It is understood that the current U.S. steel plant capacity utilization rate is only 75%, far below last February 82% level. Overall steel shipments rose, but also below the same period last year, while steel stocks were at a three-and-a-half-year low. The shortage of steel supplies has caused U.S. steel prices to soar 160% since last August. The benchmark price of U.S. hot-rolled steel exceeded $1260 a tonne in March, its highest level in at least 13 years.
At present, the price of steel in the United States is 68% higher than that in the global market. Such a huge price gap, even with a 25% import tariff, makes imported steel cheaper than domestic steel. The analysis points out that high raw material prices will not only weaken the competitiveness of American parts manufacturers in the international market, but also affect the domestic consumer market in the United States.
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