The steel plate market in the U.S. is going through some major changes, but better things are set to come a few months from now.
According to Platts, the order backlogs and the strong demand from the original equipment manufacturer (OEM) and energy market will guarantee better and stronger production prices in August.
The report adds that the commodity grade A36 plate assessment dropped by $1.75/st from its standard price of $952. Despite the minor decrease, the plate’s prices have stabilized, settling near six-year highs. This price will grow higher soon as several producers are nearing their output goals for the next couple of months.
For instance, one plate mill is nearing the completion of its August order book. Another is already done with its third-quarter orders. A third mill had production problems a few months ago; however, its steel plate production is once again in full swing, and they are expected to catch up on order by July. With third-quarter output already set, the mills will be ready to meet the demands of various sectors. Sources reveal that the August production prices could be tagged at $940-980/st.
Trump’s tariffs to take a toll on the workforce
Production in the U.S. steel sector may be secure for the next months, but in general, producers are still worried about a few things.
Trump’s tariffs on imported goods are starting to show their long-term effects in various sectors, and for the steel and aluminum industry, it could lead to massive layoffs, affecting possibly more than 400,000 workers from various sectors. Of the thousands of jobs lost, the services sector will be taking the hardest blow, with over 375,000 people losing their livelihood.
A report released earlier this week suggests that 16 jobs will be lost for every job saved because of the tariffs. “Basically, the report finds not surprisingly that the tariffs would increase employment in the steel and the aluminum sectors, but what it shows pretty clearly is that a large number of other workers would lose jobs in the process as higher steel costs ripple through the economy,” says The Trade Partnership president Laura Baughman.
This number of jobs lost shouldn’t be a surprise, the report states. Sectors like agriculture, manufacturing, and energy are going to spend a lot more when buying steel for the production of necessary equipment. To break even from the expenses, they are likely to let go of some workers under their employ.
Moreover, even Canada will be reeling in from the tariffs after it set a tariff on local goods in retaliation. The country could still suffer through job losses, but it won’t be as hard as that of the U.S.
These changes to the steel industry in the U.S. are telltale signs of what’s to come. While the industry will be able to perform better by meeting the demands coming from OEMs, the workforce in other sectors is going to suffer through Trump’s tariffs.
8 reasons why bike-sharing startups are attracting investors
Bike-sharing startups like Ofo, Mobike and LimeBike are getting a lot of attention from investors.
Why apps should be part of your business digital transformation
There are various benefits a business can gain using a digital-first strategy. Here's a look at how a digital transformation...
Here’s why personal space is a vanishing commodity on airplanes
When it comes to personal space on airplanes, what portions can a passenger truly control?
Here’s a leadership advice from the world’s oldest billionaire
If you’ll carry lessons from anyone else today, let them be from the world’s oldest billionaire who at the age...
Ford, VW discuss potential partnership after White House meeting
In the wake of German automakers' meeting with U.S. President Trump, VW and Ford reveal more of their plans regarding...
Featured2 days ago
CEOs Fishkin and Ramsay: From financial burdens to million-dollar companies
Destinations2 days ago
Millennials with money escape to Mexico’s Bohemian luxury
Commodities4 days ago
Silver remains undervalued, but the silver to gold ratio suggests huge profits could come its way
Entrepreneurship4 days ago
How to make the best out of email marketing
Business3 days ago
Disney continues quest to buy Fox, Brazilian regulators raise concerns
Business4 days ago
GlaxoSmithKline to acquire Tesaro to strengthen pharmaceuticals business
Entrepreneurship5 days ago
Is your client too selective?
Sponsored2 days ago
The Alkaline Water Co. begins trading on NASDAQ today