Steel Market Update participates in a number of social forums including one of our own which is hosted on LinkedIn. Our LinkedIn group name is: Steel Market Update and if you are a LinkedIn member you are invited to join. We received the following questions after posting one of our articles about May imports on […]
The latest steel import census data has preliminary imports at 4,016,437 net tons in May, the highest tonnage levels seen since 2006. May represents a 7.4 percent increase over the previous month and an increase of 1,178,145 tons or 41.5 percent compared to May 2013. Foreign steel now represents 28 percent of the steel market. […]
U.S. light vehicle sales increased in May to nearly 16.8 million units at a seasonally adjusted annual rate, (SAAR) up from an average of 15.8 million units in the first five months of 2014 and the strongest rate since February 2007. Light vehicles are autos and light trucks (GVW Classes 1-3, under 14,001 lbs.). Automotive […]
Figure 1 shows historical gas and oil prices since January 2000. West Texas Intermediate closed at $107.08 and Brent at $115.19 on June 19th. In 10 days prior to the 19th WTI increased by $1.99 and Brent by $4.64 as the ISIS situation in Iraq increased market uncertainty. Oil and gas prices have both been […]
We have two markets developing for flat rolled steel imports: hot rolled imports are expected to actually begin to shrink from here as the offers out of Russia and Turkey for hot rolled pricing are approximately $600 per ton or higher. Since most foreign steel buyers tend to be buyers of large tonnage and thus […]
Based on the most recent import license data produced by the U.S. Department of Commerce, imports continue to be on pace to meet, or exceed, 3.5 million net tons. This would be the 3rd month in a row where foreign steel imports were at 3.5 million tons or above. Since the beginning of the year […]
The US steel industry is contemplating challenging a trade agreement with Russia that governs imports of hot rolled steel from Russia. A suspension agreement currently exempts Russian steelmakers from antidumping duties by setting a cap and minimum price on HRC imports. According to a Reuters article on Tuesday, US steel companies say the HRC pricing […]
The US steel industry is contemplating challenging a trade agreement with Russia that governs imports of hot rolled steel from Russia. A suspension agreement currently exempts Russian steelmakers from antidumping duties by setting a cap and minimum price on HRC imports. According to a Reuters article on Tuesday, US steel companies say the hot rolled […]
I am going to start off today’s final thoughts with a shout out to one of our own, John Temples, who recently was interviewed by a Michigan Business Network radio station about Steel Market Update. You can listen to a replay of the interview by clicking on this link. For our Premium Level members, be […]
Industry and economic data is always subject to inaccuracies so we at SMU try to compare different data sources to get the best handle on a situation. Housing and non-residential construction starts are examples that come to mind. In the case of steel imports we have three reports produced by the US Department of Commerce: […]
“Following the doubling of steel production from 849 million tonnes in 2000 to 1.6 million tonnes in 2014, we are likely entering a period of consolidation, or at the very least, much reduced growth.” That is the opinion of Becky Hites, analyst and president of Steel-Insights, LLC in a June 7, 2014 report, Fixed Asset […]
The Broad Index value of the US $ has been gradually strengthening for 18 months, (Figure 1) which favors imports to the US and depresses exports. See explanation at the end of this piece. The currencies of the steel trading nations have been fairly stable over the last month. Table 1 shows the number of […]
As you could probably sense from our last issue of Steel Market Update, we are concerned about the amount of foreign steel imports related to the strength of the overall economy. It is one thing to see imports surging when the economy is hot and steel usage is high like we saw in 2004, 2006 […]
The following article was written by Peter Brebach, CEO of Iron Angels of Colorado. Peter is a trader who imports pipe and tube products into the United States and is well versed on the current oil country tubular goods (OCTG) issues facing the domestic steel mills. Here is his article on the subject: Import licenses […]
A federal crackdown is needed on the import and dumping of cheap products in the U.S. said US Steel Corp CEO Mario Longhi to attendees at the West Virginia Manufacturers Association Leadership Summit on Monday. Longhi, known for his strong stance on foreign import trade regulations, told manufacturers at the meeting that stronger trade laws […]
We are now one-third of the way through the month of June, far enough along to begin doing our analysis of the US Department of Commerce license data on imports. The data is showing us that the surge of imports grew during the month of May and will continue into the month of June. We […]
April ferrous scrap exports totaled 1,476,282 net tons (1,339,262 metric tons) with Turkey, Taiwan, Korea, Mexico, and China being the top five importing countries. These countries accounted for 73.2 percent of all scrap exports. Total April ferrous scrap exports were 0.7 percent higher than previous month and 36.7 percent higher than the same month one […]
A short note to let our Premium Level members know that our Steel Market Update survey results are online and can be accessed on the website. If you need assistance accessing any of the Premium products on our website please let me or Brett@SteelMarketUpdate.com know and we will help you. We are also sharing this […]
Total shipments of sheet and strip products including hot rolled, cold rolled and all coated products were up by 0.8 percent year to date (YTD) compared to the first four months of 2013. In the period January through April compared to the previous three months, the total tonnage was up by 4.8 percent. Comparing YTD […]
The U.S. Department of Commerce released final census data regarding exports of steel out of the U.S. steel mills this past week. According to the US DOC data, the domestic mills exported a total of 1,079,723 net tons of steel products during the month of April 2014. This is in line with the previous two […]
The U.S. steel mills exported 1 million tons of steel during the month of April. This is within the 12 month moving average and only slightly higher than the 1,041,387 net tons shipped in April 2013. During the same month (April 2014) foreign imports rose by 999,557 net tons compared to the same period one […]
Apparent steel supply for April was 9,925,287 net tons, the highest figure Steel Market Update has in its recorded history beginning in January 2010. April supply represents an 831,098 ton or 9.1 percent increase compared to the same month one year ago. This is primarily due to the massive spike in April imports, up 36.5 […]
The housing bubble in China has popped according to economists. The oversupply of housing and shortage of developer financing will slow China’s GDP growth to less than 6 percent in 2014 says a recent report by Japanese investment company Nomura. Nomura says a “hard landing” may be in China’s future due to a 33 percent […]
US Steel says it will indefinitely idle two tubular manufacturing facilities in McKeesport, Pennsylvania and Bellville, Texas in early August. US Steel reported that the decision is a result of poor business conditions due to unfairly traded tubular steel products imported into the United States. The shutdown of the two facilities will impact approximately 415,000 […]
Something has to give. US Steel announced the closure of two of their OCTG production facilities. The McKeesport facility has a capacity of 315,000 tons of OCTG per year while the Bellville operation capacity is 100,000 tons of OCTG on an annual basis. Total US Steel production capacity of oil country tubular goods is 2.8 […]
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 at present is thirty five, the Chicago Fed Mid-West Manufacturing Index is still on hold to enable the staff to complete a major re-vamp of the […]
Licensed data for May was updated on June 3rd through the Steel Import Monitoring System of the US Commerce Department. The SMU 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 published in our […]
Licensed data for May was updated on June 3rd through the Steel Import Monitoring System of the US Commerce Department. The SMU 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 published in our […]
For those of you who are paying attention to our website you might have noticed we added a new sub-menu under the Resources tab. The new menu is called “The Truth About Selling Steel” and we have attempted to split out those articles associated with sales from our Steel Buyers Basics series of articles many […]
Ferrous scrap negotiations have begun between the U.S. and Canadian steel mills with most mills expecting lower prices. One way we know if the mills believe prices will fall is they will cancel any remaining orders from May that have not yet been completed from their scrap suppliers in the hopes of being able to […]