US import HDG prices tick downward

US import HDG prices have ticked down across the board since our last report a week ago, with traders saying that offshore mills have been reducing their prices in hopes of attracting orders. The question as to how long US HDG prices will hold at this range, or soften more, has yet to be answered.

Section 232 tariffs are being disputed at the World Trade Organization by seven countries, including the EU and Mexico. Experts have indicated it’s rare for the WTO to be addressing so many disputes at the same time. Additionally, the WTO can often take years to resolve these types of disputes before deciding if action, which in this case may undo the tariff, is justified.  The current review is expected to take two years.

The situation with Mexico, however, may see resolution a bit sooner; leaders in that country are now indicating they will not sign the new US-Mexico-Canada (USMCA) trade deal unless steel and aluminum tariffs are removed. The Mexican deputy commerce minister has been quoted as saying that Mexico also will not accept any American proposal regarding a quota system.

For now, all US import HDG pricing, from countries listed below other than Brazil, include the 25 percent steel tariff. Brazilian mills are exempt, but are subject to a quota.