3 July 2018

“In case the government doesn’t act carefully, it will be a protection of one at the expense of ten others”, – noted Walter Koppelaar, CEO of Walters Inc., a Hamilton, Ontario-based steel construction company. “If the duties apply to broad-spectrum steel, our industry will be decimated, as it could lead to massive layoffs and projects shut downs all over Canada”.

The Canadian Coalition for Construction Steel, representing 17 companies, says the cost of steel used for construction projects in the country, has already grown by almost 38% this year, supported by a strong market activity and a weak supply.

“Additional surtaxes of even 10% will lead to financial losses for fabricators and purchasers, so they won’t be able to provide the necessary supply”, – says the group in its letter to the government.

More measures will be catastrophic, Koppelaar says. Local mills produce only 10% of the structural steel and almost half of the rebar supply.

Although the global tariffs haven’t been confirmed yet, a rebar importer Ferrostaal Steel Canada Inc., doesn’t sign new deals, as the future prices remain unknown.