Steel Market Update spent a portion of the day today speaking with trading companies about their view of the markets, demand and the amount of foreign steel projected to come into the United States over the next few months. The traders are worried about what will happen to their customers if the amount of foreign […]
On Sunday, the HARDI galvanized steel council met to discuss what has been happening in the industry that is impacting their relationship with their steel suppliers. John Packard, President & CEO of Steel Market Update, along with Josh Spoores, Senior Analyst for CRU, discussed the status of steel prices and the forecast for 2019. The […]
A new North American trade agreement was signed on Friday by leaders of the U.S., Mexico and Canada at the G20 Summit in Buenos Aires. The U.S-Mexico-Canada Agreement, as it will be called by the United States, failed to address the Section 232 tariffs that were at the root of contentious negotiations. “The USMCA is […]
Some government and industry leaders praised the new U.S.-Mexico-Canada Agreement that was signed by the three nations on Friday, while others remained critical of the trade pact, suggesting it was a missed opportunity to remove the Section 232 tariffs on Canada and Mexico. Incoming Speaker of the House Nancy Pelosi called the agreement a “work […]
Returns from Steel Market Update’s market trends questionnaire show a growing percentage of manufacturing companies reporting service center spot pricing on flat rolled products as being lower than what they saw at the beginning of November. Seventy-three percent of the manufacturing respondents reported seeing slipping spot prices this past week. This is an increase of […]
Both Steel Market Update and the CRU Group forecast lower steel prices next year. With a new North America free trade agreement soon to be signed, the U.S. is likely to lift or modify the Section 232 tariffs on Canada and Mexico, opening the borders to more imports and adding to the downward pressure on […]
Tariffs on U.S. steel and aluminum exports to Mexico may be coming if the Trump administration does not drop its Section 232 tariffs on Mexican imports, says Mexican steel association Canacero. “They already agreed, this government and the incoming one, that we will apply resounding mirror measures,” Canacero Vice President Raul Gutierrez said at a […]
Few of the steel buyers canvassed by Steel Market Update this week expect flat roll prices to rise significantly in the first quarter. Most anticipate prices stabilizing or continuing to trend downward, especially if the Trump administration lifts the Section 232 tariffs on imports from Canada and Mexico. The promise of increased supplies from the […]
In response to widespread concerns about the pace, transparency and fairness of the Section 232 steel and aluminum tariff exclusion process, a bipartisan group of senators has requested that the Government Accountability Office conduct an independent review of the Commerce Department’s performance. In a Nov. 26 letter to the GAO, U.S. Senators Doug Jones (D-Ala.), […]
Metalforming firms are expecting a decline in business conditions and new orders during the next three months, according to the November 2018 Precision Metalforming Association (PMA) Business Conditions Report. The PMA is a monthly economic indicator for manufacturing, sampling 122 metalforming companies in the United States and Canada. Current average shipping levels were steady in […]
The announcement by General Motors today is going to be a precursor for more bad news, in my opinion. With every action there is a reaction, and the expectation that raising steel prices by an extra 25 percent (and more) would not have an impact on the competitiveness of U.S. made products is being short-sighted. […]
The attitudes of steel buyers and sellers, as measured by this week’s SMU Steel Buyers Sentiment Index questionnaire, show mixed feelings in the marketplace following the midterm elections. Current Sentiment was an impressive +65 measured as a single data point. Future Sentiment dropped -7 points to +58. Both are well within the “optimistic” side of […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: On Nov. 21, the WTO Dispute Settlement Body conducted its regular monthly meeting. The DSB is composed of all WTO members and oversees cases brought under the WTO Dispute Settlement Understanding. That is one of the 23 WTO […]
Two out of three respondents to Steel Market Update’s market trends questionnaire this week said they remain concerned about the possible negative impacts of trade tariffs on their business and that of their customers. The Section 232 tariffs on imports of steel and aluminum remain a serious obstacle to the new North American free trade […]
The North American auto industry is urging the White House to drop the Section 232 tariffs before the official signing of the U.S.-Mexico-Canada Agreement (USMCA). During testimony last week before the International Trade Commission, the Motor and Equipment Manufacturers Association, Alliance of Automobile Manufacturers and the American Automotive Policy Council asked the administration to exempt […]
I thought some of the comments made to me earlier today by one of the steel mills were quite interesting. “We continue to see good activity, but regional trade is king (and competitive) and long lead time foreign is being shunned. Instead of fighting off Vietnam in coated, we see a battle within NAFTA. Imports […]
Despite paying CAD $39 million in tariffs on 24 percent of its shipments, Canadian steel producer Stelco turned in a stellar performance in third-quarter 2018. Stelco reported third-quarter revenue of $619 million, 84 percent higher than a year ago due to a 43 percent increase in steel shipping volumes and a 24 percent increase in […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: It’s worth a moment to reflect on the end, one century ago today, of the First World War, “the war to end wars.” The Armistice led to a bitter peace and another even more destructive war, the effects […]
The laws of unintended consequences concern me. President Trump’s Section 232 steel and aluminum tariffs, as well as Section 301 tariffs, are only beginning to have an impact on the consumer. It is only a matter of time before consumers have to react as they do not have unlimited cash flow to pay higher prices […]
Toronto-based Russel Metals reported “stellar” results for its third quarter, attributing the company’s success to a high steel price environment and improved demand in all three of its business segments: service centers, energy products and steel distributors. Trade actions by government authorities have increased steel prices, which has benefited both producers and distributors. However, these […]
Total rolled product imports declined by 20.4 percent in October, versus the same month last year, measured as a three-month moving average, but the effects of Section 232 are still not clear. This early look at October’s import volume is based on Commerce Department license data (see explanation below). Figure 1 shows the tonnage of […]
Reporting a profitable third quarter, Essar Steel Algoma is moving closer to emergence from bankruptcy. The Canadian steel producer announced income from operations for the three-month period ending Sept. 30 of C$107.9 million, up from income of C$74.3 million in the same period of 2017. Algoma’s steel shipments rose 6.3 percent year-over-year to 620,137 tons. […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Summary of Section 232 Exclusion Data As of early October, according to a comprehensive analysis by the Mercatus Center at George Mason University, there have been 30,916 tariff exclusion requests for steel products. There have been 14,356 objections, […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: Commentators and administration officials have filled the airwaves with speculation about the future course of the U.S.-China “trade war” over the last few weeks. Today, I provide a brief assessment of where this might be going. Memories of Lenin’s […]
Manufacturing activity continues to be strong, according to the latest ISM Report on Business, although slowing its pace of growth as it enters the fourth quarter. The October PMI declined 2.1 percentage points from September to register 57.7 percent. Most of the components of the PMI are trending at a slower rate. The new orders […]
Metalforming companies are expecting business conditions to slow slightly during the next three months as new orders decline, according to the October 2018 Precision Metalforming Association survey. Average daily shipping levels also decreased in October with 23 percent of firms forecasting a decrease in orders compared to 15 percent last month. Only 2 percent of […]
The price increase on flat rolled seems to have “fizzled out,” according to many of the steel buyers Steel Market Update spoke with over the past two days. A number of mills have sweetened their end-of-the-year deals in order to finish out their 2018 order book. This is not unusual during a normal fourth quarter, […]
The United States has denied initial requests by World Trade Organization members to establish dispute settlement panels over Section 232 tariffs, claiming that once a national security measure is invoked under Article XXI, it cannot be litigated by a WTO panel. The United States may block a request for a dispute panel one time, but […]
Section 232 tariffs are coming under fire by representatives of Mexico and Canada, who say there will be no signing of the new U.S.-Mexico-Canada Agreement (USMCA) on trade in North America until the tariffs are lifted. “We need to solve that issue before the signing takes place,” said Juan Carlos Baker, Mexico undersecretary for foreign […]
AK Steel reported its best third quarter in 10 years with net income of $67.2 million and a 39 percent year-over-year jump in adjusted EBITDA to $160.8 million. Steady shipment levels and higher steel selling prices and shipments more than offset higher costs for certain raw materials, transportation and supplies, including graphite electrodes, said the […]