Metal Tariffs

25% import tariff on steel and 10% import tariff on Aluminum coming. What are yours guys thoughts on the impact to scrap prices?

Can only be a plus for the scrap side of the market

A lot of mixed thoughts on this one.

1. higher prices on imported steel and aluminum will translate into higher prices of goods, either directly thru the use of these imported materials or indirectly thru the use of American materials.

2. steel mill jobs and aluminum jobs should increase, provided mills are capable of ramping up and or expanding

3. scrap prices in the rust belt and near other mills should increase.

4. foreign ferrous scrap buyers may avoid US exports as a way of fighting back. This would lower prices at export yards.

5. HMS at export yards does not meet current requirements of US mills (too dirty). If US mill prices increase and export prices dip or buying stops, existing export yards will need to modify their grading systems.

Many unknowns that only time will tell.

I have a couple of questions.
1. What's is HMS?
2. Would a higher tax on imported steel and Aluminum bring higher prices at the scrap yard?
I think Trump is trying to make getting Steel and Aluminum from the U.S. more competitive.

Originally Posted by CapitalRecovery

I have a couple of questions.
1. What's is HMS?
2. Would a higher tax on imported steel and Aluminum bring higher prices at the scrap yard?
I think Trump is trying to make getting Steel and Aluminum from the U.S. more competitive.

HMS is heavy melting steel. This would be your #1 and #2 steel. Export cargos are typically a 80/20 mix. 80% #1 (1/4" and above) and 20% #2 (1/8" to 1/4").

Not sure. US mills could be buying more if they can ramp up, countries buying our export scrap may not buy as much from us if they are selling less finished product to us.

Looks like the stock market did not react well to the Tariff's