Navigating Tariffs in the Metal Industry
Leave a CommentNavigating Tariffs in the Metal Industry
The constant flux of tariff regulations is causing uncertainties within the sheet metal manufacturing industry. These changes can impact businesses through increased costs and supply chain delays.
At Tedco, we are dedicated to giving our customers access to metal supplier monthly trend reports to understand how we are navigating tariffs in the metal industry, while maintaining high-quality parts, quick lead times, and precision consistency throughout this changing landscape.
Why Tariff Alleviation Matters in Sheet Metal Fabrication
Tariff mitigation affects companies heavily relying on international materials, leading to price surges and production slowdowns. While the worst-case tariff scenarios seem to have been avoided, the policies are still unstable, causing ripple effects across the global material market.
North American Stainless has introduced a tariff-like surcharge for May shipments, with potential fees included through July. With continued uncertainties, there are talks that other mills may follow, like Constellium, which has also implemented a tariff-related surcharge. This remains a trend to watch, as well as incentives to reshore manufacturing, which will likely increase.
Tariff Implications on Planning and Purchasing Materials
Despite policy shifts, demand is steady for now. As expected, imported materials are becoming less attractive while companies are looking for domestic producers to help avoid fees. Many remain cautious, buying far more conservatively, stocking only what they need for in-house jobs, and rethinking their sourcing strategies. While depot inventory is thinning, perhaps an indicator of future lead-time increases. Supply chain planning and purchasing strategies remain critical.
Metal Market Landscape as of Now*
May 11, 2025: The administration reduced tariffs to 30% after previously increasing tariffs on international imports to as high as 145%. This means a return to slightly calmer waters.
Aluminum, copper, and nickel had tumbled 15-20% in the previous weeks but have now rebounded by roughly 10-15%.
Aluminum- After plunging in early April to nearly $1.05/lb, prices have rebounded to the $1.10 range. This is due to a surge of pre-tariff Aluminum that flooded the U.S. market late last year, creating a temporary buffer that is still working its way through the system. We will see Midwest premiums creep up slowly in the coming months.
Nickel- Pricing is stabilizing around $7/lb; this range is now acting as the natural floor, especially as Indonesia raises royalties on nickel and tin mining.
Steel- Particularly for hot-rolled coil steel, prices are remaining steady at around $900/ton, showing less volatility than other metals. While carbon steel producers like Cleveland-Cliffs are taking capacity offline to remain efficient, possibly triggering a price floor in the coming months.
*Sourced from Ryerson May 2025 Market Report
Tedco’s Strategy for Managing Tariff Risks
Our company’s approach to navigating tariffs in the metal industry is with resilience, transparency to our valued customers, and smart purchasing strategies to maintain our precision quality products, fair pricing, and efficient lead times. We plan on staying vigilant on market updates to remain ahead of the material trends and keep pricing accurate.
We will be strategic when it comes to inventory planning, buying materials conservatively. And maintaining close relationships with our primary suppliers to ensure a transparent supply chain to reduce price spikes.
Tedco also sources domestically, giving us tighter control over costs, delivery, and turnaround times.
Let’s Connect
Want to know how Tedco can support your next project?- Contact us to learn more about our approach to risk management, precision fabrication, and how we are navigating tariffs in the metal industry.
More on current tariff conditions here.
