Earlier this week, US Steel and Big River Steel notified customers of an upward revision to their galvanized steel coating extras. New USS extras are effective May 29, 2022, while BRS extras are effective June 4, 2022. “Input costs of zinc and aluminum for our Hot Dipped Galvanized and Galvalume products have continued to rise, […]
Following record price increases in March, prices for four of the seven of the steelmaking raw materials tracked in this SMU analysis increased over the last 30 days. Through late April, pig iron prices increased 18% compared to one month prior, zinc prices rose 15%, busheling scrap prices increased 11%, and iron ore prices were up […]
The SMU Steel Summit Conference was, at its inception, about two things: networking and forecasting. Our conference aims to expand our attendees’ knowledge of the economy, the flat rolled and plate industries, and key market segments. It’s also about getting to know one another better as companies look to improve or expand their relationships with […]
I shouldn’t say put a fork in this market and call it done. It’s probably too early for that. But some of the anecdotal indicators I mentioned last week are increasingly showing up in the data we and others collect. Take a look at today’s issue: Lead times are still rising, for the most part. […]
By Greg Wittbecker, Advisor, CRU Group It is natural to speculate about how well demand for aluminum can hold up given the effects of dramatically higher prices, both on aluminum itself and the broader economy. Conversations with many of our clients’ center on concerns about demand destruction. The logic is simple: With gasoline, food and interest […]
The prices contractors pay for construction materials and services – chiefly for new nonresidential construction – jumped by more than 21% in March versus the same year-ago period, reports the Associated General Contractors of America (AGC) in its latest analysis of government data. The association has called for relief from tariffs, urging the Biden administration […]
Shipbuilder Austal USA has officially opened its new steel manufacturing line to build steel ships for the US Navy and Coast Guard. The ultra-modern steel shipbuilding facility in Mobile, Ala., enables the simultaneous production of both aluminium and steel hulled ships, the company said. Known for its construction of aluminum vessels, the shipbuilder’s new 118-throusand-square-foot […]
President Biden on Friday signed two pieces of trade legislation that sailed through Congress: the “Ending Importation of Russian Oil Act” (HR 6968), which prohibits imports of oil, gas and other energy products from Russia, and “Suspending Normal Trade Relations with Russia and Belarus Act” (HR 7108), which imposes higher “Column 2” tariffs on imports […]
President Joe Biden on Friday signed into law a bill stripping Russia and Belarus of what’s known as “permanent normal trade relations,” or PNTR. The president also signed into law a bill prohibiting imports of energy products from Russia. President Biden’s actions came after the Senate unanimously voted on Thursday to pass a bill to remove PNTR […]
President Joe Biden on Friday signed into law a bill stripping Russia and Belarus of what’s known as “permanent normal trade relations,” or PNTR. The president also signed into law a bill prohibiting imports of energy products from Russia. President Biden’s actions came after the Senate unanimously voted on Thursday to pass a bill to remove PNTR […]
Matthew Abrams, Analyst, CRU Group The US Midwest premium on aluminum P1020 has seen consistent upward movement since the recovery from the pandemic started. Last week, it touched $0.40 per pound, a level once heavily fought. The fundamentals of the market indicated room for further upward moves, yet it is pausing here. Markets are getting […]
US President Joe Biden has officially implemented a tariff-rate quota (TRQ) that will ease Section 232 restrictions on steel from Japan. “I have determined that imports of specified volumes of eligible steel articles from Japan will no longer threaten to impair the national security,” Biden wrote in a presidential proclamation. The proclamation is dated Thursday, March […]
By Greg Wittbecker, Advisor, CRU Group Since the onslaught of the war in Ukraine last month, the aluminum market has been fixated on the timing and severity of economic sanctions on the Russian aluminum sector. This attention is warranted given the importance of Russian primary aluminum in global trade. As discussed in prior columns, Russia […]
Steel prices rose each week in March, and the increases were the first in six months. Hot rolled prices were down to $1,000 per ton ($50 per cwt) the first week of March, the lowest level seen since December 2020. Prices then surged $435 per ton throughout the month, with the SMU index averaging $1,435 per ton […]
The Supreme Court has declined to hear a case about whether former President Donald Trump had legal authority to double Turkey’s Section 232 steel tariff to 50% The high court did so by denying “certiorari” on Monday, March 28, in the matter of TransPacific Steel LLC et al v. United States et al. The move […]
Too much went on last week to limit this week’s column to a single issue. The Ukraine war touches everything these days, including almost all recent developments on the trade front. It was a week that, to paraphrase Winston Churchill, was “not entirely uneventful.” First, the NATO summit meeting took on issues that have divided Europe […]
The war in Ukraine has disrupted commodity markets across the globe. Prices for all seven of the steelmaking raw materials tracked in this SMU analysis increased over the last 30 days. Through late-March, pig iron prices surged 60% compared to one month prior, coking coal prices jumped 45%, scrap prices increased 26-32%, zinc and iron […]
Producer prices rose moderately in February, maintaining a sustained 23-month growth run. Last month the headline index grew by just 0.8%, seasonally adjusted, but was a gain of 10% when compared to the same year-ago period, reports the U.S. Labor Department. Wholesale prices accelerated as steady consumer demand and pandemic-related supply-chain snarls continued to fuel […]
The U.S.-UK agreement to ease Section 232 tariffs was lauded by some industry groups and union representatives for promoting fair trade. But others questioned whether certain unusual provisions in the deal might cause trouble. And still others said the deal didn’t do enough to remove tariffs from a close U.S. ally. Recall that on Tuesday the United States […]
The United States and the United Kingdom have agreed to a deal to ease Section 232 tariffs on steel and aluminum. The contours of the agreement match what Steel Market Update reported earlier in the day on Tuesday, March 22. “Today’s historic deal is a testament to that ambitious goal and will benefit America’s steel […]
By Trade Attorney Lewis Leibowitz On Feb. 10, the Bureau of Industry and Security of the Commerce Department published a request for public comments concerning steel and aluminum exclusions under the Section 232 tariffs and quotas. Comments are due in about a week (March 28). The request for public comments did not originate from the […]
By Matthew Abrams, Analyst, CRU Group Over the past week, there have been a few noteworthy updates to new Russian sanctions. First, the big news was Russia’s removal from the list of Most Favored Nations. This allows room for new duties to be imposed on the imports of Russian goods. The U.S. does not import […]
By Greg Wittbecker, Advisor, CRU Group We digress from the woes of aluminum supply this week to comment on the LME nickel market, which has redefined volatility with a capital “V.” LME nickel has exploded due to a massive Chinese speculative position amidst Russian uncertainty. Nickel fundamentals have been tightening for some time. In 2020, […]
U.S. Steel and Steel Dynamics notified customers of an upward revision to their galvanized steel coating extras on Monday, March 7. New USS extras go into effect on May 1, 2022, while SDI extras go into effect on April 1. “The cost to procure zinc and aluminum for our Hot Dipped Galvanized and Galvalume products […]
AZZ Inc. has agreed to purchase Precoat Metals from its parent, Sequa Corp., for approximately $1.28 billion. The deal continues the Fort Worth, Texas-based company’s buying spree in the coated metals space. “We are pleased to acquire North America’s largest independent provider of metal coil coatings and related services,” AZZ CEO Tom Ferguson said. “Through this acquisition, AZZ […]
By Trade Attorney Lewis Leibowitz (Editor’s note: The following views are those of the author and do not necessarily reflect the opinions of Steel Market Update.) A bit over a week into the new world order (i.e., the Russian invasion of Ukraine) and things are proceeding, but slowly. We have all been following the conflict—but […]
By Greg Wittbecker, Advisor, CRU Group Two weeks ago, I described how the aluminum industry would not run out of metal supply in 2022 despite the fears of some. Fast forward to today, and we now have the worst case scenario of the war in Ukraine likely leading to Russia being a pariah in the […]
Ryerson has acquired Apogee Steel Fabrication, expanding the service center’s value-added offerings in a move likened to its purchase of Specialty Metals Processing (SMP) last September. Terms of the deal were not disclosed. “We see Apogee strengthening Ryerson’s network of value-added service centers in Canada, adding to our processing capabilities and growing our full-service fabrication business,” […]
February marked month six of declining steel prices, following a 12-month streak of continuous price increases. Hot rolled prices declined $215 per ton throughout the month, with the SMU index averaging $1,020 per ton at the end of February (recall our HR average this week declined another $20 to $1,000 per ton). The SMU Price Momentum Indicator for sheet products was […]
By Trade Attorney Lewis Leibowitz Albert Einstein is reputed to have said that time is the “fourth dimension” because you cannot tell where you are except by knowing “when” you are. The onset of war in Europe is “when” we are right now. As I write, there is a battle for control of Kyiv. Because […]