USA steel prices highest in ten years
06 July 2018
The 25 percent tariff on imports of steel into the USA has been eroded by the domestic mill price increases. According to MEPS, the North American Average Flat Products (including stainless steel) selling figure increased by 34 percent, since the start of 2018. In Western Europe, the steel price recovery, in US dollar terms, was just 3.5 percent over the same period. In Asia, an upturn of 6.5 percent was recorded. On a cost basis, domestic steel users will most likely be in a position to return to purchasing from outside the country. This was not the original plan when the Section 232 plan was devised.
Outside suppliers are likely to maintain their current offer prices. It will require action from the local steelmakers. This would, almost certainly, require them to adopt a different strategy to the one currently in place.
Source: MEPS; Image courtesy Reuters