The election of Republican candidate Donald Trump as the next president of the United States is being received favourably by many domestic steel players, though sources who rely on imported steel are skittish, Kallanish reports.

“My opinion of this election – it’s a victory for all of us who invest our money and depend on manufacturing,” says a Midwest service centre source. “It will take some time for a positive turnaround, but at least we have something to look forward to. The steel industry will benefit as long as it keeps the price that keeps imports at an acceptable level.”

A second service centre executive says that a more protectionist US industry was inevitable, Trump win or no.

“I think regardless of the party or candidate, we were moving in the direction of higher trade barriers largely anchored by steel with acts from congress,” he says. “I think the enforcement is likely to be more aggressive in a Trump administration, if his campaign positions are carried into governing. This would likely be favourable for steel in the short term (a few years), but possibly a burden on US manufacturing in general in the longer term.”

A Gulf Coast energy pipe supplier echoes the sentiment that bigger trade barriers will provide at least a short-term boost for the domestic industry.

“If Trump follows through on what he said, and that’s a big if, it will be very good for our industry,” he says. “Less rules and regulations, and no Chinese dumping.”

Traditionally import-driven markets, particularly on the West Coast, may have to rely on their domestic contacts for the time being, says one buy-side source.

“Unfortunately, for us on the West Coast we need imports,” he says. “It might be difficult for us to source out here if our Asian partners are shut out.”

While additional trade barriers are probably a given and may be a net positive for the industry, underlying economic weakness needs to be addressed before the market completely recovers, says one oilpatch tubulars supplier.

“We need the economic recovery to catch fire before we get too high on the possibilities. Steel has been spanked pretty hard, but not just by imports,” he says. “(President) Obama and his environmental/fuel policy coupled with flat-to-no economic growth have taken their toll. Less steel per auto, less spending on defence, Keystone and other exploration and midstream project cancellations and delays – all contribute to falling demand. I loved the outcome of the election last evening, but now the work begins, and this country is so screwed up, it’s going to take a while to get it moving on the right track again.”