US: Stainless steel prices remain elevated despite 50% tariffs

• Wide price gap keeps US attractive for exporters
  
  
• Imports decline amid adequate inventories
  
  

SteelDaily: US stainless steel prices continue to trade at a significant premium to global markets, keeping the country an attractive export destination despite a 50% tariff barrier. According to MEPS, the lowest transaction price for cold-rolled (CRC) 304 stainless steel in January stood at $3,247/t. This was $845/t higher than the average domestic price in Asia and $530/t above the European average.

The elevated US price environment has widened arbitrage opportunities. Even after accounting for the 50% tariff, imported material remains price competitive compared with domestic offers. Market participants note that the sustained premium reflects tight supply discipline, higher production costs, and limited import penetration relative to previous cycles.

Imports fall despite competitive pricing

However, import volumes continue to decline despite improved price competitiveness. According to MEPS, US stainless steel imports are expected to decrease further this year. Distributors and service centers are currently holding adequate inventories, reducing the need for aggressive restocking.

A trader based in the Midwest said that while landed offers are attractive on paper, buyers remain cautious amid steady but unspectacular downstream demand from fabrication, construction, and industrial segments.

Demand outlook

Overall US stainless steel demand in 2026 is projected to remain broadly in line with 2025 levels. With inventories sufficient and consumption stable rather than expanding, import volumes are unlikely to see a sharp rebound unless domestic prices rise further or supply tightens materially.

Note: This article has been written in accordance with a content exchange agreement between SteelDaily and BigMint.