Features
SMU Week in Review: April 7 - 11
Written by Stephanie Ritenbaugh
April 11, 2025
Well, it was another chaotic week on the trade front, with harsh tariffs announced, market upheaval, and then a pause on a range of trading partners. But there is news out there beyond trade. Let’s take a look at some highlights from the past week.
In the latest twist in the story of U.S. Steel’s fate, investment firm Ancora Holdings dropped its plan to take control of the iconic Pittsburgh steelmaker. Ancora cited Nippon Steel’s proposed bid for USS “gaining momentum.”
The move came after President Trump on Monday ordered the Committee on Foreign Investment in the United States (CFIUS) to conduct a new review of the US Steel-Nippon Steel deal. But, the review doesn’t mean a sale is in the bag. Trump said he is still against selling USS to a Japanese company.
US ferrous scrap prices declined in April for all the grades tracked by SMU amid tariff uncertainty. Looking forward, it appears that the export market is headed lower from early April levels, according to one scrap source contacted by SMU. This means there could be incentive for US exporters to offer shredded scrap into the domestic again in May at lower prices than April.
With 25% tariffs imposed on Canadian steel imports, companies like Sault Ste. Marie, Ontario-based Algoma Steel have to weigh whether to absorb those costs or pass them on to buyers. For the time being, Algoma is choosing the former. “You can assume we’re eating a big part of that tariff,” said Michael Garcia, CEO. “I’m not going to say it’s 100%, but we’re eating a part of it.”
Garcia discussed this, Algoma’s imminent transition to EAF production, and the increased risks of trade with the United States during SMU’s monthly Community Chat.
Domestic hot-rolled (HR) coil prices declined last week for a third straight week. Most offshore markets bucked the trend and gained ground. Once again, uncertainty around tariffs caused US prices to slip as buyers moved to the sidelines. It’s unclear to date whether the 90-day pause on the more extreme “reciprocal” tariffs, announced by President Trump on Wednesday, would see buyers return to the market.
Stephanie Ritenbaugh
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Final Thoughts
Even before the news about Mexico, I didn’t want to overstate the magnitude of the change in momentum. As far as we could tell, there hadn’t been a frenzy of new ordering following President Trump’s announcement of 50% Section 232 tariffs. But higher tariffs had unquestionably raised prices for imports, which typically provide the floor for domestic pricing. We’d heard, for example, that prices below $800 per short ton for hot-rolled (HR) coil were gone from the domestic market – even for larger buyers.
Reibus closes down its online metals marketplace
The Atlanta-based company informed customers on Monday it is shutting down its metal division while continuing to operate the logistics business.
AISI: Raw steel production climbs to three-year high
Domestic steel mills are ramping up production, according to the American Iron and Steel Institute (AISI), with output rising to a three-year high last week.
April steel exports fall to lowest level since 2020
US steel exports totaled 579,000 short tons (st) in April, according to US Department of Commerce data. That's the lowest monthly volume recorded since July 2020.
Final Thoughts
I want to draw your attention to SMU’s monthly scrap market survey. It’s a premium feature that complements our long-running steel market survey. We’ve been running our scrap survey since late January. And over just that short time, it’s become a valuable way not only for us to assess where scrap prices might go but also to quantify some of the “fuzzy” indicators - like sentiment and flows - that help to put the price in context.