This morning in metals news, aluminum and steel compete in the electric vehicle (EV) market, copper stocks on the Shanghai Futures Exchange are surging and the list of Chinese products that could be subject to tariffs might include aerospace components.
Aluminum vs. Steel
The two metals are going head to head in the world of EVs, particularly after Tesla launched its steel-based mass market model last year, Reuters reported.
The decision by Tesla was somewhat of a surprise given aluminum’s lighter weight. Now, the battle is not just about developing EVs, it’s about developing them at a price that works for consumers, the report indicates.
Copper Stocks Rising on SHFE
Copper demand is lagging while inventories are piling up around the world, according to a Bloomberg report.
LME inventories jumped to a four-year high on Tuesday, according to the report, while copper inventories in Shanghai Futures Exchange warehouses have jumped 90% this year.
Tariffs on Aerospace
President Trump last week announced the next steps in his administration’s Section 301 investigation, including the option for potentially up to $60 billion in tariffs on Chinese products.
The full list of what is expected to be around 1,300 products has not yet been released, but according to one report it could include aerospace components, USA Today reported.
According to the report, the Chinese Embassy in Washington said it is “not afraid of and will not recoil from a trade war.”