Press

FACTBOX: Trump Ups the Ante On Steel/Aluminum Trade Tariffs-S&P Global Platts

Posted by OilVoice Press - OilVoice

01-Jun-2018


Unable to reach alternative agreements, US President Donald Trump has decided to impose tariffs on steel and aluminum imports from the previously exempt Canada, Mexico and the EU, effective Friday, June 1. The move was announced Thursday by US Commerce Secretary Wilbur Ross.

US market prices for steel and aluminum gained on the developments, but just barely, according to S&P Global Platts Wednesday price assessments.

  • US-made hot-rolled steel coil – the benchmark, bellwether product – edged up just 0.5% to $893.50/short ton Thursday, adding $4.75/st from Wednesday.
  • The Midwest US Transaction Aluminum price also inched higher, +0.9% to 125.419 cents/lb ($1.254/lb) from Wednesday's 124.261 cents/lb, which includes the underlying London Metal Exchange plus the regional (US Midwest) price differential.

According to the US Census Bureau, the US imported 34.5 million metric tons of steel in 2017—more than 40% of that total from Canada, Mexico and the EU.

 

  • Some 26% of it from Canada and Mexico (8.9 million mt, combined; 5.7 million mt from Canada, 3.2 million mt from Mexico).
  • Another 14.5%, or nearly 5 million mt from the EU.

Aluminum imports, meanwhile, have risen to 90% of total demand for primary aluminum, up from 66% in 2012.

 

Reaction was swift – in the US, from around the globe and across commodities.

 

  • The Trump administration is "hitting the wrong target" by imposing tariffs on steel and aluminum imports from Canada, Mexico and the EU, US Representative Kevin Brady, chairman of the House Ways and Means Committee, said Thursday. Like the president, Brady, from Texas, is a Republican.
  • US tariffs on Canadian steel and aluminum are "totally unacceptable" and Canada is taking steps to retaliate, Prime Minister Justin Trudeau said. Canada will impose tariffs against imports of steel, aluminum and other products from the US. The Canadian tariffs, which will affect up to C$16.6 billion ($12.8 billion) in imports, will only apply to goods originating from the US and will take effect July 1. The tariffs will remain in place until the US eliminates its trade-restrictive measures against Canada, Trudeau said.
  • Mexico will impose tariffs on various US products. The Mexican tariffs will be on US products including flat steel -- hot-and cold-rolled coil, including coated and various tubes -- lamps, pork legs and shoulders, sausages and food preparations, apples, grapes, blueberries, various cheeses, and more, the Secretariat of Economy said in a statement.
  • The European Union said Thursday it will launch legal proceedings against the US at the World Trade Organization on Friday in response to the US imposing tariffs of 25% on steel imports and 10% on aluminum imports.
  • European Steel Association Eurofer condemned the US decision, calling on the European Commission to swiftly adopt comprehensive safeguards to ensure access to traditional trade flows.
  • The US Grain Council is deeply concerned about the new tariffs, President and CEO Tom Sleight said Thursday, noting, “We have every reason to believe U.S. agriculture, including the products we represent, will be among the first hit by counter measures from our trading partners."
  • Mexico is the top US export customer for corn, DDGS, pork, poultry and barley; and is among the top three customers for beef and sorghum, according to US Grain Council data.
  • Canada is among the top ten US export customer for corn, barley, beef, corn-gluten-meal, DDGS, ethanol, pork and poultry.
  • European Union is the top US export customer for corn-gluten-meal; and is among the top-ten customers for corn, barley, beef, DDGS, and ethanol.
  • Oil and gas industry interests feared higher materials costs, supply chain headaches and risks to trading relationships, following the Trump decision. The added tariffs will "cause a slowdown in oil and gas exploration and production activity for an industry that is still in recovery mode, which will result in job loss, decreased production and related tax revenue, negatively impacting many areas of our state and national economy," said Ed Longanecker, president of the Texas Independent Producers & Royalty Association.
  • Don Santa, president and CEO of the Interstate Natural Gas Association of America, called the latest action "very troubling" to the US pipeline industry and "inconsistent with the administration's long-standing goal to capitalize on our nation's energy abundance to help bring low-cost energy to American consumers."



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

S&P Global PlattsAluminiumTariffso&gUnited StatesUS

More items from oilvoice


Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice


Posted 10 days agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 4 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 8 months agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 8 months agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 9 months agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice