How would Section 232 tariffs impact US domestic standard pipe?

Wednesday, 21 February 2018 02:02:36 (GMT+3)   |   San Diego
       

Last Friday, the US DOC published its official recommendations for trade remedies under the Section 232 investigation.

Current speculation is that Trump will opt for both tariffs against some (or all) offshore producers along with implementing quotas on how much steel can be shipped to the US.

It is also believed that current domestic pricing for all US steel products could rise after tariffs are implemented. Pricing for US domestic Grade A ERW BPE standard pipe, which is currently trending at $51-$53 ($1124-$1168/mt or $1020-$1060/nt) ex-mill and has been on an upswing since the first of the year, could rise another $7.50 cwt. ($165/mt or $150/nt), according to sources.

“If Trump decides tariffs and quotas are a ‘go’ we all think that mills will announce price increases almost immediately,” a source said. “Why wouldn’t they?”

On the other hand, there is also speculation that the implementation of tariffs and quotas could be temporary, due to the likelihood of global pushback.

The decision on the Section 232 case is expected to be announced by April 11.

 


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