US steel producers reported record shipments as imports shrunk in the first full quarter since President Donald Trump doubled tariffs on steel in June, company executives said on third-quarter earnings calls.
Steel producers are adapting to shifting trade policies and changes in the market landscape by turning to multiyear automotive contracts, public-private partnerships and mergers. The US steel industry applauded Trump’s actions to reduce reliance on foreign imports as part of the administration’s broader efforts to boost domestic manufacturing.
“Q3 showed the first clear signs that the tide is beginning to turn,” Cleveland-Cliffs CEO Lourenco Goncalves said on an Oct. 20 earnings call. “Automotive is rebounding, our cost actions are working, and trade policy is delivering measurable results.”
Steel shipments rise
Nucor’s third-quarter results exceeded guidance driven by stronger-than-expected steel mill shipments, which company executives attributed to the tariff. The company reported an increase of 6,428 net tons in steel shipments for the quarter, up 12.4% year over year.
“Overall, we are encouraged by the administration’s action to help level the playing field for the American steel industry,” Leon Topalian, Nucor’s CEO and president, said on an Oct. 28 earnings call.
Shipments also increased for Steel Dynamics, which shipped a record 3.6 million metric tons in the third quarter, supported by domestic steel demand and coupled with metal spread as scrap cost is lower than steel prices.
Platts, part of S&P Global Energy, assessed the daily TSI US hot-rolled coil index at $/st on an ex-works Indiana basis on Oct. 1 a fall of 3.57% from $/st on June 1. The daily Platts TSI US Midwest shredded scrap index was assessed at $/lt on a delivered basis Oct. 1, unchanged from June 1.
Cliffs’ Goncalves said third-quarter results are an indicator that “a significant rebound in domestic steel demand has started.”
Most steel producers reported stable steel demand and pricing in the short term, but noted that customers exercised caution in placing orders because of lingering uncertainty around US trade policy. Producers were optimistic that US trade barriers on steel imports are likely to remain in place.
“Overall, we remain extremely optimistic concerning steel demand and pricing dynamics for the domestic producers in the coming years based on the expected demand from new manufacturing and US-produced steel content requirements,” Barry Schneider, Steel Dynamics’ president and chief operating officer, said on an Oct. 21 earnings call.
Resurgence of auto sector
Automotive manufacturers announced investments within the last few months to relocate car plant facilities to the US and increase US-based production in the wake of Trump’s global tariffs.
Steel producers are anticipating a resurgence of the US auto sector within the next several years supported by domestic steel.
Cliffs said the third quarter was the best auto steel shipment quarter since the beginning of 2024.
Company executives said while construction and general manufacturing sectors remain weak, the auto sector is trending upward.
“That’s a very encouraging sign for what’s coming in 2026 and beyond,” Goncalves said.
Cliffs locked in two and three-year agreements with all major automotive original equipment manufacturers. The automotive contracts will provide enough demand for Cliffs to operate plants at full capacity and full employment levels.
“Many of these customers told us directly that they want to reduce their exposure to tariffs and to foreign volatility,” Goncalves said.
For Steel Dynamics, the automotive base has remained stable and provided opportunities for growth. The company has become a supplier of choice for US-based European and Asian automotive producers because of its superior carbon content capabilities, Schneider said.
Steel Dynamics also expects a growing auto market after several auto manufacturers announced production would move to the US from foreign locations.
“We are really excited about the automotive business that we’re doing. I think the opportunity for our customers to purchase a low carbon content product really enhanced our relationship early,” Schneider said.
Mergers and partnerships
US steel producers also observed that prices for stainless steel, nickel, and aluminum have been volatile in recent months, leading companies to make decisions such as merging with others to remain resilient, like Olympic Steel and metals processor Ryerson.
“As the market navigates the many dynamic factors currently in play regarding trade policy, investment, interest rates, and geopolitical commerce volatility, we continue to drive what we can control, building earnings quality and earnings leverage by being excellent operators of our business with consistent performance,” Ryerson CEO Eddie Lehner said on an Oct. 29 earnings call.
Cliffs announced in the third quarter that the company entered into a memorandum of understanding with a major global steel maker looking to leverage production in the US. Resurgence of US manufacturing supported by Trump has made Cliffs “very attractive” to a number of global steel producers, Goncalves said.
Cliffs also received a $400 million electric steel contract from the US Department of Defense. The five-year, fixed-price contract covers up to 53,000 mt of grain-oriented electrical steel, which the US government will store for national security purposes.
“The award underscores Cliffs’ position as the only US producer capable of supplying this critical material, grain-oriented electrical steel, further reinforcing the strategic importance of our electrical steels to the nation’s defense and energy infrastructure,” Goncalves said.
Source: Platts
