This morning in metals news: the U.S. Court of International Trade ruled the U.S.’s doubling of Section 232 steel tariffs for imports from Turkey in 2018 violated the Fifth Amendment’s Equal Protection guarantees; Western Copper and Gold announced an increase in its mineral reserves; and Alcoa released its second-quarter earnings results.
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CIT rules on U.S. doubling of Turkish tariffs
Amid a surge in diplomatic tensions between the two countries, in August 2018 the U.S. doubled its Section 232 tariffs on steel and aluminum imports from Turkey, bringing those rates to 50% and 20%, respectively.
The U.S. eventually returned those tariffs to their original rates in May 2019; however, that reversal did not come before some importers in the U.S. had already paid the higher rates.
In a case this week before the Court of International Trade, the court ruled the U.S. decision to double the tariffs was in “violation of mandated statutory procedures and in violation of the Fifth Amendment’s Equal Protection guarantees.”
Transpacific Steel LLC, the plaintiff in the case, said it paid an extra $2.8 million as a result of the higher tariff rates.
Canadian firm announces mineral reserve increase
Western Copper and Gold announced a “significant” increase in its mineral reserves at the Casino project in Yukon, Canada.
“This new resource estimate is the first estimate since 2010 and includes results from the 2019 drilling campaign, and drilling performed from 2010 through 2012 that was not available when the 2010 model was developed,” the miner said this week. “It also incorporates an updated geologic model.”
Measured and indicated resource tons increased 106% from the 2010 estimate to 2.2 billion tons.
Alcoa reports Q2 results
Alcoa reported a net loss of $197 million in Q2 2020, compared with a loss of $402 million in Q2 2019 and income of $80 million in Q1 2020.
“Despite challenging market conditions, our team has lowered production costs, increased output, maintained stable shipments, and improved our balance sheet. We continued to make progress in executing our strategic actions and 2020 programs, and we finished the quarter with a cash balance of nearly one billion dollars,” President and CEO Roy Harvey said.