US Steel Mills Benefit from Elevated
Prices, as End-Users Face Rising Costs
The threat and subsequent imposition of a 25 percent tariff on
imports of steel into the United States has benefited just a small proportion of
the country’s population.
Domestic steel selling values for flat rolled products
increased by almost 35 percent, in the first half of this year. A modest
reduction developed in the second half, but current prices are substantially
above the figures recorded in January 2018.
The main beneficiaries of the steel price hikes have been
the local mills. The losers have been the numerous producers of manufactured
goods and those companies engaged in the construction sector. These have seen
their steel costs rise by 30 percent, in the past nine months.
Will the steel producers be able to maintain their current
elevated prices in the long term? Probably not! Steel mill selling values are
already slipping, as local buyers suffer a reduction in orders for their
MEPS - International
Steel Review - September 2018 Edition
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