Reliance Steel & Aluminum reported record sales of $2.47 billion and record shipments of 1.6 million tons in the first quarter of 2018. “The positive pricing and demand fundamentals experienced in the fourth quarter of 2017 continued through the first quarter of 2018, with pricing momentum building throughout the quarter,” said President and CEO Gregg […]
NAFTA negotiators are working feverishly to reach an agreement in principle by May 4. U.S. Trade Representative Robert Lighthizer canceled plans to meet with lawmakers from the New Democratic Coalition in favor of continuing meetings with his Canadian and Mexican counterparts. The Coalition, composed of 68 pro-trade House Democrats, hoped to have a chance to […]
Were it not for the surprisingly strong steel demand, the price hikes prompted by the Trump administration tariffs would be a disaster, say manufacturers. As it is, the effects of the Section 232 tariffs are proving troublesome for many companies. President Trump is due to announce May 1 whether his 25 percent tariff on steel […]
As a group, flat rolled steel buyers are of the opinion that prices on hot rolled, cold rolled and coated products have plateaued over the near term. However, to a person, the buyers are waiting for May 1st to arrive and then see how President Trump, USTR Robert Lighthizer and the Department of Commerce handle […]
NLMK Group reported a 1 percent increase in first-quarter revenue, to $2.79 billion, as a 5.0 percent seasonal drop in sales was offset by stronger pricing. Net income grew by 17 percent from Q4 to $502 million, driven by higher operating profit. NLMK USA sales increased 1.0 percent from the fourth quarter on higher demand for […]
President Trump’s tariffs on steel imports, designed to protect steel industry jobs, are likely to lead to a net loss in U.S. employment, at least in the short to medium run, contend economists with the Federal Reserve Bank of New York. The tariffs, and their effects on steel prices, are likely to cost more jobs […]
A new study by Martin Associates questioning the relationship between steel tariffs and mill capacity utilization was largely dismissed by the Commerce Department as industry propaganda, prompting a stern response from the American Institute for International Steel. AIIS released the analysis by Dr. John Martin on April 18 and stands behind his findings. The Secretary […]
Another hectic week in the flat rolled and plate steel markets. Buyers and sellers of steel are all waiting to see what calamity awaits when the clock ticks 12:01 AM on May 1. That is when the Section 232 country exclusions are set to expire, according to the deadline set by President Trump. What he […]
Is your company at risk due to the impact of the Section 232 tariffs? Industry executives responding to Steel Market Update’s April 16 flat rolled market trends questionnaire are almost evenly split on whether the Trump administration tariffs will help or hurt their businesses. Fifty-two percent say their business is not at risk, while 48 […]
Cleveland Cliffs reported an outstanding performance by its U.S. iron ore segment in first-quarter 2018. Restocking of customer inventory and an early break in the weather favoring vessel shipments drove sales of 1.6 million long tons of pellets. Shipping is expected to increase dramatically to 5.5 million long tons for the second quarter. As a […]
U.S. manufacturing groups claiming to represent more than 30,000 users of steel and aluminum announced a new coalition Wednesday to oppose the Trump administration’s Section 232 tariffs. The Coalition of American Metal Manufacturers and Users includes the Industrial Fasteners Institute, the National Tooling & Machining Association, the North American Association of Food Equipment Manufacturers, the […]
Pipe producer Borusan Mannesmann Pipe U.S. is among a reported 3,500 companies that have requested product exclusions from President Trump’s Section 232 steel tariffs. Borusan has filed for exclusions on 19 items, which covers the various diameters of its oil country tubular goods line. Borusan Mannesmann, a subsidiary of the Borusan Group in Turkey, operates […]
The European Union has thrown down the gauntlet to the U.S. regarding trade negotiations. EU Trade Commissioner Cecilia Malmström said there will be no future trade talks with the U.S. until the EU receives a permanent exclusion from tariffs on steel and aluminum. No concessions will be made to the U.S. to receive the exclusion, […]
Steel Dynamics reported a very strong first quarter with record shipments in the flat rolled division and a 94 percent utilization rate, well above the domestic industry average of 76 percent. Demand and product pricing improved across SDI’s entire steel platform. Net sales totaled $2.6 billion for the quarter and net income was $228 million. […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on recent events in Washington: • By my count, the Bureau of Industry and Security at Commerce has posted 82 exclusion requests for steel and aluminum combined. The Washington Post reported that 1,200 requests had been submitted to BIS. The NPR program Marketplace yesterday […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on recent events in Washington: • By my count, the Bureau of Industry and Security at Commerce has posted 82 exclusion requests for steel and aluminum combined. The Washington Post reported that 1,200 requests had been submitted to BIS. The NPR program Marketplace yesterday […]
Nucor Corp.’s first quarter 2018 consolidated net sales increased 9 percent from the previous quarter to $5.57 billion. Total tons shipped jumped 6 percent to 6.967 million tons. Consolidated net earnings were $354.2 million. Earnings in the steel segment improved in the first quarter due to higher steel prices and an 8 percent increase in […]
The high price of galvanized steel has not dampened demand, at least not yet, say distributors of HVAC products, who report continued strong market conditions. “The market is somewhat back to normal, just at dramatically higher transaction prices,” commented one member of the Heating, Air-conditioning, and Refrigeration Distributors International (HARDI), during the trade group’s monthly […]
The high price of galvanized steel has not dampened demand, at least not yet, say distributors of HVAC products, who report continued strong market conditions. “The market is somewhat back to normal, just at dramatically higher transaction prices,” commented one member of the Heating, Air-conditioning, and Refrigeration Distributors International (HARDI), during the trade group’s monthly […]
The two-year Section 337 investigation brought by U.S. Steel against Chinese steel manufacturers has been officially terminated by the U.S. International Trade Commission. All three components of the investigation—antitrust violation, transshipment, and trade secret theft—are now dissolved without action against the Chinese steel producers and distributors. According to an April 9 notice, U.S. Steel did […]
“The tariffs are already causing our jobs and work to shift to competitors outside our borders and will continue to do so until action is taken. What was presented as a tariff on foreign steel producers has effectively become a tax on U.S. manufacturers like us,” stated Kevin Kennedy, president of Kennedy Fabricating, Inc., Splendora, […]
U.S. steel producers consider the Trump administration tariffs on steel imports a big step forward, albeit a journey still in progress, but are not resting on their laurels. AK Steel CEO Roger Newport presented the industry’s case once again in testimony Thursday before the House Ways and Means Committee in support of Section 232. “We […]
For those of you who may be new to Steel Market Update or haven’t been paying attention to President Trump over the past few months, the President has issued 25 percent tariffs on foreign steel coming from countries other than: Canada, Mexico, Australia, South Korea, Argentina, Brazil and member countries of the European Union. The […]
Steel Market Update’s new analysis of sheet, plate, long and tubular product imports and their 18 subcategories is still a work in progress, but it offers a timely means to examine the effects of the Section 232 legislation on the market. Table 1 shows total supply to the market in three months through February and […]
Have flat rolled and plate steel prices peaked? Opinions vary widely among Steel Market Update’s sources. We spent all day today working on gathering flat rolled and plate pricing information. In the process, we also collected comments from steel buyers as to whether they felt steel prices have “peaked” or if there is more room […]
Have flat rolled and plate steel prices peaked? Opinions vary widely among Steel Market Update’s sources. We spent all day on Tuesday working on gathering flat rolled and plate pricing information. In the process, we also collected comments from steel buyers as to whether they felt steel prices have “peaked” or if there is more […]
On Monday, April 9, trade attorney Lewis Leibowitz shared the following observations regarding Section 232, Section 301 and other trade-related issues with Steel Market Update. Here is what he had to say: Another eventful day in Washington. Stocks rallied today as fears of a trade war “eased,” at least in the minds of Wall Street […]
“Compared to one month ago, demand is declining, but to a more normal level,” commented one respondent to Steel Market Update’s market trends questionnaire last week, expressing a common view. There has been a surge in demand in recent weeks due to the Section 232 tariff decision by President Trump. Many buyers have been buying […]
Steel Market Update’s sources report that ferrous scrap prices have increased by $5 to $15 per gross ton in April, depending on the type and region. Some predict scrap prices are likely to decline in May. Strong domestic demand is the key driver of rising scrap prices, said one dealer in the North. “With few […]
A lot is going on in shipping markets as uncertainty regarding the U.S. trade situation takes hold. Tariffs are expected to affect import volumes at coastal and inland ports. Truck availability continues to be an issue with the flatbed load-to-truck ratio soaring past 100 last week and prices on the increase. Barges are frustrated by […]