U.S. Steel’s full-year net earnings nearly tripled from 2017 to 2018, but company executives were disappointed in fourth-quarter results for the Europe and tubular segments. Net earnings for the year totaled $1.1 billion compared to $387 million for 2017. Adjusted EBITDA was $1.76 billion compared to $1.15 billion a year ago, including $1.25 billion generated […]
The Steel Manufacturers Association would like to see the U.S.-Mexico-Canada Agreement ratified by the three countries, even if it calls for a change to the tariffs. Speaking at a press briefing during SMA’s board meeting Thursday in Washington, SMA President Phil Bell said the modernized trade rules in the USMCA are an improvement on NAFTA. […]
We have many new members as well as those on trials of our newsletters and website. I want to take a couple of minutes and explain what “final thoughts” means as it relates to this newsletter and Steel Market Update in general. Since I first started writing the Steel Market Update newsletter, I wanted a […]
AK Steel announced that it will permanently close its Ashland Works facility in Kentucky by the end of 2019. The blast furnace and hot end operations were idled in 2015, but AK Steel continued to operate a single hot-dip galvanizing coating line. Ashland’s 330,000 tons of loaded production will be transferred to other units in […]
A bill limiting the president’s authority to impose tariffs under the auspice of national security will be introduced in Congress next week. Sen. Pat Toomey (R-PA) will introduce a bill that would require the president to obtain approval from Congress before imports could be restricted under Section 232 of the Trade Expansion Act of 1962. […]
I have read a number of articles recently claiming steel prices have gone back to the levels they were when the Section 232 tariffs were announced. This is somewhat deceiving as the domestic mills had been pushing prices up prior to the announcement. A better benchmark would be to use the historical average on hot […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: The dust hasn’t settled yet from the partial government shutdown that ended Friday night. Already, though, thoughts turn to the issues that divide us as a country. As a trade person, I naturally focus on that issue. You do […]
On Monday, California Steel Industries (CSI) and USS/POSCO (UPI) advised customers of their intention to take spot prices on flat rolled products produced by the two mills up by $40 per ton ($2.00/cwt). This is the first price announcement out of either mill since October 2018. So far, there have not been any announcements out […]
On Monday, California Steel Industries (CSI) and USS/POSCO (UPI) advised customers of their intention to take spot prices on flat rolled products produced by the two mills up by $40 per ton ($2.00/cwt). This is the first price announcement out of either mill since October 2018. So far, there have not been any announcements out […]
U.S. ports reported a record year for cargo volume in 2018. The Port of Los Angeles broke its all-time cargo record for the third time in a row, moving 9,458,749 TEUs (twenty-foot equivalent units the size of a container), a 1.2 percent increase from 2017. The Port of New Orleans reported a new record and a […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: New 232 Lawsuit A new complaint against the United States was filed on Thursday, Jan. 17, by three U.S. importers of Turkish steel to contest the doubling of tariffs on Turkish steel into the United States. The plaintiffs are […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: New 232 Lawsuit A new complaint against the United States was filed on Thursday, Jan. 17, by three U.S. importers of Turkish steel to contest the doubling of tariffs on Turkish steel into the United States. The plaintiffs are […]
Steel Market Update spoke with a number of foreign steel trading companies who service the North American market today. There was one very clear theme no matter who I spoke with – steel buyers are not willing to take any risk on foreign steel with spreads less than $60 per ton. A second common theme: […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: A bill set for introduction today in the House of Representatives would, if enacted, fundamentally change the basics of U.S. policy on international trade. Rep. Sean Duffy (R-Wis.) will introduce the bill, which was drafted by the Trump administration. […]
Don’t expect to have your Section 232 exclusion request looked at any time soon. The Commerce Department has announced that, due to the number of furloughed employees during the partial government shutdown, it will temporarily suspend processing of Section 232 exclusions. Contingency plans at the nation’s trade offices have dramatically reduced the number of people […]
With no end in sight for U.S.-imposed steel tariffs, United Steelworkers in Canada urge the federal government to keep safeguards in place to guard against foreign steel imports. “Our members themselves are appearing this month before the Canadian International Trade Tribunal (CITT) to make the case for extending safeguard measures beyond the original 200-day period […]
The North American steel sheet market in 2018 was heavily influenced by effects from the Section 232 tariffs. These tariffs greatly increased U.S. sheet prices, while at the same time helped to further reduce imports. Our forecast today calls for a more measured rate of increase for underlying industrial growth, while prices will more closely […]
Steel Market Update asked: Are the Section 232 tariffs negatively impacting your business? The market is evenly split on the subject. About half of those responding to SMU’s questionnaire this week—primarily service center and OEM executives—say they have been hurt by the tariffs, while the other half say the tariffs have had no direct effect. […]
The Commerce Department’s research on the national security implications of auto and auto part imports has generated numerous drafts, said Commerce Secretary Wilbur Ross, because “the picture keeps evolving.” The latest Section 232 draft includes three options for President Trump to consider when weighing if tariffs on the foreign auto industry would be good for […]
Steel Market Update’s Steel Buyers Sentiment Index began the year with another slight dip in optimism, as measured by both the Current Sentiment and the Future Sentiment three-month moving averages. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current Index), […]
U.S. tariffs on steel imports from Canada continue to put pressure on Canadian producers while goverment officials seek an ending to the trade measures. Algoma Steel, which recently emerged from bankruptcy protection, is one of the vulnerable steel producers affected by Section 232. The second largest mill in Canada is expected to receive up to […]
Nucor Corp. announced on Monday that it is scouting the Midwest for a suitable location to build a $1.35 billion EAF mill that is capable of producing 1.2 million tons of steel plate products annually. Nucor expects site selection to be completed in 2019 and construction to begin as soon as permits are secured. The […]
With finished steel prices continuing their second-half decline through the end of 2018, the market is holding its collective breath to see if the mills announce a price hike this month. Many believe they will try to raise prices, but most are doubtful they will succeed. Following is what industry sources told SMU this week: […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: When the unusual happens, we often are jarred from our routine. I have experienced this since Dec. 21, when the government shutdown officially began at midnight (Dec. 22). The shutdown is “partial,” meaning that only certain government departments […]
Trade attorney and Steel Market Update contributor Lewis Leibowitz offers the following update on events in Washington: When the unusual happens, we often are jarred from our routine. I have experienced this since Dec. 21, when the government shutdown officially began at midnight (Dec. 22). The shutdown is “partial,” meaning that only certain government departments […]
Perhaps it’s because the year started out with so much promise that the end of 2018 seemed so uninspiring. On balance, most in the steel business would call 2018 a good year, some even a great year. But few look forward to 2019 with the same optimism and confidence they felt a year ago at […]
When on calls with steel service center and manufacturing executives, one of the questions that always comes up is my view on the economy. I am not an economist and I defer to CRU and to economists like Alan Beaulieu of ITR Economics (Alan speaks at the SMU Steel Summit Conference). I know Dr. Beaulieu’s […]
January 2019 has begun and steel prices have taken up where they left off as Steel Market Update price ranges and averages dropped compared to where we ended 2018. Steel buyers are worried about inventory levels, which some service centers reported as having grown more than expected during the month of December. They also worry […]
By CRU Analysts Laima Balse and Director Paul Robinson Prices for all major commodities in the CRU price basket, except for U.S. steel, declined during 2018. There were a few factors that caused this downwards price trend and market volatility. This overview looks across the commodity groups at the common trends affecting the industry, and […]
Welcome to 2019! As we begin the New Year, I want to welcome everyone back to their offices or plants. I am looking forward to another interesting year as we continue to deal with the effects of Steel 232, anti-dumping and countervailing duties, threats of Section 232 for automotive and Section 301 on finished goods […]