SDI backs strong trade policy, says US scrap supply 'ample'

Steel Dynamics Inc.’s (SDI’s) executives said they are working with the Trump administration toward keeping a robust trade policy that favors US products. They also said that scrap supply in the US remains “ample.”

“Regarding trade policy, we believe in preserving a strong, durable trade framework that provides operational viability for US steel producers by disallowing unfairly traded foreign products,” SDI President and COO Barry Schneider said on a Q2’26 earnings call on Tuesday.

He noted the current administration has based its 50% Section 232 tariff on imported steel on national security matters, which is “fully supporting the (steel) industry long term.”

Beyond Section 232, Schneider said the Fort Wayne, Ind.-based steelmaker is also actively engaged with the Office of the US Trade Representative regarding the USMCA review that started on July 1.

He said their aim in the agreement with Canada and Mexico is to “ensure there are no weakening regarding our protections, including melted and poured provisions.”

301 investigations

Schneider also commented on the Trump administration launching new Section 301 investigations “targeting countries that both flood the market with excess steel and rely on forced labor in its production.”

Recall that Brazil, a major exporter of pig iron, a key raw material for EAF steelmaking, was named in two Section 301 investigations. Brazilian pig iron was exempted from a 25% Section 301 tariff last week. It remains to be seen whether it iron will face tariffs under another Section 301 probe targeting alleged forced labor.

“We are specifically advocating for these remedies to be adequate to the existing 232 steel tariffs,” Schneider said.

SDI is also involved in fostering policies that will create new demand in steel.

“We are advancing legislative and regulatory priorities to create meaningful demand for our steel, particularly through investments in infrastructure, shipbuilding, and the power sector,” Schneider said.

For example, on the demand side, he said SDI is working closely with Congress to strengthen Buy American steel requirements in the Ships for America Act and the Federal Highway Bill. This is “turning large public spending vehicles into volume opportunities for our steel businesses,” Schneider said.

Import competition

With US flat-rolled prices having been on a months-long price rally, Schneider noted there are some countries still exporting into the US, despite the S232 tariffs. And those import volumes have been creeping up.

“We are seeing certain countries shipping through the 232s. The offset pricing in the Asian markets has a lot to do with that,” Schneider said. “So the administration is looking closely at what these rates are. But we’ve been seeing very high accelerated rates of all steel exports from primarily three countries in Asia.”

“The predatory, mercantile economies have to find somewhere in the world to put their goods,” he added. “We are hoping the administration looks at what quotas were in place in some of these countries prior, and they look at what exactly the 232 was meant to do and try to rein it back in.”

Looking ahead, Schneider said SDI believes the “short-term disruption of these imports will hopefully be abated here in Q3, Q4.”

Still, he pointed out SDI remains competitive with all its customers. “The dialog of getting steel when they need it and being on time is usually the big factor for what our customers are looking for,” he said.

‘Ample’ scrap supply

One area that has been immune to tariff pricing battles has been ferrous scrap, where prices have remained relative stable over the last few months

And ferrous scrap supply in the US, an essential feedstock for EAF steelmakers, is an area where SDI Chairman and CEO Millett has a rosy outlook.

“You’ve got an environment today where there’s ample supply of scrap in the country, even with the additional (flat-rolled EAF) capacity that’s come online over the last few years,” Millett said. “You’ve got low imports and low exports today, relatively so.”

Millet said that’s holding scrap in country. Longer term, the good news is that with the with additional capacity coming online—he referred to Nippon/U.S. Steel’s Big River Steel in Arkansas and the Hyundai-POSCO project in Louisiana— DRI capacity is being added as well, which helps the iron unit balance in the country. Therefore, he said the company doesn’t foresee any major change in scrap prices.

Editor’s note

To see SMU’s report on SDI’s Q2’26 earnings figures, click here.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.