Cryptocurrency policy took a backseat to global trade at the start of the 2018 G20 Summit. Officials gathered in Buenos Aires warned that U.S. protectionist policies may threaten global economic growth. “The first risk is the risk of inward looking policies and protectionism,” said European Commissioner for Economic and Financial Affairs Pierre Moscovici on Monday. […]
SMU is receiving many requests for information and help regarding Section 232 exclusions and how to complete the process. We are attempting to assist when and where possible. Trade attorney Lewis Leibowitz is being very helpful when he has time. If you have specific legal issues that are outside of the scope of what we […]
Steel Market Update had detailed discussions with two steel trading companies on Friday as we try to understand how Section 232 is going to impact their businesses and their customers. Here is what we learned. Trading Company No. 1 “This is a great time to trade steel,” is how the conversation began with the first […]
We saw another surge in flat rolled and plate steel prices last week as steel buyers deal with closed order books, allocation and uncertainty. With the Section 232 tariffs set to go into effect on Friday of this week (March 23) buyers are scrambling to make sure they are covered. This has allowed the steel […]
Details on how to request an exclusion from the Trump administration tariffs on steel and aluminum will be published in the Federal Register tomorrow. We received a copy of the exclusion procedure and some comments from trade attorney Lewis E. Leibowitz. President Trump, using his authority under Section 232 of the Trade Expansion Act of […]
China and German have agreed to work together to find solutions for steel overcapacity within the framework of the G20 group of nations. In a phone call on Saturday, German Chancellor Angela Merkel and Chinese President Xi Jingping discussed the importance of multilateral cooperation in global trade and the need for the two countries to […]
SMU will begin our next flat rolled and plate steel market trends analysis beginning at 8 AM ET tomorrow morning (Monday). Please check your inbox (or SPAM filter) for our invitation to participate in the mid-March process. If you would like to be included in this or future surveys, please send an email to info@SteelMarketUpdate.com. […]
The competitive position of steel and steel products has improved in the last few months, according to Bureau of Labor Statistics (BLS) data. In the past, we have reported the producer price indexes of steel and some competing products on a quarterly basis. This month, we have revamped and expanded our report to provide subscribers […]
The following analysis of the number of months of supply being held by flat rolled steel distributors is intended for SMU Premium level members. We are sharing this report with all of our readers during the first year of the index, after which it will be available for Premium members only. Shortly after the month […]
The following calculation is used by Steel Market Update to identify the theoretical spread between foreign hot rolled steel import prices (delivered to USA ports) and domestic (USA) hot rolled coil prices (FOB Domestic mills). We want our readers to be aware that this is only a “theoretical” calculation as freight costs, trader margin and […]
The European steel association EUROFER urged EU policymakers, member states and industry stakeholders to show solidarity against the U.S. tariffs on steel and aluminum. U.S. tariffs are the wrong approach to dealing with the global overcapacity problem in steel, said EUROFER President Geert Van Poelvoorde at a press conference earlier this week. “We are facing […]
Much has been made of the damage the Section 232 actions may have on the economy and individual firms, but little has been said about how to mitigate costs and manage risks from the tariffs. Donald Bly, Associate Partner at Applied Value, LLC, a New York management consulting and investment group, offers some strategies on […]
I went out and looked around to see what I could find regarding foreign steel offers into the U.S. market. I did learn that the Mexican mills are offering to some of their core U.S. customers, but they do not have a lot of steel to sell. The pricing on hot rolled is being referenced […]
Flat rolled sheet prices, as well as plate prices, surged this week as steel mills moved to allocation or totally withdraw from the market pending further examination of the Section 232 ruling and how it will impact each mill’s ability to produce sheet and plate products. SMU is hearing of offers on hot rolled as […]
It is still early, but Steel Market Update is already collecting comments and opinions on how the Section 232 tariffs are going to affect existing business in the United States. We heard everything from allocation stories to a few companies that reported higher prices but no customers for that higher priced steel. “This is a […]
It is still early, but Steel Market Update is already collecting comments and opinions on how the Section 232 steel tariffs are going to affect existing business in the United States. We heard everything from allocation stories to a few companies that reported higher prices but no customers for that higher priced steel. “This is […]
President Trump wants the NAFTA talks concluded before upcoming elections in Mexico and the U.S., as he told Canadian Prime Minister Justin Trudeau in a phone call on Monday. Trudeau has been meeting with Canadian steel and aluminum workers this week with stops planned at Stelco and ArcelorMittal Dofasco on Tuesday. The call came on […]
Thirty-five states and the District of Columbia added construction jobs between January 2017 and January 2018, according to an analysis of Department of Labor data by the Associated General Contractors of America. “It is noteworthy that the three states with the largest job gains were all recovering from natural disasters, in addition to having generally […]
U.S. Steel provided full-year 2018 earnings guidance on Monday in light of the recent Section 232 tariffs. As a result of the imposition of a 25 percent tariff on steel imports, the company decided to resume steelmaking operations at Granite City Works with the restart of its “B” blast furnace. U.S. Steel anticipates incremental shipments […]
Legal experts say President Trump’s efforts to use the Section 232 steel tariffs as a bargaining chip with NAFTA and other trade negotiations could make the U.S. position more difficult to defend before the World Trade Organization and the courts. An importer hit with the tariff could claim the president had exceeded his authority under […]
Is steel demand showing signs of weakening? The year got off to a strong start, but changes in the last three Steel Market Update queries hint at a subtle change in steel buyers’ attitudes. A bit over half of the respondents to the last three SMU market trends questionnaires reported demand staying about the same […]
The U.S. Department of Commerce released the latest steel import license data for the months of February and March 2018. Based on licenses collected through the 13th of March, February 2018 steel imports are expected to total approximately 2.47 million tons, which would be down 400,000 tons from what was reported by the DOC for […]
Mexico, Canada, Australia … (Europe, Russia, Turkey?) … which will be the next countries to negotiate directly with President Trump, who appears to be less interested in building steel jobs than getting trade concessions (or personal acknowledgement) out of many of our allies. With President Trump, you need to review his Twitter account should you […]
Imports’ shares of the major steel product markets are all on the decline, reveals a new report on imports from Steel Market Update. The report examines the import share of sheet, plate, long and tubular products and 18 subcategories of these product groups. We think the introduction of this analysis is timely as a way […]
Fabricators and Manufacturers Association (FMA) Chief Economist Chris Kuehl believes Section 232 tariffs will not create a trade war and that most of what is happening now is nothing more than posturing. Although he told SMU that “trade wars are not unusual as countries try to protect their domestic products.” Kuehl was critical of how […]
Canadian steel mills like Algoma and Stelco are getting a reprieve from steel and aluminum tariffs, at least for now. The Section 232 tariffs imposed by President Trump will not affect Canada or Mexico provided they can complete a NAFTA agreement quickly and on U.S. terms. “For now, Canada and Mexico will be excluded from […]
With the final announcement of Section 232 steel tariffs, we saw steel prices spike (again) with double-digit gains on most products followed by Steel Market Update. The prices referenced in the table below are through the week ending March 10, 2018. Hot rolled prices surged with Platts recording their average as $850 per ton by […]
OK, the Section 232 announcement has been made. Canada and Mexico are in the clear (for the moment) and the president’s attention is now on North Korea and other issues not related to the economy. My advice, don’t panic (unless you haven’t bought any steel over the past few months, in which case you are […]
Total rolled steel imports declined by 14.8 percent, and sheet products by 13.6 percent, in the three months through February compared to the prior three-month period, according to Steel Market Update’s analysis of federal Steel Import Monitoring and Analysis (SIMA) data. This is the second edition of our new and expanded import report that now […]
President Trump’s controversial decision to impose a steep tariff on steel imports has clearly unsettled the market and taken a toll on the attitude of many steel buyers. Both current and future sentiment among flat rolled steel buyers declined significantly in the last two weeks, according to the latest Steel Market Update Steel Buyers Sentiment […]