Steel Market Update (SMU) asked those responding to last week’s flat rolled steel market trends questionnaire where they see flat rolled steel prices headed? The results are shown in the graphic below. However, what is also of interest were the comments left behind by respondents. First, the results: The majority (52 percent) believe there is […]
A note that SMU adjusted our Price Momentum Indicator to Lower from Neutral on Friday. I have explained 10 of the reasons why (and there are more) in the first article in tonight’s newsletter. If you would like to make comments, feel free to reach out to me at John@SteelMarketUpdate.com. I will be working on […]
Both Current and Future Sentiment showed a slight decline as a single data point in the latest SMU Steel Buyers Sentiment Index, based on data gathered in mid-September. The index measures how buyers and sellers of flat rolled steel feel about their company’s ability to be successful both in the current market environment, as well […]
Earlier this month, foreign steel imports for September were trending toward a 2.6-million-ton month based on import licenses through the first 12 days of the month. Over the past week, the pace for import license requests has picked up. This is most likely due to the impact of the two hurricanes: Harvey in Texas and […]
Despite recent price increase announcements from major domestic mills and imports that are trending lower, wholesalers and distributors who sell galvanized steel products to the HVAC market don’t expect much change in lead times or pricing until there’s some resolution to the Section 232 and Vietnam circumvention trade actions pending in Washington. In the monthly […]
Steel Market Update is working on a new index to measure flat rolled steel inventories in service center warehouses at the end of each month. Our goal is to assist the flat rolled steel industry to better understand inventories and their potential impact on steel mill order books and lead times. SMU will also analyze […]
Steel Market Update is working on a new index to measure flat rolled steel inventories in service center warehouses at the end of each month. Our goal is to assist the flat rolled steel industry to better understand inventories and their potential impact on steel mill order books and lead times. SMU will also analyze […]
“Dangerous, unintended consequences” could result from the Section 232 national security investigation of steel imports, said members of a panel hosted by the American Institute for International Steel, which represents foreign steel producers. “Our objective today is twofold,” said John Foster, AIIS chairman and president of Kurt Orban Partners, in his opening remarks, “First, to […]
World Trade Online reported this morning that Commerce Secretary Wilbur Ross told a U.S. Senator the Section 232 review on steel will not be ready until after tax reform legislation has been completed. This is in line with what President Trump said in July when he told The Wall Street Journal, “We’re waiting till we […]
JSW Steel, a steel plate mill in Baytown, Texas, reports a remarkable story of perseverance, ingenuity and courage as it faced the devastation of Hurricane Harvey. As the hurricane was bearing down on the coast, CEO John Hritz made the difficult decision to shut down operations at the mill. JSW’s 700 acres are situated in […]
The Steel Market Update (SMU) Price Momentum Indicator has been “stuck” in Neutral for a number of weeks as steel buyers and steel mills wrestle with the direction of flat rolled steel prices going forward. Steel buyers are beginning to say the next move in flat rolled steel prices may well be lower, rather than […]
Throughout the day (Tuesday, Sept. 12, 2017), Steel Market Update (SMU) has been discussing steel prices, AK Steel’s price announcement and whether or not there is any way the mills will be able to collect another $30 (or anything) based on what is happening in the market right now. “This increase puzzled all of us. […]
Over the weekend, we received a message from trade attorney Lewis Leibowitz regarding the status of the Vietnam circumvention suit. This is the one where the domestic steel mills filed a circumvention suit alleging China is circumventing the duties on cold rolled and CORE (corrosion resistant) steels by sending substrate to Vietnam and having it […]
The Metals Service Center Institute is urging the Trump administration to take “swift, decisive action on the Section 232 steel investigation to bring certainty to the marketplace.” In a letter to President Trump last Thursday, MSCI President and CEO Robert Weidner, III, and Chairman R. Holman Head, stated that “problems posed by foreign government-sponsored capacity […]
G-20 members are on track to hold their first official meeting of the Global Steel Forum on Excess Steel Capacity this fall. The forum was formed last year during the 2016 meetings to find “collective solutions” to remedy steel overcapacity and discourage protectionism. The group met informally at the Summit in Hamburg in July 2017. […]
Three out of four steel buyers responding to Steel Market Update’s latest market trends questionnaire believe the hurricane and flooding in Houston will have a significant impact on the steel industry, at least for the short term. Following are some insightful comments: · “It will have an impact. It will be negative in the short-term, […]
The U.S. Department of Commerce (DOC) released final census data on July foreign steel imports. The DOC advised total steel imports of 3,482,524 net tons. When semi-finished steels are removed (slabs/billets/blooms), finished steel imports totaled 2,896,389 net tons. At the same time, the DOC advised the latest license data for the month of August. As […]
Steel Market Update asked four panelists at the 2018 Steel Summit to define free and fair trade and offer some solutions to what most in the industry consider unfairly traded steel imports. Philip Bell, president of the Steel Manufacturers Association representing North American EAF steel producers, said there are five components of free and fair […]
The manufacturing panel during the SMU Steel Summit Conference last week in Atlanta featured a lively exchange between Barry Zekelman (CEO, Zekelman Industries) and Dan Pearson (Cato Institute). Mr. Zekelman’s comments appeared in the Aug. 31, 2017, issue of Steel Market Update. Mr. Pearson, the former chairman of the International Trade Commission, read our article […]
The market’s obsessive speculation over Section 232 and possible new tariffs on steel imports has caused many to miss the big story, said Timna Tanners, research analyst for Bank of America Merrill Lynch. “Stop worrying about what’s happening in Washington and pay more attention to what’s happening in China,” she told the sellout crowd at […]
Barry Zekelman calls himself a free-trader. Yet his company, Zekelman Industries, filed a trade case last year alleging that Chinese producers of circular welded steel pipe were guilty of evading U.S. import duties. Espousing free trade while suing to block imports may seem like a contradiction, but Zekelman made a good case for his position […]
Tomorrow, Monday, Aug. 28, the steel event of the year will kick off in Atlanta. With over 650 steel and manufacturing executives 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 Summit Conference. This is what the fuss […]
Senior steel executives representing most of the nation’s flat rolled and long product manufacturers appealed directly to Donald Trump on Wednesday urging action on the Section 232 steel imports case. The letter from 25 steel and steel-related companies asked the president to take “broad and decisive action to ensure the ability of the domestic steel […]
Manufacturers in the precision metalforming sector are not expecting much change in business conditions during the next three months, although orders are expected to trend slightly downward, according to the August 2017 Precision Metalforming Association (PMA) Business Conditions Report. Current average daily shipping levels dropped significantly in August with 28 percent reporting levels above those […]
Today, 25 steel mills and related companies, as well as the American Iron and Steel Institute (AISI) and Steel Manufacturers Association (SMA), sent a letter to President Trump asking that he act on Section 232 and stop foreign steel from damaging the domestic steel industry. According to the letter, 30 percent of the apparent supply […]
I am now in Atlanta and the workload and my focus, and that of Ray Culley, Brett Linton and Diana, are all on organizing every minute of the SMU Steel Market Update program, which begins at 2 PM ET on Monday. There are always a few hiccups along the way… something to make your day […]
How can domestic mills expect to increase prices when their lead times are so short and foreign steel is still so plentiful? In the monthly steel conference call hosted today by the Heating, Air-conditioning, and Refrigeration Distributors International, HARDI members commented on the contradictions in mill behavior that have left them confused and concerned about […]
Over the last few weeks, the price of zinc has risen to over $1.41 per pound on the London Metal Exchange, and I thought it was time for an update on a series of articles I’ve written on the actual metallic cost of coating steel with zinc. To do the calculation, I use a spreadsheet […]
BlueScope Steel, the parent of North Star BlueScope, will have a change in command. Mark Vassella has been appointed the new managing director and chief executive officer following retirement by outgoing CEO Paul O’Malley effective Dec. 31, 2017. O’Malley has been at the helm of BlueScope Steel the past 10 years of his 12-year tenure. […]
I am stuck between a rock and a hard place. We are trying to accommodate everyone who wants to attend our 2017 SMU Steel Summit Conference even though we are technically sold out. We did manage to loosen up a few seats and those were gobbled up the moment we let people know they were […]