US market outlook due to Section 232 steel tariffs mixed

Traders in the US steel market also discussed the results of a possible resolution of the dispute between the EU and the US.

“I'm not sure the EU's Section 232 exclusion will have an immediate impact,” said a US trader. "Everyone is talking about November 1 as the date of a potential decision, but I believe there will be a transition period of 60 to 90 days."

The trader added that such a decision would lead to higher European prices, but did not see this as a “game changer” for US pricing due to the limited European idle capacity that could be restored in the short term.

However, some sources from buyers doubted that the impact would be limited as they began to see more and more European volumes being purchased from the US. In early August, sources on the buyer's side began reporting HRC deals at around $ 1,600 apiece and CRC deals at around $ 1,800 apiece, from at least two separate European factories. Prices are based on Great Lakes DDP Port with November arrival time.

Imports continued at a significant discount to US sheet prices.