By Philip Bell, President, Steel Manufacturers Association As we approach the holidays, there are some who believe that a swift Section 232 deal with Japan is essential. Some also believe a Japanese deal should be equivalent to the deal reached with the European Union this October. The notion of a Jan. 1, 2022, deal deadline […]
Steel prices fell hard again this week. While the absolute numbers – down $60 per ton ($3 per cwt) on hot-rolled coil – might appear shocking at first glance, one could make the case that we’re being conservative. The development shouldn’t have come as a surprise to those who lived through past ups and downs. […]
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. […]
By Greg Wittbecker, Advisor, CRU Group The massing of Russian troops on the border with Ukraine has raised tensions to a high level on the political scene. It forces us to take another look at the repercussions of new sanctions on the Russian state should Putin decide to invade. 2018 Repeated? In March 2018, sanctions […]
Top U.S. and British trade negotiators appear to be nearing a deal to ease Section 232 tariffs on steel and aluminum from the United Kingdom. That’s according to recent statements from the Office of the U.S. Trade Representative (USTR) and the Commerce Department. Case in point: Commerce Secretary Gina Raimondo and UK Secretary of State […]
Companhia Siderúrgica Nacional (CSN) is considering plans to build an electric arc furnace (EAF) long products mill and a galvanizing facility for steel sheet in the United States. That’s according to an investor presentation in which the Brazilian steelmaker said new plants in the U.S. as well as expansions in Europe and in Brazil were […]
Looking for floor plate for Christmas? What about hot-rolled coil for the New Year? You’re in luck. Cleveland-Cliffs Inc.’s steel mill in Riverdale, Ill., can get floor plate to you by Dec. 25, or just 18 days from now. And most of its sheet mills can get you hot-rolled coil by Jan. 1, or 25 days […]
By Trade Attorney Lewis Leibowitz The global situation is changing under our feet (and noses). There is much to unpack, but the trend is clearly disturbing. First, Russia has massed between 100,000 and 200,000 troops on its border with Ukraine. No one is talking publicly about why that is happening, but the obvious concern is […]
(Editor’s note: This is a corrected version of Final Thoughts. The original misstated a hot rolled peak of $1,995 per ton, not $1,955.) In our questionnaire this week, we asked steel buyers: Do you sense that the market is changing, and in what ways? Not surprisingly, many referenced shortening mill lead times and declining steel prices. […]
By CRU Analyst Tanya Bhaiji, from CRU’s Steel Sheet Products Monitor, Nov. 29 Galvanized sheet is the biggest first use for refined zinc, constituting around 30% of total refined zinc demand in 2020. The majority of galvanized sheet is consumed in end-use sectors such as construction and automotive while a smaller percentage is also consumed in […]
By CRU Senior Analyst Ryan McKinley, from CRU’s Steel Long Products Monitor, Dec. 1 Long product prices again moved higher in the USA m/m following a larger-than-expected scrap price increase and unseasonably strong demand. Mill-announced price increases for wire rod were the largest at $80 /s.ton m/m, while merchant bar and beam prices were also […]
A long-running legal fight over whether former President Donald Trump had legal authority to double Turkey’s Section 232 steel tariff to 50% might be headed to the Supreme Court. Attorneys representing a Turkish mill and consumers of Turkish steel last month filed a request – also known as a “writ of certiorari” – asking the […]
The U.S. Commerce Department has released product- and country-specific information on the tariff-rate quota (TRQ) for individual European Union member states. Among the biggest winners are Dutch hot rolled, Swedish cold rolled, and German plate. A complete list of quotas for individual steel products and countries is below. For steel products, click here. Our friends […]
With steel prices trending downward as 2021 comes to a close, there is a different tone to annual contract negotiations, respondents to Steel Market Update’s market trends questionnaire said. Talks are more contentious, reported many buyers, as mills seek to lock in volume near current prices for 2022, while service centers and OEMs are reluctant to […]
Spot prices might be wobbling. But mill balance sheets are as strong as they’ve ever been – and the cash will continue to pour in as 2022 contracts reset at substantially higher numbers. Here are two opposing trends I’m keeping an eye on: (1) whether mills will use their cash hoards to expand outside of steel […]
South Korea wants the U.S. to start negotiations to ease Section 232 on its steel exports as soon as possible, according to local media reports. The latest call came during meetings this week between U.S. trade officials and their South Korean counterparts in Seoul. “We once again delivered our stance and concerns regarding the Section […]
With 2022 right around the corner, it’s time to reflect back on an unusual and eventful year for the steel industry. Following is Steel Market Update’s Top 10 News Events of 2021: #10 – Economy Rebounds from COVID: No one could have predicted when the virus crippled commerce in the spring of 2020 that the […]
Editor’s note: SMU contributor Bryan Tice is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and the firm design and execute risk management strategies for clients along with providing process and analytical support. Before joining Metal Edge Partners, Bryan held a variety of commercial […]
By CRU Senior Prices Analyst Estelle Tran, from CRU’s Global Steel Trade Service, Nov. 18 In the last several weeks, U.S. sheet prices have started to decline, though prices remain well above global prices. Under pressure from imports and service centers eager to sell high-cost inventory before the end of the year, prices for processed […]
By CRU Principal Analyst Matthew Watkins, from CRU’s Global Steel Trade Service, Nov. 18 There was a big price collapse in China over the past month. HR coil export prices have fallen by 13% since October and rebar is down by 10% in the same period. For HR coil, this means that China has returned […]
By Philip Bell, President, Steel Manufacturers Association Earlier this year, the European Commission began reviewing its Waste Shipment Regulation (WSR) and considering proposals for its revision. On Nov. 17, the EU commission announced that it may restrict waste exports including metal scrap to non-OECD countries. In yesterday’s formal announcement, the commission proposed revised legislation on […]
The Oct. 31 agreement between the U.S. and the EU to replace Section 232 with a tariff-rate quota (TRQ) will likely serve as a model for similar trade deals with other countries that are chafing under the Trump-era tariff, said veteran Washington trade attorney Lewis Leibowitz during Wednesday’s SMU Community Chat. The Biden administration began […]
SMU’s Community Chat webinar on Wednesday will feature veteran trade attorney Lewis Leibowitz. We’ll talk Section 232, the tariff-rate quota (TRQ) with the EU, and the changing global trade landscape. The free webinar begins at 11 a.m. ET (10 a.m. CT) on Wednesday, Nov 17. You can register right up to webinar time by clicking […]
Hot-rolled coil prices continue to slide. And galvanized base prices are holding more or less steady. What gives? Check out the slide below. The green line is galvanized base prices. The blue line is lead times. Prices are on the left-hand side of the slide. Lead times are on the right. Prices have been around […]
By Trade Attorney Lewis Leibowitz Last Wednesday, it was my pleasure to join many readers on the latest Steel Market Update Community Chat. After a brief rundown of current issues affecting the steel sector and its customers, we had a lively round of questions, refereed by SMU Senior Editor Michael Cowden. We didn’t get to […]
By Greg Wittbecker, Advisor, CRU Group Quotas in exchange for exemption, a bad precedent for other countries There has been much written about the new détente between the EU27 and the USA in the aftermath of the deal to suspend duties on European steel and aluminum. There are also reports that something may also be […]
SMU’s Community Chat webinar on Wednesday will feature veteran trade attorney Lewis Leibowitz. We’ll talk Section 232, the tariff-rate quota (TRQ) with the EU, and the changing global trade landscape. The free webinar begins at 11 a.m. ET (10 a.m. CT) on Wednesday, Nov 17. More than 250 people have already registered. You can register […]
The U.S. and Japan have officially begun talks that could lead to an easing of Section 232 tariffs on Japanese steel and aluminum exports. Those negotiations are part of a broader bilateral discussion on ways to reduce excess steel- and aluminum-making capacity globally, most of which the U.S. says is driven by China. “The United […]
Steel prices are on the way down, but not steel buyers’ optimism – at least not yet. Steel Market Update’s indexes for both Current and Future Buyers Sentiment registered lofty readings of +78 this week. Could this be industry optimism at its peak? SMU surveys buyers every two weeks and asks how they view their chances […]
Algoma Steel posted record profits in its fiscal second quarter, and the Canadian flat-rolled steelmaker expects money to continue to pour in as high spot prices roll into 2022 contracts. The Sault Ste Marie, Ontario-based company also thinks that the traditional relationship between sheet and plate prices will be restored as infrastructure spending increases demand for […]