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As the US automotive industry continues to adjust to the new reality of high steel and automotive tariffs, Charter Steel, a leading cold heading quality cold heading quality (CHQ) steel bar producer based in Saukville, Wisconsin, US, is working to build and strengthen partnerships with customers. This is to meet their needs, according to Darren Wojahn, director of marketing. While new tariffs imposed earlier this year have complicated supply chains for some automotive suppliers, Charter Steel and its fastener company buyers and their customers at automotive original equipment manufacturers (OEMs) are all based in the Midwest. Thus, they can work together within the US without tariff supply chain disruption.
“We’ve been in the CHQ space a long time. We have been a partner to many of our customers in the automotive industry for decades,” Wojahn told Fastmarkets in an interview.
“As we get into the needs for 2026 and beyond, it is a critical time for everybody. We want to make sure we have a steel strategy spelled out,” he said.
The steelmaker has initiated talks with fastener company customers. This occurs as they begin the process of negotiating pricing and terms for new annual purchase contracts.
Charter Steel has in-house melt, roll, and processing capabilities. This is an advantage that enables it to “monitor every step in the process and proactively adjust to attain the highest-quality product,” the company executive stated.
The hot-rolling process for cold heading quality (CHQ)steel allows Charter to engineer enhanced mechanical properties. These include higher tensile strength, improved hardness, enhanced toughness, along with lower ductility, according to the company.
The steelmaker operates two fully integrated mini mills. These include an electric-arc furnace (EAF) meltshop, rolling mill, processing and distribution centers in Saukville, Wisconsin. It also has an EAF meltshop, rolling mill, and distribution center in Cuyahoga, Ohio.
In addition, Charter operates a processing and distribution facility in Fostoria, Ohio. This facility has a chemical cleaning line, mechanical descaling, annealing furnaces, and wire-drawing equipment. It is used to clean, anneal, draw, coat, and distribute hot-rolled coil from its rolling mills.
“Our Midwest manufacturing customers are working directly with us to take advantage of domestic sourcing,” Wojahn said.
“We just really want to make sure that our customers and the market are aware that now is certainly the time to reach out. Let’s have those conversations. We want to be there to support our customers.”
“I would say a lot of times steel sourcing isn’t just a one-year thing. It becomes a relationship-building, multi-faceted, multi-year approach,” Wojahn said.
“We like to build strong relationships with our customers. We like to make sure we have the supply chain shored up. We want to make sure we have worked with our customers to acquire a really good understanding of their needs. This includes the needs of the automotive original equipment manufacturers (OEMs),” the executive said.
“Now is the time to certainly reach out and let’s have those conversations. We want to be out there to provide support,” Wojahn said.
The company has a technical lab that allows it to conduct trials and engage in research and development. This is to provide the right carbon and alloy mix for fastener makers to meet customer needs, the company has stated.
“We partner with customers to create unique chemistries that ensure optimal performance for each use application,” Wojahn said.
The company’s systems and selected materials “allow us to ensure traceability back to the melt and scrap mix for every part,” the executive said.
In one case study, a vehicle experienced both immediate and delayed fractures in a fastener within its engine. The OEM asked its fastener manufacturer and Charter Steel to help identify the cause.
Charter did a laboratory analysis and determined that the “medium-grade alloy-grade steel [used to make the fasteners] met the required standards for the high-tensile applications,” the company stated in its case study.
Subsequently, Charter met with the fastener manufacturer to investigate the part production and installation.
“Through this collaborative effort and with our assistance in ruling out potential causes, the OEM and fastener manufacturer were able to determine the source of the fastener fracture,” Charter stated.
Fastmarkets’ monthly price assessment for steel wire rod cold-heading quality, ddp was $64 per cwt on September 16, unchanged from August 18, July 15, and June 17. CHQ will next be assessed Tuesday, October 21.
CHQ price shifts often move in tandem with changes in the cost of No1 busheling scrap. This is the raw material used to make CHQ.
Fastmarkets’ steel scrap No1 busheling, consumer buying price, delivered mill Chicago was flat at $430 per gross ton from May 9 through August 7. It fell to $410 per gross ton on September 8.
The modestly lower cost in September has not yet been reflected in CHQ prices. This is given domestic mills face little import competition due to steel tariffs on imports. Even so, underlying demand from the automotive sector has been subdued. A $60-per-ton price increase announced by mills has yet to be accepted by the market, according to market sources.
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