Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: The tariff story is getting broader and more complex. I will focus today on the lawsuit filed by the American Institute for International Steel (AIIS) and two of its members challenging the constitutionality of Section […]
Negotiations between steel mills and buyers may have turned a corner as the mills appear significantly more willing to negotiate spot prices than at any other point this year. “We’re sensing that some of the steel mills have holes in their August order book for hot rolled coil,” one steel pipe executive told Steel Market […]
While manufacturers generally reported favorable business conditions all over the United States, companies in all the Federal Reserve Districts pointed to Trump administration tariffs as cause for concern, according to the Fed’s July 18 Beige Book report. Economic activity continued to expand across the United States, with 10 of the 12 Federal Reserve Districts reporting […]
Imports of foreign steel continue at a brisk pace, despite the Section 232 tariffs placed on steel imports from every country in the world except Australia (no quota), South Korea (with quota), Brazil (with quota) and Argentina (with quota). Since the Section 232 tariffs began at the beginning of May, and most foreign mill lead […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Today, the Commerce Department is conducting a hearing on the self-initiated Section 232 investigation into imports of autos and auto parts. The U.S. auto industry is uniformly opposed to tariffs on autos and auto parts. However, the […]
Nucor’s consolidated net earnings in the second quarter of 2018 jumped to $683.2 million, the second highest quarterly earnings in the company’s history. In comparison, earnings were $354.2 million in the first quarter and $323 million in Q2 2017. Nucor’s Chairman and CEO John Ferriola attributed the successful quarter to an upturn in the steel […]
Section 232 auto tariffs were the subject of a Commerce Department public hearing on Thursday, July 19. The hearings were cut from two days to one after Commerce determined the 45 requests to testify could be accommodated in a single day. All but one of the 45 witnesses was expected to testify against the tariffs. […]
The European Commission has announced it will impose provisional steel quotas to prevent steel imports from being diverted from the U.S. to Europe. The safeguard measures will go into effect July 19 and will remain in place for a maximum of 200 days. The provisional measures will affect 23 steel product categories and take the […]
A Missouri senator is calling for the end of the trade war instigated by Trump administration tariffs that are threatening agricultural producers and manufacturers in her home state. “Missouri jobs and livelihoods are at stake—and I don’t understand the decision to escalate this trade war with no end in sight, risking critical foreign markets and […]
The American Institute for International Steel is seeking reinforcements in its legal battle over the constitutionality of the Trump administration’s Section 232 tariffs. In a letter to AIIS members and steel supply chain partners this week, the trade group solicited donations to help cover its legal bills. “Legal costs and related expenses are mounting quickly. […]
How sustainable are the high steel prices in the United States? Steel Market Update sources point to a number of risk factors that buyers should consider. One service center general manager told us flat rolled and plate prices could only be threatened by an increase in imports. “Sharp price declines are caused by sharp increases […]
Is buying foreign steel today a big opportunity, in light of the wide spread between foreign and domestic pricing, or a big risk, in light of the tenuous trade situation in Washington? Steel Market Update canvassed the market and received widely varying views. For some, placing foreign orders is “a no-brainer.” For others, concerned about […]
Premium subscribers to Steel Market Update have access to reports on SMU’s website that break out the import tonnage into district of entry and source nation for six sheet and plate categories. SMU has now developed reports that drill down to provide more product detail on hot rolled and cold rolled coil. We report these […]
The United States shot back at allies and China who have filed World Trade Organization disputes against Section 232 steel and aluminum tariffs. On Monday, the U.S. Trade Representative filed five claims with the WTO challenging retaliatory tariffs launched by China, the EU, Canada, Mexico and Turkey. The tariffs of 10 percent on aluminum imports […]
Houston-based pipe manufacturer Borusan Mannesmann Pipe U.S. has been denied a temporary exemption from Section 232 tariffs on steel imports. Borusan was one of the first companies to file for product exemptions. After not getting a response, Joel Johnson, Borusan Mannesmann’s U.S CEO, decided to take a more direct approach and initiated a company postcard […]
In the last months, 14 of the 16 currencies that Steel Market Update tracks were down against the dollar, led by Turkey down by 29.4 percent, and Russia and South Africa both down by 8.5 percent. The Chinese yuan has declined by 7.9 percent in the last three months. Please see the end of this […]
This Steel Market Update report examines the import share of sheet, plate, long and tubular products and 16 subcategories through May. Table 1 shows total supply to the market in three months through May and in 12 months through May for the four product groups and the 16 subcategories. Supply to the market is the […]
I am back in my office and will be here for the balance of the week. Diana is back as well and will be in her office until we leave for Atlanta at the end of August. Graber Post Buildings, Esmark, CMC Impact Metals, North American Steel Alliance, Fluor, Whirlpool Corporation, Metal One America, Gateway […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: I spoke with a good friend over the weekend about the Trump tariff policy. So far, we have tariffs against all countries on steel and aluminum (with very few exceptions), and China-specific tariffs on $34 billion […]
May apparent steel supply fell 1.8 percent over April to 9,654,200 net tons, according to the data released late last week. Although down, supply remains strong in comparison to the last three years. Apparent steel supply is calculated by adding domestic steel shipments and finished U.S. steel imports, then subtracting total U.S. steel exports. May […]
The industries that move the nations’ freight are scrambling to find ways to mitigate risks from U.S.-imposed tariffs and foreign-imposed retaliatory tariffs that will impact supply lines and trade flow. Volatility seems to be the new normal as industries face uncertainty over international trade conflicts. Ports Prepare for Tariff Disruptions The Trump administration’s addition of […]
A Senate Foreign Relations hearing went awry when the administration sent Manisha Singh, Assistant Secretary of State for the Bureau of Economic and Business Affairs, to answer committee members’ questions about Section 232 measures. Singh was unable to provide Senate members evidence of a coherent trade strategy by the administration. Singh was asked to comment […]
Imports of other metallic coated sheet (OMC) into the U.S. as a whole were down by 17.6 percent in May year to date, according to Steel Market Update’s latest analysis of federal data. The Great Lakes region was up by 10.5 percent and the South Atlantic was down by 35.8 percent. SMU now has a […]
Imports of hot-dipped galvanized sheet into the U.S. as a whole were down by 10.9 percent year to date through May, according to Steel Market Update’s latest analysis of Commerce and ITC data. SMU now has a comprehensive series of import reports ranging from the first look at license data to the very detailed look […]
This analysis breaks down the imported tonnage of six flat rolled products into the district of entry and the source country. We believe that misinformation (or lack of) about local import volumes is often used to influence purchase decisions. Our intent with this analysis is to describe in detail what is going on in a […]
Steel buyers are divided on whether prices have peaked, but most would agree that if they do move higher, any increase will be modest. Steel Market Update canvassed sources this week. Said one executive, expressing a common view: “I don’t see prices rising. I feel we are at the top.” Others anticipate a modest uptick […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: In a sharp escalation of the trade war with China, the U.S. Trade Representative has released a list of about 5,000 items valued at around $200 billion that could be subject to new 10 percent […]
U.S. steel exports in May 2018 totaled 857,673 net tons (778,069 metric tons), flat over April but down 14.8 percent from May 2017 (which was at a 30-month high). Total exports have averaged around 860,000 tons the last few months. The total May export figure is a few thousand tons below the three-month moving average […]
Passage of the Senate motion to give Congress a role in deciding Section 232 tariffs was met with approval by the Coalition of American Metal Manufacturers and Users (CAMMU). The United Steelworkers offered qualified approval, but called for caution. “The Coalition applauds the Senate for taking this important first step to reassert its authority in […]
House members submitted a bill on Wednesday to amend the Trade Expansion Act of 1962 that mirrors a bill proposed in the Senate to limit the administration’s power to adjust imports in the name of national security. The bipartisan bill H.R. 6337, introduced by Rep. Mike Gallagher (R-WI), would require a 60-day period for Congress […]