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Released May 17, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The Biden administration confirmed Tuesday it will increase the tariff rate on certain steel and aluminum products originating in China from 0-7.5% to 25% in 2024, following a review by the United States Trade Representative office.
"American workers continue to face unfair competition from China's non-market overcapacity in steel and aluminum, which are among the world's most carbon intensive," the White House said in a statement. "China's policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions."
Besides a hike in tariffs for steel and aluminum, Biden also is directing increases in tariffs for other sectors, such as semiconductors, electric vehicles (EVs), batteries, critical minerals and solar cells, among others.
The Trade Representative agency undertook a four-year review on trade with China under Section 301 of the Trade Act of 1974, which allows the government to retaliate against trade practices deemed unfair or in violation of global standards.
Kevin Dempsey, president and chief executive officer of the American Iron and Steel Institute (AISI) (Washington, D.C.) applauded the tariff hike for Chinese-made steel products. "China continues to engage in widespread unfair trade practices that harm American steel producers and key steel-consuming industries such as the auto industry ... In particular, AISI is concerned that domestic automakers could easily be undercut by the heavily subsidized Chinese EV industry." The Biden administration also announced it is quadrupling the tariff on EVs imported from China to 100%.
In a general response to the tariff hikes, China's Ministry of Commerce said the country will take "resolute measures to defend its rights and interests." In addition, the China Iron and Steel Association (CISA) slammed the steel tariff, accusing the U.S. of politicizing the steel trade.
For more information on the newly announced tariff hikes, see May 16, 2024, article - Minerals Sector Praises Biden for Chinese Tariffs.
Last month, the Biden administration announced $6 billion in funding for 33 clean-manufacturing projects, including six related to steelmaking, to decarbonize energy-intensive industries and reduce greenhouse gas (GHG) emissions, among other efforts.
The administration plans to provide up to $575 million in funding to Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio). At its Steel Works Plant in Middletown, Ohio, the company aims to replace the existing blast furnace with a hydrogen-ready, direct-reduced iron (DRI) plant and a pair of electric melting furnaces. Cleveland-Cliffs also hopes to replace a pair of natural-gas fired, high-temperature slab reheat furnaces at its Steel Works Plant in Butler, Pennsylvania, with four electrified induction slab-reheat furnaces. Industrial Info is tracking the Butler Steel Works project with a tentative kickoff date of October, and the DRI project in 2027.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can read detailed information on the Middletown and Butler steel works projects.
Among the other "clean" steelmaking projects to receive funding (up to $500 million) is the construction of SSAB's (Stockholm, Sweden) proposed $1 billion hydrogen-fueled DRI plant in Perry County, Mississippi, which would utilize the company's Hydrogen Breakthrough Ironmaking Technology (HYBRIT) to help reduce emissions from the steel-manufacturing process by 81%. The DRI produced would be sent to SSAB's existing electric arc furnace in Montpelier, Iowa, to make green steel. Subscribers can read a detailed project report.
Meanwhile, Biden has pledged up to $75 million for American Cast Iron Pipe Company's (Birmingham, Alabama) upgrade at its steel pipe mill in Birmingham, Alabama. The project entails replacing a Cupola furnace, which is used to melt iron either for casting or for charging in other furnaces, with four induction furnaces. Doing so will eliminate the process for coke (derived from coal) combustion and reduce the facility's carbon dioxide (CO2) emissions by 62% and its melting/holding process emissions by 95%. American Cast Iron Pipe expects to finalize the funding agreement in the second or third quarter, and Industrial Info is tracking a tentative kickoff date around the end of the year. Click here for the project report.
For information on some of the other industrial projects selected to receive a portion of the $6 billion in funding aimed at decarbonizing energy-intensive industries, see March 26, 2024, article - U.S. Backs $6 Billion in Decarbonization at Metal, Chemical Plants.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
"American workers continue to face unfair competition from China's non-market overcapacity in steel and aluminum, which are among the world's most carbon intensive," the White House said in a statement. "China's policies and subsidies for their domestic steel and aluminum industries mean high-quality, low-emissions U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions."
Besides a hike in tariffs for steel and aluminum, Biden also is directing increases in tariffs for other sectors, such as semiconductors, electric vehicles (EVs), batteries, critical minerals and solar cells, among others.
The Trade Representative agency undertook a four-year review on trade with China under Section 301 of the Trade Act of 1974, which allows the government to retaliate against trade practices deemed unfair or in violation of global standards.
Kevin Dempsey, president and chief executive officer of the American Iron and Steel Institute (AISI) (Washington, D.C.) applauded the tariff hike for Chinese-made steel products. "China continues to engage in widespread unfair trade practices that harm American steel producers and key steel-consuming industries such as the auto industry ... In particular, AISI is concerned that domestic automakers could easily be undercut by the heavily subsidized Chinese EV industry." The Biden administration also announced it is quadrupling the tariff on EVs imported from China to 100%.
In a general response to the tariff hikes, China's Ministry of Commerce said the country will take "resolute measures to defend its rights and interests." In addition, the China Iron and Steel Association (CISA) slammed the steel tariff, accusing the U.S. of politicizing the steel trade.
For more information on the newly announced tariff hikes, see May 16, 2024, article - Minerals Sector Praises Biden for Chinese Tariffs.
Last month, the Biden administration announced $6 billion in funding for 33 clean-manufacturing projects, including six related to steelmaking, to decarbonize energy-intensive industries and reduce greenhouse gas (GHG) emissions, among other efforts.
The administration plans to provide up to $575 million in funding to Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio). At its Steel Works Plant in Middletown, Ohio, the company aims to replace the existing blast furnace with a hydrogen-ready, direct-reduced iron (DRI) plant and a pair of electric melting furnaces. Cleveland-Cliffs also hopes to replace a pair of natural-gas fired, high-temperature slab reheat furnaces at its Steel Works Plant in Butler, Pennsylvania, with four electrified induction slab-reheat furnaces. Industrial Info is tracking the Butler Steel Works project with a tentative kickoff date of October, and the DRI project in 2027.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can read detailed information on the Middletown and Butler steel works projects.
Among the other "clean" steelmaking projects to receive funding (up to $500 million) is the construction of SSAB's (Stockholm, Sweden) proposed $1 billion hydrogen-fueled DRI plant in Perry County, Mississippi, which would utilize the company's Hydrogen Breakthrough Ironmaking Technology (HYBRIT) to help reduce emissions from the steel-manufacturing process by 81%. The DRI produced would be sent to SSAB's existing electric arc furnace in Montpelier, Iowa, to make green steel. Subscribers can read a detailed project report.
Meanwhile, Biden has pledged up to $75 million for American Cast Iron Pipe Company's (Birmingham, Alabama) upgrade at its steel pipe mill in Birmingham, Alabama. The project entails replacing a Cupola furnace, which is used to melt iron either for casting or for charging in other furnaces, with four induction furnaces. Doing so will eliminate the process for coke (derived from coal) combustion and reduce the facility's carbon dioxide (CO2) emissions by 62% and its melting/holding process emissions by 95%. American Cast Iron Pipe expects to finalize the funding agreement in the second or third quarter, and Industrial Info is tracking a tentative kickoff date around the end of the year. Click here for the project report.
For information on some of the other industrial projects selected to receive a portion of the $6 billion in funding aimed at decarbonizing energy-intensive industries, see March 26, 2024, article - U.S. Backs $6 Billion in Decarbonization at Metal, Chemical Plants.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
