Following the new tariff decision announced by U.S. President Donald Trump, some producers have raised their price lists by up to $100 per ton. In particular, rebar prices are trading between $760 and $870 per ton nationwide, while billet prices have reached around $800 per ton.
Tariff Increase and Reshaping of Competition
Following the tariff hike, competition among steel-exporting countries to the U.S. is being reshaped. Turkish and European-origin producers continue to subsidize their products in order to remain competitive in this market despite the 50% tariff. These tariffs are paid not by exporters, but by companies importing into the U.S. This means that even if an international court finds the tariffs unfair, no country receives reimbursement.
On the other hand, there have been past cases where Chinese and Russian steel entered the U.S. indirectly via Canada and Mexico. It is expected that Turkish producers, given their close trade relations with the U.S., might also consider similar routes.
Domestic Demand Increase and Expectations for International Market Balance
Steel product prices across various U.S. regions are on the rise. Hot rolled coil (HRC) prices have climbed to $740 per ton delivered in Houston, while galvanized sheet prices have exceeded $1,200. Rebar EXW prices in the Southeastern U.S. have decreased to around $770 per ton. Pig iron prices have dropped to $426 per ton at the New Orleans port.
A mixed picture emerges for semi-finished products from Latin America: billet prices dropped by $5 per ton, while billet prices showed a slight increase. This indicates potential shifts in the region’s export strategies toward the U.S.
Domestically, prices are rising as expected, with some local mills reportedly already experiencing increased demand levels. However, a market stabilization is anticipated internationally. Exporters on the U.S. East Coast and Canada face difficulties moving scrap tonnage domestically due to insufficient railway infrastructure. The Turkish market is expected to remain stable or decline unless there is an improvement in international steel markets, which is not anticipated in the near term. Meanwhile, U.S. suppliers aim to push prices slightly higher.
Experts speaking to SteelRadar suggest that if the U.S. continues to increase its domestic production capacity, the export potential from the U.S. could grow in the long term. However, in the short term, accessing the U.S. market could become more difficult for Turkish steel due to pressures from subsidies and shifting pricing dynamics.
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