Pricing for US domestic flat rolled steel products, including US domestic hot rolled coil (HRC) has remained steady week-over-week, but market players say that the May 1 decision with regard to the Section 232 exemptions list could throw the entire market back on its head.
“We’re all just bracing for the fireworks,” one source said.
Another source said he expects the US will implement import quotas with regard to the countries in question, “similar to the Korean model, unless it’s something that the US needs and doesn’t make a lot of here, and in that case we think the Trump administration may not impose any tariffs or quotas because keeping the status quo will suit the needs of the US.”
Another source said he’s not entirely convinced the situation with the Mexico exemption will be resolved on May 1, noting a belief that Trump may be “happy to keep kicking the can down the road.”
For the current moment, however, prices are stable.
The most commonly heard spot market pricing for US domestic HRC is holding at $43-$45 cwt. ($948-$992/mt or $860-$900/nt), ex-mill while Mexican HRC in the US domestic market continues to be available at $40-$42 cwt. ($882-$926/mt or $800-$840/nt), FOB Houston.