Spreads between prime and obsolete scrap in the United States are likely to remain tight in the foreseeable future, with few obvious factors that could unhinge a narrow spread, according to an executive at David J. Joseph Co (DJJ), the largest domestic scrap buyer.

While the Section 232 tariffs are expected to have a net positive impact on the US steel industry, the overall market environment will hit an inevitable downturn once the current bullish dynamics shift, financial industry analysts warned.

Algoma will likely emerge from bankruptcy protection within a matter of weeks, the company’s top executive said.

Steel and aluminium purchasers in the United States who feel cheated by the Section 232 tariffs should take the matter up with President Donald Trump, who likely would be sympathetic, according to a trade attorney who represents domestic producers.

The American Iron and Steel Institute (AISI) has maintained a positive outlook on President Donald Trump’s promised infrastructure investment, according to its top executive, but plans to act on that goal still face some obstacles in the near term.

Construction at Cleveland-Cliffs’ $700-million hot-briquetted iron (HBI) plant in Toledo, Ohio, is under way and ahead of schedule, the company’s top executive said on Wednesday June 27.

The steel market in the United States has only just begun to feel the impact of the Section 232 tariffs on prices for the product, according to North American steel industry executives.

Spreads continued to drive aluminium premiums in Europe and the United States downward over the past week, while markets in Asia were quiet with participants there awaiting further developments on quarterly deals in Japan.

Good morning from Metal Bulletin’s offices in Asia as we bring you the latest news and pricing stories on Wednesday June 27.

Base metals prices on the Shanghai Futures Exchange remained under pressure from simmering global trade tensions as well as a firm dollar during Asian morning trading on Wednesday June 27, but the complex has benefited from a slight improvement in risk sentiment overnight with most prices edging upward.