Alpha Updates Blog

Tuesday, 27 March 2018 09:49

United States New Steel Tariffs

One of the major stories circulating the world right now is how will the new implemented tariffs on imported steel and aluminum impact us as a nation and our economy?  There are so many different opinions when it comes to President Trump's new steel and aluminum tariffs.  Personally, I don't think that question is easily answered right now, as we have to see what happens over time, but I do have a few reasons why I think it will be a good thing for a company like Alpha Pipe.

Right around 1/3 of all steel used in the United States is imported per year.  Private construction jobs were known for taking recycled (used) or surplus steel to help save on cost, but that has changed over the past 3-5 years.  The used/surplus pipe market is one that Alpha Pipe has built a strong base on.  We help companies all around North America save money on job costs by selling them used or surplus steel for their job sites.  This has become much harder to do since China and other countries can import their steel at such cheap rates.  The past 5 or so years, our used pipe has been competing with imported new prime pipe.  As you can imagine, many companies would rather have the new prime imported pipe over the recycled/used pipe since the prices are very comparable.  Because of that, the market for recycled/used pipe has shrunk immensely.

Once the new tariffs are set in place, there are many new opportunities for Alpha Pipe to sell our used inventory to different construction companies.  At this point, our pricing looks much more desirable and far below the imported steel competition.  We think with the tariffs coming into place, that Alpha Pipe will be able to go back to our roots and start selling much more used pipe again.

Last modified on Monday, 02 April 2018 13:59

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