Uncertainty of Tariff Implementation Affects Multiple US Steel Producers to Raise Steel Prices This Week

This week, several A203 Grade F steel production companies in the US steel market have raised steel prices one after another. Specifically, US steel manufacturer Nucor raised sheet prices by $40 per ton on February 4th, marking the second price adjustment since the January 28th hike. SSABAAmericas (the North American division of Swedish steel manufacturer SSAB) has raised the prices of its entire range of sheet metal varieties by $80 per ton, effective immediately. SSAB has raised prices by $60 per ton on January 28th, marking the second price increase of the year. SSAB has raised the price of all its US steel products by at least $80 per ton.

The main reason for the price increase is the A203 Grade F steel market's uncertainty about the implementation of tariffs, which has raised concerns about further increases in steel production costs. On February 1st, the US government announced a 25% tariff on imported goods from Canada and Mexico. Two days after signing an executive order imposing a 25% tariff on imported goods from Canada and Mexico, US President Trump signed an executive order suspending the imposition of tariffs on Mexican and Canadian goods, delaying their implementation until March 4, 2025.

It is reported that there are different views on the imposition of tariffs in the current US steel market. Some domestic production companies in the United States support the imposition of tariffs, believing that it not only benefits the sales of steel by domestic enterprises, but also reduces the competitiveness of imported resources; At the same time, it can also boost confidence in the US steel market. Indeed, in 2024, due to the slow development of many industries such as construction, automotive, and machinery, the market demand in the US steel market is sluggish, making it difficult for US steel companies to raise steel prices. But for other manufacturers, they are concerned that the cost of raw materials for production may rise, such as the price of scrap steel and some pig iron imported from Canada, which will increase the overall steelmaking cost of the enterprise. Overall, the current sentiment in the US A203 Grade F steel market remains optimistic, with a strong bullish outlook on future steel prices. However, due to the uncertainty surrounding the implementation of tariffs, there is still room for improvement