Steel Market Update’s Steel Buyers Sentiment Index has registered little change so far this year, even as steel prices have seen a small uptrend. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current Index), as well as three to six […]
U.S. tariffs on imports of steel, aluminum and Chinese goods have “an unmistakable negative impact” on the economy, says a new report from IHS Markit. The report, “The Economic and Industry Impact of Protectionism Tariffs on the Off-highway Equipment Sector,” estimates that Section 232 and Section 301 tariffs will result in an average GDP loss […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Steel and aluminum tariffs are plainly on the table as part of the USMCA approval strategy. Canada and Mexico insist on the removal of the tariffs as part of ratification of the new “NAFTA 2.0.” U.S. Trade Representative […]
U.S. Steel announced that it has accepted an award from the High-Performance Computing for Manufacturing Program (HPC4Mfg) Special Call: Steel and Aluminum, sponsored by the U.S. Department of Energy, to expand the company’s manufacturing capabilities for advanced high-strength steel. The winning U.S. Steel project, drafted by researchers Evgueni Nikitenko and Susan Farjami at U.S. Steel’s […]
There are reports about a myriad of meetings between the USTR, Mexico and Canada as the sides try to come to some form of resolution regarding the Section 232 tariffs on steel and aluminum. I continue to hear that the move is to not reduce the traditional level of imports from these two countries. In […]
Steel Market Update asked: One year after President Trump announced the Section 232 tariffs on steel and aluminum, have the tariffs been good for your business? For a small majority, 54 percent, of those responding to SMU’s market trends questionnaire, the answer is no. For 46 percent, yes. Opinions are split nearly down the middle. […]
Mexico’s Ministry of Economy announced last week that it will renew tariffs of 15 percent on imports of steel from countries that it does not have a free trade agreement with. The tariff does not impact steel imports from the U.S. or Canada. The Ministry also stated that before signing a new North American trade […]
U.S. light vehicle sales in February missed analysts’ forecasts, falling 2.8 percent year-over-year, reported Edmunds.com. Sales were estimated at 1.26 million last month with a seasonally adjusted annual rate of 16.6 million units, down from 17.01 million a year ago. Sales are forecast to remain strong in 2019, but slower than in recent record years. […]
Manufacturing activity slowed its rate of growth in February, according to the latest Manufacturing ISM Report on Business. The headline PMI fell further than expected last month, coming in at 54.2, a 2.4 point decline, and below the general consensus of 55.0. “Production expansion continued in February, but at a slower pace compared to January,” […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: We are about to celebrate (or mourn, as the case might be) the first anniversary of “national security” tariffs on steel and aluminum. As we all know, in March 2018 President Trump proclaimed 25 percent tariffs on most steel […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: We are about to celebrate (or mourn, as the case might be) the first anniversary of “national security” tariffs on steel and aluminum. As we all know, in March 2018 President Trump proclaimed 25 percent tariffs on most steel […]
The American Iron and Steel Institute and the Steel Manufacturers Association are among more than 200 companies and trade associations that have formed the USMCA Coalition to push for prompt congressional approval of the U.S.-Mexico-Canada trade agreement, the updated version of NAFTA. “We look forward to working with members of the USMCA Coalition to support […]
(Editor’s note: John Packard is traveling.) Just as it appears steel prices have finally turned the corner the pressure is on to get final approval of the U.S.-Mexico-Canada Agreement. Trade officials in Canada and Mexico have stated in various press reports that they will not pass the new North American free trade agreement with the […]
In the last month, there has been a positive turnaround of raw materials prices. Table 1 summarizes the price changes through February of the five materials considered in this analysis. It reports the month/month, 3 month/3 month and 12 month/12 month changes and tells us that price movements with the exception of busheling have been […]
Reliance Steel & Aluminum reported record results in 2018, delivering the highest net sales in the company’s history at $11.53 billion. “2018 was an incredible year for Reliance, full of significant financial and operational milestones,” said Jim Hoffman, President and CEO of Reliance. “We experienced improved pricing conditions, healthy demand and excellent execution by our […]
A few weeks back I was having a conversation with the head of commercial for one of the domestic steel mills. The conversation centered around the influence Steel Market Update was having on their order book. In particular, the discussion focused on the SMU Price Momentum Indicator. I was told when our indicator moves to […]
President Trump has received the long-awaited report from the Commerce Department on whether imports of automobiles and auto parts pose a threat to national security and now has 90 days to consider whether to place a 25 percent tariff on automotive imports under Section 232. Details of the Commerce findings were not disclosed but the […]
Section 232 tariffs on imported autos and auto parts would cause “substantial harm” to the U.S. economy, says a new report by the Center for Automotive Research. CAR analyzed the impact of 25 percent auto tariffs in 10 policy scenarios, concluding that, in all cases, the outcomes “are all profoundly negative for consumers, for new […]
Canada is stepping up its efforts to convince the Trump administration to lift the Section 232 restrictions on steel and aluminum. After meeting with Republican Sen. Chuck Grassley earlier in the week, Canadian Foreign Minister Chrystia Freeland appealed to U.S. House Speaker Nancy Pelosi on Saturday for help in removing the tariffs. “We spoke a […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: On Friday, President Trump signed into law the Consolidated Appropriations Act, 2019, the spending bill that averts a second government shutdown. The legislation, which funds government operations through Sept. 30, 2019, essentially keeps spending at fiscal 2018 levels, but […]
Manufacturers of foodservice equipment say the Trump administration tariffs on Chinese goods and imported steel and aluminum have raised the cost of materials by 6-15 percent and made it more difficult for American companies to compete. According to a January North American Association of Food Equipment Manufacturers (NAFEM) survey, the tariffs are hurting companies whose […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Section 232 tariffs are increasingly in the news. Today, I describe two issues that are central to the prosperity (and in many cases the survival) of steel-using manufacturers. Exclusions With the end of the government shutdown, the exclusion […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Section 232 tariffs are increasingly in the news. Today, I describe two issues that are central to the prosperity (and in many cases the survival) of steel-using manufacturers. Exclusions With the end of the government shutdown, the exclusion […]
I continue to get mixed messages regarding the strength of the flat rolled steel market, and specifically lead times and pricing. I have heard from a number of steel buyers of longer lead times on galvanized at a couple of mills. The strength does not yet seem to be universal. Neither is the weakness. For […]
Global manufacturing is approaching the stagnation point, says a new survey by J.P. Morgan and IHS Markit. The J.P. Morgan Global Manufacturing PMI fell for the ninth month in January to register 50.7, its lowest reading since August 2016. Trade tension originating with the U.S. was a common theme throughout the IHS Markit PMI reports […]
Metalforming companies are concerned that higher prices for steel and aluminum in the U.S. are hindering business competition. More than half of metalforming companies surveyed by the Precision Metalforming Association are expecting little change in business conditions during the next three months. The January survey found that 57 percent expect no change (compared to 49 […]
Pointing to the temporary reprieve from the longest government shutdown in American history, the U.S. Chamber of Commerce calls on Congress and the administration to work together to keep the government open. “Our nation simply cannot afford another shutdown. Our message to Washington’s leaders is simple: do your jobs so Americans can do theirs,” wrote Chamber […]
President Trump signed an executive order today intended to boost the use of American-made iron, steel and other manufactured products in infrastructure projects by adding pressure on private and public sector entities that receive federal financial assistance. Called “Strengthening Buy American Preferences for Infrastructure Projects,” the order directs agency heads to “encourage recipients of new […]
Two manufacturing associations came out with opposing views on Wednesday to a new bill that would limit presidential power for the execution of trade measures under Section 232. The Bicameral Trade Authority Act of 2019, introduced in the House and Senate, would require congressional approval before the president could take trade actions, like tariffs and […]
A bill limiting the president’s authority to impose tariffs under the auspice of national security will be introduced in Congress next week. Sen. Pat Toomey (R-PA) will introduce a bill that would require the president to obtain approval from Congress before imports could be restricted under Section 232 of the Trade Expansion Act of 1962. […]