In 2023, Mexico emerged as the largest trading partner with the United States—larger than Canada, and even China. The growth in trade with Mexico has been truly historic—Mexico has never captured the title of the largest exporter to the US. At $475 billion for the year, the value of US imports from Mexico exceeded that […]
U.S. Steel said it has converted two of its diesel switcher locomotives to “state-of-the-art battery-operated locomotives.”
Trade policy moves create great ironies sometimes. I often write about these ironies when the US acts against the interests of the country as a whole by protecting certain industries from international competition. But the US is not alone, especially in recent years as the World Trade Organization and the international geopolitical order have been […]
Producer prices grew more than expected in November, thwarting hopes that inflation could be easing, the US Labor Department reported. Last month’s Producer Price Index (PPI), a measure of the prices received for final-demand products, advanced 0.3% month-on-month (MoM) and 7.4% from a year ago, the smallest annual gain since May 2021, according to data […]
News that the Biden Administration is considering a total ban on Russian aluminum imports lifted the market Tuesday afternoon, Oct. 11. The LME aluminum three-month price increased sharply to a high of $2,400 per ton before some of the gains were reversed by the close. The price saw some volatile shifts during the week but […]
End use market demand is mixed as mid-year shipment data is reported The recession, inflation, and interest rates remain hot topics for aluminum producers and consumers. As new economic data is announced, both bright spots and points of concern emerge. First, this month’s report on inflation showed a drop month-on-month (MoM) and may signal that […]
The Energy Information Administration’s August Short-Term Energy Outlook (STEO) remains subject to a high level of uncertainty due to the volitle global energy market. Contributing factors include Russia’s invasion of Ukraine, foreign and domestic oil production levels, and OPEC+ production decisions. Due to these variabilities, the EIA continues to warn that actual price outcomes could […]
The Energy Information Administration’s July Short-Term Energy Outlook (STEO) remains subject to a high level of uncertainty, driven by factors such as sanctions affecting Russia’s oil production, the production decisions of OPEC (Organization of the Petroleum Exporting Countries), and the rate at which US producers increase drilling. Due to these variabilities, the EIA continues to […]
The US economy shrank in the first quarter of 2022 at a slightly worse rate than expected, with gross domestic production declining at a -1.6% annualized pace, according to the third and final estimate from the US Commerce Department’s Bureau of Economic Analysis (BEA). The third review for Q1 was a slight downward revision from […]
The Energy Information Administration’s June Short-Term Energy Outlook (STEO) remains subject to a high level of uncertainty due to factors such as sanctions affecting Russia’s oil production, the production decisions of OPEC (Organization of the Petroleum Exporting Countries), and the rate at which US producers increase drilling. Due to these uncertainties, the EIA continues to […]
The Biden administration, picking up where the “America First” Trump administration left off, extols the virtues of increased production here at home. There are many advantages to this approach, the president says. Increased production in the US will diminish reliance on China in critical materials for electric vehicles (rare earth metals and lithium, for example). […]
By Greg Wittbecker, Advisor, CRU Group US equities market this past week were a microcosm of how fast sentiment can change. It reminded me of a favorite statement I use to explain commodity trading to people outside our world: “Markets move on fear and greed.” Welcome to the fear cycle. This cycle has plenty of […]
I shouldn’t say put a fork in this market and call it done. It’s probably too early for that. But some of the anecdotal indicators I mentioned last week are increasingly showing up in the data we and others collect. Take a look at today’s issue: Lead times are still rising, for the most part. […]
By Greg Wittbecker, Advisor, CRU Group It is natural to speculate about how well demand for aluminum can hold up given the effects of dramatically higher prices, both on aluminum itself and the broader economy. Conversations with many of our clients’ center on concerns about demand destruction. The logic is simple: With gasoline, food and interest […]
Producer prices rose moderately in February, maintaining a sustained 23-month growth run. Last month the headline index grew by just 0.8%, seasonally adjusted, but was a gain of 10% when compared to the same year-ago period, reports the U.S. Labor Department. Wholesale prices accelerated as steady consumer demand and pandemic-related supply-chain snarls continued to fuel […]
Steel Market Update’s hot-rolled coil price was at $1,050 per ton ($52.50 per hundredweight) last week. Several mills are now offering hot band at $1,200 per ton ($60 per cwt). I don’t know where things will settle when we adjust prices on Tuesday. But I think it’s fair to say that prices will be significantly […]
In a letter to the White House on Thursday, the American Trucking Associations called on the Biden administration to boost domestic energy production and take other steps to provide relief at the pump for truckers and other motorists. Fuel is the second largest operating expense for trucking fleets, and surging diesel prices threaten to decimate […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active […]
On Friday, the Labor Department announced the inflation rate for November. At 0.8%, it was a tick lower than the October inflation rate of 0.9%. But most observers paid more attention to the annual rate of inflation. At 6.8% compared to prices one year ago, the inflation rate was the highest it’s been since 1982. […]
Editor’s note: Steel Market Update is please to share this Premium content with Executive members. For information on how to upgrade to a Premium-level subscription, email Info@SteelMarketUpdate.com. The Energy Information Administration’s August Short-Term Energy Outlook remains subject to heightened levels of uncertainty related to the ongoing economic recovery from the COVID-19 pandemic. That big caveat […]
The infrastructure bill passed by the Senate last week is important not just for what’s in it, but also for what’s not. What’s not is a much needed increase in the fuel tax that feeds the federal Highway Trust Fund, said Jim Burg, president of James Burg Trucking Co., Warren, Mich. Burg is also co-chairman […]
“Electric vehicles are having a moment,” said auto market expert Bernard Swiecki – a moment likely to last for years. Swiecki’s Center for Automotive Research in Ann Arbor, Mich., is spending much of its time studying the sudden and surging interest in the various forms of low- or zero-emission electric vehicles (EVs), from plug-in hybrids, […]
The Energy Information Administration’s July Short-Term Energy Outlook remains subject to heightened levels of uncertainty related to the ongoing economic recovery from the COVID-19 pandemic. That big caveat aside, the increase in economic activity and an easing of the pandemic have contributed to rising energy use. EIA anticipates a mostly balanced global oil market for the […]
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 […]
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. Reduced economic activity from the pandemic caused a decline in 2020 energy demand and supply. As of April 6, the EIA expects oil demand to strengthen, as COVID-19 vaccination rates and global economic […]
How close is the United States to adopting some form of carbon border tax to address climate change? What seemed highly unlikely one administration ago is now even supported by the likes of the trade groups representing the American oil and steel industries. The Wall Street Journal reported this week that the powerful American Petroleum […]
Adoption of electrical vehicles is beginning to accelerate as consumer fears of “range anxiety” are quelled by longer range batteries and more charging stations that are appearing in the public domain. It’s a bit of a “field of dreams” scenario for the EV market—if you build it (the infrastructure), they (drivers) will come. A webinar […]
Two phenomena that we have not seen in a long time have recently appeared. Whether they are short-term events or long-term realities is provoking debate. I am speaking of the distinct but related issues of inflation and shortages of, it seems, nearly everything. Inflation was a major factor in the U.S. economy throughout the 1970s. […]
Many of you may have sat, like me, in a line to get gasoline this week. It brought back memories of the Arab Oil Embargo of 1973 and the Iranian boycott of 1979. This time, a gasoline pipeline supplying about half of that product to the eastern United States was closed, allegedly due to a […]
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of financial market trading experience and has been active in the ferrous futures space for eight years. David earned an MBA from the University of Chicago Booth School of Business with concentrations in economics, statistics and analytical finance. […]