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[Ferro-Alloys.com]The US sheet market on Friday was still attempting to sort out Thursday's news that imports from Canada, Mexico and the US are now subject to a 25% tariff.
The daily Platts TSI US hot-rolled coil assessment ticked up by 50 cents to $894/st, while the daily Platts TSI US cold-rolled coil assessment inched down by 50 cents to $1,016/st.
"My early take on all of this is that yesterday afternoon was sort of a 'is this really going to be implemented' market reaction to this morning now being 'OK, so now what am I going to do?" one mill source said.
It is still too early to gauge a reaction to tonnages and prices but the mill source said he expects it to be a positive. Still, to what extent and how long the positive momentum could last is uncertain, he added.
The low-end of pricing is now out of the market with HRC prices at a minimum of $900/st with some small transactions as high as $940/st, according to the mill source. Prices for CRC also have adjusted with some lower deals around $980/st no longer available and prices anywhere from $1,000-$1,050/st.
"Still in disbelief that they would proceed with something like this and actually think there is potential for a positive outcome for anyone outside of US steel mills," one Canadian service center source said.
The source is also still unsure what it really will mean for pricing in the Canadian and US markets as there are "too many factors in play."
A trader said he was not expecting to see Canada and Mexico get hit with the tariffs but the EU is less of a surprise given the news reports of deteriorating trade talks. Despite the new tariffs, he is still finding foreign material competitive. HRC "offers from Turkey are more competitive and I've started booking some material," he added.
Turkish sales and offers for new foreign material have been around $800/st on a delivered duty-paid basis into the Houston market.
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- [Editor:Jiang Li Juan ]
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