Steel Market Barometer November 2024

Port Strike 

The port strike in the United States ended in October 2024 after the International Longshoremen's Association (ILA) agreed to a tentative deal with the United States Maritime Alliance (USMX). The tentative agreement does not resolve differences between the union and shipping companies over the use of automated machinery, sources said. That will be a key focus of negotiations between both sides from now until January 15. This agreement affects many of the main ports that are used for importing steel products. Prolonged disruption at these key ports would potentially effect the availability of certain steel products.

Lead Times & Demand

• Steel lead times are stable to slightly extended compared to late-October levels.
• Inventory levels of steel pipe appear to be healthy at all ends of the supply chain.
• We do see concerns with future availability on 20” to 36” pipe, based on capacity and current and forecasted demand.
• Data Center construction has tripled over the last three years. Trajectory for data center construction is robust and is supporting strong demand for steel pipe across the country

Tariffs

The Trump presidency may inject more uncertainty into the steel industry. President Trump has said he plans to install a blanket tariff of 10% to 20% on all imports with additional tariffs of 60% to 100% on goods brought in from China. During his first presidency, in March of 2018, he imposed tariffs on steel (25%) and aluminum (10%) for most countries. Tariffs along with potential quotas may affect steel prices and supply. We are continuing to monitor this development.