The North American oil and gas products market is taking a stand, as that sector is growing by leaps and bounds.
Specifically, the Mexican arm of steel company Tenaris, TAMSA, succeeded in getting the Mexico government to impose anti-dumping tariffs on seamless steel tubes (which are used in building oil and gas pipelines) imported from China.
Mexico has also been fighting with China via the World Trade Organization (WTO) over metal-product-related anti-dumping practices. And it looks as though Mexico is having US-like import dependencies:
According to Reuters, “Mexico’s government has voiced worry about its massive trade deficit with China, largely caused by an influx of manufactured goods. More than 15 percent of Mexico’s imports came from China last year, worth roughly $57 billion, while just 1.5 percent, or $5.7 billion, of Mexican exports went to the Asian giant.”
Chinese steel prices moved down or held flat on the day; what happened to the iron ore price?
The price of Chinese slab fell 0.3 percent on Friday, June 21, making it the day’s biggest mover. Chinese HRC held its value last Friday. The price of Chinese coking coal remained essentially flat. The China price of iron ore 58% fines from India moved marginally lower than last week.
The cash price of steel billet showed little movement last Friday on the LME at $125.00 per metric ton. The steel billet 3-month price saw little movement last Friday on the LME, closing out around $145.00 per metric ton.
The 3-month price of the US HRC futures contract was unchanged at $605.00 per short ton. For the fifth consecutive day, the spot price of the US HRC futures contract held flat at $600.00 per short ton.