The recent spike in steel prices in the United States has stalled as many businesses feel "paralyzed" by uncertainty over import tariffs, according to a new podcast by MEPs.
U.
S. steel market analyst Laura Hodges said an April study for the International Committee of the European Parliament (MEPS) showed that U.
S. steel price growth has slowed. A review of the steel market has shown that the recent upward trend, which led to an increase in hot-rolled coil prices of almost 40% in the first quarter, has stopped. Purchases have halted as buyers consider the impact of import duties on key steel-consuming sectors.
In a conversation with Tom Sharp, the editor-in-chief of the MEPs, in a short issue of the "Market in Minutes" podcast "Talking about Steel"[/url], Hodges said: "I hate to say the word "paralyzed", but companies cannot plan ahead in conditions of this type of uncertainty.
"So, regarding forecasts, we expect prices to maintain this "respite" over the next few months, mainly due to uncertainty alone. I think prices will remain at the same level in May and June. After that, I think we'll see prices start to decline."
Apple Podcasts
Despite estimates from the Commerce Department that U.
S. GDP shrank 0.3% in the first quarter of this year, Hodges does not believe the country will slip into recession. The recent economic downturn was driven by an increase in imports during the reporting period. Volumes increased as exporters tried to speed up shipments to avoid the imposition of duties.
In the new issue of "Market in Minutes," MEPs talk about the latest developments in the U.
S. steel market, less than two months after President Donald Trump reinstated the United States' 25% Section 232 tariff on steel and automotive imports. Last month, President Trump also announced a 90-day break in the higher "retaliatory" import tariffs previously announced by the United States. 11-50%.
The uncertainty caused by recent tariff announcements initially prompted U.
S. steel producers to raise their prices amid expectations of a reduction in imports of cheap steel. MEPs recently provided information on the positive impact of increased protectionism on profit margins achieved by some of the largest steel producers in the United States. However, respondents to the MEPS study in the United States reported no sharp increase in demand and few signs of a slowdown in steel imports.
These and other topics are discussed in the latest MEPS podcast on the U.
S. market for a few minutes. Keep an eye on
