The American Institute for International Steel is seeking reinforcements in its legal battle over the constitutionality of the Trump administration’s Section 232 tariffs. In a letter to AIIS members and steel supply chain partners this week, the trade group solicited donations to help cover its legal bills. “Legal costs and related expenses are mounting quickly. […]
How sustainable are the high steel prices in the United States? Steel Market Update sources point to a number of risk factors that buyers should consider. One service center general manager told us flat rolled and plate prices could only be threatened by an increase in imports. “Sharp price declines are caused by sharp increases […]
Is buying foreign steel today a big opportunity, in light of the wide spread between foreign and domestic pricing, or a big risk, in light of the tenuous trade situation in Washington? Steel Market Update canvassed the market and received widely varying views. For some, placing foreign orders is “a no-brainer.” For others, concerned about […]
Premium subscribers to Steel Market Update have access to reports on SMU’s website that break out the import tonnage into district of entry and source nation for six sheet and plate categories. SMU has now developed reports that drill down to provide more product detail on hot rolled and cold rolled coil. We report these […]
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 […]
Houston-based pipe manufacturer Borusan Mannesmann Pipe U.S. has been denied a temporary exemption from Section 232 tariffs on steel imports. Borusan was one of the first companies to file for product exemptions. After not getting a response, Joel Johnson, Borusan Mannesmann’s U.S CEO, decided to take a more direct approach and initiated a company postcard […]
In the last months, 14 of the 16 currencies that Steel Market Update tracks were down against the dollar, led by Turkey down by 29.4 percent, and Russia and South Africa both down by 8.5 percent. The Chinese yuan has declined by 7.9 percent in the last three months. Please see the end of this […]
This Steel Market Update report examines the import share of sheet, plate, long and tubular products and 16 subcategories through May. Table 1 shows total supply to the market in three months through May and in 12 months through May for the four product groups and the 16 subcategories. Supply to the market is the […]
I am back in my office and will be here for the balance of the week. Diana is back as well and will be in her office until we leave for Atlanta at the end of August. Graber Post Buildings, Esmark, CMC Impact Metals, North American Steel Alliance, Fluor, Whirlpool Corporation, Metal One America, Gateway […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: I spoke with a good friend over the weekend about the Trump tariff policy. So far, we have tariffs against all countries on steel and aluminum (with very few exceptions), and China-specific tariffs on $34 billion […]
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 […]
A Senate Foreign Relations hearing went awry when the administration sent Manisha Singh, Assistant Secretary of State for the Bureau of Economic and Business Affairs, to answer committee members’ questions about Section 232 measures. Singh was unable to provide Senate members evidence of a coherent trade strategy by the administration. Singh was asked to comment […]
Imports of other metallic coated sheet (OMC) into the U.S. as a whole were down by 17.6 percent in May year to date, according to Steel Market Update’s latest analysis of federal data. The Great Lakes region was up by 10.5 percent and the South Atlantic was down by 35.8 percent. SMU now has a […]
Imports of hot-dipped galvanized sheet into the U.S. as a whole were down by 10.9 percent year to date through May, according to Steel Market Update’s latest analysis of Commerce and ITC data. SMU now has a comprehensive series of import reports ranging from the first look at license data to the very detailed look […]
This analysis breaks down the imported tonnage of six flat rolled products into the district of entry and the source country. We believe that misinformation (or lack of) about local import volumes is often used to influence purchase decisions. Our intent with this analysis is to describe in detail what is going on in a […]
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 […]
Passage of the Senate motion to give Congress a role in deciding Section 232 tariffs was met with approval by the Coalition of American Metal Manufacturers and Users (CAMMU). The United Steelworkers offered qualified approval, but called for caution. “The Coalition applauds the Senate for taking this important first step to reassert its authority in […]
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 […]
On Friday, July 6, the U.S. Department of Commerce released Final Census Data on foreign steel imports for the month of May 2018. May imports totaled 2,929,652 net tons, which was 824,335 tons less than the prior month. The import license data collected through July 6 shows June foreign steel imports to be on pace […]
Are imports of motor vehicles and auto parts a threat to the security of the United States? More than three out of four respondents to last week’s Steel Market Update market trends questionnaire say no. Citing the same argument that it used to justify the tariffs on steel and aluminum under Section 232 of the […]
Flat rolled steel imports into the United States continue to decline. The three-month moving average (3MMA) for rolled product imports into the U.S. year over year was down by 11.3 percent as of June, according to Steel Market Update’s latest analysis of Commerce Department license data. This is an early look at June’s import volume […]
The data from Steel Market Update’s latest market trends questionnaire shows mixed feelings when it comes to Current vs. Future Sentiment. The SMU Steel Buyers Sentiment Index measures how buyers and sellers of flat rolled and plate steels feel about their companies’ ability to be successful both now (Current) and three to six months into […]
Steel executives canvassed by Steel Market Update this week reported that demand remains strong, though they are less confident about conditions later in the year. Many expressed concern about the tariffs and trade issues unfolding in Washington, difficulty with trucking and logistics, and the impact of high steel prices on their customers. Following are some […]
I would like to comment on the letter from the Midwestern Service Center Executive published in Steel Market Update’s July 5 newsletter. First, to call a decrease of $200/ton a “decrease of that magnitude” may have been the way to describe it 10 years ago, but in times where domestic mills have made increases in […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: The steel product exclusion process is stuck. While more than 11,000 comments have been filed, the overwhelming majority of which are product exclusion requests, less than 100 (by my latest count) have been processed. Of […]
Detroit automakers reported higher sales in June as buyer enthusiasm for SUVs and pickup trucks continued. Ford sales for the month increased 1.2 percent year-over-year to 230,635 vehicles on purchases of SUVs and F-series trucks. Fiat Chrysler sales jumped 8 percent to 202,264 vehicles in June and General Motors, no longer reporting monthly sales, said […]