorenzo Goncalves says a financial partner for a $700 million private investment is not necessary to move the project forward, but would be nice to […]
Reliance Steel & Aluminum Co. is expecting flat up to a 3 percent increase in pricing in third quarter after experiencing pricing pressure in second quarter. Recent price increases in June and July have held, and Reliance expects demand to carry prices higher, whether or not Section 232 action is taken. “The absence of meaningful […]
It is much like a broken record playing 232, 232 over and over again. I read an article on World Trade Online this morning that quoted White House trade advisor Peter Navarro who said, “…the Trump administration’s trade moves over its first six months will pale in comparison to the ‘amazing’ steps it will take […]
AK Steel is looking for a broad application of Section 232 that will address the continued increase in unfairly traded imports. CEO Roger Newport said during the second-quarter earnings conference call that trade cases are not working the way they were designed and hopefully Section 232 will address loopholes and those who figure out how […]
Even conceding that a strong U.S. steel industry is vital to the nation’s security, it’s unclear whether America’s steelmakers really need an assist from the government in the form of new tariffs or quotas under Section 232. “Is the industry deserving of any kind of help? I believe you can make a good case that […]
Wilbur Ross will be on Capital Hill again this week as he advises the House Ways and Means Committee on the status of his Section 232 investigation. It seems like the longer the market waits for an announcement (or at least the recommendations from the Department of Commerce) the less enthusiastic people are that anything […]
Members of the House Ways & Means Committee will be briefed on the Section 232 steel investigation Thursday, July 27, according to Inside U.S. Trade. Commerce Secretary Wilbur Ross is expected to provide data on steel imports and the U.S. steel industry to the committee, similar to a briefing of the Senate Finance panel last […]
Last week, Steel Market Update (SMU) completed our mid-July flat rolled market trends analysis. We invited 650 steel executives to participate. Of those responding, 48 percent were service centers, 41 percent were manufacturing companies, and 8 percent were trading companies, with steel mills and toll processors accounting for 4 percent each. One of the questions […]
The steel market is waiting anxiously to see if the Trump administration places additional tariffs or quotas on steel imports. Opponents of the proposed Section 232 trade action say it will be bad for the U.S. economy, in particular U.S. manufacturers that will have to pay more for raw materials, making them less competitive versus […]
The American steel industry is facing a crisis that endangers U.S. national security, and it’s time for decisive action, says Philip Bell, president of the Steel Manufacturers Association in Washington, which represents the interests of EAF steel producers in the U.S. In the pending Section 232 investigation, SMA is advocating strongly for a new steel […]
U.S. industrial production is in Phase B, accelerating growth, but the latest HARDI/ITR quarterly construction forecast warns that the next phase of the cycle, slower growth, is on the horizon. Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. […]
The week ending July 21 was another mixed week for flat rolled steel and plate prices. Steel Market Update (SMU) steel price indices saw two products as being higher, two lower and one unchanged. Platts had two higher and one lower. SteelBenchmarker did not report prices this week as they only report twice per month. […]