FOCUS: EU-US agreement on Section 232 to boost domestic flat-steel export sales, domestic prices in Europe

The anticipated agreement between the European Union and the United States on Section 232 tariffs would boost flat-steel export sales to the US and, consequently, reduce domestic EU availability, triggering a price rise in Europe, European buyers told Fastmarkets.

The US and EU will reach an agreement on the exemption from Section 232 of European imports of steel and aluminium by November 1. The US announced the imposition of tariffs on steel and aluminium imports on national security grounds in March 2018.
"All European mills will use this opportunity to increase export sales to the US. They would benefit from both higher prices and good demand. This would also allow the EU mills to keep domestic supply tight and achieve higher prices," a European production source said.
"This [agreement] is something to be welcomed, though it remains to be seen exactly what the outcomes will be as regards specific policy changes," a spokesperson from the European steel association Eurofer said.

"EU exports to the US have been subdued over the past few years because of Section 232. If there were to be an EU exclusion, exports might head back...

Investment banks ahead of the gold price, institutions still behind

Gold stocks up, juniors outperform on small cap strength

Gold stocks rebound to new highs

US$ and bonds not the safe havens normally expected

Crash driven by tech and highly cyclical sectors