Section 232 Impact

Section 232 Impact

“Look at a stocking program and don’t be afraid to commit. Your supplier is an asset to your business.” 7 Secrets Your Steel Suppliers Won’t Tell You, Adam Osborn

The US steel market has only just begun to feel the impact of the Section 232 tariffs. Because mostly demand has been responsible for much of the gains this year.

“We think as the summer progresses, we are going to see a tight marketplace – and that is going to bode well,” Steel Dynamics Inc (SDI) president and CEO Mark Millett said.

Canada has announced that it will retaliate against US Section 232 tariffs on July 1.

Alan Kestenbaum , CEO of Canadian flat-rolled steelmaker Stelco said, “Companies therefore need to be mindful of the full supply chain.”

“It was a surprise to us and it was a surprise to all of our customers when Mexico was not exempted,” Kestenbaum stated.

The US applied Section 232 tariffs to both its North American Free Trade Agreement partners and the EU on June 1. But many in the industry think US, Canada and Mexico will be able to resolve their differences.

The AMM reported, “It’s important to remember that the US steel industry did lobby for Section 232 tariffs.” Steel Manufacturers Association president Philip Bell said, “In fact a lot of us had to get brushed on what a 232 was. But it’s here – and it looks like it’s going to be here to stay for a while.”

Although Section 232 has been controversial, it’s been necessary because traditional trade cases weren’t succeeding in slowing imports.

It is best to go with a proven expert in their field. Call us if your company requires a secure supply of stainless, aluminum, cold-rolled or galvanized sheet metal.

We can help you with any stocking requirement level. From a few skids to hundreds of tons. We will help you schedule out the material you need to meet production without shortages.

CALL NOW 832-300-1030.