Issue link: https://read.dmtmag.com/i/1538279
Nuts and Bolts News Continued from page 47 Steel saw the sharpest climb, with iron/steel and steel mill product prices increasing by more than 5% during the month. Other key materi- als like copper and lumber also experienced significant price jumps as tariffs further strained supply chains. Steel & Aluminum Tariff Surge As detailed in the official proclamation, the new 50% tariffs target virtually all steel and aluminum imports. The White House notes that most U.S. steel (26.2 million tons in 2024) is imported, so duties of this magnitude guarantee higher domestic prices. For metal buyers, it's critical to respond proactively. One recommended step is lever- aging expert analysis: Met- alMiner just published a free "Comprehensive Guide to Steel & Aluminum Tariffs" that decodes the impact of these changes. That guide offers detailed scenarios and strategies so procurement teams can start planning how to mitigate the surging tariffs and protect margins. Industry Outlook Looking ahead, demand for steel and aluminum should stay firm on active projects. However, cost pressure will slow some new work. In May, ABC reported U.S. construction backlog easing to 8.4 months (off a 2-year high). Meanwhile, nearly 25% of con- tractors have delayed or canceled projects due to tariff costs. Private-sector construction (es- pecially homebuilding) will likely soften under these higher material costs, even as federal infrastruc- ture spending holds up activity. Still, roughly 60% of contrac- tors expect sales to rise over the next six months, fueled by work already in hand. Our view is that pipelines will keep moving this summer, but with tighter margins. Pro- curement teams should lock in supplies for critical materials now and explore alternatives (for ex- ample, expanded Canada/Mexico quotas or substituting specialty alloys). Data-driven sourcing is key. This means using live price charts and forecasts to compare contract bids against market trends. That way, you can negotiate smarter and avoid surprises. Macro & Policy Trends Beyond construction, the broader economy shows signs of cooling. U.S. manufacturing con- tracted for a third straight month in May (ISM PMI 48.5), with many survey respondents explic- itly flagging steel and aluminum cost shocks. Meanwhile, delivery times are lengthening as suppli- ers adjust to the uncertainty. In this environment, information is critical. finance.yahoo.com IDA Universal Aug - Sept 2025 48