The United States is facing a shortage of S690QL material and so on steel products

With the gradual recovery of the economy and US President Biden's vigorous promotion of infrastructure plans, US demand for steel such as S690QL material is expected to soar. Now "scarcity and panic" is driving up steel prices and inventories.

After hitting the lowest point of US $460 last year, the US benchmark hot rolled coil price is now about US $1500 per ton, which has reached a record high, almost three times the average level in the past 20 years.

For a long time, the United States has been the world's largest steel importer, while China is the largest source of steel imports such as S690QL material. However, under the high tariff sanctions imposed by the trump government in 2018, the United States expanded its import share from Canada, Brazil and Mexico, and China's steel share in the total imports of the United States decreased from more than 20% to less than 1%.

Now, the main steel importing countries of the United States are far from being free from the trouble of the epidemic, and the recovery of the domestic steel industry is also very slow. Will the U.S. tariff sanctions on Chinese steel be loosened?

BBN steel believes that at present, the overall overseas capacity is limited, the global steel demand will increase greatly in the future, and the United States is the price highland. It is expected that the United States will choose to increase imports. But at the same time, under the vision of China's carbon peak and carbon neutral, China's current policy orientation tends to keep more steel in China, so the import increment of the United States will not reach the previous level.