Steel News – WTO and Higher Steel Prices
As a service to our customers, our experts at Ace Steel Supply read, interpret and aggregate the latest news and trends in the metals sector. Our goal is to assist our customers to position themselves to take advantage of market forces on their businesses.
The metal you bought yesterday, is worth more today. Quotes from local suppliers are void by end of day.
North American Stainless (NAS) is increasing base prices beginning with March 1st shipments, for stainless flat-rolled and bar products by reducing discounts.
Section 232 News
South Korea cries foul on skewed facts. On February 20th, South Korea requested World Trade Organization (WTO) consultations with the US to challenge the methods used by the US Commerce Department in six anti-dumping investigations into various rolled and corrosion-resistant steel products. This request for consultations is the first step in WTO disputes, and the two nations have 60 days to resolve differences before it goes to an adjudication panel.
South Korea says that “adverse facts available” were improperly used rather than seeking to replace missing information with best information available.
The Mexican steel association Canacero said that the country’s federal government must look into reciprocal sanctions it can take against the US if high tariffs are introduced. Ternium, a Latin American steel producer, says that around 50% of the steel imported into Mexico comes from the US, but does not expect there to be any significant effect on its sales to the US from its operations in Mexico and Brazil.
The Turkish Steel Exporters Association says that the Section 232 protectionist measures would create deviations in global trading, increase unfair trade competition, would definitely stop Turkish exports to the US, harm the global economy and could trigger a trade war. Turkey’s steel exports in January 2018 are down 22.5% over the same time in 2017. Turkey exported 1.83 million tons of steel products to the US in 2017. Turkey’s steel exports to the US decreased by 83.6% in January 2018 to 42,000 tons.
Turkey has a $300 million trade deficit and imports primarily scrap steel from the US.
Trump is expected to make a final decision on the Section 232 investigations on April 11th. The US Commerce Secretary’s recommendation based on the Section 232 investigation includes a targeted tariff of at least 53% on steel imports from 12 countries. It does not contain exemptions for the US’ trading partners in the North American Free Trade Agreement: Canada and Mexico. The “America First” policy is blamed for introducing uncertainty into the markets.
The Ace Steel Supply Solution
We are a boutique metals company that specializes in providing customized programs to take volatility out of our customers’ supply chains. Call 832-300-1030 for a consultation.