The United States stainless steel market faced renewed uncertainty in June following two major developments: a surprise tariff increase by the federal government and significant price hikes from leading domestic producers. Both measures have raised concerns among buyers over cost pressures and supply chain stability.
According to MEPS International, the U.S. government’s decision on June 3 to double Section 232 steel and aluminium import tariffs from 25% to 50%—with immediate effect—caught many market participants unprepared. The measure applies to all countries except the United Kingdom, which retains the 25% rate until July 9 while trade negotiations with the U.S. continue.
Importers were left scrambling. Several buyers with shipments already en route were forced to renegotiate terms, with no appeals mechanism available. Others attempted to cancel orders outright. Industry sources told MEPS that the tariff increase has rendered importing “virtually impossible” under current conditions.
The tariff shock was followed by a price hike from North American Stainless (NAS), the largest stainless producer in the country. On June 13, NAS announced base price increases for shipments beginning July 1, marking its first pricing adjustment since February 2022. The company cited the changes as applying to both new and outstanding quotations, across a broad range of hot and cold rolled flat and long products.
Specifically, the functional discount for 304 cold rolled coils and sheets was reduced by eight percentage points, equating to a base price increase of USD 310 per tonne. For grade 316, the cut translates to a USD 464 per tonne increase, while grade 430 saw a rise of USD 242 per tonne. In the hot rolled segment, NAS raised 304 coil and sheet prices by USD 298 per tonne and 316 by USD 441 per tonne. Hot rolled plate prices were adjusted upward by USD 397 per tonne for grade 304 and USD 551 per tonne for 316.
MEPS notes that the move took many buyers by surprise, particularly given prior signals from mills that weak demand and oversupply conditions were preventing price increases. Shortly after NAS’s announcement, competitor Outokumpu followed with similar—though slightly lower—price adjustments, particularly for commodity grades like 304 and 316.
Despite these announcements, market confidence remains muted. MEPS reports that domestic mill order books are thin, with delivery lead times for standard grades currently ranging between four and five weeks. Inventory levels are stable, and many buyers are opting to delay purchases. The sharp price increases are raising doubts about sustainability, especially if tariffs are revised or withdrawn in the coming months.
Additionally, the latest market developments have placed strain on some downstream operators. MEPS notes a rise in bankruptcy filings among foreign-owned parts manufacturers and metal distributors operating in the U.S., citing the financial impact of the new tariff regime.
As the trade environment remains uncertain, market observers continue to monitor the effects of these measures on purchasing decisions, supply availability, and long-term pricing trends in the U.S. stainless sector.
Source: MEPS; Photo: Fotolia
