Steel and Stainless Steel Industries – Page 7

NEWS RELEASE: USW: Canada Must be Exempt from Tariffs (United Steelworkers – May 31, 2018)

June 11, 2018

https://www.usw.org/

CONTACT: Holly Hart, (202) 778-4384, hhart@usw.org

Today the United Steelworkers union (USW) expressed its profound disappointment in the Trump Administration’s decision to remove Canada’s exemption from Section 232 tariffs on steel and aluminum products.

This decision is unacceptable and calls into serious question the design and direction of the Administration’s trade policy. Section 232 relief is founded on national security interests and U.S. law. Our history shows that there is no stronger ally and partner on national security than Canada.

The decision not to exempt Canada ignores the fact that Canada’s steel and aluminum exports to the United States are fairly traded and that Canada has shown its willingness to strengthen its laws as well as its cooperation with the United States to fight unfair trade.

Tariffs on steel and aluminum might cost the U.S. 400,000 jobs — and Canada could get hit too – by Jessica Vomiero (Global News – June 6, 2018)

June 7, 2018

https://globalnews.ca/

A report released Tuesday by the Washington-based trade and economic consulting firm claims that for every steel and aluminum job saved by the Trump administration’s tariffs on imports, 16 more will be lost.

“Basically, the report finds not surprisingly that the tariffs would increase employment in the steel and the aluminum sectors, but what it shows pretty clearly is that a large number of other workers would lose jobs in the process as higher steel costs ripple through the economy,” said Laura Baughman, one of the report’s authors.

Trade Partnership Worldwide LLC released the report this week, which claims that over 400,000 jobs will be lost in other sectors of the economy due to higher prices on steel and aluminum. The industry that could be most impacted, with over 375,000 jobs lost, will be the services sector.

‘No real winners’: Canadian miners brace for steel tariffs and threat of trade war – by Gabriel Friedman (Financial Post – June 5, 2018)

June 5, 2018

http://business.financialpost.com/

However, some mining executives say they would take the uncertainty surrounding steel from current U.S. trade policies in exchange for the tax breaks

In the middle of the U.S. desert, just east of Reno, Nevada, engineers and construction workers are preparing to sink a second shaft of what is likely to be North America’s next productive copper mine sometime next year — Nevada Copper Corp.’s Pumpkin Hollow underground mine.

And yet headwinds are blowing as U.S. tariffs and sanctions threaten to whip up a global trade war, and erode mining companies’ margins just as many commodities prices are rising.

Mining companies operating in the U.S. hope to benefit from a more lax regulatory regime, and from recent tax reform that included major corporate breaks, are worried lingering uncertainty about trade and global economic growth could slow the industry.

China iron ore futures rise on mine closures, but stocks high (Reuters India – June 4, 2018)

June 5, 2018

https://in.reuters.com/

BEIJING, June 5 (Reuters) – China’s Dalian iron ore futures edged up on Tuesday, lifted by market concern about tight supplies after a report that Tangshan city plans to shut hundreds of mining companies, although prices remain under pressure from mounting stockpiles at ports.

Tangshan, the country’s No.1 steelmaking city in Hebei province, said it will close 226 mining firms – half iron ore miners – that do not have legitimate licenses as part of efforts to curb illegal mining and cut pollution.

The central government, meanwhile, has sent teams of inspectors to 10 regions to check rectification measures after previous probes uncovered thousands of environmental violations. Some regions have promised to beef up anti-pollution curbs.

Trump’s Metal Tariffs Send Corporate Canada Reeling in Disbelief – by Frederic Tomesco (Bloomberg News – June 1, 2018)

June 4, 2018

https://www.bloomberg.com/

To get a sense of the disbelief gripping Canadian manufacturers since the U.S. imposed metal import tariffs, have a chat with Marc Dutil. “I just want to scream,” the chief executive officer of structural-steel maker Canam Group Inc. said Friday by phone. “All this is doing is creating uncertainty. It’s the last thing we needed.”

Canam, ironically, is bidding for work on the Gordie Howe International Bridge, the new structure planned to connect Detroit and Windsor, Ontario.

“In theory, the bridge is supposed to stand for the close relationship between our two countries,” Dutil said. “It’s supposed to be built with North American steel, but that steel will be taxed. I can’t see how that will help the economy.”

US defense sector braces for Trump tariff fallout – by Joe Gould and Aaron Mehta (Defense News – May 31, 2018)

June 4, 2018

https://www.defensenews.com/

WASHINGTON — The Trump administration’s announcement that it will impose tariffs on steel and aluminum imports from Europe, Mexico and Canada may hurt America‘s defense sector and imperil domestic jobs, analysts warn.

The tariffs, which will impose a 25 percent surcharge on imported steel and 10 percent on aluminum, will go into effect Friday, as the administration follows through on the penalties after earlier granting exemptions to buy time for negotiations. U.S. President Donald Trump announced the tariffs in March, citing national security concerns.

Europe and Mexico pledged to retaliate, exacerbating trans-Atlantic and North American trade tensions. The European Commission’s president, Jean-Claude Juncker, said Trump’s decision amounted to trade “protectionism, pure and simple,” adding that Europe would respond with countermeasures.

Deal to help struggling Sault steel plant – by Elaine Della-Mattia (Sault Star – May 12, 2018)

May 14, 2018

http://www.thesudburystar.com/

The United Steelworkers Local 2251 and 2724 have reached a tentative agreement with Algoma’s secured creditors. The tentative agreement, reached late Wednesday but finalized Thursday morning, helps pave the way for Algoma to emerge from bankruptcy protection.

Mike DaPrat, president of Local 2251, said the unions have been in negotiations for about two-and-a-half years. “We felt it was important that we get a fair collective agreement for our members. We’ve had our ups and downs and stops and starts,” he told The Sault Star.

But in the end, DaPrat believes the tentative agreement reached with the secured creditor’s group is fair. It offers no concessions and some improvements, he said. The membership will be the first to hear the details In the coming days, he said. Meeting dates, location and time have yet to be established.

Stainless steel glut builds in China as Indonesia ups output – by Maytaal Angel (Reuters U.S. – May 3, 2018)

May 3, 2018

https://www.reuters.com/

LONDON (Reuters) – An abundance of stainless steel in China following the ramp up of new production in Indonesia is threatening stainless mills globally and the nickel producers that supply them.

Marking a major structural shift, China, which makes and consumes around half of the world’s stainless, became a marginal net importer of hot-rolled stainless coil in December for the first time in more than seven years, data from the International Steel Statistics Bureau and from consultants CRU showed.

This is after Chinese-owned stainless giant Tsingshan started production last August at a giant plant in Indonesia that should, by the end of 2018, have an annual capacity of 3 million tonnes.This is equivalent to 6 percent of last year’s global flat stainless capacity, CRU says, and there is more to come, with China’s Delong Holdings set to start production at its Indonesian stainless plant in 2019.

As steel tariffs squeeze U.S. businesses, uncertainty threatens economic growth – by Don Lee (Los Angeles Times – April 29, 2018)

April 30, 2018

http://www.latimes.com/

“We’re in the dark, just like everybody else,” said an executive of a West Coast steel importer. “This administration has been supposedly pro-business, but business doesn’t like uncertainty,” groused a distributor of stainless steel, who, like others, requested anonymity to avoid antagonizing officials.

These should be good times for American manufacturers, construction firms, canners and others that use industrial metals for their business. The U.S. economy is perking along, and tax cuts and global growth are helping boost demand.

But since President Trump abruptly slapped hefty tariffs on billions of dollars’ worth of imported steel and aluminum on March 23, the outlook has turned hazy for many — downright bleak for some.

Ottawa bolsters rules to prevent dumping of cheap metals in U.S. – by Greg Keenan (Globe and Mail – March 28, 2018)

March 28, 2018

https://www.theglobeandmail.com/

The federal government is moving to block cheap offshore steel and aluminum that could be funnelled to the United States through Canada to avoid tariffs Washington has placed on several countries.

The actions announced on Tuesday will be taken after Prime Minister Justin Trudeau assured U.S. President Donald Trump that Canada will not become a back door for countries seeking to avoid the 25-per-cent tariff on steel and 10-per-cent levy on aluminum announced by the U.S. government earlier this month.

Canada was granted an exemption after intense lobbying, but the exemption is temporary until May 1. Whether it is extended or made permanent depends partly on Canada blocking its own borders to cheap offshore steel and aluminum and on progress in the negotiations to revamp the North American free-trade agreement.

Sault steel mill prepares to build new $55-million alternative port – by David Helwig (Northern Ontario Business – March 16, 2018)

March 16, 2018

https://www.northernontariobusiness.com/

Essar Steel Algoma Inc. is seeking regulatory approvals for a new $55-million alternative port facility, apparently prepared to pull the plug on its existing arrangements with Port of Algoma Inc.

Recently filed court documents disclose that the Sault steelmaker started looking into building a port of its own last August.Early concepts included floating structures, fixed structures or a combination of both.

A prefeasibility investigation conducted for Algoma by a design and construction company concluded earlier this year that a fixed structure for docking ships and unloading raw material was feasible as an alternative to the existing Sault port, subject to securing necessary regulatory approvals.

Canada’s Trudeau tells metal workers: ‘We have your backs’ – by Allison Lampert (Reuters Canada – March 12, 201)

March 13, 2018

https://ca.reuters.com/

MONTREAL (Reuters) – Canadian Prime Minister Justin Trudeau promised aluminum and steelworkers on Monday he would defend them against possible U.S. tariffs and called U.S. President Donald Trump to stress that“mutually beneficial” cross-border supply chains should be preserved.

Trump said last week he would impose import tariffs of 25 percent on steel and 10 percent for aluminum, effective later this month, but exempted Canada after an intense lobbying campaign arranged by Ottawa.

“We are ready to take action whenever action is required … we had your backs last week and we always will,” Trudeau said after visiting a Rio Tinto Ltd (RIO.AX) (RIO.L) smelter in Alma, Quebec, his first stop on a tour this week of Canada’s steel and aluminum regions.

Despite tariff reprieve, aluminum industry expected to keep investment under wraps – by Niall McGee (Globe and Mail – March 12, 2018)

March 12, 2018

https://www.theglobeandmail.com/

After receiving a stay of execution on punitive import tariffs imposed by the United States the Canadian aluminum industry can breathe a little easier, but companies are unlikely to make major investment decisions under the status quo.

On Thursday, U.S. President Donald Trump exempted Canada and Mexico from new 10-per-cent aluminum tariffs that will soon apply to the rest of the world. The final outcome for Canada will depend on how the ongoing North American free-trade agreement talks proceed, the President said.

Mr. Trump justified the tariffs on national security grounds, specifically the need to secure a domestic supply of metals such as aluminum, for the manufacture of military equipment.

Rio Tinto says US tariffs terrible for world trade but no threat to iron ore – by Brad Thompson (Australian Financial Review – March 7, 2018)

March 8, 2018

http://www.afr.com/

One of Rio Tinto’s most senior executives has warned that the last thing the world needs is a trade war sparked by the Trump administration’s protectionism.

Rio Tinto iron ore chief executive Chris Salisbury said the threat by US President Donald Trump to impose tariffs on steel and aluminium imports raised the prospect of a destabilising trade conflict.

“As a mining company we rely on free flow of trade around the world,” he said. “We don’t get a choice in where the resources are and we need to get those resources to our customers, so anything that impedes that obviously does concern us.”

Canada, Mexico to gain temporary exemption from U.S. tariffs on steel – by Adrian Morrow, Lawrence Martin and Rachelle Younglai (Globe and Mail – March 8, 2018)

March 8, 2018

https://www.theglobeandmail.com/

Canada and Mexico will be spared from President Donald Trump’s tariffs on steel and aluminum while the three countries renegotiate NAFTA, with a permanent exemption if they agree to a deal that satisfies the President, the White House said on Wednesday.

The move allows Mr. Trump to avoid slamming the heavily integrated continental steel and aluminum industries while still using the threat of tariffs to crank up the pressure on his negotiating partners to agree to his protectionist demands at the bargaining table.

The President took to Twitter on Thursday morning to say he would hold a meeting at 3:30 p.m. at the White House over the planned tariffs of 25 per cent on steel and 10 per cent on aluminum, and that the United States must show flexibility toward its allies.