First, ferrous scrap prices are rising for delivery during the month of April. However, our sources are telling us that the increases are not at the $20-$30 per gross ton suggested a few days ago. The mills are playing hardball and the sense is that prices will drop in May, so dealers are taking what […]
Earlier this week, the U.S. Department of Commerce released steel import license data for the months of February and March 2018. There is a considerable difference between the two months, which SMU believes is partially due to the March 23 deadline before Section 232 tariffs went into effect. February license data suggests the month will […]
Major developments yesterday in the escalating trade war between China and the United States could have serious consequences for global commerce. Washington trade attorney Lewis Leibowitz offers the following assessment of the trade situation: The Office of the U.S. Trade Representative released a list of about 1,400 tariff line items. Tariffs of 25 percent on […]
Major developments this week in the escalating trade war between China and the United States could have serious consequences for global commerce. Washington trade attorney Lewis Leibowitz offers the following assessment of the trade situation: The Office of the U.S. Trade Representative released a list of about 1,400 tariff line items. Tariffs of 25 percent […]
Both current and future sentiment among flat rolled steel buyers saw little change in the past two weeks as the market paused to see how the maneuvering on the trade front plays out. In general, buyers’ attitudes remain at optimistic levels but are below year-ago levels, which SMU finds concerning. We are finding a growing […]
Tensions between Washington and Beijing over China’s policies toward U.S. and foreign investment and the multibillion-dollar trade surplus with the United States continued to escalate this week. In retaliation for the Trump administration’s tariffs of 25 percent on steel and 10 percent on aluminum, which took effect March 23, China has imposed tariffs on up […]
Brazil is one of seven countries granted a temporary retrieve from Section 232 tariffs on steel and aluminum. If the 25 percent tariff is imposed on the Brazilian steel industry, it would impact 13 percent of the nation’s steel exports and lead to losses estimated at $350 million annually, according to a new study by […]
I am happy to announce CNBC analyst and commentator Ron Insana will be doing our closing keynote speech this year. Mr. Insana is well know for his analysis, business forecasts and work following politics, regulations and trade issues and how they will impact business in the United States. I believe our attendees will have a […]
Steel price momentum remained on the upswing in March, but steel buyers appeared slightly less optimistic about their prospects as President Trump’s tariffs and fears of a trade war weighed on many minds. The price of benchmark hot roll hit $870 per ton in late March, up $50 per ton from the beginning of the […]
With so many trade issues under debate in Washington, it’s difficult to keep up. Trade attorney Lewis Leibowitz provided Steel Market Update with the following summation: • KORUS Negotiations: As part of the renegotiation of the Korea-U.S. free trade agreement (KORUS), the Trump administration has granted South Korea a permanent exemption from the steel tariffs […]
The steel import trend for the month of March is now approaching 3.5 million tons. This trend is based on license data through the 26th of March. If the month ultimately comes in above 3.2 million tons, it will top both the 12-month and the 3-month moving averages for steel imports. SMU assumes that a […]
I just can’t understand how a quote by Richard Chriss (president of the American Institute for International Steel), which is outdated and clearly wrong can make it into a story. There seemed to be no balance to the story. How can this sentence be left to stand?–“With other nations already indicating that they will retaliate […]
The metals market in the United States is ripe for mergers and acquisitions in 2018 and 2019, reported investment banker Vincent Pappalardo, managing director of Brown Gibbons Lang & Co., who spoke at the S&P Global Platts steel conference March 20 in Chicago. Valuations are up across the board. Family-owned firms that missed the opportunity […]
Recognizing the current sensitivity of trade relations with the Trump administration, Canada is taking extra precautions to ensure there is no circumvention of U.S. tariffs through the Canadian borders. The Canada Border Services Agency will be empowered to identify businesses that are attempting to dodge duties by shipping cheap steel to Canada. Agents will have […]
I don’t know how to keep up with the changing winds associated with President Trump when it comes to trade, trade negotiations and the Section 232 tariffs (or threats of tariffs). According to Bloomberg, Trump said that he may delay the revamped trade agreement reached with South Korea that includes a quota and permanent exclusion […]
The U.S. and South Korea have reached an agreement on amendments to the KORUS agreement. In return for exemption from Section 232 tariffs, Korea will reduce its steel exports to the U.S. by 30 percent to 2.68 million tons annually. In addition, Korea agreed to increase automotive imports from the U.S. to 50,000 vehicles per […]
Ferrous scrap prices are expected to rise $20 to $30 per gross ton in April, and possibly more, according to Steel Market Update sources. All grades are expected to see increases, and with relative parity across the country. One dealer told SMU there is pressure on obsolete grades as the long winter has impeded the […]
JSW Steel announced it will invest $500 million in its U.S. plate and pipe operations. The Baytown, Texas, facility will receive $150 million in upgrades and the rest will fund a new hot-end facility to make steel. Texas Governor Gregg Abbott signed an agreement with the company to provide a grant of $3.4 million. The […]
There are a lot of moving pieces to the Section 232 tariffs and the negotiations these tariffs have prompted among the countries that have not yet been excluded. Quotas are being discussed with most, if not all countries, with South Korea agreeing to 70 percent of their 2017 shipment levels. You should anticipate that other […]
President Trump’s Section 232 steel tariffs went into effect at 12:01 a.m. ET on Friday—but hardly as expected. At the last minute, the president suspended the tariffs for a large group of ally nations until May 1 while negotiations continue. The suspension could head off retaliatory trade measures threatened by various foreign countries, at least […]
Just before midnight on Thursday, March 22, the White House released a proclamation adjusting imports of steel (Section 232) by providing exclusions to Canada, Mexico, Australia, Argentina, South Korea, Brazil and member countries of the European Union. The EU countries are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, […]
Twice per month, once at the beginning of the month and then again in the middle of the month, Steel Market Update conducts an analysis of the trends impacting the flat rolled and plate steel markets. We invite 640 individuals associated with flat rolled and plate steels in purchasing, sales or executive positions at manufacturing, […]
The value of the U.S. dollar has strengthened in the last six weeks, though it remains down for the year. So far in 2018, the dollar has weakened by 8.1 percent, after a turnaround of 2.9 percent from Feb. 2 to March 16. Please see the end of this report for an explanation of data […]
The Section 232 tariffs go into effect tomorrow and already they are being watered down with country exclusions. U.S. Trade Representative Robert Lighthizer is now adding all of Europe, South Korea (one of the biggest importers of Chinese steel), Brazil, Argentina and Australia to the list of countries whose steel exports to the U.S. will […]
Both current and future sentiment among flat rolled steel buyers saw a small but positive bump in the past two weeks, perhaps reflecting the announcements and uncertainty from the Trump administration on the steel tariffs that are set to take effect tomorrow, March 23. In general, buyers’ attitudes have bounced up and down within a […]
Both current and future sentiment among flat rolled steel buyers saw a small but positive bump in the past two weeks, perhaps reflecting the announcements and uncertainty from the Trump administration on the steel tariffs that went into effect on March 23. In general, buyers’ attitudes have bounced up and down within a small range […]
President Trump signed a memorandum Thursday directing the U.S. Trade Representative to recommend tariffs on $50 billion to $60 billion of Chinese goods. In addition to the tariffs, the United States also plans to restrict Chinese invesment in the U.S. and to take action against China at the World Trade Organization, according to press reports. […]
As importers rush to get steel into the United States, unloaded and customs released prior to the March 23 tariff deadline (tomorrow), the trend for March is for imports to exceed 3 million net tons. This would be a big month considering the tapering off we saw in January and February. With the deadline for […]
The market is waiting anxiously to see how the Trump administration’s Section 232 tariff will affect steel imports, and in turn steel prices. The 25 percent tariff takes effect on Friday. If Steel Market Update’s latest sample of reader opinion is any indication, the volume of imports into the United States may not moderate as […]
Washington attorney Lewis Leibowitz offers the following trade update: Several countries have arrived in Washington seeking exemption from the Section 232 steel and aluminum tariffs. The Trump administration surprised the market with its announcement Thursday that five other nations will join Canada and Mexico on the list of those exempt from the tariffs: the European […]