The Trump administration pushed its decision on Section 232 tariff exemptions back to June 1, which means buyers and sellers of US import HDG coil will be without market clarity for another month.
“No one knows much of anything at this point, because the Trump administration kicked the can, which means we won’t know what’s going on for another month,” a source said. “The big question is whether Mexico will be exempt altogether or whether they’ll be subject to a tariff or a quota. There’s also the matter of the Mexican general elections, which will take place on July 1, and the position of the next Mexican president on the NAFTA negotiations could also throw a wrench in this.”
Another East Coast source pointed out that of the administration moves forward with widespread import quotas, that the market could experience “unprecedented shortages” in Q4, which “could drive domestic prices through the roof.”
“What I’m telling my clients now, is that they can’t put all of their eggs in the Mexico basket because there aren’t any guarantees. If Mexico is exempt from tariffs and quotas, but it looks like the US will be facing steel shortages, if Mexico tries to pick up that slack, that’s going to cause a whole new round of problems,” he said. “There’s still a lot that we won’t know until after June 1.”
Current pricing for US import 0.012”x40.875” G30 HDG coil from Mexico, which is unchanged in the past week, is listed in the chart below. Order activity remains robust.
| 0.012”x40.875” G30 HDG coil | cwt. | metric ton | net ton | |
| Mexico | $60-$63 | $1323-$1389 | $1200-$1260 | Delivered to Houston |