US Steel maintains that Chinese manufacturers and distributors use false documents and transship products through other countries to disguise the country of origin. Numerous antidumping and countervailing duty orders have been placed on Chinese steel products over the years. US Steel maintains that China continues to circumvent these orders by using such methods in violation […]
For the week ending April 23, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,684,000 net tons of raw steel, a 0.5 percent decrease over the previous week but a 2.1 percent increase over the same week one year ago. The estimated capacity utilization rate is 72.0 percent, down […]
WASHINGTON, April 26, 2016 /PRNewswire/ — Today United States Steel Corporation (NYSE:X) filed a complaint with the U.S. International Trade Commission (ITC) to initiate an investigation under Section 337 of the Tariff Act of 1930, against the largest Chinese steel producers and their distributors. The 337 complaint alleges illegal unfair methods of competition and seeks […]
US Steel Corp. announced a net loss of $340 million for first quarter 2016 and a segment EBIT loss of $242 million or $70 per ton. “It’s my perception that we have probably seen bottom,” said president and CEO Mario Longhi to reporters following U.S. Steel’s shareholder meeting Tuesday in Pittsburgh. US Steel began first […]
This evening I was talking with a large steel buyer about the fundamentals of the steel market and how long can prices continue to go higher. I told him that I had spoken with another large steel buyer earlier today who told me they could not understand how the fundamentals have changed in China. They […]
This may come as a surprise to some but, there are many who think 2016 may be one of those years where flat rolled steel price volatility, maybe even extreme volatility, could become the norm. We are now in the midst of a five month upswing in flat rolled steel prices which has taken benchmark […]
SSAB Americas announced the launch of a new awareness program—EcoSmart, to demonstrate its commitment to environmental stewardship. SSAB Americas’ EcoSmart steel contains 97 percent recoverable scrap metal that has been diverted from landfills. The recycled steel contains everything from old automotive parts to discarded appliances. Along with the use of recycled scrap metal, SSAB Americas […]
For the week ending April 16, 2016, the American Iron & Steel Institute (AISI) estimated domestic raw steel production was 1,693,000 net tons, up 2.2 percent from the previous week total of 1,656,000 net tons and up 2.7 percent compared with 1,649,000 net tons in the week ending April 16, 2015. The capability utilization rate […]
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 […]
On Friday, US Steel announced a $60 per ton flat rolled steel price increase. This was the first US Steel announcement done in public in some time. The increase came in the form of a letter emailed to their customers. U.S. Steel did not provide minimum base price guidelines in their announcement although minimum price […]
The global steel industry situation and its impact on U.S. steel industry is the topic of discussion this week at hearings held by the United States Trade Representative and Department of Commerce in Washington DC. Representatives from the steel industry, manufacturing, mining and Congress are giving their opinions and suggestions during three days of hearings, […]
We have include an abridged statement from the IMF that was released on Tuesday this week and in which the commodity situation continues to loom large. Our SMU data analysis follows with comments about the future of global and domestic steel demand through 2021. We believe that an understanding of global influences is essential if […]
The surge in steel imports is a threat to national security according to a new paper released by the Alliance for American Manufacturing. AAM says steel is essential to national security, as it equips the military and builds infrastructure. The report’s findings were commented on at the Congressional Steel Caucus this week. “Steel from Northwest […]
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 […]
I will be doing an article in Sunday evening’s newsletter about the AISI capacity utilization numbers. The AISI produces their “estimate” of steel production and the percentage of capacity utilization based on 50 percent (or fewer) of the mills reporting production data. I have considered not publishing the data at all because, in my opinion, […]
Is Now the Time to Panic as Steel Mills Control Their Order Books? The flat rolled steel markets continue to march to their own drummer. Lead times are extending, spot flat rolled steel prices are rising and many of the mills are not opening their order books for spot business. There are a number of […]
For the week ending April 11, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,656,000 net tons of raw steel, a 0.4 percent increase over the previous week and a 0.4 percent increase over the same week one year ago. The estimated capacity utilization rate is 70.8 percent, up […]
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 […]
Licensed data for March was reported by the Steel Import Monitoring System of the US Commerce Department on April 5th. An explanation of the methodology that we at SMU use to analyze the trade data is given at the end of this piece. Total rolled product licensed imports in the single month of March were […]
According to the latest data released from the US Department of Commerce and the American Iron and Steel Institute, apparent steel supply for the month of February 2016 was 8,269,164 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports and subtracting total US steel exports. February apparent […]
We have received a number of calls from sellers of steel asking for our help in trying to explain, from an independent source, why flat rolled steel prices are moving higher and why we expect this trend to continue. When looking at the history of Steel Market Update, our steel market intelligence publication was actually […]
With lead times extended and supply constrained any surprise outages, or the rumor of an outage, could have a dramatic impact on an already spooked flat rolled market. On Sunday, US Steel suffered a short term unexpected outage on their largest blast furnace, #14 at Gary Works. The two day outage is projected to have […]
US Steel will lay off about 25 percent of its salaried workers in its latest cost cutting effort. It is estimated about 750 employees in the 3,000 North American salaried positions will be laid off. “This is part of the ongoing adjustment to staff levels and operations due to challenging market conditions, including fluctuating oil […]
For the week ending April 2, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,650,000 net tons of raw steel, a 1.5 percent decrease over the previous week but a 2.2 percent increase over the same week one year ago. The estimated capacity utilization rate is 70.6 percent, down […]
Essar Steel Algoma announced that it has entered Phase Two of the Sale and Investment Solicitation Process. The company reports receiving “several bids” in the first phase of the sale. During the second phase of the process, qualified bidders will be invited to a management presentation and participate in on-site tours and inspection of the […]
We know our readers enjoy hearing comments from those with whom we speak on a regular basis regarding market trends and pricing. We have had an active week heading into the first full week of April so here are some of the things our readers and sources are talking about during the last week of […]
We have been asked about the possible restart of the blast furnace at AK Steel or the furnaces at Granite City as steel prices rise and lead times remain extended. We spoke with a couple of analysts over the weekend who told us they did not see the AK Steel furnace running at any point […]
For the week ending March 26, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,675,000 net tons of raw steel, a 0.4 percent increase over the previous week and a 4.6 percent increase over the same week one year ago. The estimated capacity utilization rate is 71.6 percent, up […]
Flat rolled steel pricing momentum is clearly on the side of the domestic steel mills. You have a number of the integrated mills essentially out of the spot markets and lead times are extended. Even hot rolled lead times are moving out despite weakness in the energy markets. SMU Price Momentum Indicator continues to point […]
For the week ending March 19, 2016, the American Iron & Steel Institute (AISI) estimated the U.S. steel industry produced 1,668,000 net tons of raw steel, a 3.1 percent decrease over the previous week but a 4.2 percent increase over the same week one year ago. The estimated capacity utilization rate is 71.3 percent, down […]