US flat steel pricing continued to advance this week, following the implementation of renewed 25 percent Section 232 steel and aluminum import tariffs by the Trump administration on Wednesday, March 12.
Most insiders say the new tariffs, which will eliminate previous country-specific and product-specific carve-outs previously available under the Biden administration, could substantially raise the price of imported finished steel and scrap, and could potentially ignite a trade war, even with out closest allies Canada and Mexico.
And, as many finished steel imports already were largely non-competitive with their domestic counterparts prior to the implementation of the new steel tariffs, it’s thought that further reduced competition from imports will continue to embolden domestic mills to continue to raise their prices.
“Flat steel is up again this week with the start of the steel tariffs,” said one US Gulf Coast flat steel trader. “Prices are up quite a bit as a result of an outlook for reduced imports, and higher US scrap prices.”
This week, steel maker Nucor once again raised its price for hot-rolled coils, increasing its weekly Consumer Spot Price (CSP) by $15/nt ($17/mt) to $915/nt ($1,009/mt), or $45.75/cwt. And, while the weekly CSP increase was less than last week’s $40/nt ($44/mt) rise, since late-January, Nucor’s CSP price has increased a full 22 percent. Since its inception on April 8, 2024, the CSP has risen by a more modest 10.2 percent.
In weekly flat steel spot markets, the SteelOrbis weekly spot average for hot rolled coils (HRC) continued higher, rising an average 5.1 percent from a week earlier to $900-$950/nt ($992-1,047/mt), or $45.00-47.50/cwt., up from $860-900/nt ($948-992/mt), or on average $880/nt ($970/mt), or $44.00/cwt., seven days prior.
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, it remains unclear at this point what a new USMCA agreement will mean for imports of finished steel, as 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 remain to be determined, media reports say.
In other flat steel markets, CRC is assessed in limited trade at $1,150/nt ($1,268/mt), or $57.50/cwt., up from an average of $1,100/nt ($1,213/mt), or $55.00/cwt., seven days ago. At present, the current key trading spread between HRC and CRC is assessed at $225/nt ($248/mt), or $11.25/cwt., up from $11.00/cwt., or $220/nt ($243/mt) a week ago.
Following on previous price increases, spot HDG trended slightly down in thin reported trade as potential trade actions on anti-dumping investigations by the US Commerce Department are expected in early April, market insiders told SteelOrbis. Spot prices were assessed at $1,100-$1,200/nt ($1,213-1,323/mt), or $55.00-60.00/cwt., off slightly from an average $1,160/nt ($1,279/mt) or $58.00/cwt., seven days ago.
On the HRC import side, following last week’s reports of import HRC cargoes destined for the US from Turkey at a $550-$555/mt FOB base, with another shipment from North Africa offered at $550-$560/mt FOB base, a medium cargo from Egypt sold this week at $550/mt FOB base, import market insiders told SteelOrbis.