Steel Market Update offers this early look at July’s import volume based on license data (see explanation below). The analysis evaluates the pressure that imports are having on individual products at the national level, but gives no indication of regional differences. SMU has developed a new series of regional reports for the six main flat […]
The numbers 201, 232 and 301 are getting a lot of headlines recently. They are sections under three U.S. laws that President Trump has used to impose tariffs on a variety of goods and countries. Section 201 of the Trade Act of 1974 was used to place tariffs on imports of washing machines and solar […]
Caterpillar says it will raise prices due to U.S. tariff measures despite expecting a stronger profit outlook for the year. The major exporter of construction, mining and energy-related equipment estimates recently imposed tariffs will cost the company $100 million to $200 million in the second half of 2018—about 3 percent of its full-year profits. Strong […]
Most steel buyers are keeping inventory levels steady or even lower believing that, with steel prices so high, the risk is to the downside for the rest of this year. As one steel executive commented: “We are running inventories lean based on the elevated cost and our opinion that there is a greater chance for […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: News reports abound on U.S. companies that are hurting as a result of the Section 232 tariffs on steel and aluminum and the China Section 301 tariffs. Today, the Office of the U.S. Trade Representative […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: • Turkey Tariffs– President Trump tweeted on Friday that he “authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: While attending and giving a presentation to the SMU Steel Summit conference in Atlanta on Monday, word came that the U.S. and Mexico had reached a tentative deal on a revised trade agreement. President Trump […]
A major aluminum company has requested that Canada be exempt from Section 232 aluminum tariffs so that it can import alloy from its Canadian mills. Alcoa has three smelting facilities in Canada and three in the United States, as well as other global locations. The Baie-Comeau facility in Quebec produces specialty aluminum in 24-inch slabs, […]
As a multinational business with a plant in the United States, should NLMK USA have a right to import slabs tariff-free from its parent company in Russia over the objections of domestic steel producers? The Trump administration maintains that steel imports, including Russian slabs, are a threat to the U.S. steel industry and thus national […]
Responding to a request for comment from Steel Market Update, both Nucor and U.S. Steel defended their objections to NLMK’s filing for exclusions that would allow them to import foreign-produced slabs without a tariff. NLMK USA President Bob Miller tells SMU that his company has already paid $90 million in tariffs on the Russian slabs […]
Are imports of semifinished steel a threat to U.S. national security? Apparently, that depends on the political environment at the time. The controversy over the Trump administration’s Section 232 tariffs is not a new debate. Restrictions on steel imports were on the table in 2001 during the Bush administration. Contrary to today, the Commerce Department […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Things are hectic these days. While the House has gone on recess until after Labor Day, the Senate is taking a mere two weeks off. Before taking their shortened break, the Senate passed the Miscellaneous […]
Earnings week for the steel industry revealed trade was foremost on the minds of steel executives. The steel mills expressed their approval of the administration’s tariff action that has boosted steel pricing and, along with higher demand, earnings for the second quarter of 2018. • U.S. Steel Corp. CEO David Burritt was a strong advocate […]
Boosted by the Trump tariffs, the high price of steel in the U.S. tends to mask other issues. Notably, strained credit limits. While mills report record profits, some of their customers report cash flow issues that threaten their very viability. Steel Market Update canvassed the market this week and gathered the following observations from steel […]
ArcelorMittal NAFTA posted sales of $5.4 billion for the second quarter of 2018, a jump of 12.7 percent from the first quarter. Steel shipments increased by 4.4 percent to 5.8 million metric tons. Improved results were driven by strong market demand and higher shipment volumes. NAFTA segment EBITDA rose 19.6 percent year-over-year. NAFTA segment crude […]
AK Steel earnings slipped a bit in the second quarter due to production disruptions at two of its facilities. Net income totaled $56 million, down from $77.2 million a year ago. Results were impacted by $11.5 million in operational costs associated with a power outage at Butler Works and a fire at the temper mill […]
NLMK USA sales jumped 15 percent to 640,000 metric tons in second-quarter 2018. Revenue for the U.S. segment totaled $590 million, up 37 percent quarter-over-quarter and 35 percent year-over-year, due to rising demand and recent steel import restrictions. EBITDA for NLMK USA increased 90 percent quarter-over-quarter to $76 million supported by growing sales volume and […]
Tariff worries have caused optimism among metalforming companies to wane, says the latest survey of the Precision Metalforming Association. PMA members are expecting orders to decrease in the next three months and fewer expect an improvement in economic activity. “The data confirms that the optimism expressed by our members at the beginning of the year […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Finally, a good day? President Trump and European Commission President Jean-Claude Juncker met Wednesday at the White House and issued a joint statement on their agreement to negotiate reductions in barriers between the U.S. and […]
The American Iron and Steel Institute (AISI) believes the Trump administration’s Section 232 tariffs will survive the legal challenge filed by the American Institute of International Steel (AIIS) last month. “We believe this case is without merit and we are confident the court will reject this challenge to the constitutionality of the Section 232 statute,” […]
Reliance Steel & Aluminum, North America’s largest service center organization, set a new company record with net sales of $2.99 billion for the second quarter of 2018. Sales grew by 20.8 percent from a year ago and 8.4 percent from the previous quarter. Net income totaled $230.8 million, up 124.1 percent from Q2 2017 and […]
Trading in steel futures shows many companies betting that prices will decline as the year-end approaches, following the normal seasonal pattern. But current market conditions, under the influence of unprecedented government trade action, are anything but normal, leaving steel executives deeply divided over what to expect. Steel Market Update canvassed the market this week, asking […]
The ferrous scrap market is showing small signs of weakness looking ahead to August, report Steel Market Update sources, who say prices on obsolete grades such as shredded and heavy melt are likely to decline anywhere from $5 to $20 per ton next month, while pricing of busheling and bundles will remain unchanged. Demand for […]
Following on declines in August and September, ferrous scrap prices in October are settling at an increase of $20 per ton for prime grades and $10 per ton for obsolete grades, according to Steel Market Update sources. A dealer in the Northeast reports that the Detroit market has bought Busheling at $390/GT, up $20; Shredded […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: The tariff story is getting broader and more complex. I will focus today on the lawsuit filed by the American Institute for International Steel (AIIS) and two of its members challenging the constitutionality of Section […]
Cleveland Cliffs reported consolidated revenues of $714 million for the second quarter of 2018. Revenues jumped 52 percent from first quarter revenue of $471 million. Net income for the quarter was $165 million, which included a $64 million loss from discontinued operations, primarily associated with the sale of the company’s Asia Pacific Iron Ore assets. Adjusted […]
Data from Steel Market Update’s latest market trends questionnaire shows current industry sentiment stablizing after a bit of a swoon seen earlier this year due to the uncertainty related to the Section 232 tariffs and surprises regarding exclusions (or lack thereof). From a historical perspective, current sentiment remains at highly optimistic levels, however. SMU’s Steel […]
Imports of foreign steel continue at a brisk pace, despite the Section 232 tariffs placed on steel imports from every country in the world except Australia (no quota), South Korea (with quota), Brazil (with quota) and Argentina (with quota). Since the Section 232 tariffs began at the beginning of May, and most foreign mill lead […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Today, the Commerce Department is conducting a hearing on the self-initiated Section 232 investigation into imports of autos and auto parts. The U.S. auto industry is uniformly opposed to tariffs on autos and auto parts. However, the […]
Nucor’s consolidated net earnings in the second quarter of 2018 jumped to $683.2 million, the second highest quarterly earnings in the company’s history. In comparison, earnings were $354.2 million in the first quarter and $323 million in Q2 2017. Nucor’s Chairman and CEO John Ferriola attributed the successful quarter to an upturn in the steel […]