Service Centers
March 6, 2018
‘Window of Opportunity’ for Secondary Steel
Written by Tim Triplett
With steel imports mostly on hold awaiting the final word on Trump’s tariffs, supplies of prime steel are tightening, putting distributors of secondary material in the catbird seat, at least for a while. But the supply of secondary is tightening, as well, say service center executives, who aren’t sure how long the window of opportunity will remain open.
The secondary market is reacting to the news of possible 25 percent tariffs on steel imports right along with the prime steel market, as the two are intertwined. Like prime steel, the rate at which secondary prices are increasing is “mind blowing,” said Lisa Goldenberg, president of Delaware Steel of Pennsylvania. Secondary steel is nonprime or excess material that did not meet the specifications for its original intended use but is acceptable to other buyers for other applications.
