Traders Feel the Effects of AD/CVD, Section 232 Tariffs

Steel Market Update spent a portion of the day today speaking with trading companies about their view of the markets, demand and the amount of foreign steel projected to come into the United States over the next few months. The traders are worried about what will happen to their customers if the amount of foreign coming in is inadequate to meet U.S. steel consumers’ needs (with the domestic mills near or at capacity on flat rolled).

Traders are “trying to read the tea leaves” regarding the status of inventories, the direction of mill pricing (which all agree is currently on a downward slope) and the desire of steel buyers to take future risk in buying foreign steel. One trader told SMU Asian steel orders are being booked for February shipment. If material is booked for the Upper Midwest, you are looking at a June arrival. “Who knows what they are going to need for June?” quipped one trading company executive.