FX.co ★ HRC Steel Regains Upward Momentum

Hot-rolled steel coil prices in the United States have climbed to $900 per tonne, marking a resurgence of the upward trend seen earlier this year and representing an increase of over 25% year-to-date. This rise is attributed to the heightened tariffs imposed by the US government, which have strained domestic capacity and subsequently reduced the availability of steel for manufacturers. President Trump enforced a 25% tariff on steel imports from all countries, continuing the assertive tariffs on ferrous metals initiated during his first term. These measures are expected to intensify purchasing competition for the limited steel output from US furnaces and mills, enabling domestic metal producers to elevate their pricing. Concurrently, the US government postponed reciprocal tariffs on other goods, alleviating concerns of a potential recession in the country and bolstering the domestic demand for base metals. This price surge in the US is in stark contrast with the declining prices of ferrous metals in Asian markets, where a slowdown in construction activity coupled with protectionist trade policies have exacerbated sector overcapacity.