Distributors of products for the HVAC sector are keeping a tight rein on inventories as pricing for galvanized steel continues to weaken. The wholesalers are seeing pressure from customers postponing orders in anticipation of better prices down the road. “It appears customers are living hand to mouth, waiting to place any large orders until they […]
Steel Market Update was speaking with one of the plate mills regarding their maintenance schedules and order books, which we reported on in Thursday evening’s issue of our SMU newsletter. During the conversation, there was a discussion about what was causing the tightness in the marketplace, and the mill mentioned the drastically lower plate imports […]
Both the plate mills and their customers are advising Steel Market Update that, unlike the hot rolled markets, the plate markets are hot and are expected to continue to be hot for some time to come. The plate mills continue to be on “controlled order entry” (allocation) and all of the mills are struggling to […]
I am in Middletown, Ohio, having spent the day at AK Steel’s Research and Innovation Center as part of our new Steel 201 training workshop. The facility is impressive both in physical beauty as well as the operations and people working there. Our class is being held in an auditorium that seats about 70 people […]
SMU President & CEO John Packard will be the featured speaker at the AWMI Industry Dinner at the Carnegie Hall at Newport in Newport, Ky., on Oct. 18. The event is open to the public. The mission of the Association of Women in the Metal Industries (AWMI) is to educate, network and mentor those in […]
ArcelorMittal workers are contemplating a strike authorization after labor negotiations stalled last week. The USW complains that the company’s proposal does not measure up to the financial success that union workers helped ArcelorMittal achieve. “Rather than engaging in good faith negotiations for a fair contract, management continues to bring the same 2015 backward thinking proposals […]
Section 232 tariffs on steel and aluminum products from Canada and Mexico are back in the spotlight now that NAFTA talks are, hopefully, nearing an end. Steel associations from Canada and Mexico are calling for the tariffs to be terminated while the negotiations are under way. Mexican association Canacero has stated that a NAFTA deal […]
Are the Section 232 tariffs affecting the volume of steel imports? We will look at this several different ways, as the answer depends on what time frame is chosen for comparison. Commerce Secretary Wilbur Ross said on Aug. 10 that since the imposition of Section 232 tariffs in March, imports to the U.S. have declined […]
The Trump administration tariffs have had the expected effect on steel imports and steel pricing this year, but prices for hot rolled coil and plate could moderate a bit next year as economic growth slows and the cost of steelmaking raw materials begins to decline, forecasts Josh Spoores, principal steel analyst for the CRU Group. […]
What is in the nation’s best interest when it comes to international trade? Are the Trump administration trade policies the best approach? Speaking at the Steel Market Update Steel Summit Conference in Atlanta on Aug. 27, a spokesperson for the domestic steel industry and a Washington trade attorney offered sharply contrasting views. The Steel Manufacturers […]
August saw our SMU Price Momentum Indicator move from Neutral to Lower indicating our expectation that we will see prices drop over the next 30-60 days. The last couple of weeks of August and into early September has seen prices dropping and the trend does not appear ready to abate quite yet. Our Sentiment Index […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: I am just back from Atlanta, where I attended the SMU Steel Summit. I was pleased to be able to speak to many steel industry folks concerned about the steel tariffs, the China tariffs and […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: I am just back from Atlanta, where I attended the SMU Steel Summit. I was pleased to be able to speak to many steel industry folks concerned about the steel tariffs, the China tariffs and […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: A reader asked recently about the ability of the president to withdraw the United States from the NAFTA agreement, should negotiations for a new agreement with Canada and Mexico falter. While the U.S. and Mexico […]
Tariffs are harming, and sometimes causing devastating effects, for small manufacturing businesses, said speakers at the 2018 SMU Steel Summit held in Atlanta this week. An informal survey of 486 people at the summit showed almost half (49 percent versus 43 percent) of those polled felt the Section 232 tariffs were having a negative impact […]
Results from live polling during Steel Market Update’s Steel Summit Conference this week in Atlanta produced a few surprising results. Using the SMU App, Steel Market Update was able to capture the views of more than 450, or about half, of the steel industry executives in attendance at the event. For the most part, the […]
United Steelworkers have not reached a collective bargaining agreement with ArcelorMittal or U.S. Steel with just one day remaining before the current contracts expire. As union officials consider their options, including a possible strike, marches and rallies were planned for Thursday, Aug. 30, at ArcelorMittal and U.S. Steel locations to show union solidarity. “Steelworkers have made […]
The steel market is watching and waiting to see if President Trump will hit other countries with higher tariffs as he did with Turkey. If he does, the majority of observers will not be surprised. Indeed, more than 60 percent of the steel executives responding to Steel Market Update’s latest market trends questionnaire expect further […]
The United States and Mexico have agreed on changes to the rule of origin for NAFTA automobiles during bilateral discussions. The percentage of North American content for NAFTA autos will be increased from 62.5 percent to 75 percent. In addition, 70 percent of steel, aluminum and glass used in production of autos must be sourced […]
Metalforming companies are struggling with higher steel prices and longer lead times as a result of Section 232 tariffs, but are still expecting business conditions to improve during the next three months. The Precision Metalforming Association’s August Business Conditions Report showed 29 percent of participants expect an increase in economic activity, 62 percent expect no […]
A group representing the United States’ leading auto manufacturers, parts suppliers, auto dealers, parts distributors, retailers and vehicle service providers have formed the Driving American Jobs Coalition to oppose potential new Trump administration tariffs on imports of autos and auto parts. The coalition argues that imposing new auto tariffs will cause “massive job losses and […]
A letter last week from Tennessee manufacturers to Washington asks President Trump to consider the unintended consequences of Section 232 tariffs on steel-consuming companies. The group of six Dickinson Country manufacturers said they employ over 1,000 workers and depend on competitively priced steel to fabricate products that compete in a global marketplace. “We respectfully ask […]
Editor’s note: The following was contributed by analysts at the CRU Group. The Turkish-U.S. political relationship has soured sharply in the past week. U.S. President Donald Trump tweeted relations were “not so good” on Friday, Aug. 10, and doubled tariffs on U.S. imports of Turkish steel. Turkish President Erdogan responded with anger, suggesting the country […]
Turkey may not be the last nation to face escalating tariffs from the Trump administration, according to the American Institute for International Steel’s (AIIS) interpretation of the presidential proclamation. President Trump doubled the Section 232 duties on steel products from Turkey from 25 percent to 50 percent, effective Aug. 13. The proclamation behind the action […]
By CRU Group’s Zinc Analysis Team Despite lower-than-expected smelter output in China last year, which contributed to record refined deficits, 2018 marked the turning point for zinc’s price, reports CRU Group’s Zinc Analysis Team. Despite a still-tight refined market with stocks at critical levels, zinc’s price has had a shaky start to 2019, trading at […]
U.S. Steel announced on Thursday that it will invest a minimum of $750 million for asset revitalization at its Gary Works facility in Indiana. “We are pleased to be making this significant investment at Gary Works, which will improve the facility’s environmental performance, bolster our competitiveness and benefit the local community for years to come,” […]
We are now one week away from the start of the 2018 SMU Steel Summit Conference. We are continuing to accept registrations, and we expect the conference to be completely full when we kick off at 1 p.m. on Monday, Aug. 27. If you would like to register, you can do so on our website […]
The U.S. trade situation is causing some consternation, according to analysts at CRU. During a webinar on Tuesday, which was made available to SMU member companies, analysts discussed the trade measures that have been instituted by the Trump administration and the potential impact on the U.S. and global economies. Steel and aluminum tariffs were imposed […]
Effective Monday, August 13, the Trump administration doubled the tariffs on steel imports from Turkey to 50 percent, stunning the market and setting off a wave of speculation on how this trade action may impact the steel and scrap markets in North America. A tweet from President Trump early Friday set the change in motion: […]
In a surprising tweet on Friday, President Trump announced his intentions to double the Section 232 tariffs on steel and aluminum from Turkey, raising the tax on imports to 50 percent for steel and 20 percent for aluminum. No word on when the change would take effect. “I have just authorized a doubling of Tariffs […]