This morning in metals news, steel prices in China are up and the government is looking to strike a balance, German company Thyssenkrupp isn’t in a rush to forge a merger with the European business of India’s Tata Steel and China responds to the U.S. Department of Commerce’s ruling this week regarding Chinese aluminum foil, which the DOC determined was being unfairly subsidized by the government.
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Steel Prices On the Way Up in China
Rising steel prices have Beijing looking for ways to adapt, according to a CNBC report.
On the heels of efforts to cut excess Chinese steel production, prices are rising — but the government is looking to strike a balance.
“For Beijing, it’s a tough situation: tackle steel overcapacity, rebalance economic growth, control environmental pollution and also manage market stability — especially in advance of a leadership shuffle due in the fall,” CNBC’s Sophia Yan writes.
No Rush to Merge, Thyssenkrupp CFO Says
Talks of a merger between the European businesses of Thyssenkrupp and India’s Tata Steel have hung around since last year.
They even seemed to get a boost in light of news reported yesterday about Tata’s plans to separate its British pension scheme from its businesses.
Despite that step, Thyssenkrupp CFO Guido Kerkhoff says not so fast.
Kerkhoff told reporters Thursday that while they prefer a “fast solution” in potential merger talks, quality comes first.
China Warns U.S. After DOC’s Aluminum Foil Ruling
Unsurprisingly, the U.S. aluminum industry applauded the Department of Commerce’s preliminary determination Tuesday regarding Chinese aluminum foil.
Also unsurprisingly, China had something to say about it, too.
The Chinese Ministry of Commerce wrote in a statement on its website that the DOC’s claims were “without foundation” and urged the U.S. to “act cautiously and make a fair decision to avoid any negative impact on the normal economic and trade exchanges between China and the U.S.”
On Tuesday, Secretary of Commerce Wilbur Ross announced the findings of the countervailing duties investigation, declaring that Chinese exporters of aluminum foil received countervailing subsidies of 16.56 to 80.97 percent. As a result, the U.S. could impose duties of up to 81 percent on Chinese foil in return.
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Meanwhile, the outcome of the Section 232 investigation into aluminum imports, however, remains pending.