Economy
June 4, 2019
Margins Tight in a “Sluggish” Secondary Steel Market
Written by Tim Triplett
With prime steel prices continuing to slide, market conditions for distributors of secondary steel are a bit discouraging. The cheaper the prime products, the less incentive for buyers to seek out deals on nonprime material.
Nonprime or secondary steel includes coils that are rejected because they failed to meet the specifications for their original use, but may be suitable for other customers with alternative applications. President Trump’s decision to rescind the Section 232 tariffs on steel from Canada and Mexico has had little effect on the secondary market, at least so far, report distributors.
