Flat rolled and plate steel distributors, as well as the manufacturers who purchase spot material from the distributors and wholesalers, are reporting a softening of spot pricing. That is the spot pricing service centers are offering their manufacturing customers. Last week, Steel Market Update conducted our early August flat rolled and plate steel market analysis. […]
June apparent steel supply fell 7.4 percent over May to 8,941,089 net tons, according to government data released late last week. Although down somewhat, supply remains in line with levels of the last three years. Apparent steel supply is calculated by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel […]
In a surprising tweet earlier today, President Trump announced his intentions to double the Section 232 tariffs on steel and aluminum from Turkey, raising the tax on imports to 50 percent for steel and 20 percent for aluminum. No word on when the change would take effect. “I have just authorized a doubling of Tariffs […]
Steel Market Update offers this early look at July’s import volume based on license data (see explanation below). The analysis evaluates the pressure that imports are having on individual products at the national level, but gives no indication of regional differences. SMU has developed a new series of regional reports for the six main flat […]
The numbers 201, 232 and 301 are getting a lot of headlines recently. They are sections under three U.S. laws that President Trump has used to impose tariffs on a variety of goods and countries. Section 201 of the Trade Act of 1974 was used to place tariffs on imports of washing machines and solar […]
Caterpillar says it will raise prices due to U.S. tariff measures despite expecting a stronger profit outlook for the year. The major exporter of construction, mining and energy-related equipment estimates recently imposed tariffs will cost the company $100 million to $200 million in the second half of 2018—about 3 percent of its full-year profits. Strong […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: • Turkey Tariffs– President Trump tweeted on Friday that he “authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: While attending and giving a presentation to the SMU Steel Summit conference in Atlanta on Monday, word came that the U.S. and Mexico had reached a tentative deal on a revised trade agreement. President Trump […]
Are imports of semifinished steel a threat to U.S. national security? Apparently, that depends on the political environment at the time. The controversy over the Trump administration’s Section 232 tariffs is not a new debate. Restrictions on steel imports were on the table in 2001 during the Bush administration. Contrary to today, the Commerce Department […]
Earnings week for the steel industry revealed trade was foremost on the minds of steel executives. The steel mills expressed their approval of the administration’s tariff action that has boosted steel pricing and, along with higher demand, earnings for the second quarter of 2018. • U.S. Steel Corp. CEO David Burritt was a strong advocate […]
The U.S. economy grew at a 4.1 percent rate in the second quarter, up from 2.2 percent in the first quarter, according to the government’s first estimate of the gross domestic product. Growth of second-quarter GDP was the best since third-quarter 2014, and on a trailing 12-month basis has improved for the last eight quarters, […]
The Institute for Supply Management’s Manufacturing ISM Report on Business expanded for the 111th month in July. The PMI registered a solid 58.1, although decreasing 2.1 points from the June reading of 60.1 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally […]
The rate of expansion for global manufacturing slowed in July, according the J.P. Morgan Global Manufacturing PMI. The index reached its lowest reading in a year at 52.7, down from 53.0 in June. “The manufacturing upturn has lost sizeable momentum since the start of the year. However, with final demand growth having firmed in recent […]
Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this new role, he and his firm design and execute risk management strategy for clients along with providing process and analytical support. In Gaurav’s previous role, he was a Trader at Cargill spending time in Metal […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Finally, a good day? President Trump and European Commission President Jean-Claude Juncker met Wednesday at the White House and issued a joint statement on their agreement to negotiate reductions in barriers between the U.S. and […]
Editor’s note: This article was contributed by Lisa Morrison, principal economist with the CRU Group. From the standpoint of trade policy and its economic effects, it has certainly been another busy month. President Trump is now threatening another round of tariffs on China. This time, it’s a levy of 10 percent on $200 billion in […]
Scrap is trading lower in August. Steel Market Update sources in the ferrous scrap market report that the price of obsolete grades has declined by about $20 per ton and prime by $10 per ton. Weakness in foreign markets has reduced scrap exports, increasing the domestic supply. “Looking forward, I don’t expect prices to really […]
Let’s up the ante to $500 billion. That’s what President Trump is proposing in tariffs against virtually everything China exports to the United States. “I raised $50 billion, and they matched us. I say, ‘You don’t match us. You can’t match us, because otherwise, we’re always going to be behind the eight ball,’” said Trump […]
Nucor’s consolidated net earnings in the second quarter of 2018 jumped to $683.2 million, the second highest quarterly earnings in the company’s history. In comparison, earnings were $354.2 million in the first quarter and $323 million in Q2 2017. Nucor’s Chairman and CEO John Ferriola attributed the successful quarter to an upturn in the steel […]
Section 232 auto tariffs were the subject of a Commerce Department public hearing on Thursday, July 19. The hearings were cut from two days to one after Commerce determined the 45 requests to testify could be accommodated in a single day. All but one of the 45 witnesses was expected to testify against the tariffs. […]
A Missouri senator is calling for the end of the trade war instigated by Trump administration tariffs that are threatening agricultural producers and manufacturers in her home state. “Missouri jobs and livelihoods are at stake—and I don’t understand the decision to escalate this trade war with no end in sight, risking critical foreign markets and […]
The United States shot back at allies and China who have filed World Trade Organization disputes against Section 232 steel and aluminum tariffs. On Monday, the U.S. Trade Representative filed five claims with the WTO challenging retaliatory tariffs launched by China, the EU, Canada, Mexico and Turkey. The tariffs of 10 percent on aluminum imports […]
May apparent steel supply fell 1.8 percent over April to 9,654,200 net tons, according to the data released late last week. Although down, supply remains strong in comparison to the last three years. Apparent steel supply is calculated by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports. May […]
The industries that move the nations’ freight are scrambling to find ways to mitigate risks from U.S.-imposed tariffs and foreign-imposed retaliatory tariffs that will impact supply lines and trade flow. Volatility seems to be the new normal as industries face uncertainty over international trade conflicts. Ports Prepare for Tariff Disruptions The Trump administration’s addition of […]
Steel buyers are divided on whether prices have peaked, but most would agree that if they do move higher, any increase will be modest. Steel Market Update canvassed sources this week. Said one executive, expressing a common view: “I don’t see prices rising. I feel we are at the top.” Others anticipate a modest uptick […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: In a sharp escalation of the trade war with China, the U.S. Trade Representative has released a list of about 5,000 items valued at around $200 billion that could be subject to new 10 percent […]
U.S. steel exports in May 2018 totaled 857,673 net tons (778,069 metric tons), flat over April but down 14.8 percent from May 2017 (which was at a 30-month high). Total exports have averaged around 860,000 tons the last few months. The total May export figure is a few thousand tons below the three-month moving average […]
House members submitted a bill on Wednesday to amend the Trade Expansion Act of 1962 that mirrors a bill proposed in the Senate to limit the administration’s power to adjust imports in the name of national security. The bipartisan bill H.R. 6337, introduced by Rep. Mike Gallagher (R-WI), would require a 60-day period for Congress […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Following is a quick update on the new Section 301 China tariffs, which went into effect on July 6. China implemented its own 25 percent tariffs on a variety of U.S. exports to China. Soybean […]
Switzerland has added its name to the list of countries seeking World Trade Organization consultation with the United States regarding Section 232 tariffs on steel and aluminum products. The Swiss State Secretariat for Economic Affairs (SECO) initiated a dispute settlement procedure with the WTO today, July 10. Although Switzerland does not have a large metal […]