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US expands 232 tariffs to more steel, Al products

  • Spanish Market: Metals
  • 27/01/20

US president Donald Trump has imposed additional protectionist Section 232 import tariffs on certain steel and aluminum products, including some stamped auto parts.

The White House on 24 January said that Section 232 tariffs of 25pc for steel and 10pc for aluminum products will be imposed beginning on 8 February on a list of imported steel and aluminum items.

The Trump administration said imports of steel and aluminum derivative items have increased by significant amounts, circumventing the national security-based Section 232 steel and aluminum tariffs that were imposed on imports in March 2018.

Trump cited the inability of the US steel industry to maintain capacity utilization levels above 80pc for an extended period, which the administration said is needed for its long-term viability.

US steel capacity utilization averaged 80.7pc in 2019, and was estimated to be at or above 80pc for 37 weeks during the year, according to industry group the American Iron and Steel Institute (AISI). Capacity utilization rose to 82.7pc for the week ended 18 January.

Trump also cited the aluminum industry's lower-than-targeted utilization rate as a reason for applying the 232 tariffs to these products.

He added that while total imports have fallen, certain imports — such as for the newly impacted products — have increased, undermining the purpose of his original 232 tariffs to give US steel and aluminum producers a broader customer base.

Examples of steel and aluminum derivative product imports that increased include aluminum and steel bumpers and body stampings. Import volumes of those products for motor vehicles and tractors increased by 38pc from June 2018 to May 2019 compared with the same period the previous year.

Imports of steel nails, tacks, drawing pins, corrugated nails, staples and similar items increased by 33pc from June 2018 to May 2019 compared with the same period of the previous year.

Import volumes of aluminum stranded wire, cables, plaited bands, slings and similar articles increased by 152pc from June 2018 to May 2019 compared with the same period of the previous year.

The Trump administration has not yet released the specific Harmonized Tariff Schedule of the United States (HTSUS) codes related to the affected products.

The countries that are currently excluded from the tariffs, or that have quota systems, will not be subject to the expanded tariffs.

The 10pc aluminum tariffs apply to every country except for Argentina, Australia, Canada and Mexico. The 25pc steel tariffs apply to every country except for Argentina, Australia, Brazil, Canada, Mexico and South Korea. Argentina has import quotas for aluminum and steel, while Brazil and South Korea have quotas on steel.

Preliminary figures for total imports of steel products into the US for 2019 show imports fell by 17pc to 25.27mn metric tons (t) compared with final import figures of 30.57mn t in 2018, according to the US Department of Commerce. Imports of steel products totaled 34.47mn t in 2017.

Total imports of aluminum products through November 2019 were 6.64mn t, down slightly from 6.67mn t during the same period in 2018. Imports during the same period in 2017 were 7.35mn t.

By Rye Druzin


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06/12/24

US House panel approves river infrastructure bill

US House panel approves river infrastructure bill

Houston, 6 December (Argus) — A US House of Representatives committee has approved a bipartisan bill that authorizes improvements to navigation channels by the Army Corps of Engineers (Corps) and maintenance and dredging of river and port infrastructure projects. The House Transportation and Infrastructure Committee advanced the Water Resources Development Act (WRDA) after several months of political wrangling to integrate earlier versions of the legislation approved by the House and Senate . The bill will head to the full House next week, said committee chairman Sam Graves (R-Missouri). This would be the sixth consecutive bipartisan WRDA bill since 2014 if passed by congress. WRDA is a biennial bill that authorizes the Corps to continue working on projects to improve waterways, including port updates, flood protection and supply chain management. WRDA will also "reduce cumbersome red tape", which will allow for quicker project turnarounds, Graves said. The bill authorizes processes to streamline work, he said. The bill also adjusts the primary cost-sharing mechanism for funding for lock and dam construction and major rehabilitation projects. The US Treasury Department's general fund will pay 75pc of costs, up from 65pc, with the rest coming from the Inland Waterways Trust Fund, which is funded by a barge diesel fuel tax. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Tight supply fuels Indian interest in wire rod imports


06/12/24
06/12/24

Tight supply fuels Indian interest in wire rod imports

Mumbai, 6 December (Argus) — Interest in steel wire rod imports is increasing in India owing to limited domestic availability, delivery snags and high prices set by primary producers, according to industry sources. Unspecified quantities of Chinese low-carbon wire rod were booked for $515-520/t cfr Mumbai, excluding value-added tax, in the past few weeks, sources in both China and India told Argus . High-carbon wire rod was also heard to have been purchased from China recently, although this could not be confirmed. The booking follows reduced supply from state-controlled long products manufacturer Rashtriya Ispat Nigam (RINL), according to a Mumbai-based long products trading firm. RINL at present is grappling with financial difficulties and raw material shortages, which has taken a toll on its production. Many participants have questioned this purchase, as no Chinese mill has a Bureau of Indian Standards (BIS) certificate required for exporting wire rod to India. Non-BIS material can be cleared by customs only if the material is used to manufacture goods that will be exported. The booking has been made under the advance licence scheme, which allows for such non-BIS imports, a source said. But there are only a handful of wire manufacturers that export their product and can use imported wire rods, according to market participants. At a trade fair in Mumbai last month, wire manufacturers said they were increasingly seeking alternatives to domestic primary wire rod as high input costs were squeezing their margins. High-carbon wire rod was priced at 57,000-58,000 rupees/t ($672-684/t) by major domestic producers on a delivered basis in western India, sources said. Chinese offers stood at $570-580/t cfr India for high-carbon wire rod a few weeks ago, but have now fallen to $560/t cfr, a trading source said. Wire manufacturers focused on domestic sales were turning to secondary wire rod, which was nearly 20pc cheaper than primary material, according to a participant at the Mumbai trade fair. But trading companies and consumers pointed to availability as the bigger issue, with only a few major primary producers dominating the wire rod market. Securing a regular and timely supply of wire rod from primary mills has become a major challenge, causing supply chain disruptions for end-users, they said. "The price is one factor, but availability is also a key issue. Mills are unreliable when it comes to allocation and delivery of the material," a wire manufacturer said. "This has always been the case but not to the extent seen recently. Now supply concerns have become worse because of RINL's issues." RINL's finished steel output fell by 26pc on the year to 1.6mn t from April-October, according to provisional data from the steel ministry's joint plant committee. Another wire manufacturer said it had not imported wire rod for more than a year, but was now open to cheaper imports to protect its margins. For some finished products, such as automobile parts, it is essential to use wire rod from primary producers but imported or secondary material could be used to manufacture some other products, a manufacturing firm executive said. Long products amount to only a small portion of India's overall steel imports, which are dominated by hot-rolled coil and other flat products. From April-October this year, India imported about 49,300t of wire rod — including alloy, non-alloy and stainless steel products — an increase of more than 30pc on the year, according to data from the steel ministry's Joint Plant Committee. This made up less than 1pc of India's overall finished steel imports during the seven months. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Newly agreed EU, Mercosur FTA faces uphill battle


06/12/24
06/12/24

Newly agreed EU, Mercosur FTA faces uphill battle

Montevideo, 6 December (Argus) — The EU and South America's Mercosur closed a free-trade agreement (FTA) nearly 25 years in the making, but there is still a long road to ratification. Uruguayan president Luis Lacalle and European Commission president Ursula von der Leyen announced the deal at a Mercosur summit in Montevideo, the Uruguayan capital. The presidents of the three other Mercosur founding members — Argentina, Brazil and Paraguay — were present. The FTA will remove tariffs on more than 90pc of goods among the members. Von der Leyen called the agreement a historic milestone that would benefit 700mn consumers. She said the agreement "is not only a trade agreement, but also a political necessity." Lacalle said "an agreement of this kind is not a magical solution, but an opportunity." Leaders recognized that the agreement still has major hurdles to clear as it requires approval from member states. The agreement will go to legal review and translation in the next month in view of its future signing, according to the Mercosur-EU declaration. While the Mercosur countries are in favor of the agreement, opposition is strong in France, Poland and several smaller EU states. Argentinian president Javier Milei, who supports the agreement, criticized Mercosur as a block. "Mercosur, which was born with the idea of deepening our commercial ties, ended up like a prison that does not allow its members to take advantage of their comparative advantages or export potential," he said. Van der Leyen said that more than 60,000 businesses, half of them small, export to Mercosur. The EU exported $59bn to Mercosur in 2023, while Mercosur's four founding members shipped $57bn to the EU. She also stressed the importance of EU investment in Mercosur, including in sustainable mining, renewable energy and sustainable forestry. Brazilian president Luiz Lula da Silva said during the summit that the region had to take advantage of its resources, including agriculture and energy. The four Mercosur countries are major food producers, including crops such as corn, soy and sugarcane, used for biofuels. Brazil is the world's top soy producer, while Argentina is third, Paraguay sixth and Uruguay in the 14th spot. Bolivia, which joined Mercosur in July, is the 10th producer. Brazil is a major mineral producer and Argentina is slowly beginning to strengthen its mining sector. It has the world's second-largest lithium resources. Argentina is also beginning to monetize its unconventional gas formation, Vaca Muerta, the second largest in the world with 308 trillion cf of reserves. It is working on different LNG projects, with a focus on exports to Europe. The Mercosur countries also have in common plans for low-carbon hydrogen production, which also see the EU as an export market for value-added products, such as fertilizers. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US added 227,000 jobs in November


06/12/24
06/12/24

US added 227,000 jobs in November

Houston, 6 December (Argus) — The US added 227,000 non-farm jobs in November as hiring bounced back after two hurricanes and a strike dampened the prior month. Job gains for the prior month were revised higher to 36,000 from an originally reported 12,000, the Labor Department said today. Payroll employment increased by a monthly average of 186,000 jobs for the 12 months through November. The unemployment rate edged up to 4.2pc from 4.1pc and was higher than the 3.7pc rate a year earlier. The CME's FedWatch tool showed an 87pc probability the Federal Reserve will cut its target rate by a quarter point at its 19 December meeting, up from 70pc probability on Thursday. The Federal Reserve has signaled it will be cautious in determining the pace of further rate cuts next year after beginning to cut rates from two-decade highs this year as inflation slowed. Health care added 54,000 jobs, with leisure and hospitality adding 53,000. Government added 33,000 and transportation equipment manufacturing added 32,000 after the return of workers who were on strike. Retail trade lost 28,000. Manufacturing added 22,000, construction added 10,000 and mining and logging added 2,000. Average hourly earnings advanced by an annual 4pc. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Al can recycling rate rises in 2023


05/12/24
05/12/24

US Al can recycling rate rises in 2023

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