Final Thoughts
Final thoughts
Written by Brett Linton & Ethan Bernard
May 16, 2024
SMU had the pleasure of attending the American Iron and Steel Institute’s (AISI’s) annual general meeting in Washington this week. It was a slow week in our nation’s capital, so we were able to take a leisurely stroll around the National Mall and take in the sights.
Just kidding. In fact, the meeting coincided with significant trade actions announced by the Biden administration. It included, among other things, additional tariffs on Chinese steel and aluminum.
However, beyond tariffs and trade talk, the meeting also included exciting “green” developments. Lourenco Goncalves, Cleveland-Cliffs’ chairman, president, and CEO, and currently chairman of AISI, talked about hydrogen. “Coal fueled the first industrial revolution, and hydrogen will fuel the second industrial revolution,” he said at a press conference at the event.
Earlier this year, Cliffs completed a hydrogen injection trial at its Indiana Harbor No. 7 blast furnace in East Chicago, Ind.
Already the cleanest steel industry in the world, from hydrogen to carbon capture, to EAF steelmaking, the prospect of Net Zero is getting closer, and steel is getting greener.
So in the spirit of decarbonization, and to give the US industry a little pat on the back, we thought this week we’d focus our crossword lens on the issue of sustainability. And, for the record, we’d just like to note that no trees were harmed in the production of this puzzle. Enjoy!
This week in steel history
The Transcontinental Railroad was completed in 1869 as the final rail was placed in Promontory Point, Utah, on May 10. Previously a four- to six-month voyage by wagon, the railroad allowed passengers to cross the US in just seven days. Tickets started at $65 (nearly $1,500 today). More than 1,700 miles of track were laid, consisting of timber for railroad beams and iron and steel for tracks and spikes. The demand for steel for railroad tracks, bridges, and other infrastructure spurred the growth of the steel industry. This led to innovations in steelmaking processes and the establishment of steel mills across the country.
Crossword
Click here to attempt this week’s sustainability crossword.
Brett Linton
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Ethan Bernard
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Final Thoughts
It's that time of year again. You know, that time when people wonder if those things are drones in New Jersey or if the aliens are ready to come onto the stage just in time for Inauguration Day. What will that do for steel price volatility? In any case, the SMU team finds itself in Pittsburgh this week.
Final Thoughts
The Community Chat last Wednesday with ITR economist Taylor St. Germain is worth listening to if you couldn’t tune in live. You can find the replay and Taylor’s slide deck here. You can also find SMU reporter Stephanie Ritenbaugh’s writeup of the webinar here. Taylor is Alan Beaulieu’s protégé at ITR. Many of you know Alan from his talks at SMU Steel Summit. I found Taylor’s analysis just as insightful as Alan’s.
Final Thoughts
Cracks have formed in what has been presented as the Biden administration’s united front against Nippon Steel’s play for U.S. Steel. A report from the Financial Times said parts of the administration are at odds on the deal.
Final Thoughts
It’s been another week of torrid speculation when it comes Trump and tariffs. And another week of mostly flat price movement when it comes to steel sheet and plate. As far as Trump and tariffs go, I think I might have lost track. We've potentially got 10% blanket tariffs on imports from China, 25% tariffs on imports from Canada and Mexico, 100% tariffs on the BRICs, and 200% on Caterpillar. Canada might be the 51st state. Mexico could be the 52nd state. But all can be resolved if you stop by Mar-a-Lago and kiss the ring?
Final Thoughts
Never have I been more certain in declaring that those in the steel industry are less certain now than they thought they’d be at this point before the election.