NLMK USA sales in the fourth quarter of 2020 increased 1% from the third quarter to 370,000 metric tons. Sales plummeted 22% from a year ago due to low capacity utilization at NLMK Pennsylvania attributed to the ongoing strike and a shortage of slabs for duty-free import. Rolling capacity utilization at the U.S. segment was […]
The Coalition of American Metal Manufacturers and Users (CAMMU) wants the Biden administration to terminate Section 232 tariffs and quotas on imported steel and aluminum “at once.” The group–which claims to represent more than 30,000 companies and one million workers in downstream metals-consuming sectors–said doing so will save jobs at home and allow the U.S. […]
Section 232 tariffs and quotas have left domestic steelmakers and steel consumers in sharply different realities. One side is investing big at home and enjoying record profits. The other is angry about sharply higher costs and is scouting for more steel abroad. That was the takeaway from a trade roundtable at Steel Market Update’s virtual Tampa […]
Interest in imported flat-rolled steel is growing among some U.S. buyers thanks to a widening spread between domestic mill prices and foreign offers. Some market participants said they had already purchased material at what they thought was an attractive price–and because long domestic mill lead times reduce the risk of buying imports. But others said […]
Section 232 tariffs on imported steel and aluminum netted the U.S. government nearly $2 billion in its 2020 fiscal year. U.S. Customs and Border Protection (CBP) collected $1.3 billion in Section 232 tariffs on imported steel in fiscal 2020 and $500 million in tariffs on imported aluminum, according to a recent report from the agency. […]
A decision from the U.S. Court of International Trade upholding Section 232 tariffs on imported steel means any repeal of the trade action will have to come from the Biden administration with the support of Congress, a top American Metals Supply Chain Institute (AMSCI) executive said. AMSCI should know because it went before the same […]
The Congressional Steel Caucus–in a bi-partisan show of unity–has asked President Joe Biden to keep Section 232 tariffs and quotas in place. The request comes as the Biden administration has acknowledged that a review of trade policies enacted by former President Donald Trump is ongoing. “The review is underway of the previous administration’s trade policy […]
Steel buyers are feeling good about their prospects later this year, as this week’s Steel Market Update Future Sentiment Index saw its highest reading in more than two years at +66, a 13-point jump over the past two weeks. Current Sentiment, which saw a small, four-point bump to +68, is equally optimistic. Every two weeks, […]
Nucor is investing to grow in capability not capacity, said Nucor President and CEO Leon Topalian in remarks Tuesday during the virtual Tampa Steel Conference, co-hosted by Steel Market Update. “It’s not about tons and volume, but about servicing customers’ long-term needs,” he said. One growing customer segment for Nucor is the auto industry. Nucor […]
Nucor is investing to grow in capability not capacity, said Nucor President and CEO Leon Topalian in remarks Tuesday during the virtual Tampa Steel Conference, co-hosted by Steel Market Update. “It’s not about tons and volume, but about servicing customers’ long-term needs,” he said. One growing customer segment for Nucor is the auto industry. Nucor […]
The U.S. Court of International Trade (CIT) has upheld the legality of Section 232 tariffs following a legal challenge lodged by consumers of foreign steel. The ruling deals a blow to the plaintiffs–Universal Steel Products, PSK Steel Corp., The Jordan International Company, Dayton Parts LLC and Borusan Mannesmann Pipe U.S. Inc.–which claimed that they had […]
NLMK USA and striking United Steelworkers at the mill’s operations in western Pennsylvania remain at loggerheads nearly five and a half months after the labor action began. “As of now, we remain far apart with the union. We continue to meet in good faith working towards a resolution,” NLMK USA President and CEO Robert D. Miller said […]
The American Metals Supply Chain Institute (AMSCI) wants President Joe Biden to repeal Section 232 tariffs on steel and aluminum. The group, formerly known as the American Institute for International Steel (AIIS), said doing so was necessary for the health of the metals supply chain and the broader U.S. economy. The request: that the Biden […]
President Joe Biden has revoked a decision–made in the waning days of the Trump administration–to remove Section 232 tariffs from aluminum imported from the UAE. “In my view, the available evidence indicates that imports from the UAE may still displace domestic production, and thereby threaten to impair our national security,” Biden wrote in a presidential […]
“What a difference a quarter can make,” exclaimed U.S. Steel President and CEO David Burritt during the opening of the fourth-quarter 2020 earnings call. The company posted positive net earnings of $49 million following a net loss of $234 million in the third quarter and a net loss of $688 million in Q4 2019. Net […]
NLMK USA has sued U.S. Steel for at least $100 million to recoup Section 232 tariffs it claims were unjustly levied against it because of a “deception” perpetrated by the integrated steelmaker against the Commerce Department. In addition, the U.S. subsidiary of NLMK Group–Russia’s largest steelmaker–seeks a jury trial, additional damages to be determined at […]
It might be comforting to have 2020 in the rear-view mirror, but 2021 could have a few tricks up its sleeves, an ArcelorMittal USA analyst said. The good news: The U.S. should see apparent steel consumption increase 6% in 2021 after it fell 16% in 2020, according to Ping Liang, senior analyst-strategic marketing, at ArcelorMittal […]
Flat-rolled steel prices have room to rise despite being at record levels, and any correction might not come until well into the second quarter. That was the takeaway from a conference call this morning with members of the Heating, Air Conditioning & Refrigeration Distributors International (HARDI). “I don’t remember a market like this. Maybe at […]
By CRU Analyst Sam Grant, from CRU’s Steel Sheet Products Monitor Galvanized steel sheet equates to around 30% of refined zinc demand, making it the most significant first use for zinc globally. China is by far the world’s largest producer, responsible for 33% of the global total, with North East Asia, North America and Europe […]
On Wednesday at noon the Biden administration will take over the Executive Branch of the U.S. government. President Biden is planning on hitting the ground running as he works to control the pandemic, put the U.S. back in the Paris Climate Accord, and (unfortunately) deal with a country fractured by Trump insurrectionists. Biden has made […]
The Biden administration could act fast on a big infrastructure bill if the Senate is quick to approve the president-elect’s Cabinet, the head of the American Iron and Steel Institute (AISI) said. “By sometime this spring, I think we could have a major infrastructure bill done,” AISI President and Chief Executive Officer Kevin Dempsey said […]
The Biden administration could act fast on a big infrastructure bill if the Senate is quick to approve the president-elect’s Cabinet, the head of the American Iron and Steel Institute (AISI) said. “By sometime this spring, I think we could have a major infrastructure bill done,” AISI President and Chief Executive Officer Kevin Dempsey said […]
By Greg Wittbecker, Advisor, CRU Analysis An administrative change in Washington, D.C., arrives this week. Some of the parties with vested interests in Section 232 are already messaging the Biden administration. On Jan. 13, the American Primary Aluminum Association (APAA), which consists of Century Aluminum and Magnitude Seven Aluminum, sent a letter to President-elect Biden […]
By Greg Wittbecker, Advisor, CRU Analysis U.S. Midwest primary aluminum expressed over LME cash is 26-27 cents per pound, touted at “record levels.” In October 2014, Midwest traded premiums reached 23 cents per pound, so on paper we have set a new high….or have we? 2014: the Era of the LME Warehouse Queues We don’t […]
By CRU Principal Analyst Josh Spoores, from CRU’s Steel Monitor Global steel prices, as measured by the CRUspi index, have increased for the 10th consecutive month, gaining 9.4% m/m and 116% y/y. This index now stands at 301.1, a new record high. This index continues to be supported by higher finished steel prices across all regions. […]
By Greg Wittbecker, Advisor, CRU Analysis Primary aluminum prices are on a roll in China and the World ex China. The Shanghai Metal Exchange (SHFE) spot price is 18,425 RMB or $2,825 per metric ton. Even adjusting out the 13% Value-Added-Tax (VAT) embedded in that price, it’s still a 10-year high of $2,500 per metric […]
The U.S. steel industry has enough capacity to meet demand even if the Biden administration passes a big infrastructure bill, said the top executive of the nation’s biggest steelmaker. The United States “desperately needs” an infrastructure package worth “more than $1 trillion,” and Nucor hopes such a bill will be passed in the early days […]
I anticipate next week’s spot hot rolled and other flat rolled steel prices will be higher than what we reported on Tuesday evening (HRC = $1,080 per ton average). We received information from an end user today of hot rolled purchases of $1,140 per ton for end of March/early April production. An order for HR […]
U.S. steel lobbying groups and the United Steelworkers union want the administration of President-elect Joseph Biden to keep Section 232 tariffs and quotas in place. The steel groups and the union think the protections are necessary because of global steel overcapacity and because of the economic impact of the Covid-19 pandemic, according to a recent […]
The U.S. electric-arc furnace steelmaking industry is eager to work with the administration of President-elect Joe Biden to craft better trade, infrastructure and manufacturing policies, the head of the Steel Manufacturers Association said. And those efforts could be fruitful given Biden’s moderate positions on those issues and the moderation that will be necessary to effectively […]