Jul 25, 2023
US-EU steel dispute at an impasse? – Stainless Espresso
China: Further support for real estate sector boosts commodity prices
Commodity prices rose in Asia today after the Chinese government pledged further support for the real estate sector on Monday. The real estate sector is to be strengthened through targeted support for new purchases and the modernisation of existing housing. The somewhat stronger dollar, however, limited the commodity rally a little.
In Asian futures for copper up 0.9%, aluminium +0.7%, zinc +2.04%, nickel +1.04%, silicone +0.78%, iron ore +1.36%, hot-rolled coil +2.19%, stainless steel moved up 0.32% and coke around 1.08%.
Stainless steel prices rise
Chinese spot market prices for stainless steel also saw a lot of movement on a weekly basis. Here, prices have risen w-o-w by more than 4% in some cases. Market participants in Europe are also reporting a much better mood and rising stainless steel prices.
China: Politburo takes action
The NASDAQ Golden Dragon China Index, which tracks the largest listed Chinese companies in the United States, rose by up to 6 % in yesterday’s trading. Market participants were reacting to the measures announced by the Chinese Politburo to stimulate the economy. These measures include boosting consumption through discount promotions on automotive and electronic products, tax incentives and creating an investment-friendly environment in the private sector.
US-EU steel dispute still without a solution
Is the EU no longer interested in finding a solution to the steel dispute with the United States? At least it seems so, because the European Commission does not even seem to want to publish a press release when United States Trade Representative Katherine Tai meets with European Commission Executive Vice President Valdis Dombrovskis.
No solution in sight in steel and aluminium tariff dispute
The meeting, which took place on 20 July 2023, was primarily about resolving the smouldering dispute over steel and aluminium tariffs between the United States and the European Union and the Global Arrangement on Sustainable Steel and Aluminum.
EU without ambitious proposals?
The latest USTR press release also reveals some frustration on the part of the US administration. There do not seem to be any ambitious proposals from the EU, and Europe does not seem to want to talk about reducing overcapacities.
“Ambassador Tai stressed the importance of both sides generating ambitious proposals in order to address shared concerns on carbon intensity and non-market excess capacity in the steel and aluminium industries.”
Source: USTR.gov, 20 July 2023
US and EU stuck in impasse
All in all, the negotiations seem to be at an impasse and the result currently expected for October 2023 does not correspond to what the US side wants.
“Ambassador Tai underscored that, with the October deadline approaching, the United States and European Union need to deliver a high-standard agreement worthy of the two years that both sides will have spent in negotiations.”
Source: USTR.gov, 20 July 2023
