Steel Market Update found the results of one of the group of questions about service center spot sales from this past week’s flat rolled steel survey quite interesting. There have been two price increase announcements by all of the domestic mills and a third laying there from US Steel and our results suggests – well, […]
ArcelorMittal responded Monday to rumors of a potential closure of Indiana Harbor West in East Chicago. Key Banc reported that sources indicated “ArcelorMittal USA is taking steps to reduce its sheet hot end and finishing capabilities via the closure of Indiana Harbor West.” A spokesperson at ArcelorMittal USA, in an email to Steel Market Update, […]
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 May 2015 was 9,069,541 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports and subtracting total US steel exports. May supply […]
Steel Market Update queried U.S. domestic steel mills to hear what they have to say on the recently passed trade legislation. One of the executives who responded was Jim Baske, chief executive officer, ArcelorMittal North American Flat Rolled who said, “The steel industry in the United States faces significant competitive challenges from dumped and subsidized […]
Contract negotiations have kicked off between the United Steelworkers and US Steel Corp. USW officials and US Steel representatives met in Pittsburgh to begin ironing out the details of a new three year contract to replace the current one due to expire Sept. 1. The talks come at a time when the steel industry is […]
Something different from Steel Market Update this week. I would like for you to forward our newsletters to your friends, customers, suppliers or anyone who might have an interest in the steel industry. We continue to offer an incentive to companies that recommend our newsletter to others. As long as the new customer provides us […]
The following article is written by Spencer Johnson of FC Stone LLC. With six years of experience, Spencer provides his customers strategic and tactical advice on protecting themselves against commodity price volatility in the steel markets. Spencer will rotate weekly futures articles with Andre Marshall of Crunch Risk, LLC. Spencer can be reached at spencer.johnson@intlfcstone.com. […]
Earlier this week US Steel came out with a $40 per ton price increase. Since then the other mills have been eerily quiet not yet jumping on the bandwagon. It is normal for the smaller mills to wait and see if the larger mills will follow the lead. So far this week, they have not. […]
Even with a new price increase announcement out of US Steel (+$40) lead times remain flat compared to what we saw during the middle of June. All of the products, hot rolled, cold rolled, galvanized and Galvalume lead times are shorter than what we reported at the beginning of July 2014. Hot rolled lead times […]
A month ago one of our dealer sources echoed the views of many in the ferrous scrap business, he expected nothing worse than a sideways (no change) market for July scrap prices. He pointed to stronger demand at the steel mills and continued weak collection of obsolete scrap grades. We will hear more from him […]
The four year contract between USW local 1196 and Allegheny Technologies expired at 11:59 on June 30, 2015 but an agreement has been reached, for now, to keep the plant operational under terms of the previous contract. ATI and USW officials say there are still a number of significant issues to be resolved before a […]
The domestic steel mills are determined to keep pricing momentum on their side as US Steel became the first mill to announce a new round of price increases on flat rolled products. The US Steel announcement, which was made via the use of an internal memo to their sales group leaked to the industry, advises […]
Flat rolled steel prices have been struggling to keep momentum and move higher. We have not yet seen full compliance with the second price increase and now we have a new round of price increases beginning with the $40 per ton announced by US Steel this morning. We did see some minor changes to hot […]
ArcelorMittal USA warns that low capacity utilization of hot strip mills cannot continue. “It is not sustainable to operate multiple HSMs at low utilization rates when the same volume of steel could be produced by few HSMs at higher utilization rates,” writes CEO Andrew Harshaw, in the ArcelorMittal USA blog Raw. Harshaw notes record levels […]
Chevy is taking on the aluminum Ford F-150 with a series of ads sure to tickle consumers and annoy Ford marketers. The new ads for the Chevy Silverado poke fun at the F-150 while lauding the benefits of steel construction. The ads which are currently running in social media, point out the disadvantages of aluminum. […]
Today (June 25, 2015), the House passed HR 1295 which includes extension of the African Growth and Opportunity Act and other trade preference programs, as well as the renewal of Trade Adjustment Assistance (TAA) and improved AD/CVD laws that will benefit the steel industry. The measure passed by a vote of 286-138. Today’s vote follows […]
The Department of Commerce said Wednesday that it will proceed on AD/CVD investigations of imports of corrosion-resistant steel products from China, India, Italy, Korea, and Taiwan. A petition to investigate the products was filed on June 3, 2015 by US Steel, Nucor, ArcelorMittal USA, AK Steel, Steel Dynamics, and California Steel Industries. The products covered […]
The big picture is as follows: from the 2015 Article IV Consultation with the United States of America Concluding Statement of the IMF Mission May 28, 2015 (heavily abridged by SMU). “At current levels of the real exchange rate, the U.S. dollar is assessed to be moderately overvalued. As a result, the current account deficit […]
Light vehicle sales in the US skyrocketed in May to a seasonally adjusted annualized rate of 17.8 million units. This is the strongest pace in almost 10 years. Auto sales were 7.4 million in April and rose to 8.1 million in May. Light trucks rose from 9.1 to 9.7 million. Imports in May were 3.8 […]
Union workers at Hamilton and Lake Erie works have asked the Superior Court to order US Steel Canada to release the identity of potential bidders for the CCAA protected assets. The information on the 39 companies that have shown interest in buying all or part of USSC is crucial to the interests of workers said […]
Steel Market Update reported in the Tuesday issue of our newsletter that negotiations have started between the USW (United Steelworkers Union) and ArcelorMittal. The issue was raised at the Bank of America Merrill Lynch dinner where SMU publisher, John Packard, spoke last night. We have been anticipating that the posturing by the union and AM, […]
Steel Market Update has been asked if the domestic steel mills have made any moves to restart idled blast furnaces in order to increase production due to dumping suits, price increases and the anticipated stronger order book. People also want to know if ArcelorMittal and US Steel are building slab inventories in order to have […]
According to Investopedia, a subsidy is “a benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy is usually given to remove some type of burden and is often considered to be in the interest of the public.” The example accompanying the definition […]
US Steel has called 149 employees back to work at Fairfield Works. Currently just 76 workers are on layoff from the original 225 workers at the end of May. US Steel is in the process of restarting the Fairfield Works blast furnace. US Steel spokesperson Sarah Casella told the Birmingham Business Journal that the Jan […]
Phase 1 in the sale of US Steel Canada has been completed. Thirty-nine potential bidders for the USSC assets have signed non disclosure agreements, according to the latest report by court monitor, Alex Morrison. Multiple letters of intent were received indicating interest in: a. acquiring on or both of Lake Erie Works and Hamilton […]
We have been hearing a lot about TPP and TPA. Here’s another acronym you should know—T-TIP. T-TIP stands for Transatlantic Trade and Investment Partnership. The T-TIP is a trade and investment agreement being negotiated between the U.S. and the European Union. Launched by President Obama in 2013, T-TIP has taken a backseat to the Trans-Pacific […]
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 April 2015 was 9,212,032 net tons. Apparent steel supply is calculated by adding domestic steel shipments and finished US steel imports and subtracting total US steel exports. April supply […]
The “not if but when” question has been settled as the long awaited trade case filing on galvanized steel finally occurred on Wednesday. Six domestic steel mills submitted a petition to the Department of Commerce asking for the imposition of anti-dumping and countervailing duties on certain corrosion-resistant steel products from China, the Republic of Korea, […]
A US Steel spokesperson reports that the Fairfield Works blast furnace is in the process of restarting. Notices were given last week to employees and customers that a blast furnace at Granite City Works will continue in operation. Analysts at Key Banc Capital Markets had the following comments on US Steel. “Fairfield is being restarted […]
The United Steel Workers said Wednesday that the union fully supports the antidumping and countervailing petition filed on corrosion-resistant steel products. The petition, said the USW in a press release, details ”how a flood of subsidized and unfairly traded steel imports from China, India, Italy, South Korea and Taiwan has damaged the US steel industry […]