This morning in metals news, the European Commission has extended its probe of steel imports, steel production in the Great Lakes region of the U.S. ticked up last week and Chinese aluminum companies will reportedly come together to discuss falling aluminum prices.
E.U. Pushes Investigation End Back to Feb. 1
The European Commission has extended its investigation into potential remedies needed to address a surge of steel imports on the heels of the U.S. 25% tariff, Reuters reported.
The Commission launched a steel safeguard investigation in March and was to conclude in nine months (prior to the announced extension).
Great Lakes Steel Production Rises
Steel production in the Great Lakes region of the U.S. hit 726,000 tons last week, according to a report by the Times of Northwest Indiana.
The production total last week marked a 4.6% increase from the previous week.
Chinese Aluminum Producers Will Gather Over Dropping Prices
According to a Reuters report, representatives from China’s biggest aluminum producers will gather to discuss falling demand and aluminum prices.
MetalMiner’s Take: A pow-wow amongst China’s top aluminum brass won’t impact the macro trends impacting metals markets.
The facts remain, oil prices have sunk, critically falling below $50/barrel, which has moved commodities markets lower.
Astute buying organizations know that commodities and industrial metals as asset classes show tight correlation (but not always).
Industrial metals as of Dec. 1 remained in a long-term bull trend and a short-term sideways trend. Cutting aluminum production makes sense in markets with weak demand. Demand from China appears sluggish, yet it remains unclear if Chinese aluminum producers will show the strength and unity in reducing production.