Finished Steel Imports Slow in June and July

Imports of foreign steel continue at a brisk pace, despite the Section 232 tariffs placed on steel imports from every country in the world except Australia (no quota), South Korea (with quota), Brazil (with quota) and Argentina (with quota). Since the Section 232 tariffs began at the beginning of May, and most foreign mill lead times are 3-5 months for delivery, we should start to see reductions in imported tons during the months of July, August and beyond.

However, with the sharp rise in domestic spot steel pricing, the spread between domestic and foreign steel is wide enough to accommodate paying freight, trader margin and the 25 percent tariff and still have some products that are priced below domestic numbers. The key for most steel buyers now is whether the domestic number will see some weakening, causing prices to falter and to chip away at any spread that exists between new foreign offers and those of domestic steel mills.