This morning in metals news, E.U. Trade Commissioner Cecilia Malmstrom wants the U.S. to hold off on imposing tariffs in response to the long-running Airbus-Boeing subsidy saga, iron ore prices could continue to plunge and copper prices dipped again Tuesday.
E.U. Trade Chief Seeks Deal on Aircraft Subsidies
Earlier this year, the United States Trade Representative released a preliminary list of E.U. products worth approximately $11 billion that could be imposed in retaliation against E.U. subsidies of aircraft manufacturer Airbus.
On Friday, Politico reported the WTO ruled in the U.S.’s favor, giving it the green light to impose billions of dollars of tariffs on E.U. goods, including copper alloys.
“This case has been in litigation for 14 years, and the time has come for action. The Administration is preparing to respond immediately when the WTO issues its finding on the value of U.S. countermeasures,” U.S. Trade Representative Robert Lighthizer said in April. “Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional U.S. duties imposed in response can be lifted.”
E.U. Trade Commissioner Cecilia Malmstrom, however, is hoping the U.S. will hold off on imposing the retaliatory tariffs so the two parties can reach an aircraft subsidy deal.
“Our view is that we have enough tariffs in the world as it is… The U.S. president likes to make deals so we have offered to try to make a deal to find a negotiated solution,” Malmstrom was quoted as saying by Reuters.
Iron Ore Could Continue Descent
After surging above $120 per ton this year on supply-side disruption, the price of iron ore has fallen back down to earth, sliding to around $90 per ton.
According to Indian steelmaker JSW Steel, the iron ore price could slide even further, the Business Standard reported.
Seshagiri Rao, joint managing director for JSW Steel, predicted the iron ore price could trade between $80 and $85 per ton for the rest of the year before falling to between $60 and $65 per ton next year.
Copper Slides Again
After falling in the week’s opening session, copper continued to slide Tuesday as the U.S. and China prepare to renew their ongoing trade talks.
Three-month copper on the LME dropped 1.2% on Tuesday, falling to $5,796 per ton, Reuters reported.