Stainless steel prices vary widely across markets

The stainless steel market across regions of the world reacted differently to the announcement by the United States in early March 2018 of 25 percent tariffs on steel imports and 10 percent on aluminum.

Uncertainty remained as temporary delays were given to shipments from selected countries until the end of May. An agreement with quotas was agreed with South Korea. On May 31, the United States confirmed that import tariffs would be introduced from June 1 by its NAFTA partners, Canada and Mexico, as well as the European Union.

In response, the European Commission launched a defensive investigation to prevent the diversion of steel supplies previously destined for the US market to the European Union. This, like US action, could result in the imposition of import quotas or tariffs.

While some suppliers in Europe and Asia have tried to maximize supply to the US, most buyers and sellers were cautious before applying trade measures. Exports to the United States have declined. Meanwhile, we have many reports of manufacturers in other countries offering competitive pricing in markets they have not previously studied.

This led to different price trends in different regions. In light of the reduction in import tonnages and the imminent introduction of tariffs on future deliveries, US suppliers were able to achieve significant price increases in the domestic market.

Producers in Europe and Asia, by contrast, have struggled in recent months to raise sales prices, even enough to cover the rise in raw material costs.

Between February and May, the North American average price for grade 304 cold rolled coil increased 15.5 percent. Over the same period, the corresponding Asian average rose just 1.6 percent in dollar terms, while the EU's indicator declined 2.4 percent.