New tariffs on imports are boosting steel prices in the U.S., offering a lifeline to beleaguered American steelmakers but raising costs for manufacturers of goods ranging from oil pipes to factory equipment to cars.
U.S. steel producers who lost billions of dollars last year amid a flood of cheap imports are looking to capitalize on tighter supplies and higher pricing. That is shifting the dynamics of a supply chain that had come to rely on inexpensive foreign steel.
"Our government has done a pretty good job of boxing out the guys who were importing the most-cheap steel," says Stuart Barnett, owner of Chicago-based Barsteel Corp., a steel processor and distributor that sells to a range of manufacturers. "But now the greatest fear we have is that China keeps the cheap steel for itself and makes products that undercut other industries."
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