Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Section 232 tariffs are increasingly in the news. Today, I describe two issues that are central to the prosperity (and in many cases the survival) of steel-using manufacturers. Exclusions With the end of the government shutdown, the exclusion […]
Sales at NLMK USA fell 15 percent from third- to fourth-quarter 2018 on expectation of lower steel prices. Shipments dropped 500,000 metric tons from 590,000 tons, sequentially. The decrease in shipments, combined with a 3 percent decline in average price, led to sales falling 17 percent to $500 million. On a yearly basis, NLMK USA […]
Rolled product imports increased by 4.5 percent in January, calculated as a three-month moving average (3MMA) year over year. This early look at January’s import volume is based on Department of Commerce license data (see explanation below). Beginning in January 2018, we expanded this import analysis to include all major steel sectors: sheet, plate, longs […]
Section 232 tariffs propelled ArcelorMittal to its best results in nearly 10 years, the company reported to analysts and investors today. The 25 percent tariffs on steel imports helped drive up steel prices, adding to company revenue from its U.S. assets. Average steel selling price in North America rose 15 percent year-over-year. Net income for […]
By CRU North America Steel Analyst Ryan McKinley Since Section 232 tariffs have come into force, U.S. wire rod prices have increased more than other markets. As a result, domestic PC strand (prestressed concrete steel strand) producers have seen costs increase, inviting more competition from abroad. Higher Prices Affecting Competitiveness Rising U.S. domestic wire rod […]
The European Union has initiated new safeguard measures on steel imports to replace provisional ones introduced in July 2018. The measures are designed to protect the steel industry in the EU from excessive imports diverted there as a result of the Section 232 tariffs in the United States. An investigation into the potential increase of […]
One constant I am hearing during my phone and email conversations is that January was a good month for shipments and February has started out strong. The construction community is pleasantly surprised, and I really have not heard anyone say business is bad in any market segment. One of the mills pointed out that much […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Congress started the year in international trade by introducing bills to limit presidential authority to order import restrictions. There are two significant pieces of legislation in the House and one in the Senate. I will briefly summarize the […]
By CRU Principal Economist Lisa Morrison The partial U.S. government shutdown, which began on Dec. 22, 2018, lasted 35 days and is the longest shutdown in U.S. history. President Trump decided to re-open the government until Feb. 15 to allow time for additional negotiations regarding the border security issues. The Congressional Budget Office estimates that […]
Metalforming companies are concerned that higher prices for steel and aluminum in the U.S. are hindering business competition. More than half of metalforming companies surveyed by the Precision Metalforming Association are expecting little change in business conditions during the next three months. The January survey found that 57 percent expect no change (compared to 49 […]
Pointing to the temporary reprieve from the longest government shutdown in American history, the U.S. Chamber of Commerce calls on Congress and the administration to work together to keep the government open. “Our nation simply cannot afford another shutdown. Our message to Washington’s leaders is simple: do your jobs so Americans can do theirs,” wrote Chamber […]
Two manufacturing associations came out with opposing views on Wednesday to a new bill that would limit presidential power for the execution of trade measures under Section 232. The Bicameral Trade Authority Act of 2019, introduced in the House and Senate, would require congressional approval before the president could take trade actions, like tariffs and […]
Whether the mills succeed in collecting the $40 increase on flat rolled they announced in recent days depends a lot on how strong demand proves to be in the first quarter. Such price hikes are common in January as the mills anticipate a pickup in business following the seasonal slowdown in the fourth quarter. Service […]
U.S. Steel’s full-year net earnings nearly tripled from 2017 to 2018, but company executives were disappointed in fourth-quarter results for the Europe and tubular segments. Net earnings for the year totaled $1.1 billion compared to $387 million for 2017. Adjusted EBITDA was $1.76 billion compared to $1.15 billion a year ago, including $1.25 billion generated […]
The Steel Manufacturers Association would like to see the U.S.-Mexico-Canada Agreement ratified by the three countries, even if it calls for a change to the tariffs. Speaking at a press briefing during SMA’s board meeting Thursday in Washington, SMA President Phil Bell said the modernized trade rules in the USMCA are an improvement on NAFTA. […]
We have many new members as well as those on trials of our newsletters and website. I want to take a couple of minutes and explain what “final thoughts” means as it relates to this newsletter and Steel Market Update in general. Since I first started writing the Steel Market Update newsletter, I wanted a […]
AK Steel announced that it will permanently close its Ashland Works facility in Kentucky by the end of 2019. The blast furnace and hot end operations were idled in 2015, but AK Steel continued to operate a single hot-dip galvanizing coating line. Ashland’s 330,000 tons of loaded production will be transferred to other units in […]
A bill limiting the president’s authority to impose tariffs under the auspice of national security will be introduced in Congress next week. Sen. Pat Toomey (R-PA) will introduce a bill that would require the president to obtain approval from Congress before imports could be restricted under Section 232 of the Trade Expansion Act of 1962. […]
I have read a number of articles recently claiming steel prices have gone back to the levels they were when the Section 232 tariffs were announced. This is somewhat deceiving as the domestic mills had been pushing prices up prior to the announcement. A better benchmark would be to use the historical average on hot […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: The dust hasn’t settled yet from the partial government shutdown that ended Friday night. Already, though, thoughts turn to the issues that divide us as a country. As a trade person, I naturally focus on that issue. You do […]
On Monday, California Steel Industries (CSI) and USS/POSCO (UPI) advised customers of their intention to take spot prices on flat rolled products produced by the two mills up by $40 per ton ($2.00/cwt). This is the first price announcement out of either mill since October 2018. So far, there have not been any announcements out […]
On Monday, California Steel Industries (CSI) and USS/POSCO (UPI) advised customers of their intention to take spot prices on flat rolled products produced by the two mills up by $40 per ton ($2.00/cwt). This is the first price announcement out of either mill since October 2018. So far, there have not been any announcements out […]
U.S. ports reported a record year for cargo volume in 2018. The Port of Los Angeles broke its all-time cargo record for the third time in a row, moving 9,458,749 TEUs (twenty-foot equivalent units the size of a container), a 1.2 percent increase from 2017. The Port of New Orleans reported a new record and a […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: New 232 Lawsuit A new complaint against the United States was filed on Thursday, Jan. 17, by three U.S. importers of Turkish steel to contest the doubling of tariffs on Turkish steel into the United States. The plaintiffs are […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: New 232 Lawsuit A new complaint against the United States was filed on Thursday, Jan. 17, by three U.S. importers of Turkish steel to contest the doubling of tariffs on Turkish steel into the United States. The plaintiffs are […]
Steel Market Update spoke with a number of foreign steel trading companies who service the North American market today. There was one very clear theme no matter who I spoke with – steel buyers are not willing to take any risk on foreign steel with spreads less than $60 per ton. A second common theme: […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: A bill set for introduction today in the House of Representatives would, if enacted, fundamentally change the basics of U.S. policy on international trade. Rep. Sean Duffy (R-Wis.) will introduce the bill, which was drafted by the Trump administration. […]
Don’t expect to have your Section 232 exclusion request looked at any time soon. The Commerce Department has announced that, due to the number of furloughed employees during the partial government shutdown, it will temporarily suspend processing of Section 232 exclusions. Contingency plans at the nation’s trade offices have dramatically reduced the number of people […]
With no end in sight for U.S.-imposed steel tariffs, United Steelworkers in Canada urge the federal government to keep safeguards in place to guard against foreign steel imports. “Our members themselves are appearing this month before the Canadian International Trade Tribunal (CITT) to make the case for extending safeguard measures beyond the original 200-day period […]
The North American steel sheet market in 2018 was heavily influenced by effects from the Section 232 tariffs. These tariffs greatly increased U.S. sheet prices, while at the same time helped to further reduce imports. Our forecast today calls for a more measured rate of increase for underlying industrial growth, while prices will more closely […]