U.S. Calls for 256% Tariff on Imports of Steel From China
This article by Sonja Elmquist for Bloomberg may be of interest to subscribers. Here is a section:
Corrosion-resistant steel imports from China were sold at unfairly low prices and will be taxed at 256 percent, according to a preliminary finding of the U.S. Department of Commerce.
?Imports from India, South Korea and Italy will be taxed at lower rates, the agency said Tuesday in a statement. Imports from Taiwan and Italy’s Marcegaglia SpA will not face anti-dumping tariffs. The government found dumping margins of 3.25 percent for most South Korean steel imports, with Hyundai Steel Co.’s shipments subject to duties of 3.5 percent. Imports from Italian companies excluding Marcegaglia will be taxed at 3.1 percent. Indian imports are subject to duties from 6.6 percent to 6.9 percent.
“We’re concerned that the dumping that’s occurring is at higher levels than these determinations reflect,” Tim Brightbill, a partner at Wiley Rein LLP, a law firm representing U.S. steelmaker Nucor Corp., said Tuesday in an interview. “We have serious concerns that these preliminary duties are not enough at a time when unfairly priced imports continue to surge into the U.S. market at unprecedented rates.”
With enormous overcapacity in basic resources China has little choice but to sell its production on the global market at a significant discount. This has represented a significant headwind for the global steel sector and today’s news may prove a catalyst to stem short-term selling pressure.
Dutch listed Arcelor Mittal is among this year’s worst performers on the Euro STOXX Index. The share has been trending consistently lower since May and rallied today to challenge the progression of lower rally highs. It will need to hold the low near $3.30 on any pullback to signal demand returning at progressively higher levels.
US listed Worthington Industries rebounded impressively from the September low and is now testing the upper side of the yearlong range. A sustained move below $27 would be required to question medium-term scope for continued upside.
US listed Nucor found support last week above the September low and is now challenging the medium-term progression of lower rally highs. A sustained move above the MA would confirm a return to medium-term demand dominance.
Back to top