LME Aluminum 3M hovers near unchanged after US ends tariffs on EU steel and aluminum. |
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At last weekend’s G20 summit, the US agreed to end the Section 232 tariffs on the EU-produced steel and aluminum. The previous tariffs were 25% on steel and 10% on aluminum. The new system will be based on a tariff quota ratio, and allow for a small, to-be-determined amount of metal to enter the US duty-free. A tariff-rate quota is a two-tiered tariff mechanism in which a pre-determined quantity of a good is set at one tariff, and any quantity above that number has a higher tariff. This new regime is likely bearish to aluminum and steel. Tariff changes may alter the metals market in 2022. In addition to the US changes, Russia confirmed that they will end the current 15% export tariffs on certain aluminum products at the end of 2021. The CME Midwest Premium (MWP) dropped late last week on this news. This could be bearish to aluminum and the MWP. (11/1/2021) |
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Price Indications |
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Today's Charts |
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AEGIS Insights |
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10/14/2021: Is It Wise to HRC Steel with Crude Oil? 10/5/2021: Section 232 Tariffs: Most relevant developments (AEGIS Reference) 09/16/2021: AEGIS Factor Matrices: Most important variables affecting metals prices 09/07/2021: China Exports Are an Economic Spot as Value Hits All-Time High 08/09/2021: China's Copper Imports Slow as Prices Weigh on Demand |
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Important Headlines & Economic Data |
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AISI Steel Capability Utilization Rate Investing.com Economic Calendar 10/30/2021: U.S., EU end Trump-era tariff war over steel and aluminum 10/30/2021: APAA Supports the Biden Administration's Tariff-Rate Quota Deal with the European Union 10/30/2021: USW Supports Interim Arrangement with EU on Section 232
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| Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program.
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