|
Barring any changes, the EU will implement new steel import protections on July 1, according to their statements from last week. Specific details on how the new regime will differ from the current system have not been released yet. The current system, which involves tariff-rate quotas and is now in its fourth review, was implemented in 2018 and was meant to counterbalance the effects of the US’ 25% Section 232 import tariff on EU-produced steel. The most recent occurred after Russia’s invasion of Ukraine. After that review, product quotas of Russia and Belarus were reallocated among other exporting countries. EU steel consumers' associations now feel the European Union safeguards are unnecessary and contributed to high prices and product scarcity in the EU market, according to S&P Global. |
|
|
|
U.S. steel prices escalated in 2021 and remain high in 2022. As the US is a net importer, re-routing of steel to the Eurozone and away from the US could strain American supplies and increase prices. 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. |
||
|
|
||
Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
||
|
|
||
Price Indications |
||
|
|
||
|
|
||
Today's Charts |
||
 |
 |
|
 |
 |
|
AEGIS Insights |
||
|
05/11/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 05/11/2022: China's Metals Exports are on the Rise |
||
|
|
||
| Important Headlines | ||
|
5/11/2022: EC to propose potential steel import safeguard changes late May, following review 5/11/2022: Shares of Spanish steelmaker Acerinox soar after record profit 5/10/2022: COVID-19 outbreak hobbles Chinese demand for cobalt, nickel, lithium 5/10/2022: Nippon Steel reveals plans to deliver 'carbon neutral' steel 5/6/2022: CME explores nickel contract after LME trade chaos 5/6/2022: China’s Covid lockdowns are hitting more than just Shanghai and Beijing |
||
|
|
||
|
|
||
|
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. Certain information in this presentation may constitute forward-looking statements, which can be identified by the use of forward-looking terminology such as “edge,” “advantage,” “opportunity,” “believe” or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities.
|
||
