Steel market chatter this week

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Steel prices are still largely steady. How do you expect prices to trend over the next three months?

“I expect prices to begin moving up. I don’t feel demand is great, but it is improving. With plenty of supply, I don’t feel we will see a spike.”

“I think that they will begin to rise if tariffs go into effect and when consumer confidence rises in the economy.”

“Anticipating increases, waiting for things to start.”

“Prices will be up.”

“I’m expecting prices to move upward sooner rather than later.”

“I would expect them to trend up based on tariffs and rising scrap costs.”

“Discrete plate prices will increase in both Q1 and Q2 as demand increases, lead times move out, stock levels dry up.”

“Trend upward ever so slightly.”

“Expect small increases.”

“Slowly up when circumstances remain normal. Spiking if and when tariffs are applied to our neighbors.”

“Slowly increase, lack of imports, and reduced production.”

“Slow rise as demand returns and input costs slowly increase.”

“Steady.”

“They will remain steady until demand increases in second quarter and supply becomes more limited due to tariff threats.”

“I would expect things will drift up for a bit (based on Trump tariffs), but then fall back. Demand is just too poor.”

Is demand improving, declining or stable?

“It’s starting to slightly uptick.”

“Improving some compared to last year – much of our business is seasonal.”

“Demand for discrete plate is steady and increasing with increased activity in infrastructure, gas and oil, energy, construction, transportation, and military sectors all seeing an increase of activity.”

“Demand is improving from Q4.”

“Better.”

“Improving.”

“Stable but sporadic.”

“Demand seems stable at best. Most folks we talk to are still seeing lukewarm usage.”

“Stable due to interest rates and new government administration.”

“Demand is weak. Business is soft.”

Do you think President Donald Trump will impose 25% tariffs on Canada and Mexico on Feb. 1?

(47% responded “no”, 41% said “yes”, and 12% said they didn’t know.)

“I think ‘Yes’ but that they’ll be short-lived. Much like what we just saw with Colombia, they’re going to be used as a negotiating ploy/leverage more so than anything else.”

“Pressure to increase income to allow for his income tax reduction.”

“Seems to be hellbent on some tariffs.”

“Yes, but short-lived.”

“It is leverage. Trump will force changes to unfairness.”

“He does what he says without regard for consequences.”

“Maybe on Mexico, but I think he will be less hard on Canada.”

“Said tongue in cheek. He will do something, just not 25%. All depends on if he gets the cooperation he wants.”

“Hard to tell what Trump will do and when he will do it because it’s all part of his plan. Negotiate as you go and as needed is the art of the deal. Tariffs will fluctuate with each situation as needed.”

“Seems to be more a negotiation tactic, but perhaps like the last time, we will see them implemented for a period, then lifted once negotiations move in the right direction.”

“It’s a posture on his part to slow imports down.”

“I feel he is using that as a negotiating tool and things will be agreed upon with both soon.”

“I think a deal will be made.”

“He will not implement 25% against Canada or Mexico – too much cross-border trading of too many critical products.”

Is inventory moving faster or slower than this time last year?

“Slower, as people are still waiting to see what tariffs will come.”

“Slightly slower inventory movement.”

“Inventory isn’t moving faster yet, but we are booking more orders than last year at this time so we will see inventory moving soon.”

“Slower due to sales demand is lower.”

“Slower as demand is slower.”

“Much slower.”

“About the same.”

“Same as last year.”

“Slight increase.”

“A little faster.”

“Inventory is moving steady to faster with the release of projects.”

“For us inventory is moving faster, but only because we’re keeping less stock.”

Are imports more attractive than domestic material?

“Nothing attractive enough to move forward on.”

“Discrete plate imports are not that attractive currently due to price, quality, and lead times.”

“No, due to tariff and domestic pricing is the same landed.”

“Domestic market too uncertain and with the potential of tariffs, not worth the chance.”

“Imports are risky due to the uncertainty of the new administration.”

“No, mill lead times too long and uncertainty of trade issues.”

“Not enough of an advantage to make the future commitment.”

“No, too many unknowns.”

“No, we only buy American.”

“Our customers require domestic material.”

“Less attractive.”

“Import pricing is OK, but the lead time is scary.”

“Yes, but the risk of tariffs is creating concerns.”

What’s something that’s going on in the market that nobody is talking about?

“More service center consolidation brewing.”

“Lot of speculation and the tariff events are unclear.”

“More on tariffs.”

“What is happening with Evraz sale?”

“How will adjusting government spend impact steel markets?”

“What’s happening to the price of eggs?”