April 2026 Nickel & Surcharge Update
Monthly Nickel and Surcharge Update
April 2026 Update
Thanks for reading the Ram Alloys Monthly Nickel and 316L s/c update, intended to help our valued customers make educated business decisions.
THE FOUR (4) TRUMP TARIFFS
- One - Drug War:
- Validity OVERRULED by SCOTUS Ruling
- Fentanyl Tariffs on China, Mexico, Canada all ruled Illegal - Read More Below!!
- Two - Steel War: INCREASED TO 50% Section 232 Tariff on all COPPER, Steel and Aluminum
- Validity NOT subject to upcoming Supreme Court Ruling
- Began March 12th - Original Tariff = 25%
- Quotas Eliminated. Exemption Process Terminated
- Excluded and separate from SUPREME COURT Trade War Reciprocal Tariffs
- June 4th: Tariff Rate Raised to 50%
- Except for UK - remains 25% while they negotiate (still negotiating)
- Tariffs for "derivatives" of steel and aluminum remain difficult to analyze, as either reciprocal or Section 232 tariffs apply, but the method for applying either is unclear
- August 1, 2025: Copper added to the 50% Section 232 tariffs, along with steel and aluminum
- Three - Trade War: Reciprocal Tariffs
- Validity OVERRULED by SCOTUS Ruling
- All global reciprocal tariffs ruled Illegal
- Trump imposed a different global tariff under new codes - Read More Below!!
- Four - BRICS Tariff (new - threatened)
- July 7, 2025: President Trump threatened a new tariff "an additional 10% tariff on countries that orient themselves along the 'Anti-American policies of BRICS."
- Meaning, application, interpretation, impact, etc.
- BRICS of course stands for: Brazil, Russia, India, China, and South Africa
- Other members include Saudi Arabia, Egypt, Iran, Ethiopia, the United Arab Emirates, and Indonesia
- BRICS Partner Countries: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam
- Since July 7th, Brazil has been hit with higher tariffs (no 40%) and India has been threatened with an additional 100% tariff due to their Russian energy purchases
- New Indian Trade Deal muted this threat...for now
- The "Sanctioning Russia Act" currently before the Senate contemplates up to 500% tariffs
- Five - New Section 122 Tariffs
- Replace the Trade War Reciprocal Tariffs
- Started at 10%, immediately raised to 15%
- Never been used before
- Temporary: Valid for imports starting 2/24 + 150 days
- Expires: 07/24/2026
- Subject to litigationTariff SCOUTS Trial FINAL RULING U.S. v Iran Conflict News Section 232 New Guidance
Tariffs SCOTUS Trial FINAL RULING U.S. v Iran Conflict News Section 232 New Guidance
Tariffs SCOTUS Trial: News and Final Ruling
On February 20th, the Supreme Court of the United States ruled that President Trump's global reciprocal tariffs and fentanyl tariffs were unlawful. They stated that the IEEPA (International Emergency Economic Power Act) does not authorize Trump to impose those tariffs, as it "exceeded" his presidential authority. It is important to note that this ruling DOES NOT AFFECT Section 232 tariffs on Steel. On February 20th, Trump announced he would impose a temporary 10% global tariff under Section 122 of the Trade Act of 1974. This took effect on February 24th, where it allows for a temporary 10% tariff on most imports for up to 150 days. A few days later, the Trump administration increased the rate to 15%.Refund procedure and timeline uncertain...as is the future of new litigation. These tariffs are temporary, so the administration is looking at long term solutions. This situation is fluid and ongoing, so be on the lookout for new developments.
U.S v Iran Conflict
Nationally, the ongoing U.S.–Iran conflict has become a major driver of volatility in global crude oil markets, with prices surging above $100/barrel as fears grew over disruptions to the Strait of Hormuz—a critical shipping route that carries roughly 20% of the world’s oil.
Around April 7th, prices briefly dropped due to signs of a temporary ceasefire. A few days later, Iran announced they are reclosing the Strait of Hormuz due to a violation of the ceasefire agreement. However, prices remain very much elevated compared to pre-war levels due to lingering uncertainty, supply chain disruptions, and slow recovery in shipping and refining capacity. This situation remains very fluid as news is changing day to day, but expect prices to be volatile in the months ahead.
Why is this important? Commodity prices, specifically nickel, track oil prices, so expect a future increase (see chart below).
Section 232: New Guidance
On April 6th, the government published new Section 232 guidance, mostly concerning derivatives, metals classifications, changes in country of origin application, etc.
Bad news, nothing changes regarding the Steel War Tariffs, which remain 50% on all Copper, Steel and Aluminum.
Current Take
RAW MATERIAL PRICES: March's surcharge increased for the third month in a row, this time by $0.04/LB, to a 30 month high. This upwards movement was expected due to rising energy costs and the consistent increase in Molybdenum's costs. Both Molybdenum and Energy costs increased by $.02/LB. Molybdenum's rise in cost is primarily due to the steady increase in the stainless-steel demand along with supply tightness. The rise in Energy costs can largely be attributed to the ongoing conflict between US and Iran. Expect Energy costs to go up even more in the coming months.
Commodities are continuing to flatten after the considerable jump in nickel pricing in January, so the May s/c should either mirror months prior or slightly increase, but we believe this is short lived. Reminder, the current supply chain is now flush with heavily tariffed inventory, so expect prices to continue to increase.
*If any of your products contain tungsten, expect immediate and severe price hikes due to Chinese supply controls (war).
LEAD TIMES: Domestic steel capacity is insufficient to fulfill US demand in any market. Lead times are, as expected, mixed, but soon will change (for the worst):
- USA mills lead times are pushing out, some products nearing 65 weeks.
- Foreign mill capacity is starting to fill. We expect supply to tighten once the EU's new reduced quota and increased tariff policy on Asian steel is implemented this summer.
BASE PRICES: Recent USA price increases remain in effect, and we expect them to hold given extended lead times.
SECTION 232: JUNE 4TH - 50% TARIFF applied to all imported copper, steel, and aluminum. Quotas and exemptions were eliminated. Reciprocal tariffs do not apply to good accessed Section 232 Tariffs.
RAM'S REACTION: Filter the noise. Control what we can control. Attempt to define as many variables as possible in a world surrounded by unknowns. Leverage our inventory, operational excellence, and market knowledge to assist our customers in times of crisis. In other words...business as usual.
1 YEAR NYMEX Crude Oil Spot v 316 s/c (top)
1 YEAR LME Moly Spot v LME Nickel Cash (bottom)
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