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Where do the US steel and aluminum come from?
U.S. president Donald Trump raised tariffs on imports of steel and aluminum on Monday by a substantial 25%, "without exceptions or exclusions", in an effort to help struggling industries in the United States. However, this move could also spark a Multi-front Trade War Here is a list of major trading partners that will be affected. A quarter of the steel used in America is imported. The bulk of this comes from Mexico and Canada, or other close allies such as Japan, South Korea, and Germany. China is the largest producer and exporter of steel in the world, but very little is shipped to the United States. In 2018, tariffs of 25% were imposed on Chinese steel, which effectively shut the market. Last year, China exported 508,000 tons of steel net to the U.S. This is 1.8% of all American steel imports. Aluminium The U.S. relies more on imports in the case of aluminium. Approximately half of the aluminum used in America is imported. The majority comes from Canada. Canadian imports topped the list of countries with 3.2 million tonnes in 2012. United Arab Emirates (UAE) and China are the next two largest importers, with 347,034 metric tons and 222,872 respectively. According to global standards, the U.S. aluminium smelting sector is small. According to the U.S. Geological Survey, the total smelter capability in the United States was only 1.73% of global capacity.
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Climate-focused venture capital firm Junction Growth Investors raises 115 mln euros
Junction Growth Investors is an investment firm that funds companies working to combat climate change. On Tuesday, it announced raising 115 million Euros ($119.8 millions), which demonstrates the resilient appetite of investors in this sector. Even though President Donald Trump has ordered the United States not to participate in the Paris Climate Agreement, many funds continue to invest in green energy. Last month, Norway's $1.8 billion wealth fund expressed its commitment to renewable energies. Junction Growth Investors in Belgium said that Keeling Capital and BNP Paribas Private Equity were among the firms who participated in the fund-raising. The European Investment Fund of the EU, as well as the Belgian Growth Fund, also took part. Junction Growth Investors has backed companies such as Belgian grid company Ampacimon, and Portuguese Eneida. Both firms develop grids that aim to create low-emission neighborhoods. Climate change is a constant threat, with tangible effects on society and individual wealth. The energy transition isn't just about fighting climate change, said Dirk Dewals. He added that the opportunity presented by this technology is for Europe to become less dependent on carbon fuels, which are geopolitically sensitive. It also allows it to create a few European technology leaders who have global reach. Ampacimon has 50% of its order books in the United States.
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Trump tariffs and supply concerns dampen gains
The oil prices continued to rise on Tuesday, amid fears over Russian and Iranian supply of oil and threats of sanctions. This was despite concerns that trade tariffs would dampen the global economy. Brent crude futures rose 55 cents (0.72%) to $76.42 a bar by 0717 GMT. U.S. West Texas Intermediate crude climbed 50 cents (0.69%) to $72.82. After three consecutive weeks of losses, both contracts saw gains in the previous session. "It is more financial driven, and the price means aversion than fundamental." Brent has gone from $80 per barrel in mid-January to $74 last week, so it's time to get back into the market," LSEG analyst Anh Pham explained. ANZ analysts stated in a recent research note that the rebound coincided with signs of tightening supply. ANZ analysts noted that Russian oil production in January fell below its OPEC+ quota, easing fears of an oversupply. The output fell to 8,962 million barrels a day (bpd), which is 16,000 bpd less than the levels approved under the production agreement. The U.S. sanctions imposed last month on tankers, producers, and insurers have caused significant disruptions in the shipping of Russian crude oil to China, India and other major crude oil consumers. Sanctions by the United States on networks that ship Iranian oil to China, after President Donald Trump re-instated his "maximum" pressure on Iranian oil exports in the last week, have added to supply concerns. Trump's latest tariff could reduce global growth and energy consumption. Trump raised the tariffs on imports of steel and aluminum to the U.S. by 25%, "without any exceptions or exclusions", to help struggling industries. This could lead to a trade war with multiple fronts. Tariffs on steel and aluminum imports from Canada and Brazil will affect millions of tonnes. Trump introduced additional 10% tariffs last week on China. Beijing responded with its own duties on U.S. imported goods, including a duty of 10% on crude. According to a survey, a majority economists who had previously predicted a rate cut in March, will also wait until the following quarter before cutting again. Under Trump's policies, the Fed is facing the threat of rising prices. Rates at higher levels could hinder economic growth and impact the growth of oil demand. A preliminary poll on Monday showed that U.S. crude and gasoline stocks were likely to have increased last week while distillate stockpiles probably fell. The American Petroleum Institute is due to release its weekly report at 4:30 pm. Tuesday, ET (2130 GMT), and a report from the Energy Information Administration due on Wednesday.
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South African rand weakens as markets focus on Trump's steel tariff impact
The rand of South Africa fell early on Tuesday, as traders assessed the impact of U.S. president Donald Trump's new tariffs on imports such as steel and aluminum. These tariffs could spark a multi-fronted trade war. At 0727 GMT the rand was trading at 18.4725 per dollar. This is about 0.1% lower than its previous closing. Trump increased tariffs on imports of steel and aluminum to 25%, "without any exceptions or exclusions", on Monday in an effort to boost production within the largest economy. ETM Analytics stated in a research report that South Africa will be "minimally affected". The note stated that "for now, USD-ZAR is likely to trade with caution and lack of direction until Trump's policy is understood and its implications can be quantified." Investors in South Africa will be looking at the December manufacturing data, due at 1100 GMT for signs of health and vitality. Economists surveyed by predict manufacturing output will fall 1.7%. Early deals showed that the benchmark 2030 government bond of South Africa was lower in price, and its yield increased by 1 basis point from 9.11% to 9,11%. The blue-chip Top-40 Index on the Johannesburg Stock Exchange last traded around 0.4% lower. The shares of steel producer ArcelorMittal South Africa fell 2% on news of Trump's new tariffs. (Reporting and editing by Tannur Andersons, Ed Osmond, and Sfundo parakozov)
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Iron ore prices fall as Trump's tariffs counter any potential disruptions to supply
Iron ore futures lost their early gains on Tuesday, as the unrest over President Donald Trump's tariffs outweighed worries about weather-related disruptions to supply in Australia, a major supplier. The May contract for iron ore on China's Dalian Commodity Exchange finished the daytime trading 1.1% lower, at 812 Yuan ($111.12), the lowest price since February 6. Earlier in the session, it reached the highest level since December 10, 2024 with 830.5 Yuan per ton. As of 0708 GMT the benchmark March iron ore traded on the Singapore Exchange had fallen 1.32%, to $105.75 per ton. It hit its highest price since October 16, 2020 at $107.65 per ton. Trump raised the tariffs on imports of steel and aluminum on Monday from a flat rate of 25% to a 25 percent rate "without any exceptions or exclusions". This was done to help struggling industries, but it also increased the risk for a multi-fronted trade war. Tariffs will be applied to millions of tonnes of steel and aluminium imports from Canada and Brazil. They also apply to South Korea, Mexico and other countries. ANZ analysts wrote in a report that the tariffs may weaken demand for ore if China's steel export markets are affected. Prices rose earlier than expected due to potential disruptions in supply. After a Bureau of Meteorology weather warning, the operator of Australia's port of iron ore export, Port Hedland (used by BHP Group and Fortescue, as well as billionaire Gina Rinehart’s Hancock Prospecting), had begun clearing ships from the Port. The traders said that this was after the top supplier Rio Tinto had cleared ships out of two ports in Western Australia last week. This contributed to a sharp drop in shipments for the period. Coking coal and coke, which are used to make steel, also fell, by 1.84% each and respectively. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. The price of rebar fell by 1.95%. Hot-rolled coil dropped 1.45%. Wire rod was down 1.41%. Stainless steel was down 1.05%. ($1 = 7.3076 Chinese Yuan) (Reporting and editing by Sherry Jackson, Lewis Jackson and Amy Lv)
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Tariffs on coal from the US to China are expected to increase US coal exports into India
Five industry officials have said that the United States will increase coal exports to India following China's tariffs on U.S. energy imports. This could lead to a decline in Australia and Russia’s market share in India. China's Finance Ministry announced last week that it would impose a 15% tax on the import of U.S. Coal. The officials claimed this could force U.S. miner to ship coal to India, the second largest coal importer in the world behind China. "Three U.S. shipments that were meant to go to China are now in India, and another 10 shipments are awaiting." "These are large capesizes, and this could further lower prices," Vasudev Pamnani, director of India's I-Energy Natural Resources said. Pamnani said at the Coaltrans India Conference on Monday that more U.S. imports of coal could impact Australia. The U.S. is a relatively small contributor to Chinese coal imports in volume terms. However, the value of the coking coal used by steelmakers has increased by almost a third, reaching $1.84 billion by 2024. Malcolm Roberts said that the tariffs could lead to more U.S. and Australian coal being shipped to China. In the last decade, Australia was India's dominant supplier of coking coal. It accounted for around 80% all shipments. In 2024, its share dropped to 62% as the United States, Russia and Mozambique supplied supplies to India. Australia may now be able to regain some market share in China, its main market. It was responsible for two-thirds or more of the coking coal imported by China before China banned such imports unofficially in 2021. Mongolia and Russia export the most coking coal to China. Chinese data show that the U.S. will account for 9% of China's coking coal imports in 2024. Australia is expected to make up 8%. Sethuraman N R, Sudarshan Varadhan and Barbara Lewis contributed to the report.
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South Korea's trade minister claims that Trump's steel tariffs will hit the profits of companies
South Korea's trade minister Cheong Inkyo said Tuesday that the 25% tariffs being imposed by President Donald Trump on imports of steel and aluminum, which are due to take effect in March, will reduce U.S. demand for steel and erode profitability among steel exporters. The tariffs, he said, may provide opportunities for Korean exporters to find new markets. South Korea will "actively" consider whether there are any room for negotiation with the United States on tariffs, even though Trump increased tariffs on imports of steel and aluminum on Monday to flat 25% "without exemptions or exceptions". Cheong spoke at a Seoul meeting with steel company officials. South Korean steelmakers continued to lose money on Tuesday. POSCO Holdings fell for the second day in a row, closing down by 0.8%. Dongkuk Steel Mill also dropped 0.9%, reaching a new low of three months, while the KOSPI index rose 0.7%. EXEMPTIONS FOR 2018 During Trump's first year in office, South Korea and the United States agreed to a duty-free annual steel quota that would average 70% of the volume shipped to the U.S. from 2015-17. South Korea became the first U.S. ally to receive an exemption from steel tariffs for an indefinite period of time. Citi reported that "we see room for negotiations with the second Trump Administration if necessary." Citi estimates that U.S. Steel Tariffs will negatively impact South Korea's GDP by around 0.1% to 0.2%. According to data from the American Iron and Steel Institute, South Korea was the fourth largest steel seller in the United States last year behind Canada, Mexico and Brazil. Reporting by Hyunjoo Ji, Hyunsu Yaim and Jihoon Le; editing by Ed Davies and Kate Mayberry
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Macquarie, Australia's Macquarie bank, joins other major US banks to leave global climate coalition
Macquarie Group, Australia's largest bank, announced on Tuesday that it was leaving the Net Zero Banking Alliance. The NZBA is a global group of banks working to achieve net-zero emissions of greenhouse gases by 2050. Six major U.S. Banks - Goldman Sachs Wells Fargo Citigroup Bank of America Morgan Stanley JPMorgan and Bank of America - have left the alliance in the past few months. Macquarie didn't give a reason why it left the initiative. According to its website, the NZBA was formed in 2021 by the United Nations as a finance initiative. It consists of 134 financial institutions from 44 countries, with an asset total of $56 trillion. The other members of the alliance are HSBC, Barclays Bank, Deutsche Bank, and Singapore's DBS Bank. Macquarie had earlier in the day said that it saw minimal exposure to disruptions in U.S. green-energy sector as a result of President Donald Trump’s executive orders which prohibit or suspend federal funding for sustainable energies initiatives. Macquarie will update its climate-related activities in its annual report, due in May 2025. (Reporting and editing by Varun H K in Bengaluru, Adwitiya Shrivastava from Bengaluru)
Investors weigh Trump's latest tariff threats as they assess the gold price and stock market.
The dollar was stable and Hong Kong stocks advanced to a 4-month high on Tuesday, as investors navigated changes in U.S. Trade Policy and waited for Federal Reserve Chair Jerome Powell to speak on tariffs and inflation.
Oil prices held on to an overnight surge. Hong Kong's Hang Seng index has risen more than 12% over the past month, as Donald Trump's government threatened and then suspended blanket tariffs against Canada and Mexico. This seems to confirm investor assumptions that all is negotiable.
Trump raised tariffs on imports of steel and aluminum to 25% on Monday, which pushed up the share prices of U.S. Steelmakers. The tariff on Chinese imports was 10% earlier this month. Chinese retaliatory duties on U.S. goods and energy were imposed on Monday.
Although there has been little progress in a trade agreement between Beijing and Washington so far, expectations remain high.
Prashant Bhayani is the chief investment officer for Asia at BNPParibas Wealth Management. He said that because he's a natural businessman, there will be deals made at some point. "So, that's why we've measured the market."
The Chinese Yuan, in currency trading, has fallen below the level of 7.3 dollars and was trading at 7.3071 Tuesday morning. The Australian dollar was unchanged at $0.6273. Trump said he would "greatly consider" Australia's request to be exempted from steel tariffs.
Gold reached a record high just above $2.935 an ounce.
Marc Chandler, Bannockburn Global Forex's chief market strategist in New York said: "This is very early days." The market is just chopping about rather than being really directional at the moment.
The dollar was stable against the Japanese yen at 152.01 and was $1.03 to the euro. Both the Canadian dollar and the Mexican peso were down as these countries are bearing the brunt from Trump's tariffs on metals.
Wall Street closed with gains, led primarily by the tech and energy sectors. The S&P 500 Materials index increased 0.5%. Steel companies like Nucor and Steel Dynamics gained 4.9%.
After McDonald's reported its quarterly results, shares of the fast food restaurant rose 4.8%.
Investors are saying: 'Hey let's get back to the areas that have worked.' Sam Stovall is the chief investment strategist of CFRA Research. He believes that earnings are one reason why investors remain optimistic.
The STOXX 600 Index for Europe rose by 0.58% on Monday to a new record high of 544.92, led by the 1.5% increase in oil and gas prices.
Dutch and British wholesale prices of gas rose on Monday to two-year highs as the colder weather increased gas demand and storage withdrawals increased.
The Fed Chair Powell will be speaking Tuesday at the semi-annual testimony on monetary policy before the Senate Banking, Housing and Urban Affairs Committee. It is likely that his comments on inflation and tariffs will be closely watched.
According to CME's FedWatch Tool, the markets expect the Fed to keep rates unchanged at its meeting in March. Expectations for a rate cut of at least 25% basis points will not rise above 50% until June.
The benchmark 10-year Treasury yields were closed at 4,495%. There was no trading in Asia due to a holiday in Japan.
(source: Reuters)