US steel prices reach their highest in ten years

According to foreign media on June 29th, the increase in steel prices in domestic steel mills in the United States has weakened the impact of 25% of US steel import tariffs on steel imports. Obviously, the market did not anticipate this situation when tariffs were imposed.

Since the beginning of the year, the average reference sales of North American long products has increased by 34%. In Western Europe, steel prices in dollar terms rose only 3.5% over the same period. In Asia, the price of similar products increased by 6.5%.

How does the US authorities go to this stage? It is clear that due to the increase in tariffs, domestic steel prices have risen more than the increase in import prices. For cost reasons, domestic steel downstream users will re-direct to foreign markets to purchase imported steel. This is inconsistent with the original intention of the United States to impose a tariff plan under Section 232.

The key to solving the above problems lies in the domestic steel producers in the United States. Overseas suppliers may maintain their current offer. This requires local US steel manufacturers to make appropriate adjustments. It is almost certain that US steel mills must change their current strategies to adapt to the current situation.
 

Source: China Steel Price Network

Pre: World Steel Association: Global steel production increased by 6.6% year-on-year in May

Next: Malaysia United Steel No. 2 Blast Furnace Oven