U.S. steel prices hit a more than four-year high! Trump's tariffs tighten imports, steel mill stocks benefit while data center developers and others come under pressure.

U.S. steel prices have climbed to their highest level in more than four years as President Trump's tariffs restrict foreign supply boosting domestic producers while driving up costs for American manufacturers. Hot-rolled coil, a versatile form of steel and the U.S. benchmark price indicator, has risen steadily over the past year, gaining 52% to $1,255 per short ton, according to Fastmarkets data. The last time it touched this level was in May 2022. Inflation is a major challenge for Trump's Republican Party ahead of the midterm elections, and this round of steel price increases underscores the impact of tariffs and his efforts to revive the United States Steel Corporation industry. What is good for domestic steel mills and steelworkers has become a burden for manufacturers, builders and data center developers. Josh Spoores, head of steel research at data and consulting firm CRU Group, said restrictions on steel imports, combined with "evolving trade policies with key partners such as Canada and Mexico, have prompted buyers to limit import orders, creating supply shortages." The U.S. is a net importer of steel, but arrivals of overseas supply have fallen sharply this year. According to the American Iron and Steel Institute, finished steel imports fell 14% to about 13 million tons in the first nine months of 2026. As a result, the share of imports in the U.S. domestic market dropped to 16% from 19% in the same period last year. Domestic U.S. supply is expected to tighten further before the end of the year as steel mills cut output for routine maintenance. According to Fastmarkets, more than 1 million tons of production is expected to be affected between September and December. Analysts noted that steel buyers should expect prices to continue rising gradually, as the cost of ferrous scrap, a key raw material for steel production, is already climbing and this is happening in the final months of the year, earlier than in previous years. Contract negotiations between producers and customers for 2027 currently favor steel mills, with discounts likely to be smaller than in recent years. United States Steel Corporation companies including Nucor Corporation (NUE.US), Cleveland-Cliffs (CLF.US) and Steel Dynamics (STLD.US) are benefiting from stronger domestic pricing and weakened foreign competition. As the top producer of the industrial metal, Nucor's shares have risen more than 50% this year. The sector will report third-quarter results in the coming days and weeks, with analysts expecting both sales and profits to rise. Last month, steel stocks briefly fell after Trump announced a $15 billion Mesabi Metallics plant in Iowa, scheduled to come on stream around the end of this decade with an annual capacity of 10 million tons. U.S. hot-rolled coil is typically the most expensive in the world, and its premium relative to international markets is widening. It is currently about two-thirds higher than Europe and nearly three times that of China. Trump's 50% tariff on imported steel has disrupted trade with Canadian producers. Cleveland-Cliffs, one of the largest U.S. steel companies, said last month it would indefinitely idle part of its Canadian subsidiary Stelco, potentially affecting as many as 500 workers. The move sparked a confrontation with the Canadian government. Canada has threatened legal action against Cleveland-Cliffs, citing employment commitments the company made when it acquired Stelco for C$3.4 billion ($2.4 billion) in 2024.