Steel Products Manufacturers NAICS 3312

Jul 21, 2025 - Oil & Gas Firms Plan to Trim Capex

• According to the latest quarterly Dallas Fed Energy Survey, more than a quarter (27%) of oil-and-gas companies active in Texas and adjacent territories plan to cut back on capital spending in 2026, reducing demand for steel pipe used in energy production. By comparison, nearly 40% expect spending on capex to rise next year. The survey of business leaders at exploration and development companies and oilfield services firms found the drop to be concentrated among large producers, with 75% saying they now expect to drill fewer wells this year than planned to at the start of 2025. By contrast, only 34% of leaders from smaller companies said they’ve scaled back their plans. The share of business leaders surveyed in the second-quarter who said they expect to trim capex in the next year was the highest since late 2023.
• Manufacturers of steel products that purchase foreign steel are facing higher costs now that President Trump has threatened new tariffs on two top steel exporters to the US: South Korea and Brazil. In July, Trump threatened tariffs of at least 25% on South Korea starting on August 1. He also said in a letter posted on social media that he planned to impose a 50% tariff – higher than the levies he promised on South Korea and other countries – on all Brazilian imports also effective August 1, citing unfair trade practices and "Brazil's insidious attacks on Free Elections." Previously, the tariff on imports from Brazil was 10%. Trump also promised to launch a trade investigation.

• The sudden doubling of tariffs on US steel imports from 25% to 50% in June, has steel traders facing a “nightmare” scenario, Fastmarkets reports. President Trump’s doubling of the import tariffs on June 4 has introduced significant uncertainty to the US steel market, with steel traders reporting disruptions to imports, paused domestic mill quotes, and concerns over potential price increases amid modest demand, according to Fastmarkets. Industry participants – including manufacturers of steel products – are having to assess how the additional costs will be absorbed across their supply chains. “Importers are scrambling right now, and customers who bought imports are also scrambling to ensure they have steel in the next 30-60 days,” a West Coast trader told Fastmarkets. While makers of steel products can avoid the steep tariffs by buying steel produced in the US, traders say they expect domestic mills to raise their prices.
• While many businesses are struggling to respond to President Trump’s tariff turmoil, higher trade barriers are creating opportunities for some small US manufacturers, The Wall Street Journal reports. Ellwood Group, a maker of forged steel, nickel and aluminum products, is one company that's getting a boost from the tariffs, according to WSJ. The Pennsylvania-based business saw its sales jump 35% from the fourth quarter to the first, driven in part by 25% tariffs on steel and aluminum that only came into effect in mid-March. One reason: Large construction projects that use finished steel are diversifying away from Asian suppliers to US companies that buy its raw materials. “Customers want to get ahead of the tariffs,” said Ellwood’s Chairman David Barensfeld, adding “They are diversifying, reshoring because they want to de-risk foreign supply chains.” The company is adding staff amid increasing new orders.