US Steels?

Interesting. I reached out to a couple suppliers, and got this response from NJSB.

"Thank you so much for reaching out.

The following grades we carry are produced domestically:

All CPM Grades (Crucible Industries/Niagara Specialty Metals)
154-CM
440-C
416
A2
D2"

So, none of their simpler steels, but better than I was expecting.
 
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I'd be interested to see a cost analysis of exactly how much the 25% will increase the cost of a single blade made from an imported steel.
I think in the grand scheme of things the cost will increase a single blade slightly but not radically.
 
Steven65 said:
I'd be interested to see a cost analysis of exactly how much the 25% will increase the cost of a single blade made from an imported steel.
I think in the grand scheme of things the cost will increase a single blade slightly but not radically.
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Probably true, from a consumer viewpoint. But for someone who buys several hundred bucks worth of steel at a time (and I'm just a hobby maker. Nothing at all compared to even a small-scale full-time knifemaker) a 25% increase will hurt.
 
I don't know much about economics, didn't pay a lot of attention in high school. But let's say Magnacut is made overseas now and we must pay a 25% increase in the cost. MC already is not cheap at all. Let's say today I can buy a bar for $100, and I can get 3 knives out of it. Part of the cost of each knife will be $33.33. But because of a tarrif, now the bar is $125. Now part of the cost of each knife is $41.67. Part of the cost of a single knife increased by $8.33.

I can live with that. I think clients wouldn't bat an eye over $8.33, whether it is MC or whatever steel.

But I can totally understand Nate's point of view. When I normally spend $100,000 per order, now I must pay $125,000. But still the increased cost per knife is not too bad, but the intitial purchase of the bulk order will sting a bit.
 
25% is just the tariff. If production moves to Europe, you will pay a lot more than just the 25% tariff. Add in all the local taxes and wage costs European companies will pass on and the added shipping (by actual ships) on top of the shipping by truck from the port to the mill.
 
Is the US production from iron ore, or do they use a low carbon feedstock? The tariff could very well be applied earlier in the process, though that may have a different effect. Plus there's the general inflationary effect of these policies that will propagate though the system
IMO, if you can it's probably a good idea to order a stack now
 
I personally believe that even domestically made steel will increase almost as much as overseas stuff. This happened a few years back with tarrifs on washing machines.
 
Alex Topfer said:
Is the US production from iron ore, or do they use a low carbon feedstock? The tariff could very well be applied earlier in the process, though that may have a different effect. Plus there's the general inflationary effect of these policies that will propagate though the system
IMO, if you can it's probably a good idea to order a stack now
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Tool steel is made with recycled steel. Even larger tonnage steel a lot of it comes from recycled steel rather than ore. Nucor is the biggest USA steel producer and their facilities are for recycled steel, their website says 77% recycled. https://nucor.com/sustainability
 
REK Knives said:
I personally believe that even domestically made steel will increase almost as much as overseas stuff. This happened a few years back with tarrifs on washing machines.
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Exactly. Business is business. If your customers are paying $2 for an imported whizmit and you were selling them for $1, you will raise your price to $1.99.
 
SharpBits said:
25% is just the tariff. If production moves to Europe, you will pay a lot more than just the 25% tariff. Add in all the local taxes and wage costs European companies will pass on and the added shipping (by actual ships) on top of the shipping by truck from the port to the mill.
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Why would they move all of their production to Europe when consumers in the United States would be looking for alternatives due to the 25+ percent cost increase? Not trying to be a smart ass, just wondering.
 
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Its expensive to start a new mill and there may be more EPA hoops to jump through in the US than in Europe.
 
Stacy E. Apelt - Bladesmith said:
Exactly. Business is business. If your customers are paying $2 for an imported whizmit and you were selling them for $1, you will raise your price to $1.99.
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In that case somebody else in the US would start selling whizmits for $1 (assuming it was profitable for you to continue selling them for that price, which I'm assuming because you were actually selling them at that price).
 
Taz said:
Its expensive to start a new mill and there may be more EPA hoops to jump through in the US than in Europe.
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More regulatory hoops in the US vs the EU? I seriously doubt that.
 
HPD said:
Why would they move all of their production to Europe when consumers in the United States would be looking for alternatives due to the 25+ percent cost increase? Not trying to be a smart ass, just wondering.
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Trying to think how to answer this without getting into politics 😂
There's no guarantee that production will stay in the US. There are too many unknown's to predict what will happen, so production being moved offshore is a possibility. Remember that while the US is a significant market it is still only ~5% of the population. If the US is pursuing an isolationist economic policy it may be easier for a global company to just ignore you all
 
I thought Erasteel already stated they are moving production to existing facilities in Europe? Hopefully I misinterpreted what I read.
 
SharpBits said:
I thought Erasteel already stated they are moving production to existing facilities in Europe? Hopefully I misinterpreted what I read.
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Looks like you are correct. Oh well, it looks like we will be paying more for PM steels for now.
 
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