This Morning in Metals: Global groups renew call to target steel overcapacity

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This morning in metals news: global steel groups renewed calls for the Global Forum on Steel Excess Capacity to continue its work targeting steel overcapacity; Freeport-McMoRan released its Q3 financial results; and, finally, U.S. natural gas exports to Mexico have increased.

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Steel groups call for renewed emphasis on steel overcapacity

Groups around the world have asked governments to “intensify” their work with the Global Forum on Steel Excess Capacity.

“Steel industries throughout the world expressed tremendous concern about the recent increase in steel overcapacity at a time when steel demand is severely depressed by the COVID-19 pandemic, reversing a trend of gradual decreases in overcapacity in the three years after the GFSEC was established (2016 – 2019),” the American Iron and Steel Institute (AISI) said in a release.

Among the action items suggested by the groups included development of “stronger disciplines” related to industrial subsidies. In addition, the groups called for upholding “effective trade remedies” in order to ensure a level playing field.

Freeport-McMoRan releases Q3 financials

Miner Freeport-McMoRan released its Q3 financials today, reporting net income of $329 million, up from a loss of $207 million in Q3 2019.

Furthermore, the miner reported a net loss of $109 million through the first nine months of 2020. Meanwhile, through the first nine months of 2019, the miner reported a loss of $248 million.

U.S. natural gas exports to Mexico rise

U.S. natural gas exports to Mexico have increased during the first three quarters of 2020, according to the Energy Information Administration (EIA).

“Mexico has been the largest destination for U.S. natural gas exports since surpassing Canada in 2015,” the EIA reported. “U.S. pipeline exports of natural gas have been displacing other sources of Mexico’s natural gas, including more expensive LNG imports, which have declined every month since March 2020.”

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