Even conceding that a strong U.S. steel industry is vital to the nation’s security, it’s unclear whether America’s steelmakers really need an assist from the government in the form of new tariffs or quotas under Section 232. “Is the industry deserving of any kind of help? I believe you can make a good case that […]
Wilbur Ross will be on Capital Hill again this week as he advises the House Ways and Means Committee on the status of his Section 232 investigation. It seems like the longer the market waits for an announcement (or at least the recommendations from the Department of Commerce) the less enthusiastic people are that anything […]
Members of the House Ways & Means Committee will be briefed on the Section 232 steel investigation Thursday, July 27, according to Inside U.S. Trade. Commerce Secretary Wilbur Ross is expected to provide data on steel imports and the U.S. steel industry to the committee, similar to a briefing of the Senate Finance panel last […]
Last week, Steel Market Update (SMU) completed our mid-July flat rolled market trends analysis. We invited 650 steel executives to participate. Of those responding, 48 percent were service centers, 41 percent were manufacturing companies, and 8 percent were trading companies, with steel mills and toll processors accounting for 4 percent each. One of the questions […]
The steel market is waiting anxiously to see if the Trump administration places additional tariffs or quotas on steel imports. Opponents of the proposed Section 232 trade action say it will be bad for the U.S. economy, in particular U.S. manufacturers that will have to pay more for raw materials, making them less competitive versus […]
The American steel industry is facing a crisis that endangers U.S. national security, and it’s time for decisive action, says Philip Bell, president of the Steel Manufacturers Association in Washington, which represents the interests of EAF steel producers in the U.S. In the pending Section 232 investigation, SMA is advocating strongly for a new steel […]
U.S. industrial production is in Phase B, accelerating growth, but the latest HARDI/ITR quarterly construction forecast warns that the next phase of the cycle, slower growth, is on the horizon. Steel Market Update is a member of an association connected to the construction industry called HARDI. HARDI stands for Heating, Air-conditioning & Refrigeration Distributors International. […]
The week ending July 21 was another mixed week for flat rolled steel and plate prices. Steel Market Update (SMU) steel price indices saw two products as being higher, two lower and one unchanged. Platts had two higher and one lower. SteelBenchmarker did not report prices this week as they only report twice per month. […]
Twice per month, Steel Market Update (SMU) conducts a detailed analysis of the flat rolled steel market. We invite 650 individuals representing approximately 625 different companies to participate by taking an online questionnaire. The questions cover a wide variety of topics that are germane to their unique industry segment. The two main groups asked to […]
Boy, am I receiving mixed messages – more than I think I ever have before during my 40 year plus career in (or covering) the industry. My opinion is the mixed messages are due to the interference in “normal” market operations by the Trump administration. This is especially destructive when promises are made for Section […]
The SMU Steel Buyers Sentiment Index has seen some erosion since peaking at +77 around March 1. However, buyers and sellers of flat rolled steel continue to be optimistic about the potential for their company to be successful in both the existing market and three to six months into the future. Buyers and sellers of […]
Steel Dynamics, Inc., is excited about the second half and is expecting growth in all sectors through 2018. CEO Mark Millett says the flat rolled arena remains very strong despite a slight turning of the automotive market. Infrastructure is continuing to grow, as evidenced by cranes and road work funded by states, if not federal […]
The U.S. Department of Commerce (DOC) released new foreign steel import license data on July 18. The trend for July is for steel imports to remain quite high, in the mid 3-million-net-ton range. We expect imports to be lower than June’s 3.9 million net tons, but above the 12-month and 3-month moving averages. Finished steel […]
Despite the risks associated with Section 232 and the belief that flat rolled steel prices will rise prior to and immediately after the announcement of a Section 232 decision, mills appear somewhat more open to price discussions. Based on the responses received this week from our flat rolled market trends questionnaire, buyers and sellers of […]
The following article on the hot rolled coil (HRC) steel and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how Jack saw trading over the past week: Steel HR futures prices have moved $12-$27/ST higher on very light trading volumes this past week. In spite of the higher HR […]
Steel Market Update (SMU) asked trade attorney Lewis Leibowitz to update us on the status of the antidumping (AD) and countervailing duties (CVD) annual reviews. We were told that at the beginning of each month, the U.S. Department of Commerce publishes a notice of orders that are eligible for requests for administrative reviews. The notice […]
Phil Bell is a brave man. The president of the Washington-based Steel Manufacturers Association (SMA) has volunteered to serve on a trade panel during Steel Market Update’s Steel Summit Conference next month in Atlanta. He knows full well that his fellow panelists—a trade lawyer, a manufacturers’ advocate and a spokesman for a libertarian think tank—will […]
Nucor CEO John Ferriola said that in the current challenging environment, he is encouraged by second-quarter results, but not satisfied. Illegally traded imports continue to be a problem in the United States for Nucor and the domestic steel industry, Ferriola said during the company’s second-quarter conference call. He cited a 15 percent year-over-year increase in […]
Trade talks with China this week ended in a stalemate after the U.S. pressed for “more fair” trade terms. The discussions were described as “a frank exchange,” but little if any agreement was reached on bilateral trade and economic issues, according to a senior U.S. official. A press conference following the meeting was canceled and […]
Trade talks with China this week ended in a stalemate after the U.S. pressed for “more fair” trade terms. The discussions were described as “a frank exchange” but little if any agreement was reached on bilateral trade and economic issues, according to a senior U.S. official. A press conference following the meeting was canceled and […]
This is an over-whelming time to be involved with the steel industry. We have the steel mills announcing price increases at a time when prices normally are flat to lower (they have been running flat to mixed over the past few weeks). The market anxiety is at high ebb as steel buyers and sellers wait […]
As the steel industry waits for clarity on Section 232 we got another week where flat rolled steel prices came in with mixed results. We saw some of the items indexed have their averages rise while others fell. In reality it doesn’t appear that there is a lot pushing prices in one direction or another […]
Like the rest of the steel market, wholesalers of galvanized steel and other products used in HVAC applications are stuck in an uncomfortable wait-and-see mode as the Section 232 drama plays out in Washington. In the monthly steel conference call hosted today by the Heating, Air-conditioning, and Refrigeration Distributors International, HARDI members reported anxiety over […]
As the Tuesday work day was coming to a close we want our readers to know that there is a meeting going on in the White House with a number of steel mill CEO’s, members of the WH staff and Wilbur Ross. According to World Trade Online the subject being discussed is Section 232… SMU […]
What should the administration consider when evaluating the potential use of Section 232 to restrict steel imports? The U.S. Chamber of Commerce, which serves as a voice for business interests in Washington and represents more than three million businesses of varying size, sector and region, offered five questions that should be answered: Do All Steel […]
I am working on an article regarding foreign steel offers, which have almost dried up completely due to the threats/unknowns associated with the Section 232 investigation. There have been a number of months where foreign steel imports have exceeded 3.5 million tons. We are hearing that these months will soon be behind us – although […]
U.S. Department of Commerce (DOC) Secretary Wilbur Ross told the Senate Finance Committee today that the long-awaited Section 232 report on steel would be given to President Trump within a week. Ross told the Senators that the report would contain a “menu of options” on how to contain steel imports. In an article published by […]
The controversial Section 232 tariffs/quota expected to be proposed by the Trump administration against foreign steel imports elicited many strong opinions from respondents to SMU’s July 5 flat rolled steel market trends survey. Only 22 percent said they feel duties of 20 percent or more on foreign sources of supply would be good for their […]
A group of the nation’s most distinguished economists and former presidential economic advisors, including Ben Bernanke and Alan Greenspan, has sent President Trump a letter urging him not to pursue further tariffs on steel imports under Section 232. As the July 12 letter notes, the United States already has over 150 countervailing and antidumping duties […]
The following article on the hot rolled coil (HRC) futures markets was written by David Feldstein. As the Flack Global Metals director of risk management, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel […]