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The EU will end tariffs on Ukraine steel, per a proposal being considered, according to Reuters. This could encourage President Joe Biden to end the current 25% Section 232 tariff on Ukrainian steel, Fortune magazine proclaimed hours after the EU announcement. Earlier this month, US Senators Dianne Fienstein and Pat Toomey penned a letter to Biden urging him to do so, stating, “Lifting the U.S. tariff on steel from Ukraine is a small but meaningful way for the U.S. to signal support for Ukraine and to provide stability and improve the country’s long-term economic outlook." The current tariff was set in 2018 as part of the Section 232 tariffs that sought to reduce the flow of metals imports, thereby preventing foreign exporters from dumping cheap steel onto the US market. The US imported 127,853 mt of Ukrainian steel in 2021, down from a pre-Section 232 volume of 240,730 mt in 2017. |
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Consumers who are concerned about their HRC steel input costs should consider financial swaps or purchasing call options. Such positions are standard for consumer hedging, but they can result in opportunity costs or cash costs if metal prices decline. Please contact AEGIS for specific strategies that fit your operations. (4/28/2022) |
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Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
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04/27/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 04/21/2022: Russian Metals Production and Related News: Most Recent Developments (AEGIS Reference) |
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4/27/2022: EU to suspend tariffs on Ukraine imports for one year 4/27/2022: Peru govt declares state of emergency near MMG’s Las Bambas mine as stand-off continues 4/26/2022: CME Group to Launch an Aluminum Option Contract on May 23 4/25/2022: Column: Bears tip-toe back into copper market as demand fears grow 4/24/2022: Indian aluminium producer NALCO faces coal scarcity due to train shortage 4/22/2022: March 2022 crude steel production |
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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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