Steel Products
U.S./China Talks Unproductive
Written by Sandy Williams
July 20, 2017
Trade talks with China this week ended in a stalemate after the U.S. pressed for “more fair” trade terms. The discussions were described as “a frank exchange,” but little if any agreement was reached on bilateral trade and economic issues, according to a senior U.S. official. A press conference following the meeting was canceled and no joint statement was issued.
Commerce Secretary Wilbur Ross and Treasury Secretary Steven Mnuchin said, “China acknowledged our shared objective to reduce the trade deficit, which both sides will work cooperatively to achieve.”
U.S. officials pressured China to make substantial cuts to steel capacity and reduce its trade surplus, according to a Washington Post source.
{loadposition reserved_message}
The U.S. says the $347 billion trade deficit with China is not a result of market forces but of distorted trade practices. On Wednesday, President Trump told a reporter that tariffs on steel “could happen.” The White House has scheduled a rally Tuesday in the heart of steel country in Youngstown, Ohio, where it is speculated that the president will announce steel tariffs as a result of the Section 232 national security investigation.
The two sides appeared to make some progress on expansion of investment and trade in services. The Chinese embassy in Washington called it “significant progress” and said, “The two sides will expand areas of cooperation in services and increase trade in services; expand mutual investment; and create a more open, equitable, transparent and convenient investment environment.”

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Products

CRU: EC to toughen steel safeguards
The European Commission proposes cutting its steel import quota by almost half, with volumes exceeding the limit facing 50% duties. The region’s steel industry welcomes the move, while other steel-producing nations fear the consequences. CRU published an insight before this announcement, noting that more restrictive trade policy could significantly raise the cost of marginal supply […]

US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.

Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."

Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.

CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.