US flat steel prices continue higher ahead of a further round of Mexico-Canada tariff delays

Friday, 07 March 2025 21:22:11 (GMT+3)   |   San Diego

US flat steel pricing continued higher this week even as the US Trump administration delayed for a second time, the threatened enforcement of 25 percent import tariffs on Canada and Mexico, this time until April 2, market insiders told SteelOrbis.

While the tariffs on the US’ two largest trading partners will be delayed for almost a month on products covered under the previous USMCA agreement, March 12 could see new Section 232 tariffs placed on all imports of steel and aluminum into the US without exemption. On April 2, Trump plans to also implement reciprocal tariffs on all countries with existing tariff levies against the US. Tariff rates, products covered, and countries affected by the tariffs beyond April 2 remains to be determined, media reports said.

“The US steel market has largely been fear-driven since Trump decided to use tariffs against Canada and Mexico,” said one flat steel market insider prior to the Trump’s newest tariff delay on March 6. “We’re expecting prices to gradually continue higher, however, pricing could also fall precipitously once there is more clarity on the effect of tariffs, if they even occur.”

Tariffs against Canada and Mexico were originally expected to go into place February 4 though were delayed for 30 days while the two countries took measures they thought would assure Trump that they were taking necessary steps to reduce illegal immigration and stem the flow of deadly fentanyl into the US. Nonetheless, tariffs briefly went into effect on March 4, only to be delayed again two days later.

In weekly flat steel spot markets, the SteelOrbis weekly spot average for hot rolled coils (HRC) continued to advance, closing the week at $860-$900/nt ($948-992/mt), or on average $880/nt ($970/mt), or $44.00/cwt., up from $860/nt ($948/mt), or $43.00/cwt., seven days earlier.

In other flat steel markets, CRC is assessed on average $1,100/nt ($1,213/mt), or $55.00/cwt., up from $1,050/nt ($1,157/mt), or $52.50/cwt., one week earlier. At present, the current key trading spread between HRC and CRC increased to $11.00/cwt., or $220/nt ($243/mt), up from on average $9.50/cwt., or $190/nt ($209/mt) one week ago.

Following on previous price increases, spot HDG also continued up, advancing to an average of $1,160/nt ($1,279/mt) or $58.00/cwt., up from $1,020/nt ($1,124/mt) or $51.00/cwt., a week ago.

On the mill side, this week, steel maker Nucor continued to increase its Consumer Spot Price (CSP) for hot-rolled coils for a sixth straight week, after an earlier period of 11 straight weeks of flat pricing. The CSP rose by another $40/nt ($44/mt) or $2.00/cwt. to $900/nt ($992/mt), or $45.00/cwt., up from $860/nt, ($948/mt) or $43.00/cwt., one week ago. Given this week’s price increase, Nucor weekly CSP pricing is now on par with its nearest competitor Cleveland, Ohio-based Cleveland Cliffs, which recently increased its April HR price to $900/nt ($992/mt) or $45.00/cwt. At this week’s pricing the Nucor CSP has advanced a full 20 percent since the start of 2025.

Now that imports from Mexico and Canada may flow into the US without tariffs, market insiders say recent domestic price increases could make imports more competitive, easing previous supply concerns and potentially reducing overall steel prices if finished steel demand fails to improve as markets head into the second quarter.

Late this week, an import HRC cargo of 10,000 mt was sold by a Turkish mill to the US at $550-$555/mt FOB base, while another offer from North Africa was heard at $555-$560/mt FOB base to the US.


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