FX.co ★ US Steel Coils Surge to 1-1/2-Year High

In the United States, the futures for hot-rolled steel coils have surged to $940 per tonne, marking the highest level since they reached $945 on March 12th, which was a 14-month peak. As of this year, these prices have increased by 30%. This is primarily due to the US government's escalating tariffs, placing strain on domestic production capabilities and restricting supply for manufacturers. President Trump has implemented a 25% tariff on steel imports from all nations, continuing the aggressive metal levies initiated in his first term. This strategic move has intensified competition for the scarce materials available from US furnaces and mills, thus permitting domestic metal producers to elevate their prices. While this action buoyed domestic prices, it counteracted the pessimistic outlook for the manufacturing sector, which is experiencing dampened aggregate demand due to steep tariffs in other industries. This has resulted in price pressures on rebar in Asia and various base metals traded globally, highlighting the supply limitations faced by domestic coil manufacturers.