On Friday, February 16th, Secretary of the U.S. Department of Commerce, Wilbur Ross, recommended that President Trump impose tariffs on imported steel products, including pipe. The recommendation was expected and has contributed to the increase of steel coil pricing to its highest levels in four years. Immediately, we can anticipate domestic mills will increase their prices across the board on ERW, CW and seamless products.
Despite the demand for finished goods not necessarily supporting the increases, a recommendation like this is enough to send prices up. Expect more increases, especially if President Trump follows through on Secretary Ross’ recommendations. Should that be the case, another consequence would be a major reduction in inventories of import pipe. Expect a decision from President Trump by April 11, 2018.