Reaction From Steel Buyers on Section 232 Steel Tariffs

It is still early, but Steel Market Update is already collecting comments and opinions on how the Section 232 steel tariffs are going to affect existing business in the United States. We heard everything from allocation stories to a few companies that reported higher prices but no customers for that higher priced steel.

“This is a negative for the steel mills,” is how one service center executive began when speaking to Steel Market Update earlier today. “NLMK withdrew from the market, and other mills have raised prices again with coated steel now being offered at $50.50/cwt base price levels.” The executive said he objected “pretty strongly.” Especially since he was unable to sell any material last week at $47.00/cwt base price levels. “If I am going on allocation, I expect to be able to put $70 on it and sell it and I can’t do it as customers won’t pay the price.”