By CRU Research Analyst Aaron Kearney-Keaveny from CRU’s Steelmaking Raw Materials Monitor Dec. 7 Iron ore remained largely stable in the past week, before rising noticeably on Monday and Tuesday, now standing at $108.0 /dmt. Supply is rising and demand seems stable, but speculation around China has resulted in the iron ore price rising yet […]
The following article on the hot rolled coil (HRC), scrap and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Hot Rolled Hot rolled futures sellers are betting that the price of HR will drop significantly in December based on the latest […]
Steel prices declined for the third consecutive month in November, following a 12-month streak of continuous price increases. Hot-rolled coil prices declined $105 per ton throughout the month, with the SMU index averaging $1,770 per ton ($88.50 per cwt) as of Tuesday, Nov. 30. The SMU Price Momentum Indicator for hot-rolled coil was adjusted from Neutral […]
U.S. gross domestic product (GDP) grew at a modest 2.1% annual rate in the third quarter, the slowest pace in more than a year, according to the Bureau of Economic Analysis (BEA). U.S. third-quarter economic growth was slowed by the Delta variant’s disruptions to consumer spending and global supply chains. The second review by the BEA […]
By CRU Principal Analyst Matthew Watkins and Analyst Iris Speelmanns, part of CRU’s steel and the energy transition series When we think about hydrogen and steel, we generally focus on steel supply. Hydrogen is a possible alternate reductant, replacing coke and offering a pathway to low-CO2 steel production. But a hydrogen economy could also be a huge […]
By CRU Steel Analyst Tiago Vespoli, from CRU’s Steel Sheet Products Monitor, Nov. 17 There is a high probability that the weather phenomenon La Niña will start at end-November, which could have serious consequences for the steel supply chain, depending on the severity of the event. Some expected impacts include increased rainfall in Australia and […]
South Korea wants the U.S. to start negotiations to ease Section 232 on its steel exports as soon as possible, according to local media reports. The latest call came during meetings this week between U.S. trade officials and their South Korean counterparts in Seoul. “We once again delivered our stance and concerns regarding the Section […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Before joining Metal Edge Partners, Bryan held a variety of commercial […]
By CRU Principal Analyst Matthew Watkins, from CRU’s Global Steel Trade Service, Nov. 18 There was a big price collapse in China over the past month. HR coil export prices have fallen by 13% since October and rebar is down by 10% in the same period. For HR coil, this means that China has returned […]
By Philip Bell, President, Steel Manufacturers Association Earlier this year, the European Commission began reviewing its Waste Shipment Regulation (WSR) and considering proposals for its revision. On Nov. 17, the EU commission announced that it may restrict waste exports including metal scrap to non-OECD countries. In yesterday’s formal announcement, the commission proposed revised legislation on […]
The Oct. 31 agreement between the U.S. and the EU to replace Section 232 with a tariff-rate quota (TRQ) will likely serve as a model for similar trade deals with other countries that are chafing under the Trump-era tariff, said veteran Washington trade attorney Lewis Leibowitz during Wednesday’s SMU Community Chat. The Biden administration began […]
By CRU Senior Analyst Thais Terzian and Analyst Chris Bandmann, from CRU’s Crude Steel Market Outlet, Nov. 15 There is currently a lot of market discussion that the EU may act to restrict scrap exports. Here we look at who could be hurt and who might see opportunities. Other regions have already acted to protect […]
By Trade Attorney Lewis Leibowitz Last Wednesday, it was my pleasure to join many readers on the latest Steel Market Update Community Chat. After a brief rundown of current issues affecting the steel sector and its customers, we had a lively round of questions, refereed by SMU Senior Editor Michael Cowden. We didn’t get to […]
The U.S. and Japan have officially begun talks that could lead to an easing of Section 232 tariffs on Japanese steel and aluminum exports. Those negotiations are part of a broader bilateral discussion on ways to reduce excess steel- and aluminum-making capacity globally, most of which the U.S. says is driven by China. “The United […]
September apparent steel supply increased by 90,000 tons over August to 9.92 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. This is the highest supply level seen in more than six years, going back to January 2015 when supply surpassed 10 million tons. September supply is up […]
U.S. steel exports decreased 4% from August to September to 732,000 tons, according to the latest U.S. Department of Commerce data. September marks the lowest monthly export level seen in six months. Recall that in March and June of this year, we saw the two highest monthly export levels in the last three years (790,000 and 778,000 […]
ArcelorMittal recorded it best quarterly earnings performance since 2008 in the third quarter as sharply higher prices offset lower shipment volumes. The shipment declines came partly because of weaker demand and order cancellations from the automotive sector, the company said. The automotive industry has struggled with various supply chain issues, most notably – but not […]
By CRU Principal Analyst Erik Hedborg, from CRU’s Steelmaking Raw Materials Monitor, Nov. 9 Iron ore prices remain under pressure as Chinese steel production levels remain low and iron ore inventories continue to pile up, both at ports and at steel mills. A price of $92 /dmt is the lowest seen since May 2020, and […]
North American auto assemblies recovered in October after reaching the lowest monthly total year-to-date in September. October’s production total jumped 18.1% sequentially but was still down 24.6% year on year. The impact of the chip shortage and supply-chain disruptions is still constraining the automotive sector. Semiconductor scarcity and parts delays had further worsened through the […]
By Trade Attorney Lewis Leibowitz I summarized the newly announced trade deals between the United States and the European Union last week. I use the plural because a lot of issues were addressed in the statements that followed. Today’s column evaluates a few of the trends that are visible from these statements – notably on […]
South Korea is pushing for “swift consultations” with U.S. trade officials about Section 232 following the negotiation of a tariff-rate quota (TRQ) with the European Union, according to local media reports. Seoul is concerned that the deal with the EU – which will allow approximately 3.6 million short tons of steel into the U.S. duty […]
October saw a gradual decline in steel prices for the second consecutive month, following one full year of continuous price increases. Hot rolled steel prices decreased $45 per ton throughout the month, with the SMU index averaging $1,885 per ton ($94.25 per cwt) as of Tuesday, Oct. 26. The SMU Price Momentum Indicator for hot […]
It goes without saying, the steel industry is in a dynamic, volatile market and the only thing that is certain is the volatility will continue as we move into calendar year 2022. It is not just price we need to watch over the coming months. There are many moving pieces to this puzzle. The agreement […]
It goes without saying, the steel industry is in a dynamic, volatile market and the only thing that is certain is the volatility will continue as we move into calendar year 2022. It is not just price we need to watch over the coming months. There are many moving pieces to this puzzle. The agreement […]
By Trade Attorney Lewis Leibowitz At the last minute, the U.S. and EU announced a deal to keep the tariff wars from getting worse. Yesterday, at the G20 meeting in Rome, the two sides announced an agreement that will prevent major retaliatory tariffs on U.S. exports to Europe from going into effect on Dec. 1. […]
The U.S. and European Union (EU) announced a deal this weekend that removes Section 232 tariffs on imports from the EU and replaces them with a tariff rate quota (TRQ) system. The agreement ends a dispute dating back to 2018 when President Trump imposed Section 232 tariffs on steel and aluminum imports, and it heads […]
By Trade Attorney Lewis Leibowitz U.S. Trade Representative Katherine Tai has been traveling. She has a lot on her plate. In an effort to attract allies to the United States’ plan to rein in China, the U.S. has floated a proposal, according to reports, to replace the 25% steel and 10% aluminum tariffs with a […]
By CRU Analyst Helen O’Cleary, from CRU’s Zinc Monitor Zinc’s price started LME Week looking mildly bullish on short covering, with the 3-month official price settling at $3,246 /t on Oct. 12. By Oct. 15, it had reached $3,944 /t, turbocharged by news of smelter cutbacks in Europe due to soaring energy prices and the […]
In this year’s edition of CRU Breakfast – part of LME Week – we explored three key themes that shaped the commodities markets – the global economic and commodities outlook, the changing role of China, and Navigating ESG. All three themes have been central to many developments in the industry and remain equally crucial moving […]
By CRU Research Manager Eoin Dinsmore, from CRU’s January Zinc Monitor Buyers who are unfortunate enough to find themselves in the spot market are paying 18-23¢ /lb for SGH zinc. The most recent deals have all been at 20¢ /lb or higher. Buyers are fearful of being left short metal, while suppliers are either sold […]