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Trump Trade War - US will grant few steel tariff exemptions - Outokumpu

Steel News - Published on Wed, 19 Sep 2018

Image Source: SteelGuru
Reuters reported that Finland’s Outokumpu, one of the world’s largest stainless steelmakers, said the United States would grant very few steel tariff exemption requests, adding it expected US stainless prices to resume their upward trend as a result. Outokumpu Chief Executive Roeland Baan told Reuters at an industry gathering in Helsinki “As always with trade disruptions, the dust has to settle. US importers were officially paying the tariff but steelmakers outside the United States were effectively absorbing it by lowering their export prices by some 25%. They’re doing this because they expect that ultimately their clients will get exemptions. That’s not going to happen. When this becomes clear, I see more upside potential for pricing in the US.”

Mr Baan said European orders had yet to pick up despite the EU having, since July, imposed both tariffs and quotas on steel imports in a bid to prevent steel originally meant for the United States from being diverted to Europe. He said “Stainless imports are still taking up almost a third of the EU market. EU producers would feel the benefits of the EU measures by the end of the year as import quotas would by then be full.”

US President Donald Trump slapped a 25 percent tariff on imported steel this spring but allowed companies to apply for exemptions if the metals they needed were not available in sufficient quality or quantity, or in reasonable time. As of August 20, the US Commerce Department had received more than 37,000 exemption requests but approved just 1,780, despite hiring extra employees and contractors to deal with the deluge of requests.

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Posted By : Sanju Moirangthem on Wed, 19 Sep 2018
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