Following the exceptional rate of vehicle sales in the US in May the June rate fell from 17.8 million annualized to 17.2 million then bounced back to 17.5 million in July. This was the second best month of the year. Light trucks continued to pull ahead of automobiles. In July LT sales which includes crossovers […]
On Wednesday of this week the U.S. Department of Commerce updated license data for foreign steel imports for the months of July and August. Based on only 18 days worth of data, August imports are trending toward another 3.0 million net ton month. The current trend line is for total steel imports for August to […]
Steel Market Update (SMU) conducted our mid-August flat rolled steel market review this week. We received our final responses this afternoon and we are ready to report on a number of the subjects covered this week. Buyers and sellers of steel are of the opinion that the trade suits on hot rolled, cold rolled and […]
Both these data points are reported in the Federal Reserve G17 data base. This month we have revised our data back through 1994 to account for massive revisions to the G17 data. Incidentally this is why many analysts question government data out of China who never revise their historical information. The US sometimes revises data […]
US Steel announced Monday that it intends to permanently close its blast furnace and associated steelmaking operations at Fairfield Works in Alabama. Most of the flat-rolled finishing operations at Fairfield will also be shut down. About 1,100 employees will lose their jobs due to the closure. “We have made some difficult decisions over the last […]
SMU requested a comment from the president of Steelscape regarding the challenges the mill will face if their parent companies’ supply of hot rolled coil is potentially cut off. We received the following note regarding their sources of supply which are named in the hot rolled antidumping and countervailing duty petition filed last week: “I […]
According to the latest data released from the US Department of Commerce and the American Iron and Steel Institute, apparent steel supply for the month of June 2015 was 9,373,498 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports and subtracting total US steel exports. June supply […]
Net imports equals imports minus exports. We regard this as an important look at the overall trade picture and its effect on demand at the mill level. Figure 1 shows that net sheet product imports on a three month moving average (3MMA) basis in June continue to be more than double that which existed before […]
This report compares domestic mill shipments and total supply to the market. It quantifies market direction by product and enables a side by side comparison showing the degree to which imports have absorbed demand. Sources are the American Iron and Steel Institute and the Department of Commerce with analysis by SMU. Table 1 shows both […]
I was speaking with the owner of a manufacturing company late last week. He told me his company had a number of union plants and he has negotiated a number of union contracts over the past few years. “People don’t strike anymore,” he said, “unless someone puts a line in the sand and forces the […]
I was speaking with the owner of a manufacturing company late last week. He told me his company had a number of union plants and he has negotiated a number of union contracts over the past few years. “People don’t strike anymore,” he said, “unless someone puts a line in the sand and forces the […]
On Tuesday six steel mills located east of the Rocky Mountains filed an antidumping and countervailing duty petition against seven countries: Australia, Brazil, Japan, the Republic of Korea, the Netherlands, Turkey and the United Kingdom. What makes this suit of particular interest to those on the West Coast USA is the source supply for two […]
The following is commentary from the American Institute for International Steel. As is the case with all important issues, there are two sides to every story. 13 August 2015. Falls Church, VA. The recent announcement of the filing of new trade cases on hot-rolled steel and other steel products reminds us that there are multiple […]
The flat rolled steel trading community has been hit and hit hard by the filing of antidumping trade suits on galvanized, Galvalume (zinc-aluminum) . As one trader put it to us earlier this week, “Business as usual has been blown up for the traders.” A number of traders spoke to SMU about the scope of […]
We have two data sources for this report. These are the Federal Reserve and the Oanda forex trading platform. An explanation of these sources is given at the end of this report. Oanda is current every day but the Federal Reserve daily broad index (BI) is normally about eight days in arrears. As of August […]
Six domestic steel mills joined together to file a hot rolled trade suit today. This is now the third such suit since the filing against corrosion resistant (galvanized & zinc-aluminum or Galvalume) on June 3rd and the cold rolled petition of a couple of weeks ago. With the HR case the mills have hit the […]
Talking to steel buyers this week was like listening to a broken record, “It’s quiet, it’s quiet, it’s quiet….” There has been very little activity and nothing pushing the markets which is quite amazing when you consider the domestic mills have filed three trade cases and are coming up on the September 1st deadline for […]
The Department of Commerce announced on August 11 the initiation of an antidumping investigation into imports of heavy walled rectangular welded carbon steel pipe and tubes from Korea, Mexico and Turkey and a countervailing duty investigation of imports from Turkey. The petition for the investigation was brought forth by Atlas Tube (a division of JMC […]
China made a surprise devaluation of its currency today to bolster its faltering economy. The 2 percent devaluation of the yuan will make imports to China more expensive but will make exports more attractive to international traders. The American Iron and Steel Institute (AISI) issued a statement today concerning today’s currency move by the Chinese […]
Recently, Steel Market Update had a conversation with trade attorney Lewis E. Leibowitz and we spoke about the purpose behind the U.S. trade laws. He told us that the impacted industry, in this case the steel industry, should be using the trade laws in order to get the “breathing room” or time needed in order […]
Over the past two months the U.S. steel industry has filed antidumping petitions on corrosion resistant (coated steels like galvanized and Galvalume) and cold rolled steels. The rumor mill has been flush with talk that a hot rolled suit will be announced as early as this week. What will the impact be on flat rolled […]
Over the weekend we received further updates on the status of the ferrous scrap markets in the United States. We learned that US Steel Granite City had no scrap buys in July and we are hearing that they are passing on offers that are $30 to $45 per gross ton lower than their last buys […]
In the first six months of this year bulk scrap exports were 6,893,000 metric tonnes for an annual rate of 13,786,000 tonnes, down by 9.1 percent from the first six months of last year. The tonnages shown in Figure 1 are based on three month moving averages for 2015 and on the twelve month monthly […]
The following article is written by Spencer Johnson of FC Stone LLC. With six years of experience, Spencer provides his customers strategic and tactical advice on protecting themselves against commodity price volatility in the steel markets. Spencer will rotate weekly futures articles with Andre Marshall of Crunch Risk, LLC. Spencer can be reached at spencer.johnson@intlfcstone.com. […]
Scrap prices are falling across the country as the August numbers begin to settle. In most regions we are seeing prices down $20 to $30 per gross ton. However, depending on the starting point, numbers are down more than $30. The other development is the numbers in the South are now more in line with […]
Olympic Steel net sales fell to $316.3 million in second quarter and dropped 9.8 percent to $661.1 million for the first half of 2015. Declines in both periods were attributed to lower shipments and lower average selling prices due in part to the impact of subsidized imports on the market. The company reported a net […]
Licensed data for July was updated on August 4th through the Steel Import Monitoring System of the US Commerce Department. Steel Market Update publishes several import reports ranging from this very early look using licensed data to the very detailed analysis of final volumes by district of entry and source nation which is available to […]
The U.S. Department of Commerce updated license data for foreign steel imports for the month of July. Based on the just released data it appears July imports will be approximately 200,000 net tons higher than what was received during the month of June. However, when looking at imports from a 3 month moving average and […]
The Steel Summit Conference is pushing 230 people and we have 4 weeks to go. We sold out the room block for September 1st. We should (we hope) be able to get more rooms added, however the room block expires either when we sell out the revised number or on August 10th, whichever comes first. […]
Flat rolled steel prices, and the momentum associated with steel price movement, have been stuck for quite some time as you can see by our SMU Price Momentum at the top of the table below. As a result, our benchmark hot rolled price average is $3 per ton higher than what we reported at the […]