Quebec will lend a helping hand to smaller Canadian companies in the aluminum and steel industry that will suffer from the Section 232 tariffs imposed by the United States. The province will offer C$100 million ($77.1 million U.S.) in loans and guarantees on loans after companies reported that contracts were being canceled by customers unwilling […]
Is Canada really guilty of the trade inequity that President Trump charges? We looked at two product targets of the administration—dairy and automobiles—to find out. The office of the U.S. Trade Representative estimates trade with Canada in 2017 totaled $673.9 billion–$341.2 billion in exports and $332.8 billion in imports, for a goods and services trade […]
I (and the SMU team) are firmly ensconced in trying to learn all we can about our new owners the CRU Group, while at the same time answering questions from them about our products and services and how we can provide the most value to our members. One of the first things that came up […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest trade news in Washington: Is there anyone out there who believes President Trump is not methodically alienating our closest allies? Yesterday, in what was clearly a deliberate attempt to provoke the other six members of the G7, President […]
Are the markets’ fears of a trade war exaggerated or are their concerns justified? Popular economist Alan Beaulieu, president of ITR Economics, offers the following macroeconomic perspective: Section 232 tariffs on steel and aluminum coming into the U.S. from Canada, Mexico and the EU are a hot topic, and with good reason. The extension of […]
Meetings last week between the House Ways and Means Committee and U.S. Trade Representative Robert Lighthizer failed to reassure congressional members that a clear strategy on trade exists within the administration. Neither Republican nor Democrats’ concerns were assuaged after discussions with Lighthizer on trade issues that included China, NAFTA negotiations, and Section 232 tariffs on […]
I am finally home long enough to gather my thoughts and hopefully get back to providing some insights into the flat rolled, plate and scrap markets from my perspective. There is obviously a lot of uncertainty connected to the Section 232 tariffs in both steel and aluminum. The Trump administration appears to have an intense […]
A new wrinkle has been revealed for those manufacturers seeking exclusions for steel and aluminum products from Brazil, South Korea and Argentina. The three countries, which have agreed to quotas in lieu of tariffs, are not eligible for any product exemptions. A spokesperson for the Commerce Department confirmed the restriction in an email to Inside […]
The market was shocked when President Trump revoked the exclusions and implemented tariffs on steel and aluminum imports from the United States’ closest trading partners Canada, Mexico and the EU. In this week’s canvass of the market, Steel Market Update asked industry executives if they expect any direct impact on their businesses as a result. […]
As a trade war continues to build over the Section 232 steel and aluminum measures, some senators are looking to curb the president’s authority to unilaterally impose tariffs. Sen. Bob Corker (R-TN) is leading the effort along with Sen. Pat Toomey (R-PA) to challenge President Trump’s ability to levy trade restrictions on the grounds of […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following update on trade events in Washington: Canada, Mexico and the nations in the European Union threatened to retaliate against Trump administration tariffs they consider grossly unfair and, true to their word, have announced tariffs of their own on a host of exports […]
Canada’s Samuel, Son & Co., a leading metals distributor and industrial products manufacturer, has invested $18 million in its Brantford, Ontario, automotive metals processing center. It expects to complete the expansion by the fourth quarter, ramping to full production in early 2019. Samuel’s Brantford facility is currently a 141,000-square-foot metals processing operation equipped with blanking […]
The U.S. packaging industry, which relies on imports of tinplate, is among the many concerned about the effects of President Trump’s tariffs on steel and aluminum imports. The Can Manufacturers Institute estimates that 42 percent of tinplate steel needs to be imported to manufacture food cans for American consumers. More than 60 percent of primary aluminum […]
Consumers in the United States may soon see their favorite products increase in price or become harder to find. In retaliation for Section 232 tariffs on U.S. steel and aluminum, Canada plans to impose its own 25 percent and 10 percent tariffs on a wide variety of goods. The 25 percent tariff is restricted to […]
Rising fuel prices don’t seem to be impacting automotive sales; U.S. consumers are still hungry for SUVs and light trucks. WardsAuto reported that U.S. automakers delivered 1.58 million light vehicles in May for a seasonally adjusted annual rate of 16.8 million units. Sales of Ford’s F-Series pickups jumped 11.3 percent to 84,639 trucks despite a […]
Supply executives polled for the Manufacturing ISM Report on Business reported strong business conditions in May. The PMI rose 1.4 points to 58.7 percent as new orders, production and employment continued to expand. Inventories are struggling to keep pace with demand. Longer supplier lead times and freight uncertainty is impacting inventory levels, said Timothy R. […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following update on trade events in Washington: As briefly stated by the Trade Commissioner of the European Union, Cecilia Malmstrom, “Today is a bad day for world trade.” Malmstrom was referring to the announcement by President Trump that the 25 percent tariffs on steel […]
Commerce Secretary Wilbur Ross has made it official—there will be no tariff exemptions for Canada, Mexico, and the European Union. In a briefing on Thursday, Ross said the tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum will go into effect at midnight. Argentina, Brazil, Australia and South Korea […]
The American Institute for International Steel, a trade group representing foreign steelmakers, said it is deeply disappointed the Trump administration has decided to impose tariffs on steel and aluminum imports from the EU, Canada, and Mexico. “Make no mistake: restricting the raw material supply in the U.S. and imposing tariffs on imports from our closest […]
The prices of coking coal and zinc declined in May, while iron ore FOB Australia’s East Coast and scrap priced in Chicago were unchanged. To put this raw materials commentary into perspective, Figure 1 shows the spread between Chicago #1 busheling and hot rolled coil ex works Indiana through May 18, both in dollars per […]
Metalforming companies in the U.S. and Canada are expecting business conditions to decline slightly in the next three months as tariffs take hold and steel prices and lead times increase. The latest Precision Metalforming Association Business Conditions report sampled 112 metalforming companies and found that 31 percent of participants forecast an improvement in economic activity […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following update on trade issues in Washington, including China, NAFTA, and a new Section 232 investigation on automotive imports: • The White House reported that 25 percent tariffs on $50 billion worth of imports from China will be announced by June 15, and […]
Welcome back to those who were off for the Memorial Day Holiday here in the United States. If you are extending your time off, well I’m jealous as we are back in the thick of it here at Steel Market Update. As expected, we didn’t see much movement between the flat rolled steel prices we […]
President Trump has ordered a Section 232 investigation to determine whether imports of automobiles threaten national security interests. The investigation comes on the heels of China’s announcement that it will drop tariffs on imported vehicles from 25 percent to 15 percent and tariffs on autoparts to 6 percent. The reductions are presumably positive for the […]
India is disputing the legality of Section 232 tariffs and quota arrangements by the United States, claiming violations of the GATT and Safeguards Agreement. India filed an official request with the World Trade Organization for dispute settlement consultations with the United States. India joins several other nations which dismiss the claim that imports of aluminum […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following update on trade issues in Washington: Greetings from the West Coast. I just attended the National Association of Foreign Trade Zones Spring conference. Foreign trade zones have been targeted by the Trump administration in the tariff proclamations, including the Section 232 tariffs on steel […]
Metal manufacturers and users are calling the Section 232 product exclusion process “onerous” and “chaotic.” The Coalition of American Metal Manufacturers and Users expressed their concern about the tariff exclusion process in a letter to Secretary of Commerce Wilbur Ross on May 18. More than 8,200 exclusion requests have been filed with Commerce with no […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers an update on the latest developments in Washington: • Circumvention—On Thursday, the Commerce Department issued its long-awaited final determination in an anticircumvention inquiry under the antidumping and countervailing duty laws of the United States. The issue was whether cold-rolled and corrosion-resistant (CORE) flat rolled steel […]
Lewis Leibowitz, a trade attorney and contributor to Steel Market Update, offers the following update on trade issues in Washington affecting the steel industry: • Section 301 Hearing on Proposed Tariffs: On May 16, the U.S. Trade Representative’s office will kick off three days of hearings on the proposed Section 301 tariffs on China announced […]
Distributors of products for the HVAC sector expect prices for steel, especially galvanized, to drop in the coming weeks or months. Demand remains strong, they report, but they are keeping inventories lean in anticipation of declining prices. “There is a greater likelihood that prices will go down than go up. With the lead times being […]