SteelOrbis sources have confirmed that US domestic tube mills continue to be bullish on upward pricing movement, but the overall state of the market is likely to trend uncertain until the Trump administration reaches final negotiation points with countries that are receiving a temporary exemption from Section 232 tariffs.
Mexico and Canada are among the countries that will receive an exemption through May 1; yesterday, it was announced that while Korean steelmakers will be exempt from paying the 25 percent import tariff, they will need to decrease steel export tonnages to the US by 30 percent.
Although mills have indicated they have “no idea how all of this will play out,” they’ve also indicated that another price increase could come by the end of the month.
“It’s hard to say if another increase would be accepted,” another source said. “There could be a strong pushback in replacing speculative inventory until there is more clarity with regard to things that will put pricing pressure on the mills.”
Current US HSS pricing, which was heard at $53.50-$54.50 ($1179-$1202/mt or $1070-$1090/nt), ex-mill two weeks ago, is now hovering closer to $55.50 cwt. ($1224/mt or $1100/nt).