The U.S. economy overall has grown for 103 consecutive months, and the manufacturing sector for 16 months, based on the Institute for Supply Management’s latest survey of corporate purchasing executives. In December, ISM’s manufacturing PMI climbed 1.5 percentage points to 59.7, well above the reading of 50 that indicates growth. “This indicates growth in manufacturing […]
All four raw materials tracked by Steel Market Update— iron ore, scrap, coking coal and zinc—increased in price in December. From Australia News Digest on Dec.18: “Steelmaking raw materials made strong gains on Monday as Chinese mills, responsible for half the world’s steel output, restock ahead of the resumption of full production at the end […]
It was an unusually busy year for steel trade actions in the United States in 2017. January brought the nominations of Robert Lighthizer as U.S. Trade Representative and Wilbur Ross as Commerce Secretary. During his confirmation hearings, Ross said, “I’m not anti-trade, I’m pro-trade. But I’m pro-sensible trade. Not pro-trade that is to the disadvantage […]
The following industry data, current through the end of the month of December 2017, covers a number of important indices and drivers of steel prices, as well as supply and demand. As the month ended, the Steel Market Update (SMU) Price Momentum indicator was referencing higher flat rolled steel prices over the next 30 to […]
Galvanized steel prices are on the way up for customers of Steel Dynamics, which was the latest mill to announce an increase in its coating extras due to the high price of zinc, which traded at nearly $1.43 per pound yesterday. SDI’s new extras schedule is effective on orders acknowledged for delivery beginning Jan. 1. […]
Raw material markets have been tranquil since our October update, but the value of the U.S. dollar is once again in decline. In this report, we examine the latest prices for iron ore, scrap, coking coal and zinc. To put the raw materials analysis into perspective, we begin with Figure 1, which shows the spread […]
The U.S. Commerce Department has self-initiated an antidumping and countervailing investigation of imports of common alloy aluminum sheet from China. Normally, AD/CVD investigations are initiated by petitioners within the industry who allege dumping or subsidization of a product by one or more countries. Commerce may self-initiate an investigation whenever the Secretary determines a need exists […]
The U.S. Department of Commerce and its Secretary Wilbur Ross did something today that has not been done in the last 25 years–they self-initiated an antidumping (AD) and countervailing duty (CVD) suit. In this case, it was against aluminum imports from China, but steel buyers should take note. The DOC already has a Section 232 […]
Main Steel, headquartered in Elk Grove Village Ill., has been acquired from by Samuel, Son & Co., Ltd, a Canadian metal manufacturer, processor and distributor. Main Steel is a processor and polisher of stainless steel, aluminum and nickel alloys with processing locations in Atlanta, Elk Grove Village, Harmony, Pa., and Riverside, Calif. The company will […]
Commerce Secretary Wilbur Ross pushed back at critics of the Section 232 investigation this week, saying steel-consuming businesses don’t “deserve” dumped steel. Associations such as the American Institute for International Steel and U.S. Chamber of Commerce assert that Section 232 restrictions on steel could lead to economic disaster for the steel supply chain, ports and […]
Ryerson Holding Corp. posted net income of $1.7 million in the third quarter, up from $600,000 in the second quarter, but down from $8.2 million in third-quarter 2016, as commodity challenges pressured margins. “The third quarter of 2017 can best be described by margin compression, driven primarily by nickel and chrome deflation in the second […]
Olympic Steel posted significantly improved results for third-quarter 2017. Demand is strong across all three business segments at Olympic, but is expected to soften due to seasonality and the holidays. “Looking ahead, we are encouraged by both the positive demand trends our customers are projecting for 2018 and by the market’s outlook for improved metal […]
U.S. manufacturing slowed a bit from September but remained robust in October, according to the latest Manufacturing ISM Report on Business from the Institute for Supply Management. The headline PMI registered 58.7 percent, a 2.1 percentage point decrease from September’s score of 60.8 percent. A reading above 50 indicates growth. Comments from respondents suggest that […]
Commodities prices are a mixed bag. The price of iron ore is falling, but zinc is at a 10-year high. In this report, we examine the latest prices for iron ore, scrap, coking coal and zinc. On Oct. 25, commodities analyst Andrew Hecht wrote: “President Xi is likely to consolidate his power and take greater […]
Market economy status for China is out of the question, according to a 205-page memo from the Commerce Department. The detailed memorandum, published on Oct. 26, was released just days before President Trump is to meet with Chinese President Xi Jinping and in close timing with a preliminary AD/CVD determination against China regarding imports of […]
Market economy status for China is out of the question, according to a 205-page memo from the Commerce Department. The detailed memorandum, published on Oct. 26, was released just days before President Trump is to meet with Chinese President Xi Jinping and in close timing with a preliminary AD/CVD determination against China regarding imports of […]
The U.S. Justice Department wants to know if Americans are at risk as a result of the Kobe Steel quality scandal. The Japanese metal producer’s subsidiary, Kobe Steel USA, Inc., received a request from the Justice Department on Oct. 16 seeking related documents. Kobe officials said they plan to cooperate with the Justice investigation. Kobe […]
Reliance Steel & Aluminum experienced an uptick in orders for energy and nonresidential construction during the third quarter. Demand, in general, was stronger than anticipated, however tons sold are expected to decline 4.0 to 6.0 percent in the fourth quarter due to seasonal slowdowns and fewer shipping days. Reliance anticipates the average selling price in […]
SMU Note–The Kobe Steel scandal regarding falsifying test certifications has had a ripple effect. Steel Market Update asked those responding to our flat rolled steel market trends questionnaire if the Kobe scandal is raising some concerns that other mills may cut corners with testing and falsify documentation. Twenty-nine percent of our respondents had concerns. From […]
U.S. Steel reportedly still plans to construct a new continuous galvanizing line (CGL) at its PRO-TEC Coatings Co. subsidiary in Leipsic, Ohio. In doubt is whether joint venture partner Kobe Steel will still be involved. A U.S. Steel spokesperson told the Northwest Indiana Times on Friday that “U.S. Steel remains committed to our new Advanced […]
It’s on the table: the U.S. proposal for rules of origin for NAFTA automobiles. On Friday, the Trump administration made its demand for 50 percent U.S. content in NAFTA-produced cars and trucks and an increase of North American content from 65.2 percent to 85 percent. The increase for U.S. content would be made within the […]
What goes around comes around, as they say. In the case of the ferrous scrap market, what goes around and comes around again and again are residuals such as copper that complicate the steelmaking process and threaten to erode some of the competitive cost advantage now held by minimills. Minimill steelmaking has transformed the steel […]
We received a number of responses to our articles on ethics. We didn’t want to beat a dead horse by producing another article this evening, even though there is plenty to write about. For those of you who have not noticed, Kobe Steel in Japan has admitted falsifying data on materials placed in autos, trains […]
Reliance Steel & Aluminum Co. and wholly-owned subsidiary Diamond Manufacturing Co. announced the acquisition of Ferguson Perforating Co., effective Oct. 2. Los Angeles-based Reliance is the largest service center company in North America. Ferguson specializes in producing highly engineered and complex perforated metal for diverse end markets ranging from aerospace and automotive to industrial machinery, […]
Manufacturing expanded in the United States, along with the overall economy, as the Institute for Supply Management’s September PMI jumped 2 percentage points to register 60.8 percent. ISM’s New Orders Index gained 4.3 points. New orders have averaged 61.6 percent since December 2016, said Timothy R. Fiore, chairman of ISM’s Manufacturing Business Survey Committee. Any […]
The price of iron ore is falling but zinc is at a 10-year high. In this report, we examine the latest prices for iron ore, scrap, coking coal and zinc and their relationship to the dollar. “Right now, the dollar has a lot going against it. The administration in the U.S. continues to hope the […]
One of the surprises over the past year has been the amount of foreign steel imports still arriving in the United States despite antidumping (AD) and countervailing duties (CVD), a Section 337 complaint, a circumvention complaint and the Trump directive for the U.S. Department of Commerce (DOC) to investigate steel as it relates to national […]
Last Friday, the U.S. International Trade Commission ruled that the domestic solar industry has been seriously injured by imports of cheap, foreign-made solar cells. The case was brought by solar panel makers Suniva and SolarWorld under Section 201 of the Trade Act of 1974. The ITC now has until Nov. 13 to make recommendations to […]
The United Steelworkers union is calling for the United States to negotiate stronger NAFTA rules of origin. The union charges that the rules negotiated more than 25 years ago do not reflect current economic reality and sourcing patterns. Increased imported content from China and other nations has been detrimental to U.S. production in North America, […]
Weakening federal vehicle fuel economy standards would not relieve the auto industry of burdensome regulation, but rather would hurt job growth, as well as the environment, maintains the BlueGreen Alliance (BGA), a coalition of American labor unions and environmental organizations whose mission is to “work together to solve today’s environmental challenges in ways that create […]