15 December 2023 – Mega construction contracts for US industry: By 2030, the USA could be awarding contracts worth 60 billion dollars a year to plant manufacturers. EU bureaucracy: Absurd steel quotas for UK-Northern Ireland! Can Brussels actually be simple? 12th sanctions package against Russia adopted, details scarce so far. What about aluminum?
- USA in a construction frenzy: mega orders for industry
- EU Steel Safeguard and the 12th sanctions package
- Business tip: "Why a run of a shipping line costs you money"
USA in a construction frenzy: mega orders for industry
Huge projects pump billions into the market
There have been construction projects worth 500 billion dollars in the USA since 2021 – each one worth over a billion! They involve factories for semiconductors, batteries, electric cars and environmental technology. A third of them are already underway.
Construction starts ensure full order books
Most of the construction projects started between the third quarter of 2022 and 2023, which means that the first major orders for plant manufacturers are likely to start rolling in from 2024.
Golden times for industrial shares
Experts see golden times: By 2030, the USA could be awarding orders worth 60 billion dollars a year to plant manufacturers. This means that industrial shares could soon go through the roof again!
Reach out to Europe
This should also have a knock-on effect in Europe and, in combination with falling inflation, stable interest rates from the ECB and the prospect of an expected first reduction from mid-2024, should create more confidence in the European economy and the construction industry.
EU Steel Safeguard and the 12th sanctions package
EU bureaucracy: absurd steel quotas for UK-Northern Ireland!
Brussels has done it again: with the new mini-Safeguard extension for certain steel products between the United Kingdom and Northern Ireland, the EU is showing how to unnecessarily inflate bureaucracy and expenditure. Brussels and the art of wasting money.
Ridiculously low quotas
With the new quotas for steel products such as rebars and large welded tubes, we are talking about peanuts: in some cases less than 8% of the smallest quotas, such as those of Moldova. And the economic damage? Probably much higher than the benefits of this questionable action.
Commission Implementing Regulation (EU) 2023/2840 of 14 December 2023 amending Implementing Regulation (EU) 2019/159 imposing a definitive safeguard measure on imports of certain steel products
New sanctions package against Russia adopted
The EU has agreed on a 12th package of sanctions against Russia. From January, there will be a ban on Russian non-industrial diamonds, followed by diamonds from third countries from March – in line with the G7.
Stricter rules for companies
Companies that adhere to the G7 oil price cap must now provide more evidence. In addition, the EU wants to make Russia’s access to dual-use goods more difficult.
Details on aluminum still in the dark
Precise information on other industrial products from Russia? Not at all. European aluminum producers recently wanted to add unalloyed primary aluminum to the list, but European consumer associations such as FACE Aluminium had previously warned: No alternatives, no ban! The aluminum deficit in Europe is already at 84%. The outcome of this aluminum duel is still unknown.
Business tip: “Why a run of a shipping line costs you money”
Have you ever received an invoice from a large shipping line, such as MSC, asking you to pay for an alleged overstacking of a container in a port? And for which in return not even an invoice was raised by the port itself?
Only picked up part of the delivery and left the rest
If so, you may have been the victim of a so-called “run”. In this case, the shipping line has only picked up part of its containers under a bill of lading (BL) and simply left the rest standing. This not only blocks the entire delivery under the corresponding BL, but may even cost you overstacking fees, as in this example, because the containers were left in the port for too long. If there is no counter-invoice from the responsible port company for the alleged overstacking, the whole thing takes on fraudulent proportions.
So our tip: always question the alleged costs for overstacking in a port. It could well be that your shipping line is trying to rip you off for something that you are not responsible for and that the shipping line is not entitled to claim.
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