 |
| US stainless steel market |
The US stainless steel market experienced significant disruption in June due to the doubling of steel and aluminum import tariffs and unexpected price hikes by North American Stainless (NAS). These developments have created uncertainty for scrap buyers and stainless steel consumers alike.
Tariff Doubling Shakes US Stainless Steel Imports
The US government raised steel and aluminum import tariffs to 50% on June 3, catching many buyers off guard. The tariff hike applies to all countries except the UK, which retained a 25% rate until July 9 pending trade negotiations. This abrupt change forced buyers with in-transit shipments to renegotiate prices or cancel orders. Several market participants described importing as “virtually impossible” under the new tariff regime. The tariff increase intensified financial pressure, leading to bankruptcy filings among foreign-owned automotive and metal distribution firms operating in the US. Despite these challenges, domestic mill bookings remain low, and buyers currently rely on inventories with delivery lead times of about four to five weeks.
NAS Price Increase Deepens Market Uncertainty
On June 13, NAS announced significant price rises effective July 1, 2025, across multiple stainless steel grades and products. Price hikes include a USD310 per tonne increase for grade 304 cold rolled coils and USD464 per tonne for grade 316. Hot rolled products saw increases as high as USD551 per tonne for grade 316 plates. This was NAS’s first price increase since February 2022 and surprised many buyers amid an already strained market. Shortly after, Outokumpu, the second-largest US stainless steel producer, announced similar but slightly lower price increases. However, many buyers question whether the current US demand can sustain these increases, especially if import tariffs are lowered or removed in the future. Additionally, a large share of NAS’s sales are fixed-price contracts, potentially limiting the immediate impact of the hikes.
ScrapInsight Commentary
The combined impact of steep tariff hikes and NAS’s price increases pressures the US stainless steel scrap market by tightening supply and raising costs. Buyers may face higher acquisition prices, while market uncertainty could suppress demand. Monitoring trade policy changes will remain critical for scrap traders and steelmakers aiming to navigate this volatile environment.
