The threat and subsequent imposition of a 25 percent tariff on imports of steel into the United States has benefited just a small proportion of the country’s population.
Domestic steel selling values for flat rolled products increased by almost 35 percent, in the first half of this year. A modest reduction developed in the second half, but current prices are substantially above the figures recorded in January 2018.
The main beneficiaries of the steel price hikes have been the local steel mills. The losers have been the numerous producers of manufactured goods and those companies engaged in the construction sector. These have seen their steel costs rise by 30 percent, in the past nine months.
Will the steel producers be able to maintain their current elevated prices in the long term? Probably not! Steel mill selling values are already slipping, as local buyers suffer a reduction in orders for their manufactured goods.