Further Stainless Steel Price Rises Imminent in the US After Section 232 Announcement

The growing cost of nickel, chromium and molybdenum will, almost certainly, put further upward pressure on stainless steel transaction values, through to the second quarter of this year. Rises in alloy surcharges have been announced for March deliveries and additional increases are anticipated for those in April. Moreover, reductions in basis price discounts are expected, in the near future, as local producer confidence grows, following Thursday’s Section 232 announcement. 

The statement last week, by President Donald Trump, of a 25 percent tariff on all steel imports, has been met with a mixed response by the local market. Whilst domestic steel manufactures are praising Mr Trump for his decision, buyers in the downstream supply chain have concerns regarding the potential for a shortfall in supply, as well as further price increases. Discussions of counter measures by representatives of countries, worldwide, are already emerging. The risk of a trade war looms.