Steel market overview in the USA

With ongoing talk of a Section 232 investigation in the US, steel market participants are uncertain about the direction of domestic pricing.

US steel prices are expected to be lower in summer as market activity slows down during the holiday season. However, the possible introduction of additional trade legislation to restrict steel imports gives US steelmakers the opportunity to reverse the traditional pricing trend.

After a series of price downturns in the second quarter, a number of US steelmakers announced price increases in June in an attempt to stem negative price pressures. MEPS believes that internal service centers are now purchasing steel for stockpiling in anticipation of price increases - based on the price risk associated with the Section 232 study.

Foreign suppliers are likely to hesitate to export to the US due to the threat of tariffs and quotas. Several US service centers have noted a slowdown in import offerings in recent weeks. If overseas supply options are even more limited, American steelmakers will undoubtedly be able to increase the cost of steel.