US HRC prices are still on the rise, sources say, although some have begun to question whether the recent upward trajectory may come to an end if the countries listed on Trump’s Section 232 exemption list will be able to ship steel to the US without an added 25 percent tariff.
Yesterday, it was announced that Brazil, Australia, Argentina, South Korea and member countries of the European Union, in addition to Mexico and Canada, would be exempt from the tariff. Today, the US Customs and Border Protection website indicated the exemption for all countries would expire by May 1.
Prior to today’s announcement, some believed that having other countries added to the tariff exemption list would cool US HRC pricing. On Thursday afternoon, sources close to SteelOrbis said they believed the announcement may prevent US HRC prices from climbing higher than the current range of $42-$44 cwt. ($926-$970/mt or $840-$880/nt), ex-mill.
Others, however, pointed out that service center inventories are trending low, and that mills are “already talking about allocations.” As of Friday morning, the landscape is less certain.
“It’s impossible for any of us to plan for anything because everything is constantly changing,” a source said. “All we know is what we know right now, but everything could change again by Monday afternoon. That’s the new normal. No one knows. What’s unfortunate is that it’s impossible to do business in this type of environment.”