Ferrous scrap prices, like finished steel prices, have been on the rise for most of the year (see chart), but could see a pause in August. Sources tell Steel Market Update they expect obsolete grades to trade $20/GT lower next month, while prime prices will most likely remain unchanged. “Obsolete grades should trade in the […]
The Russian government has proposed levying tariffs on the country’s ferrous and non-ferrous exports from Aug.1 until year-end to offset extra costs faced by the state’s sub-contractors due to much higher metal prices. “In order to rule out price manipulation during export, as well as the temptation to understate the value of export contracts and […]
By CRU Prices Analyst Estelle Tran U.S. sheet prices are still trending higher, which has supported further gains in raw materials, slabs and imported steel. Even though CRU HR coil prices have increased 7.4% m/m to $1,655 /s.ton on June 16, market contacts still report a lack of workable offers, especially given lead times into […]
April apparent steel supply declined 189,000 tons from March’s high to 8.77 million net tons, according to the latest U.S. Department of Commerce and American Iron and Steel Institute data. This is the second highest suppy level seen since January 2020, just behind the March 2021 high. April supply is up 2.24 million tons compared […]
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 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 CRU Senior Analyst Richard Lu, from CRU’s Steel Sheet Products Monitor In September 2020, President Xi Jinping formally announced that China will aim to achieve a peak in carbon emissions before 2030, followed by carbon neutrality before 2060. As part of the decarbonization efforts, the Chinese government at the start of the year announced […]
By CRU Principal Economist Alex Tuckett and Chief Economist Jumana Saleheen In this mid-year update to our global economic outlook, we look back at our expectations at the beginning of the year, and those of our surveyed clients, and compare them with actual outcomes over the past six months. Overall, the global economy is in vastly better shape […]
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 exports declined 4% in April to 760,000 tons, according to recently released U.S. Department of Commerce trade data. Althought down over the month prior, recall that March exports were at the highest level seen since June 2018. Of our six monitored product groups, the single product with a month-over-month increase was cut-to-length plate, […]
U.S. steel exports declined 2% in May to 742,000 tons, according to recently released U.S. Department of Commerce trade data. Although down from the month prior, recall that March and April exports were at the two highest levels seen since June 2018. May marks the third highest monthly export level since June 2018. Of our […]
Steel prices will correct sharply as supply catches up with demand, potentially falling back to an average of $575 per ton ($28.75 per cwt) in 2022, according to one leading industry analyst. “This too will pass,” was the title chosen by Timna Tanners, metals and mining analyst at Bank of America, for her SMU Community […]
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 […]
U.S. gross domestic product (GDP) grew by 6.4% in the first quarter of 2021 on an annualized basis, according to the second estimate from the Bureau of Economic Analysis (BEA). The second estimate saw no change in overall GDP compared to the advance estimate; however, upward revisions to consumer spending and nonresidential fixed investment were […]
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 […]
New orders, production and employment picked up in May despite slower supplier deliveries and lengthening backlogs, said the Institute for Supply Management in the May 2021 Manufacturing ISM Report on Business. The Manufacturing PMI rose 0.5 percentage point to 61.2 after contracting in April and indicates expansion for the overall economy. “Manufacturing performed well for the […]
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% […]
Ferrous scrap prices in the U.S. are likely to see a big jump in June, estimated at $50-60 per gross ton or more, primarily as a result of strong demand from foreign buyers, sources tell Steel Market Update. “June will bring significant price increases for ferrous scrap. The biggest factor is the strength of the […]
Indian steelmaker JSW Steel Ltd. suffered losses of nearly $31 million at its U.S. operations in its fiscal fourth quarter as its mills worked to return to production following pandemic-related shutdowns. JSW Steel USA idled its Mingo Junction, Ohio, and Baytown, Texas, mills in 2020 in response to poor demand resulting from the COVID-19 outbreak. The […]
March apparent steel supply rose nearly 1.5 million tons from February’s dip, now at 8.96 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 since January 2020’s 9.52 million tons. March also marks the largest month-over-month increase in supply […]
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 […]
Auto assemblies in North America backpedaled in April as the ongoing shortage of semiconductor chips intensified and hindered automakers’ ability to produce cars and trucks, according to LMC Automotive (LMCA). April’s production totaled 1.087 million units, down from 1.217 million units in March or 10.7%. March saw a bump in auto production—the first in nearly […]
The Energy Information Administration’s April Short-Term Energy Outlook remains subject to heightened levels of uncertainty as responses to COVID-19 continue to evolve. Economic activity has increased significantly compared to previous years and, combined with the easing of COVID restrictions, energy use is rising. The EIA expects oil demand to continue to strengthen due to those […]
U.S. steel exports jumped 17% in March to 790,000 tons, according to recently released U.S. Department of Commerce trade data, now at the highest monthy level seen since June 2018. Of our six monitored product groups, the greatest month-over-month increase in exports went to plate cut lengths, up 37%, followed by a 35% increase in […]
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 […]
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 […]
Auto assemblies in North America gained ground in March for the first time since October, according to LMC Automotive (LMCA). North American production rose to 1.217 million units in March, up from 1.092 million in February, but production continues to suffer from the ongoing shortage of semiconductor chips. North American production was up 20.1% in […]