2018 Year in Review; What Does It Mean for 2019?

Perhaps it’s because the year started out with so much promise that the end of 2018 seemed so uninspiring. On balance, most in the steel business would call 2018 a good year, some even a great year. But few look forward to 2019 with the same optimism and confidence they felt a year ago at this time.

One big reason is the price of steel. As the new year opened up on 2018, the average price for hot rolled coil was already a healthy $685 per ton. With a boost from the Trump administration’s Section 232 tariffs that reduced competition from imports, the price jumped by 33 percent over the subsequent six months to a lofty $910 per ton. Despite the high price tag, distributors, fabricators and OEMs continued to buy steel to meet the persistently strong demand for manufactured goods in the U.S. Mills and service centers reported record earnings.