With April in the rearview mirror, we're seeing significant developments across the metals and materials landscape that directly impact purchasing decisions. Here's our comprehensive review of recent market trends and what to expect in the month of May.
The Manufacturing PMI fell to 48.7 in April, down from 49.0 in March, confirming a second consecutive month of decline (2). While four of the six largest manufacturing industries-petroleum and coal products, computers and electronics, machinery, and chemicals-managed to expand, other major industries like transportation equipment, food and beverage products, and fabricated metals continued to contract (2).
Steel prices showed mixed trends in early April. Hot Rolled Coil (HRC) spot base prices ranged from $904 to $940 per ton, with Cold Rolled Coil (CRC) prices between $1,092 and $1,140 per ton (3). Cleveland-Cliffs increased its pricing by $75 per ton, setting its May order book for hot rolled steel at $975/ton (3). Domestic mills experienced increased spot buys, leading to rapid price adjustments.
The reinstated 25% tariffs on steel imports and increased aluminum tariffs from 10% to 25% took effect on March 12, 2025 (5). These tariffs have eliminated previous exemptions for countries like Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine, and the United Kingdom (5).
According to recent analysis, the new tariffs are projected to:
These changes are already impacting supply chains and pricing structures across industries that rely on these materials.
The pandemic revealed weaknesses in overseas supply chains, causing manufacturers to turn toward domestic suppliers for greater reliability (7). Extended lead times, dock worker strike risks, and exchange rate instability have encouraged more companies to consider U.S.-based mills. This reshoring trend has led to a stronger domestic metal supply base, potentially meaning shorter lead times but also tighter availability for certain metals (7).
Demand in metal fabrication continues to shift toward high-mix, low-volume production, particularly where precision and material diversity are required (9). Domestic foundry operations are growing in strategic relevance as reshoring efforts accelerate and lead times tighten. The automotive sector continues to face cost pressure related to trade uncertainty, prompting changes in supplier relationships and production planning (9).
The April scrap trade concluded with shredded scrap down $40/ton month-over-month, cut grades down $30/ton, and prime scrap down $20/ton (10). This ferrous scrap market downturn saw prices decreasing across various grades, with the market sentiment indicator dropping to 47.1, indicating a shift towards bearish expectations (10).
As market conditions continue to evolve, having a reliable partner for your metals and materials needs is more important than ever. At Sparky's Metal Supply, we leverage over 50 years of industry experience to navigate these complex market dynamics on your behalf (11).
Our approach allows you to:
Take Action Today: Submit a Request for Quote (RFQ) at www.sparkysmetal.com to tap directly into our 50+ years of experience in both buying and selling metals & materials (11). There's no obligation, and you'll see firsthand how our competitive pricing and reliable delivery can benefit your operations during these challenging market conditions
