27 August 2024 – Canada has announced its intention to introduce tariffs on Chinese steel, stainless steel and aluminum products from October. And German steel mills continue to pick up speed and increase crude steel production, in some cases significantly.
Canada intends to impose high tariffs on steel and aluminum from China
Yesterday, Monday, the Canadian government announced that it intends to introduce tariffs of 25% on steel and aluminum products originating from China from October 2024.
Originally only tariffs on EV were planned by Canada
Originally, Canada had only planned to introduce tariffs on electric vehicles (EV) originating from China. However, according to the “Notice of intent to impose surtaxes on Chinese steel and aluminum in response to unfair Chinese trade practices”, it was then convinced during consultations by unnamed stakeholders to also examine the possibility of imposing punitive tariffs on steel and aluminum products.
Almost all steel, stainless steel and aluminum products affected
The list of steel, stainless steel and aluminum products likely to be affected is long and currently runs through almost all Canadian HS codes relating to these products. However, the final list of products affected by the tariffs will not be announced until the beginning of October, as soon as the consultations in Canada have been finalized.
Following Mexico’s agreement with the United States a few weeks ago to extend the Section 232 tariffs to steel and aluminum products, this is now the second tariff hammer for North America this year.
German steel production continues to increase significantly
German steel production has continued to pick up significantly in 2024 and is currently (based on figures from WV Stahl and extrapolated to 12 months) expected to be above the average of the past 5 years at more than 38.5 million tons of crude steel (+8.9% compared to 2023) and thus only slightly below the level of 2019.
Growth of 17% in German EAF steel production possible
German EAF steel producers in particular are showing a clear upward trend and could record production growth of almost 17% (y-o-y) in 2024 if the projections are accurate. The background to these enormous production increases is likely to be the significant fall in energy costs.
The production of hot-rolled steel products is likely to increase by more than 8% in the same period.
The figures and statistics from the steel manufacturers’ associations sometimes just need to be viewed from a different angle.
Opinion: We are fed up with this professional whining!
Good news, you might think, but the German steel manufacturers’ associations are once again talking it down. Because even in good periods, there are times when things are slower – such as during the vacations. But this has never been the light of a train coming towards us in a tunnel. We are fed up with this professional whining. Whining doesn’t change anything, only action.
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Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
