Last week Donald Trump said he would make an announcement this week about his decision on the US DOC’s recommendation under the Section 232 investigation, indicating it would include a 25 percent “blanket tariff” against all steel imports.
Domestic spot market prices, across all product lines, have shot upward since that decision was teased to the public. Sources close to SteelOrbis say that once Trump makes his final decision, they expect to see a short-term shortage in supply, which would help support the higher price points.
Already, base price US HDG coil has increased by $3.00 cwt on the bottom end, and by $3.50 cwt on the top end since the beginning of the year.
On the other hand, Washington insiders have pointed out that the final decision may not be what Trump has been indicating, adding that whatever he signs into law will be the law.
House Speaker Paul Ryan, who has traditionally marched in lock step with the Trump administration, has come out against the tariffs.
“We are extremely worried about the consequences of a trade war and are urging the White House to not advance with this plan,” AshLee Strong, Ryan’s spokeswoman, said in a statement. “The new tax reform law has boosted the economy and we certainly don’t want to jeopardize those gains.”
| Cwt. | Metric Ton (mt) | Net ton (nt) | Change from last week | |
| US domestic HDG base price | $43.00-$45.50 | $948-$1003 | $860-$910 | up $1.00 cwt. On the bottom end, up $1.50 cwt. On the top end |
| 0.012”x40.875” G30 | ||||
| ex-Midwest mill | $52.50-$54.50 | $1157-$1201 | $1050-$1090 | up $1.50 cwt. |
| 0.019”x48” G90 | ||||
| ex-Midwest mill | $43.00-$45.50 | $948-$1003 | $860-$910 | up $1.00 cwt. On the bottom end, up $1.50 cwt. On the top end |
| US domestic Galvalume base price | ||||
| ex-Midwest mill | $42-$44 | $926-$970 | $840-$880 | up $2.00 cwt on the bottom end, up $1.50 cwt. On the top end |
| 0.019x41.5625 Gr80/AZ55 | ||||
| ex-Midwest mill | $52.50-$54.50 | $1157-$1201 | $1050-$1090 | up $1.50 cwt. |