US steel price hits four-year high at nearly $1,400 a tonne

The price of hot-rolled steel in the United States has reached nearly $1,400 a tonne. According to a report by the international outlet Business Recorder, the price of the metal, essential to the construction and manufacturing sectors, has not risen this high in the country since May 2022.

According to the report, after President Donald Trump imposed a 50 percent tariff on imported steel, international supply has contracted. With foreign alternatives reduced, domestic producers have raised prices in the internal market.

Statistics from the US Department of Commerce say processed steel imports in the first nine months of this year (January–September) stood at about 13 million tonnes, 14 percent less than in the same period last year.

Because of the fall in imports, the foreign share of the overall US steel market has dropped from 19 percent to 16 percent. With foreign supply in the market contracted, local mills are able to sell their products at higher prices.

Industry analysts have warned that the supply situation could become more fragile toward the end of the year. As part of maintenance work through December, several large mills plan to halt production, which could disrupt output of more than one million tonnes.

At the same time, the high price of old metal scrap used as raw material is pushing production costs higher still. According to the analysts, the pressure of this added cost is falling on local buyers.

The price of steel in the United States is now at an unusual level compared with other major regions of the world. The current price in the country is about 66 percent higher than in Europe and roughly three times China's domestic price.

According to the experts concerned, the tariff wall raised to protect domestic mills is multiplying production costs for other steel-dependent industries. They say this has put the global competitiveness of America's manufacturing sectors at risk and is also disrupting global supply chains.