Bloomberg Podcasts · US Steel Costs Impacted by War, Trade Deals

1. 1. Data center construction, though growing significantly, will only represent about 1-1.5% of the total US steel market by 2026.
2. 2. US steel buyers are facing supply shortages and frustration despite a nearly 8% year-to-date increase in domestic production.
3. 3. Section 232 tariffs, increased to 50% nearly a year ago, have drastically reduced US steel imports by almost 25% year-to-date.
4. 4. Diesel prices, heavily influenced by global conflicts, are a more significant cost driver for steel mills than electricity prices.
5. 5. The automotive sector's demand for steel is dichotomous, with strong demand for heavy trucks and luxury cars contrasting with weaker economy car sales.
6. 6. The current steel pricing upcycle has lasted nearly nine months, much longer than the typical 3-4 months, with prices near $1,100 per hot-rolled coil.