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

Rig count dips again in both US and Canada
Oil and gas drilling activity waned in the US and Canada this past week. Ticking own for the second straight week in both regions.

Steel caucus pushes US trade officials to maintain strong S232 program
The bipartisan Congressional Steel Caucus is pushing for US officials to maintain a robust Section 232 program as they negotiate trade deals with America's trading partners.

Active rig count declines in US, Canada
Oil and gas drilling activity slowed in the US and Canada this past week. An unfamiliar trend after both regions saw repeated gains of late.

Plate market buzzes with rumors of secret deals from mills
Carbon steel plate market participants suspect that this week’s modestly softer prices are the result of quietly negotiated prices between plate purchasers and mills.

HR Futures: Forward curve shifts lower, structure maintains
Scraping lower-quartile $800s on nearby futures is bringing limited trading ideas for CME hot-rolled coil (HRC) at present.