WASHINGTON, D.C. – The American Iron and Steel Institute (AISI) Board of Directors this week approved the Institute’s 2016 Public Policy Agenda during its meeting in Washington, D.C. The Agenda outlines aggressive pro-manufacturing policy strategies to guide advocacy for the upcoming year and highlights the importance of the steel industry to the U.S. economy and […]
There seems to be little doubt that there is some strength in the cold rolled and coated products markets. The lead times are extended with ArcelorMittal being into May on galvanized according to one of their automotive service centers. We heard from a couple of the conversion mills who told us their orders books were […]
During their earnings conference call with the financial analysts, ArcelorMittal spoke about excess Chinese steelmaking capacity which needs to be removed from the markets as well as demand outlook which they believe will improve in the United States and Europe during 2016. The following selected comments were taken directly from the ArcelorMittal conference call transcript […]
On Friday the U.S. Department of Commerce released Final Census data for foreign steel imports for the month of December 2015. Imports totaled 2,342,582 net tons. We saw very low numbers on semi-finished (mostly slabs) which came in under 300,000 net tons. We also saw low numbers on OCTG, galvanized and other metallic (mostly Galvalume). […]
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After five years of negotiations, the twelve nations of the Trans Pacific Partnership signed the trade agreement in a ceremony in New Zealand on February 4. The signing was celebrated by the trade ministers but the agreement must still be officially approved by the individual nations. The countries have two years to ratify TPP through […]
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […]
USW members ratified a new three year contract with US Steel on Monday. The ratification passed by a 2-1 margin and will take effect immediately. “I am extremely proud of the solidarity and the commitment to fairness that the Steelworkers showed throughout this process,” said USW International Vice President Tom Conway, who led the union’s […]
We thought our readers might be interested in seeing what steel imports were from the American Institute for International Steel perspective. Steel imports declined 12.6 percent in 2015 according to data analyzed by the American Institute for International Steel. The press release from AIIS follows: Falls Church, VA. February 2, 2016. Steel imports closed out […]
Four U.S. steel producers announced earnings this past week. During their earnings conference calls held with analysts the steel mills addressed questions/concerns regarding foreign steel being exported to the United States. The domestic mills filed trade cases against corrosion resistant steels (such as galvanized and Galvalume) as well as cold rolled and hot rolled steels. […]
We spent some time combing through the latest foreign steel import trade data provided by the U.S. Department of Commerce by product to see what impact, if any, the trade suits have been having on tonnages coming into the U.S. In the tables we have provided, we are showing the months of November (Final Census), […]
US Steel told analysts this week that the company was down to 3 steelmaking facilities and 5 finishing mills as they try to right size to the market conditions. U.S. Steel conducted their earnings conference call with financial analysts on Wednesday of this week. During the call, CEO Mario Longhi and other executives with the […]
Impairment charges contributed to a $62 million net loss for Nucor Corp. in fourth quarter 2015. An impairment charge of $153 million was recorded for the Duferdofin Nucor plant in Italy due to low operating performance. The company also took an $84.1 million non-cash write-down after deciding not to proceed with plans for a blast […]
Foreign steel imports for calendar year 2015 came in at 38,719,343 net tons. This represents a 12.7 percent reduction in tonnage compared to 2014. However, 2015 is still well above the average of imports seen over the past seven years. We saw large reductions in tonnage for semi-finished (mostly slabs), hot rolled, cold rolled, plates […]
Cliffs Natural Resources narrowed its net loss to $58 million in fourth quarter compared to $1.4 billion in Q4 2014. Full year net loss was $748 million compared to $8.3 billion in the prior year. “Despite the severely negative impacts of global iron ore and domestic steel prices, in 2015 we achieved substantial cost reductions […]
Significantly lower prices and weakened demand for flat rolled and tubular products resulted in big losses for US Steel last year and the outlook for 2016 is not much better. US Steel reported a fourth quarter net loss of $999 million and a net loss of $1.5 billion for full year 2015. The company continues […]
On December 16th the Federal Reserve raised the federal funds rate for the first time in almost a decade and as we write the FOMC is meeting once again and will make another announcement tomorrow regarding any change to the rate. None is expected though it is anticipated that four hikes could occur in 2016. […]
For the week ending January 23, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,670,000 net tons of raw steel, a 1.1 percent increase over the previous week but a 7.6 percent decrease over the same week one year ago. The estimated capacity utilization rate is 69.8 percent, up […]
The following is the Chicago Federal Reserve statement followed by our own graphical analysis. The CFNAI is an excellent reality check for much of the economic analysis that we routinely provide in The Steel Market Update and is also a reasonably good predictor of the direction of steel demand with a six to nine month […]
The U.S. Department of Commerce released foreign steel import license data through the 26th of the month late this afternoon. Based on the data to date, January imports are trending toward a 2.5 to 2.7 million net ton level. This would be slightly higher than December’s 2.6 million tons and above November’s 2.4 million tons. […]
Steel Dynamics’ struggling recycling segment widened the company’s net loss to $253 million in fourth quarter 2015. It was determined that the book value of the metals recycling segment recorded $435 million in non-cash goodwill and other related asset impairment charge. Excluding the metals recycling charges, adjusted net income was $22 million on net sales […]
AK Steel has intentionally been reducing their exposure to the low-priced spot markets and instead they are looking at the higher end value added products going to automotive and other contract customers. AK Steel results exceeded analyst expectations for fourth quarter. The company reported a net loss of $147.1 million for the fourth quarter of […]
In the market analysis questionnaire concluded late last week we asked a number of questions regarding foreign steel and the potential for another uptick in foreign market penetration with the domestic mills raising flat rolled steel prices. We asked if the mill price announcements were opening the door and making foreign steel prices more competitive? […]
China’s economy, the second largest in the world behind the U.S., grew at 6.9 percent in 2015. That was pretty close to its target of 7 percent for the year but also the slowest rate since 1990. Data released by the Chinese government shows fourth quarter growth at 6.8 percent. As recently as 2007 China’s […]
The vast majority of the respondents to our latest flat rolled steel market analysis believe that the domestic steel mills will be able to collect “some” of the latest round of price increases which range from $20 to $30 per ton. In our latest assessment of the flat rolled market, we asked whether the domestic […]
US Steel may temporarily lay off almost 700 workers at US Steel Tubular Products-Lone Star in Houston. Employees were advised by US Steel that operations may be adjusted “due to softening market conditions.” WARN notice listed by the Texas Workforce Commission on Jan 11 shows 679 employees slated for possible layoff beginning March 16, 2016. […]
With all of the key flat rolled products, hot rolled, cold rolled and corrosion resistant steels involved in antidumping and countervailing trade suits and the results of the preliminary determinations coming out it can be daunting to keep track of where each case rests at this point in time. Steel Market Update reached out to […]
For the week ending January 16, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,652,000 net tons of raw steel, a 3.6 percent increase over the previous week but a 8.6 percent decrease over the same week one year ago. The estimated capacity utilization rate is 69.1 percent, up […]
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The U.S. Department of Commerce released foreign steel import license data for the month of January. Based on license data through the 19th of January steel imports are trending toward a 2.3-2.5 million net ton month. If the trend continues the month would be well below both the 3 month and 12 month moving averages […]