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Released November 02, 2021 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. and the European Union (EU) have agreed to end their war over steel and aluminum tariffs enacted by former President Donald Trump's administration in 2018.
According to a joint statement on the agreement, the two parties intend to "defend workers, industries and communities from global overcapacity and climate change, including through a new arrangement to discourage trade in high-carbon steel and aluminum that contributes to global excess capacity from other countries and ensure that domestic policies support lowering the carbon intensity of these industries."
The U.S. will remove the Section 232 tariffs of 25% on steel imports and 10% on imported aluminum from the EU, and allow duty-free imports at a "limited volume," according to U.S. Secretary of Commerce Gina Raimondo. In turn, the EU will suspend tariffs on U.S. products. The EU had planned to add to its retaliatory tariffs in June 2021, but suspended the action in May at the start of negotiations on a resolution.
For more information, see Industrial Info's May 21, 2021, article - Europe and U.S. Seek Truce in Steel Tariff War.
The agreement also toughens penalties to prevent Chinese steel and aluminum from entering the U.S. "For far too long, China was routing its cheap steel into the U.S. via Europe and other markets, which drove down prices and made it essentially impossible for America's steel and aluminum industry to compete and, of course, in so doing, hurting the industry and hurting our workers," Raimondo said in a press release.
In a press release, Lourenco Goncalves, chairman, president and chief executive officer of major steel producer Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio), said: "Today's announcement of an alternative Section 232 measure with the EU is evidence that President Biden and his administration understand the critical role of the steel Section 232 program in providing a level playing field for American companies and workers."
The United Steelworkers (USW) union echoed that sentiment, noting that under the arrangement, "steel imports from the EU must entirely be produced in the European Union, commonly known as 'melted-and-poured.' This will help ensure European and U.S. steelworkers are not losing jobs to countries outside this agreement."
Industrial Info is tracking more than 450 active capital steel projects in Europe, excluding Russia, worth $15.7 billion.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of detailed project reports.
Industrial Info is tracking almost 150 active capital steel projects in the U.S., worth $23.4 billion.
Click on the image at right for a graph showing steel projects in the U.S., by the top five project types.
Subscribers can click here for a full list of detailed project reports.
Cleveland-Cliffs is at work hot strip mill upgrades at its Burns Harbor Steel Works in Indiana. At the 5 million-ton-per-year facility, two new 500-ton-per-hour walking beam furnaces are being installed to replace three pusher furnaces, in order to improve quality, steel production and fuel efficiency. Commissioning and completion are expected in November. Subscribers can click here for the detailed project report.
Steelmaker SSAB North American Division, a subsidiary of SSAB (Stockholm, Sweden), is building a $100 million steel mill expansion in Axis (Mobile), Alabama. The expansion involves three buildings, to increase the production of high-strength steel, while increasing efficiency and reducing raw material costs. Construction resumed in May following a delay in December 2020 due to the COVID-19 pandemic. Completion is expected in September 2022. For more information, see Industrial Info's project report.
One of the larger active capital steel projects belongs to North Star BlueScope Steel LLC (Delta, Ohio), a subsidiary of BlueScope Steel Limited (Melbourne, Australia), and its $700 million expansion of its flat-roll steel mini mill in Delta, Ohio. The project calls for a new melt shop, the installation of a new 195-ton single-shell electric arc furnace (EAF), and two new cranes, in order to increase the facility's capacity by 800,000 or 900,000 tons per year of steel. The project kicked off in December 2019, with completion expected in August 2022. Subscribers can click here for the detailed project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
According to a joint statement on the agreement, the two parties intend to "defend workers, industries and communities from global overcapacity and climate change, including through a new arrangement to discourage trade in high-carbon steel and aluminum that contributes to global excess capacity from other countries and ensure that domestic policies support lowering the carbon intensity of these industries."
The U.S. will remove the Section 232 tariffs of 25% on steel imports and 10% on imported aluminum from the EU, and allow duty-free imports at a "limited volume," according to U.S. Secretary of Commerce Gina Raimondo. In turn, the EU will suspend tariffs on U.S. products. The EU had planned to add to its retaliatory tariffs in June 2021, but suspended the action in May at the start of negotiations on a resolution.
For more information, see Industrial Info's May 21, 2021, article - Europe and U.S. Seek Truce in Steel Tariff War.
The agreement also toughens penalties to prevent Chinese steel and aluminum from entering the U.S. "For far too long, China was routing its cheap steel into the U.S. via Europe and other markets, which drove down prices and made it essentially impossible for America's steel and aluminum industry to compete and, of course, in so doing, hurting the industry and hurting our workers," Raimondo said in a press release.
In a press release, Lourenco Goncalves, chairman, president and chief executive officer of major steel producer Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio), said: "Today's announcement of an alternative Section 232 measure with the EU is evidence that President Biden and his administration understand the critical role of the steel Section 232 program in providing a level playing field for American companies and workers."
The United Steelworkers (USW) union echoed that sentiment, noting that under the arrangement, "steel imports from the EU must entirely be produced in the European Union, commonly known as 'melted-and-poured.' This will help ensure European and U.S. steelworkers are not losing jobs to countries outside this agreement."
Industrial Info is tracking more than 450 active capital steel projects in Europe, excluding Russia, worth $15.7 billion.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of detailed project reports.
Industrial Info is tracking almost 150 active capital steel projects in the U.S., worth $23.4 billion.
Subscribers can click here for a full list of detailed project reports.
Cleveland-Cliffs is at work hot strip mill upgrades at its Burns Harbor Steel Works in Indiana. At the 5 million-ton-per-year facility, two new 500-ton-per-hour walking beam furnaces are being installed to replace three pusher furnaces, in order to improve quality, steel production and fuel efficiency. Commissioning and completion are expected in November. Subscribers can click here for the detailed project report.
Steelmaker SSAB North American Division, a subsidiary of SSAB (Stockholm, Sweden), is building a $100 million steel mill expansion in Axis (Mobile), Alabama. The expansion involves three buildings, to increase the production of high-strength steel, while increasing efficiency and reducing raw material costs. Construction resumed in May following a delay in December 2020 due to the COVID-19 pandemic. Completion is expected in September 2022. For more information, see Industrial Info's project report.
One of the larger active capital steel projects belongs to North Star BlueScope Steel LLC (Delta, Ohio), a subsidiary of BlueScope Steel Limited (Melbourne, Australia), and its $700 million expansion of its flat-roll steel mini mill in Delta, Ohio. The project calls for a new melt shop, the installation of a new 195-ton single-shell electric arc furnace (EAF), and two new cranes, in order to increase the facility's capacity by 800,000 or 900,000 tons per year of steel. The project kicked off in December 2019, with completion expected in August 2022. Subscribers can click here for the detailed project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
