This Morning in Metals: US, EU reach deal to end long-running Boeing-Airbus dispute

This morning in metals news: the U.S. and E.U. have reportedly reached a deal to end the long-running AirbusBoeing dispute over state subsidies; meanwhile, U.S. steel capacity utilization touched 82.6% last week, the American Iron and Steel Institute reported; and, lastly, Cleveland-Cliffs announced increases to its second-quarter and full-year 2021 financial guidance.
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US, EU reach deal to end Airbus-Boeing dispute

Airbus plane
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Allegations of state subsidies between the U.S. and E.U. vis-a-vis their respective aircraft manufacturers, Boeing and Airbus, have extended all the way back to 2004.
Now, the parties have reportedly reached a deal to end the dispute.
Per media reports, the deal features a five-year suspension of tariffs stemming from the ongoing Airbus-Boeing dispute.
In 2019, the World Trade Organization authorized the U.S. to impose up to $7.5 billion in tariffs on E.U. goods. Meanwhile, last year, the WTO authorized the E.U. to impose $4 billion in tariffs on U.S. goods.

Steel capacity utilization reaches 82.6%

The U.S. steel capacity utilization rate reached 82.6% last week, the American Iron and Steel Institute (AISI) reported Monday afternoon.
Production during the week totaled 1.83 million net tons, up 44.2% year over year. Output during the week, however, fell by 0.3% from the previous week.
For the year through June 12, production reached 41.4 million net tons, or up 13.2% year over year.

Cleveland-Cliffs upgrades Q2, 2021 guidance

Cleveland-Cliffs today announced increases to its financial guidance for the second quarter and for the full year.
The company adjusted its forecast for second-quarter adjusted EBITDA to $1.3 billion.
Meanwhile, it adjusted its guidance for full-year 2021 adjusted EBITDA to $5 billion.
“The full-year expectation is based on current contractual business and the conservative assumption that the US HRC index price averages $1,175 per net ton for the remainder of the year,” the company said.
In addition, Cleveland-Cliffs will announce its full second-quarter 2021 earnings results July 22.
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