This Morning in Metals: Codelco, Non-Market-Oriented Policies and British Steel

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This morning in metals news, Reuters reported Chile’s Codelco copper mine is set to see its production drop over the next two years, trade ministers from the E.U., U.S. and Japan released a joint statement, and time is running out if British Steel is going to be saved.

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Codelco Output to Fall

Copper output by Chilean state-owned miner Codelco is expected to drop approximately 40% over the next two years, Reuters reported.

The report notes the miner is investing $5 billion to transform its open-pit mine into an underground operation in an effort to expand the site’s lifespan.

Trade Ministers Meet to Discuss Overcapacity, Non-Market-Oriented Policies

The trade ministers of the U.S., E.U. and Japan released a joint statement Thursday, summarizing discussions on non-market-oriented policies deployed by third countries.

“The Ministers advanced discussions on their shared objective to address non market-oriented policies and practices of third countries that lead to severe overcapacity, create unfair competitive conditions for their workers and businesses, hinder the development and use of innovative technologies, and undermine the proper functioning of international trade and discussed various tools needed to deal with these problems,” the joint statement said.

Of note, President Donald Trump recently postponed his Section 232 decision regarding potential tariffs on imported automobiles, which would have impacted the E.U. and Japan.

British Steel in Need of a Lifeline

Embattled British Steel was ordered liquidated Wednesday; now, in order to save the jobs produced by the U.K.’s second-largest steelmaker, it needs a buyer willing to save it.

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According to Reuters, potential bidders include Sanjeev Gupta’s Liberty House, the Chinese group Hesteel and private equity fund Endless.

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