This morning in metals news:
- The U.S. steel sector posted another incremental increase in capacity utilization.
- Meanwhile, the Aluminum Association applauded a Department of Commerce decision regarding subsidies of imported aluminum sheet.
- Lastly, Alcoa criticized the Trump administration’s decision to reimpose the Section 232 aluminum tariff on imports from Canada.
Steel sector capacity utilization rises to 60.4%
The U.S. steel sector’s capacity utilization rate rose to 60.4% for the week ending Aug. 8, according to the American Iron and Steel Institute (AISI).
The rate marked an increase from 59.3% the previous week. Even so, the rate marked a steep decline from the previous year, when it reached 79.1%.
Production for the week ending Aug. 8 totaled 1.35 million net tons, up 2.0% from the previous week. However, production for the week fell 26.5% year over year.
Furthermore, production for the year through Aug. 8 fell 20.1% year over year.
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DOC issues preliminary determination in aluminum sheet subsidy probe
The Aluminum Association applauded the Department of Commerce’s preliminary determination in its subsidy probe related to imports of aluminum sheet from Bahrain, Brazil, India and Turkey.
According to the Aluminum Association, the DOC calculated preliminary subsidy margins of:
- Bahrain: 9.49%
- Brazil: 0.76-1.32%
- India: 4.55-34.84%
- Turkey: 0.07-3.15%
Next, the DOC will announce preliminary antidumping determinations by Oct. 7, 2020.
Alcoa critical of reimposition of Section 232 aluminum tariff
In a statement to the Pittsburgh Post-Gazette, aluminum maker Alcoa criticized President Donald Trump’s decision to reimpose the 10% Section 232 tariff on some imports of Canadian aluminum.
In March 2018, the U.S. initially imposed Section 232 steel and aluminum tariffs. Then, in May 2019, the U.S. rescinded the tariffs for imports from Canada and Mexico.
However, late last week, Trump announced the reimposition of the tariff for some aluminum coming from Canada.
Alcoa told the Post-Gazette the move would “cause unnecessary disruption” and “further distort the market.”
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