SMU Market Trends: Demand, Imports in Question

“We continue to see demand across all business sectors declining,” commented one respondent. “With price reductions and uncertainty, I am seeing less inquiries now as customers try to reduce inventories and dump higher cost steel,” said another executive. “It’s hard to be sure if demand is the same or declining since people are sitting on their hands as they watch the U.S. mills trash the market,” added a disgruntled distributor.

More Imports from Canada, Mexico, Turkey?

The majority (57 percent) of respondents say they have seen competitively priced offers on steel imports from Canada and Mexico since President Trump rescinded the Section 232 tariffs. Tariffs on Turkey, which were cut in half but still remain at 25 percent, make Turkish steel imports considerably less competitive.

“Turkey is not competitive and they have long lead times versus U.S./Canada/Mexican mills,” said one respondent. “Turkey will struggle for the time being, at least on flat products,” added another.

Offers from mills in Canada have resumed, reported a few respondents. Said one: “Canada continues to sell well beneath the market.”

Forty-three percent of respondents to SMU’s questionnaire said they have not yet seen competitive import offers from the three countries.