Market Alert – Steel Pipe
Secretary Wilbur Ross released reports last Friday on the U.S Department of Commerce’s investigations into the impact on our national security from imports of steel mill products. While President Trump has to April 11, 2018 to take a range of actions, or no action, steelmakers and importers of steel products continue to increase market pricing at very aggressive levels.
Market Pricing Impact – 02/20/2018:
- Domestic A53B ERW Pipe has increased 4.5%.
- Domestic A53F, Gr. A CW Pipe has increased 3%.
- Domestic A135/A795 Sprinkler Pipe has increased 5%.
- Import A53B ERW Pipe has increased 12%.
- We anticipate a second 12% increase in upcoming weeks.
The U.S. Department of Commerce’s investigations remedies are designed to bring domestic steel production capacity from 73.5% to 80% utilization, a level that would provide the industry with long-term viability. These suggested remedies include tariffs ranging from 24%-53% (or greater) along with quota restrictions.
We expect to see continued increases in both domestic and import steel products for the next 60 days. Steel importers will continue to raise prices to protect themselves against potential tariffs for products currently on the water. Domestic steelmakers will raise both flat and long steel products leading up to the Section 232 ruling made no later than April 11, 2018.
Open Trade Case Information:
- Anti-dumping administrative review on Oil Country Tubular Goods from South Korea postponed 60 days from February 12, 2018.
- Forged Steel ITC Final Determination remains 04/30/2018 (CVD) & 07/12/2018 (AD)