Olympic Steel reported a narrower than expected net loss of $767,000 for first quarter 2016. Revenues were $258.3 million compared to $346 million in Q1 2015 due to lower prices and volume. First quarter shipments increased, however 16 percent from fourth quarter 2015 recapturing market share from last year’s declining marketplace. “We successfully navigated challenging […]
Cliffs Natural Resources first quarter earnings were stronger than expected by many analysts. The company posted net income of $117 million compared to a net loss of $762 million a year ago. Lourenco Goncalves, Cliffs’ Chairman, President and Chief Executive Officer, said, “Cliffs’ first-quarter results clearly demonstrate how far we have come on our turnaround. […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Dave Feldstein. As Flack Steel’s director of risk management, Dave Feldstein is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our […]
First, Steel Dynamics Industries (SDI) reported an increase in steel shipments (+17%) and that they were continuing to grow, “…across all divisions but most significant in flat rolled.” They went on to report customer inventory levels are now “better aligned with actual demand, which is supporting increased domestic steel production and now also flat rolled […]
SSAB Americas reported sales of SEK 2,428 million ($297.5 million) for first quarter 2016 up from 2,321 in Q4. Shipments increased 9 percent from Q4 to 475,000 tonnes. Operating profit, or EBIT, was SEK 55 million ($6.7 million) compared to a loss of SEK 100 mill in in Q4 and profit of SEK 296 million […]
Steel Dynamics announced a strong quarter with net income of $63 million on net sales of $1.7 billion for first quarter 2016. Steel operating income increased 104 percent to $136 million from fourth quarter due to a 17 percent improvement in shipments which totaled 2.12 million tons. Average steel selling price dropped $40 from Q4 […]
The following is a quick update on the status of the flat rolled trade cases (hot rolled, cold rolled and corrosion resistant) and what are the next important dates to remember. The corrosion resistant, which covers galvanized, Galvalume and related products such as galvanneal and aluminized, are scheduled to have the Final Determination by the […]
Last week hearings were held in Washington, D.C. regarding the plight of the domestic steel industry, world over-capacity of steel production (with a special emphasis on China). During the hearings a number of trade remedies were mentioned such as Section 201 and Section 232 along with the antidumping and countervailing duty flat rolled steel trade […]
During the Steel Caucus hearings last week USW International President Leo Gerard articulated the plight of more than 13,500 U.S. steelworkers that are currently holding layoff notices and the need for immediate action to address the flood of foreign steel imports and global overcapacity. “The current steel crisis is primarily caused by unfair foreign trade […]
Democratic presidential candidate Hillary Clinton said she will crack down on Chinese steel dumping if elected president. Clinton vowed to triple the number of trade enforcement officials, pursue countervailing duties on subsidized imports, confront currency manipulation and appoint a new trade prosecutor that reports directly to the president. Chinese steelmaking overcapacity continues to be a […]
US Steel CEO Mario Longhi criticized the European Union and United Kingdom for being “negligent” in in addressing dumping of steel from China and blamed the UK steel crisis on “misguided policies.” In an interview with the Financial Times, Longhi said the willingness of the British government to grant market economy status to China will […]
According to ArcelorMittal USA comments made during the Association of Steel Distributors meeting over the weekend which SMU attended, a trade case on steel plate imports will be filed within the next few weeks. ArcelorMittal along with Nucor and SSAB have been working on the documentation for an extended period of time and our understanding […]
A quick survey of ports shows good warehouse availability for incoming steel products. Los Angeles and Gulf ports saw a significant decline in steel imports in 2015. At the Port of Houston steel import tonnage dropped 28 percent from 6.5 million tons in 2014 to 4.6 million tons in 2015. Tubular product imports are expected […]
Worthington Industries reported net sales of $647.1 million for third quarter 2016, ending February 29. Sales were down from second quarter and year over year as a result of lower volume in Pressure Cylinders and Engineered Cabs, combined with lower average selling prices in Steel Processing due to a decline in the market price of […]
“Welcome to March Madness..,” is what one HARDI member company had to say during the March 2016 HARDI galvanized steel conference call held earlier today. He went on to say, “Brackets are an indication of what we are seeing – a lot of chaos out there… The [index name removed] base price is up 23 […]
Last week Steel Market Update conducted our second flat rolled steel market trends analysis for the month of March. We commit four days to canvass buyers and sellers of flat rolled steel. Then we put the vast majority (but not all) of the results into a Power Point presentation which we share with our Premium […]
With the announcement of the Preliminary Determination regarding dumping (AD) of hot rolled steel into the United States by Australia, Korea, Japan, Brazil, the Netherlands, United Kingdom and Turkey, the next step in the process is for the US Department of Commerce to travel overseas and verify the information received from the countries involved. Looking […]
There is much more to each of the trade cases than the preliminary and final announcements might have you believe. There are inconsistencies in the rulings where attorneys and clients alike scratch their heads to figure out how the U.S. Department of Commerce came up with their preliminary determination deposit rates. The second item not […]
Nucor guidance for first quarter 2016 came in below analyst consensus. Nucor expects first quarter results in the range of $0.20 to $0.25 per diluted share compared to $0.21 in Q1 2015 and adjusted net earnings of $0.45 per diluted share in Q4 2015. Analysts polled by Reuters expected earnings results of $.29 per share. […]
Ryerson CEO Eddie Lehner called 2015 “one of the harshest and most difficult metal environments we have seen in terms of magnitude and duration.” Ryerson Holding, a service center company, announced fourth quarter and full year results on Thursday. The company posted a net loss of $20.5 million for the quarter. Revenue was down 23 […]
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Dave Feldstein. As Flack Steel’s director of risk management, David Feldstein is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our […]
It was only a few weeks ago that many within the ferrous scrap community felt when the negotiations were over for the month of March and the smoke cleared scrap prices would be essentially unchanged from February. That was then, this is now. One of the larger players in the market told us earlier today, […]
Reaction to the US Department of Commerce (DOC) preliminary duties on cold-rolled steel has been mixed, depending on what side of the antidumping determination the commentators are on. In the UK, the steel sector is readying itself for further onslaught of Chinese exports while its own steel exports to the U.S. are assigned dumping margins […]
There has been too little attention paid to the passage of the ENFORCE Act by the U.S. Congress a few weeks back. At least that is how trade attorney Lewis Leibowitz sees it. He warned those at our 2015 Steel Summit Conference that the domestic steel mills were trying to build a “dam” against steel […]
Reliance Steel & Aluminum reported net income of $68.8 million for fourth quarter of 2014, down 25.7 percent from fourth quarter 2014 but up 33.5 percent from third quarter. Total sales for Q4 were $2.03 billion down 21.4 percent year over year and down 11.4 percent from third quarter 2015. Total tons sold were down […]
Last week, the Senate passed the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA). The bill contains important provisions of the Enforcing Orders and Reducing Customs Evasion (ENFORCE) Act that have been promoted by the U.S. steel and manufacturing industries to combat evasion of antidumping and countervailing duties . Evasion is defined as failing […]
The Trade Facilitation and Trade Enforcement Act of 2015 passed by a margin of 75-20 in the Senate this morning. The customs bill has been advocated by the steel industry to strengthen measures to combat unfairly traded and subsidized imports. The bill now moves to the President for anticipated approval and signature. The American Iron […]
Sources are telling SMU that the Nucor Decatur EAF’s will be offline for 10 days in early March as the mill replaces one of the furnaces. This is added on top of the idling of the Granite City (USS) and Ashland (AK Steel) hot ends plus the closure of the USS Fairfield hot end. Note […]
With the release of the December 2015 Final Census data we thought our readers would like to see not only how imports have fared over the past few years but, how those who are the largest exporters fared as well as those who are involved in the hot rolled, cold rolled and CORE (corrosion resistant) […]
China’s Ministry of Commerce says it will take will take definitive steps to cut steel production over the next five years by 100 to 150 million tonnes. China’s excess steel capacity has been has been estimated to be around 300 million tonnes. With domestic demand down, steel production has found its way into exports that […]