June Market Minute 2025

For Jonathan, SteelNow Customer Experience Manager, recent conversations with customers have revealed continued uncertainty around tariffs.

While some metal buyers purchased additional material earlier in the year in anticipation of tariff-driven price increases, most have been more cautious, buying only what they need while watching the market. Meanwhile, fabricators find themselves quoting a lot of business but not winning as many jobs as this time last year, suggesting that their own customers may be waiting to move forward on projects given market conditions. 

Aluminum Market Volatility Hits Home for Texas Metal Buyers

The recent decision to double Section 232 tariffs on imported aluminum is sending shockwaves through the U.S. market—and Texas metal buyers are feeling the heat.

Perhaps the biggest impact for aluminum comes by way of the Midwest Premium (MWP), which is the logistical cost. In the matter of just one week, the MWP jumped 15–16 cents/lb. This adds to the total cost of finished common alloy aluminum, which has surged by as much as 30 cents/lb.

This spike is largely tied to tariff-driven uncertainty. While current premiums sit around 50–55 cents/lb., futures suggest a potential climb to 73 cents if broad exemptions don’t materialize.

Even as domestic mills ramp up production—boosting utilization to 78%—tight depot inventories and rising input costs could create further price pressure. Negotiations with key partners like Canada and Mexico may offer relief, but in the meantime, Texas buyers should brace for continued volatility in the aluminum market.