This morning in metals news, the U.S. is reportedly looking to impose steel quotas on Mexico, the World Steel Association boosts its forecast for global steel demand and U.S. Steel reaches a tentative agreement with United Steelworkers to avoid a potential strike.
U.S. Eyes Mexico Steel Quotas
According to Reuters, citing the top trade negotiator for the incoming Mexican government, the U.S. is looking to impose steel quotas on Mexico as part of negotiations around removal of the existing Section 232 tariffs (which remain in play despite the recently agreed upon NAFTA deal, now called the United States-Mexico-Canada Agreement).
MetalMiner’s Take: If Canada or Mexico are granted quotas, domestic steel prices may continue decreasing slightly. Currently, steel imports from both countries are both subject to a tariff current situation on steel imports is for a 25% tariff from both countries.
Domestic steel prices are currently in a short-term downtrend, but still remain high. Buying organizations may want to understand steel trends to buy forward when prices start the uptrend again.
Global Steel Demand Forecasted to Rise
The World Steel Association doubled its steel demand forecast for 2018 and 2019, Reuters reported.
According to the report, steel demand is projected to rise 1.4% next year, up from a 0.7% projection in April.
Making a Deal
U.S. Steel announced Monday that it had reached a tentative deal with United Steelworkers, according to a MarketWatch report, staving off a strike.
On the heels of rising steel prices, workers had demanded an increase in wages. The deal covers approximately 16,000 workers across the country, according to a United Steelworkers release.
Contract negotiations began over the summer and have continued long past Sept. 1, when the previous contract officially expired.