The White House has confirmed that the United States and the European Union are in discussions to resolve “existing differences” on Section 232 tariffs on steel and aluminum from the EU before the end of the year. “We are determined to work together to resolve tensions arising from the U.S. application of tariffs on imports […]
By Greg Wittbecker, Advisor, CRU Analysis We have just refreshed our expectations on aluminum for 2021 in our latest of the CRU Aluminum Market Outlook. Here are some of the key takeaways: Demand Is Strong The World ex China is into its recovery from the the Covid-19 pandemic. We expect to see sharp year-on-year growth […]
By Greg Wittbecker, Advisor, CRU Analysis Ten years ago the aluminum can, and the aluminum sheet mills that supplied them, looked to be on borrowed time. Aluminum beverage can shipments, as reported by the Can Manufacturers Institute (CMI) had been flatlining for years. Can manufacturers were consolidating, with Ball and Ardagh acquiring Rexam assets in […]
By CRU Principal Aluminum Analyst Guillaume Osouf The LME aluminum price has been going through a period of consolidation since it reached its last significant peak at $2,603 /t on May 10. A similar situation was observed between December 2020 and February 2021 before the rally resumed even stronger. Can we expect the same to […]
By Greg Wittbecker, Advisor, CRU Analysis On June 28, the Russian government announced the imposition of a 15% tax on aluminum exports. The tax is effective for the period August through December 2021 and covers most primary aluminum exports. This appears to be a case of the Russian government making an opportunistic “raid” on one […]
By Greg Wittbecker, Advisor, CRU Analysis The COVID-19 pandemic’s effects on overall aluminum demand in 2020 was well documented. However, that storyline masked a remarkable rebound in the demand for aluminum beverage cans. Data from the Aluminum Association shows this: • 2020 total domestic shipments of can stock supplied to the can market rose 3.3% […]
I asked a good friend of mine after he was appointed to as the deputy head of a cabinet department what a typical day was like for him. “It’s drinking water from a fire hose. Things come at you so fast you can’t get out of the way,” he said. As an observer and occasional […]
I asked a good friend of mine after he was appointed to as the deputy head of a cabinet department what a typical day was like for him. “It’s drinking water from a fire hose. Things come at you so fast you can’t get out of the way,” he said. As an observer and occasional […]
The government is exploring ways to resolve serious trade disputes with the EU. At the same time, it is attempting to preclude having to make refunds of potentially unlawful duties collected since 2018. As I mentioned in last week’s column, President Biden’s first foreign trip since he took office featured four summit meetings: the G7 […]
U.S. steel and metals trade associations warned Congressional leaders that the condition of the nation’s infrastructure is “dire.” They urged legislators to support the “historic” and metal-intensive infrastructure bill proposed by the Biden administration. The trade groups—which claim to represent more than 74,000 domestic facilities—pointed out that an American Society of Civil Engineers (ASCE) 2021 report card gave U.S. […]
Worthington Industries has acquired certain assets of Shiloh Industries’ U.S BlankLight® business for $105 million. The deal expands Worthington’s capacity and capability with the addition of three facilities, located in Ohio and Michigan, to the company’s laser-welded products joint venture, TWB Company LLC. A fourth facility in Kentucky will operate under Worthington’s Steel Processing business, expanding […]
A deadline has been set by the European Union and the U.S. to end Section 232 steel and aluminum tariffs, and any retaliatory measures, by Dec. 1, according to a draft communiqué obtained by Reuters. An announcement of the agreement is expected at the G7 Summit next week in Brussels. “We commit to work towards […]
A 100-day review, authorized by President Biden, was released this week to address vulnerabilities in critical U.S. supply chains. The report, “Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering Broad-Based Growth,” was prepared by the departments of Commerce, Energy, Defense, and Health and Human Services. The 250-page report included recommendations not only for reducing […]
A deadline has been set by the European Union and the U.S. to end Section 232 steel and aluminum tariffs, and any retaliatory measures, by Dec. 1, according to a draft communiqué obtained by Reuters. An announcement of the agreement is expected at the G7 Summit next week in Brussels. “We commit to work towards […]
JSW Steel (USA) and JSW Ohio are accusing Nucor, U.S. Steel and Cleveland Cliffs of conspiring to boycott and deny critical semi-finished steel slab to the company. A lawsuit filed on June 8 alleges that the three steel giants have formed a cartel that has cost JSW millions of dollars in lost profit. According to […]
Nucor will purchase Cornerstone Building Brand’s insulated metal panels (IMP) business for a cash price of $1 billion dollars. The purchase is expected to close later this year, pending regulatory approval. The transaction includes seven manufacturing facilities located throughout North America that will complement Nucor Buildings Group and the company’s existing IMP business, TrueCore, the […]
Shipbuilder Austal USA has been awarded a design contract to build a new ship for the U.S. Navy. The agreement, valued at $3.6 million, is for the functional design and construction of the new 80-meter (252.5 foot) Navajo-class Steel Towing, Salvage and Rescue Ship (T-ATS). This follows recent news of Austral USA’s new steel manufacturing […]
Steel prices continued to climb higher in May, now the ninth consecutive month prices have increased. Hot rolled steel prices increased an average of $23 per ton each week, reaching $1,590 per ton as of last week when this article was filed. The SMU Price Momentum Indicator has remained unchanged since the August 2020 adjustment […]
Prices for all of the steelmaking raw materials tracked in this SMU analysis increased from April to May, with most products following large gains seen in previous months. Over the last 30 days, pig iron and coking coal prices have increased 17-19%, respectively. In that same period, prices increased for iron ore 9%, zinc 6%, scrap 5% and […]
A reminder to our readers – Steel Market Update will not publish a Sunday evening issue due to this weekend being a national holiday here in the United States (Memorial Day). We will publish as normal on Tuesday, June 1. Inventories are a key component when it comes to understanding the squeeze we have with […]
The United States leads the world in production of sustainable steel and doesn’t get enough credit for its performance in reducing climate-changing CO2 emissions, said Steel Manufacturers Association President Philip Bell, during during Wednesday’s SMU Community Chat webinar. The minimill electric arc furnace is the preferred technology for lowering CO2 intensity. “The U.S produces over 70% […]
Steel buyers’ sentiment remains firmly in bullish territory even as carbon steel prices are nearing levels more commonly associated with stainless steel or even aluminum. While some sources continue to fret about the steep downside risk of current high prices, most have gotten over their initial sticker shock and are busy trying to secure enough […]
Steel Market Update surveys readers each week to monitor market sentiment. The prevailing view on key issues this week: record high steel prices still have room to run; the high prices have not cut into demand yet; repealing Section 232 on imports from the EU is a questionable move; and inflation poses a threat to […]
Steel Market Update surveys readers each week to monitor market sentiment. The prevailing view on key issues this week: record high steel prices still have room to run; the high prices have not cut into demand yet; repealing Section 232 on imports from the EU is a questionable move; and inflation poses a threat to […]
A coalition of U.S. steel industry lobbying groups and the United Steelworkers (USW) union want the Biden administration to keep Trump-era Section 232 tariffs and quotas on imported steel in place. The groups say the tariffs – rolled out in March 2018 on national security grounds – are necessary for the survival of the domestic […]
The United States and the European Union have begun negotiations that could lead to the removal of Section 232 tariffs on steel and aluminum imported from the continent, according to market participants and a joint statement from the two sides. The official trigger of the talks: U.S. Trade Representative Katherine Tai, Commerce Secretary Gina Raimondo […]
Will the Section 232 tariffs be modified in some way in the near future? That is what U.S. Trade Representative Katherine Tai appeared to suggest during testimony before the Senate Finance Committee on Wednesday. Tai told the committee that the Biden administration seeks a better tool for addressing trade than the 1962 Trade Expansion Act. […]
Time for Good News… It is time for optimism as the pandemic begins to fade in the USA, reported a Washington Post article posted at 2:18 p.m. this afternoon. Today, the Centers for Disease Control (CDC) stated that fully vaccinated Americans no longer need to wear masks indoors or outdoors. “Americans who are fully vaccinated […]
Pressure is building on the Biden administration to provide relief for numerous manufacturing companies in the U.S. that say Section 232 tariffs are making supply chain problems worse. The Coalition of American Metal Manufacturers and Users, the National Foreign Trade Council and other steel and aluminum users collaborated on a May 6 letter to President […]
Record-high steel prices result not from Section 232 tariffs or industry consolidation but instead from uniquely strong supply-demand fundamentals, Cleveland-Cliffs’ top executive said. And an ambitious infrastructure package would go a long way toward keeping those fundamentals, and the resulting investment in the domestic steel industry, stronger for longer, he suggested. “We in this country […]