To Our Valued Customers,
On November 7, 2016 the U.S. Trade Commission elected to impose tariffs on certain carbon and alloy grades of cut-to-length steel plate that fit into a broad chemistry range. The tariffs were put into effect on November 14, 2016 for most of the affected countries. There were a few producers that were hit with retroactive tariffs reaching back to August 16, 2016.
The tariff rates that were enacted vary from producer and country. The commission reviewed specific export data from producers and the producing country as a whole to arrive at their determination for the tariff rate. Regrettably, Tool Steel and some speciality steel plate have been included in this ruling. As a result pricing on some on some of these specialty items may see a slight price increase.
Just how large the increase is entirely dependent on the country of origin, producer, the success of on going negotiations, and what measures we can take at Lindquist Steels to reduce costs and improve efficiencies.
We however, do not anticipate any large or significant increases. But we do feel strongly that we need to be as transparent as possible with you, our valued customer, about this matter.
*This is not a Lindquist Steels, Inc. imposed price increase. This is a direct result of the U.S. Trade Commission’s ruling. All Contracts and Blanket Purchase Orders signed previously of the Commissions ruling will continue to be honored by Lindquist Steels through the full term of the agreement.
Lindquist Steels was an active participant in opposing Tool Steel and other Specialty Steels from being included in the Investigation. It was not that we were or are against protecting the American Steel Industry and the American steel worker. But rather that much of the more specialized grades of tool steel are not produced in the USA by domestic mills. And these domestic mills either don’t have the ability to make them, or the desire to make them, or even the capacity to produce them. And knowing where and how these grades are utilized we believe any momentary increase on these grades could adversely affect the long term health of the Tooling and Mold Making industries. Industries which are still struggling to get back on a solid footing.
We regret having to notify our customers of this but again, we feel that you have a right to know and be given an understanding as to why you may see a slight price increase going forward. And please note, this not only affects Lindquist Steels, but nearly every Tool Steel, Carbon, and Alloy plate supplier nationwide as well.
This ruling is about plate only. Round bar remains, for the moment, unaffected by the tariffs.
For more information on the U.S. Trade Commissions Ruling please use the following links and continue to check our website, Twitter feed, and Facebook page. If you have any questions or concerns please do not hesitate to contact us.
Please see the links below for more details on the Trade Commissions rulings.