In previous weeks, many within the US domestic steel industry were predicting that domestic steelmakers would continue to push for higher prices throughout the summer; however, this week’s news that the US DOC is investigating recent price hikes, to see whether domestic mills are “illegitimately profiteering” from Section 232 tariffs, has many thinking mills will put the breaks on pending planned price increases.
US Commerce Secretary Wilbur Ross noted there’s no reason for Section 232 tariffs to increase the price of steel by more than the percentage of the tariff, yet that’s exactly what’s happening.
“That clearly is not a result of the tariff, that’s clearly a result of antisocial behavior by participants in the industry,” he said.
As such, market participants agree that the previous uptrend in prices has come to an end.
“I guarantee you that all planned price increases are off the table right now,” one source said.
Another agreed. “We will likely see domestic mills back off further increases in response and could well see some softening."
For now, though, spot market pricing for US domestic cold rolled coil has remained stable, at $49.50-$51.50 cwt. ($1091-$1135/mt or $990-$1030/nt) ex-mill.
Meanwhile, pricing for Turkish CRC imports in the US domestic market is still trending between $46-$48 cwt. ($1014-$1058/mt or $920-$960/nt), DDP loaded truck in US Gulf coast ports.