Moody’s: Positive effects of trade cases will be limited in US

Tuesday, 08 November 2016 16:57:06 (GMT+3)   |   Istanbul
       

International credit rating agency Moody’s has stated in a report that US steel prices are unlikely to test the lows reached in the past year, despite recent price declines thanks to the US International Trade Commission’s determinations in favor of the domestic industry in recent unfair-trade cases which have led to significantly reduced imports in several product categories. However, Moody’s noted that import tariffs are likely to remain a buffer against price slides, but they are not a solution.

Moody’s stated that positive outcomes in unfair-trade cases led to a substantial decline in imports from November 2015 through April of this year and along with capacity curtailments and higher raw material costs supported rising steel prices through June. However, in the past few months prices have dropped again on the back of continued weaker demand from the energy, mining and industrial equipment sectors, as well as price decreases for scrap. In addition, the recent spike in imports from countries unaffected by recent trade cases signals that the positive effects of the cases will be limited unless there is a significant rebalancing of the global steel supply-demand equation.

Similar articles

US steel industry expected to return to growth in 2017

28 Dec | Steel News

US urges China to cut excess industrial capacity

07 Jun | Steel News

USGS: Upturn in US steel industry activity unlikely in near term

23 Aug | Steel News

USGS: Slower growth in Asia and Europe hits demand for US metals

24 Dec | Steel News

SteelOrbis Chicago Regional highlights necessary changes to the US industry

19 Dec | Steel News

Fitch expects slow growth in demand for US steel industry in 2013

13 Dec | Steel News

Marcus: World steel industry is in a “rutted road”

19 Oct | Interview

Steel Scene flat rolled panel: Learning to cope in the current environment

11 May | Steel News

DiMicco: Comments that new currency bill will cause trade war is “ignorant”

21 Oct | Steel News

Traders at IREPAS event expect demand for US scrap will increase

11 Apr | Steel News