U.S. manufacturers paying 24 percent more than foreign competitors for hot- and cold-rolled steel, says report

Business Forward Inc., Washington, D.C., has published its latest monthly American Steel Index report, which compares the prices U.S. manufacturers and their foreign competitors pay for hot- and cold-rolled steel

The index demonstrates three points about the recent Section 232 steel tariffs. First, buyers in the U.S. are paying higher prices, while prices in competing markets are falling. Second, the resulting price difference has a disproportionate impact on manufacturers in competitive markets (where margins are thin). Third, comparatively higher steel prices are having a disproportionate impact on manufacturers that export.

Since President Trump announced his plans for steel and aluminum tariffs in February, prices in the U.S. for hot- and cold-rolled steel have risen 23.9 percent and 16.2 percent, respectively. During that same time, prices in the U.K., Italy, China, Germany, and Japan are down 3.4 and 4.1 percent, respectively. As a result, U.S. manufacturers are paying 24 percent more for hot- and cold-rolled steel, on average.

The dollar difference between steel prices in the U.S. and in competing markets is has more than doubled since February (2.2 times larger).