On March 8th, President Donald Trump signed two proclamations levying tariffs on imported aluminum and steel. White House officials say the tariffs are an essential matter of domestic and economic security, an argument that critics have rejected. The 25 percent tariff on steel and 10 percent charge on aluminum follow a pledge from Trump to revisit global trade deals, NAFTA in particular. The tariffs will take effect on March 23rd, 2018.
Atlas mass customizes flat sheet material into precision fabricated solutions. The steel and aluminum parts that Atlas produces will be significantly impacted by tariffs. Material pricing is highly volatile at present and prices have already been on the rise. Regardless of the actual results of the tariffs, mills and service centers that supply our material have implemented immediate and dramatic pricing increases on flat sheet products.
As we move into the busy summer months, Atlas continues to closely monitor the materials market and trends.
Post tariff trends show a stabilization and in some cases easing of pricing across most commodities. We want to ensure you that all future orders will be re-priced with the most current material pricing.
Below are detailed graphs compiled with data we have collected from actual pricing history, as well as market trends and analysis.
Please feel free to reach out to us with any specific questions. We appreciate your ongoing business and look forward to continued success!
Atlas mass customizes flat sheet material into precision fabricated solutions. The steel and aluminum parts that Atlas produces were significantly impacted by tariffs. Since the talk of imposing tariffs began in January, the price of metal has seen a dramatic increase. To date, Steel has seen a price increase of 22.7% while Aluminum has increased by 46.2%. Galvanized and stainless steel rose by 31.5% and 18.6% respectively.
After the tariffs were imposed in March, 2018 and prices on all materials hiked up, it now seems to have stabilized. While Steel and Galvanized steel shot up quickly at the start of the tariff, they seem to have stabilized since April 2018. On the other hand, Aluminum and stainless steel continued to rise up in price until July and stabilized for the past 3 months. The (Y) axis of the following graphs are $/lb and intentionally blank because we are showing trends by material type. If you would like to know the specific increase by material type and thickness, please contact your sales representative at Atlas.
While we want to make sure that the tariffs are real and permanent, we also want to alert you to potential price increases created by these actions.
• Orders shipped in March will not be affected
• All open blanket orders will be reviewed for pricing
• New quotes will be honored for 7 days
• Orders placed and not delivered within 30 days may be subject to price increases prior to shipment
We have been closely monitoring the material markets over the past week for market and pricing trends. The market is dynamic and we are beginning to see short supply of certain materials based upon mill allocations of coil to the service centers that produce the sheets of metal for Atlas. In addition to the impending tariffs, the supply concern is further driving up pricing and lengthening lead-times.
Commencing April 2nd, orders placed with Atlas will be reviewed for material impact and confirmed with market price adjustments based upon metal content. Our material price cost increase will directly affect the selling price of the part. The increase is based on the weight of material used to produce the part, not the finished part weight. With many complex geometries, the part yield may be 50% or less of the raw sheet weight where the process begins its production journey.
Using our actual purchase history, the material price trends indicate a steady increase over the last 6 months with a sharp increase over the last 30 days. The (y) axis of the graphs are $/lb and intentionally blank because we are showing trends by material type. If you would like to know the specific increase by material type and thickness, please contact your sales representative at Atlas.
Regardless of the news release regarding tariffs, we wanted you to know the increases we are seeing are real and impacting us today. Our steel providers advise of early order placement to secure material. While it would be wonderful to pre-buy material, service centers are guarding against hedging and hoarding with selective order acceptance allotted for each material type.
The media is full of information regarding the Section 232 tariffs and it is our intent to be transparent and current with pricing. For any questions or concerns, please email mark.engel@atlasmfg.com.
Articles relating to the steel and aluminum tariffs:
https://www.nytimes.com/2018/04/29/us/politics/us-allies-trade-war-tariff-negotiations.html
http://www.amm.com/Article/3796607/S-Korea-wins-232-tariff-exemption-update.html
https://www.nytimes.com/2018/03/16/us/politics/trump-tariffs-lobbying.html
http://www.amm.com/Article/3794914/Section-232-exemption-process-rules-released.html
https://www.commerce.gov/news/press-releases/2018/03/us-department-commerce-announces-steel-and-aluminum-tariff-exclusion
