The European Union and the United States are expected to reach an agreement on the tariff dispute at the EU-US Summit on June 15. Tariffs on steel and aluminum are also on the agenda. But when can anything concrete really be expected here?
On the SHFE, base metals are up due to good economic expectations and in the United States, in addition to HRC prices, lead times continue to rise. And in the spot market, it’s hard to get a ton of steel.
US and EU to commit to end tariff dispute
According to media reports, the European Union and the United States have agreed in a draft paper to end existing Trump-era trade disputes. This draft is to be the basis for the EU-US Summit on June 15, 2021.
The EU and U.S. also want to have found a solution for tariffs on steel and aluminum before Dec. 1, 2021. Which, however, raises questions overall.
Many unanswered questions for steel consumers on both sides of the Atlantic
Will there only be one solution here between the EU and the United States? Will steel and aluminum trade be simplified here? And when will such a settlement come into force, when nothing concrete can be expected until December 2021? And what effect will this have on existing measures such as the EU Safeguards on steel and the Section 232 Tariffs of the US?
EU Safeguard decision apparently subject to delay
One thing is clear to us now, anyway, regarding the delay on the part of the European Commission in announcing a decision long since made regarding EU Safeguard measures. Here, only the EU-US Summit is being waited for.
Base Metals on the SHFE partly significantly increased
Base metals rose partly significantly on the SHFE on June 9, 2021 due to a strong expectation of economic recovery.
Nickel futures were up as much as 1.7%. And stainless steel futures also rose by over 2.0%.
On the LME this morning, nickel was also a good 1% higher than Tuesday.
US HRC prices increase on strong demand
US HRC Midwest Domestic Hot-Rolled Coil futures have continued to rise since the end of May 2021. And are currently at around $1,650.00/st ex-works. Lead times have also continued to increase to at least 7 to 9 weeks.
In addition, market sources report that it has become even more difficult to obtain available material on the spot market.
Our tip for today
In the face of rising steel and stainless steel prices and short supply: Take action now and cover at least the most necessary needs!
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- Stainless Espresso: Serious EU stainless steel shortage and no Safeguard decision yet
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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.