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Trump's tariffs are expected to have a 10% impact on the value of Spain’s steel and aluminium exports.
According to a Tuesday estimate by the Spanish Chamber of Commerce, the total value of Spanish exports of steel and aluminum to the United States may fall by 10.4% as a result of the new tariffs imposed on metals by President Donald Trump. The lobby stated in a note that "the change in the current trading scheme for aluminum and steel would be detrimental in aggregate terms to the productive fabric," adding that Spain's cast iron and steel total exports to the U.S. will reach 944 million euro ($977 millions) in 2023. The report states that a uniform 25% tariff on all countries and regions exporting goods - which Trump has indicated so far – would not be as damaging for Spain because the relative prices of commodities wouldn't change much. It cautioned, however, that "this wouldn't be the case if tariff increases were discriminatory by country or bloc". The 10.4% value reduction was also its initial estimate. Steel and aluminum tariffs will be in effect from March 12.
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US market watchdog wants to stop lawsuit over climate disclosures
The acting chair of U.S. Securities and Exchange Commission announced on Tuesday that the agency is asking a judge to halt proceedings in a suit over a rule on climate disclosures, which was adopted by his predecessor and quickly stayed after controversy. In a press release, Republican Mark Uyeda, acting SEC chairman, stated that the rule was "deeply flawed" and would cause significant damage to our capital markets and economy. The SEC, under former SEC Chair Gary Gensler (a Democrat whose political party controlled three of the five positions), introduced a requirement that companies disclose a range of climate-related business risks, arguing that the information could prove material to investors. Gensler suspended the rule's entry into effect pending a judicial review after it was sued. Uyeda, in a statement, said that the rule is being challenged by a group of federal appeals courts. Uyeda stated that he asked the court to not take the next step in the process, given that the commission no longer has a Democrat as its chairperson and that Donald Trump ordered a rule-making freeze. The statement read: "I have instructed the Commission staff that they notify the Court and request the Court to not schedule the case to be argued to allow the Commission time to deliberate and determine what the next steps are in these cases." Virginia Furness, Isla Binne and David Evans contributed to the reporting.
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Aperam: Brussels must act in the event of a steel flood into EU as a result Trump tariffs
Aperam, a French steelmaker, called on Brussels on Tuesday to intervene and curb imports in the event that new 25% tariffs for all steel and aluminum imports to the United States cause companies to ship more goods to the European Union. The comments of the company highlight the concerns among European steelmakers over a possible new flood of cheap steel to the EU, as it happened in 2018, under the first Trump Presidency. ArcelorMittal - the second largest steelmaker in the world, from which Aperam was spun off in 2011 - called last week on the European Union (EU) to tighten up trade protection. Mittal Family remains largest shareholder in both companies, with approximately 40% of each. In 2018, the EU implemented safeguard measures in order to limit the amount tariff-free steel that enters the EU in order to prevent an import surge after U.S. Steel Tariffs were implemented by President Donald Trump, effectively closing the U.S. Market. According to World Trade Organization regulations, safeguards are only valid for eight years. This means they will expire during Trump's second presidential term, which is mid-2026. Stephane Sejourne, Executive Vice-President of the European Commission, said that in December he would examine ways to extend these measures as part a plan to protect this sector during its decarbonisation. Aperam, a manufacturer of stainless steels and specialty alloys, said, "Since 2018 we have managed the impact on the 25% duty. We work closely with our customers to come up with mutually acceptable solutions." Joe Biden, former president of the United States, negotiated duty-free agreements with Britain and other countries. "We also expect that the European Commission will take appropriate measures, as it did in 2018, to protect the interests of domestic steel producers if exports to the U.S. from third-country countries are diverted to the European Market." The bloc announced on Tuesday that it would take "firm and proportionate" countermeasures to the new tariffs. The EU's "Steel and Metals Action Plan", also known as the "Steel and Metals Action Plan", aims to streamline or delay certain Green Deal regulations, while promising to maintain EU climate goals and regulate imports via quotas. The plan will be unveiled in the Spring of 2025. Aperam CEO Tim di Maulo said in a Friday call with analysts that reducing steel imports wasn't the only thing that steelmakers wanted. Any review of safeguards that increased inefficiencies would also be a positive. (Reporting by Alessandro Parodi, editing by Alexandra Hudson)
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Powell's speech: Stocks fall, US yields rise amid tariffs
On Tuesday, the U.S. Treasury yields rose as investors awaited the repercussions of U.S. Tariff announcements. They also digested remarks from Federal Reserve Chairman Jerome Powell. Donald Trump raised the tariffs on imports of steel and aluminum to 25%, up from 10%. He also eliminated product-specific exemptions and country exclusions. Trump said that he would consider an exemption for Australia, and that the measures for steel and aluminum would only come into effect on March 4. This has led some investors to believe that the duties were being used as a negotiation tool. Mexico, Canada, and the European Union condemned the move on Tuesday, the EU saying that the 27-nation block would take "firm, proportionate countermeasures". Investors were watching Powell's comments for any indication that the tariffs could alter the U.S. Central Bank's monetary policies. Adam Turnquist is the chief technical strategist at LPL Financial. He said that Powell will have to clarify his position. He can't just ignore those questions, because the Fed speaker has to have an opinion at least about some of these measures. Powell, in remarks prepared for the Senate Banking Committee hearings, said that the Fed was not in a hurry to reduce its short-term rate due to a "strong economy" overall. Powell also noted that unemployment is low while inflation is above the central banks' 2% target. The Dow Jones Industrial Average dropped 35.11 points or 0.08% to 44,434.21, while the S&P 500 declined 5.56 points or 0.09% to 6,060.98, and the Nasdaq Composite was down 13.62 points or 0.06% to 19,701.77. MSCI's global stock index fell by 0.89 points or 0.10% to 872.90. The pan-European STOXX 600 rose by 0.2% and reached an intraday record. Treasury yields continued to rise after Powell's first statement. The yield on the benchmark U.S. 10 year notes increased 5 basis points to 4.45%. According to CME's FedWatch Tool, the markets have gradually reduced their expectations of rate cuts by the U.S. Central Bank this year. They are largely expecting that the Fed will hold rates at its meetings in March and May, but they also price in a 50% chance for at least a 25 basis point cut in June. The dollar index (which measures the greenback versus a basket currencies) fell by 0.24%, to 108.10; the euro rose 0.34%, at $1.0034. The dollar gained 0.39% against the Japanese yen to 152.58, while the pound rose 0.38% to 1.2412. The oil price rose due to concerns about Russian and Iranian supplies, but the tariff announcement held gains in check. U.S. crude climbed 1.05%, to $73.08 per barrel. Brent rose 1.16% to $76.74 a barrel.
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Source: U.S. Treasury secretary Bessent will visit Ukraine to discuss rare earth minerals
According to a source who is familiar with Bessent's plans, U.S. Treasury Sec. Scott Bessent will visit Ukraine this week to talk about a possible deal involving rare earth minerals. Bessent is the first Cabinet-level official from President Donald Trump's Administration to visit Ukraine. Both Trump and Ukrainian President Volodymyr Zelenskiy have expressed an interest in a deal that would allow the United States to access Ukraine's rare-earth resources in exchange of continued support for the Russian invasion. Source, who asked to remain anonymous as the plans are still classified, didn't provide any additional information on the itinerary. The White House didn't immediately respond to an inquiry for comment. Bloomberg was the first to report Bessent's plans. Rare earths is a grouping of metals that are used to produce magnets for electric cars, cell phones and missile systems. There are no substitutes and the demand is expected to increase. Several other U.S. government officials will be traveling to Europe in the coming week to meet with Kyiv, as well as other European allies to discuss the Ukraine conflict. The list includes Secretary of State Marco Rubio as well as Vice President JDVance, Defense Sec Pete Hegseth, and Keith Kellogg who is the U.S. ambassador for the Ukraine War. This week, it was reported that the Trump Administration plans to pressure European allies to purchase more American weapons for Ukraine in advance of possible peace talks with Moscow. (Reporting and editing by Don Durfee, Frances Kerry and Max Hunder)
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Andy Home: Beer, not tariffs will boost US aluminum capacity
If in doubt, double down. Seven years ago, President Donald Trump imposed 10% tariffs on U.S. aluminium imports with the stated goal of increasing domestic primary metals production. They haven't worked. The tariff will be 25 % this time, with no "exceptions or exclusions", effective on March 4. The tariff will be 25% without "exceptions or exemptions" effective March 4. The sharp rise in the price for aluminum delivered to the U.S. Midwest is bad news for U.S. customers. The effectiveness of higher tariffs in revitalizing the country's aged fleet of aluminum smelters is also uncertain. The humble beer can is a great way to achieve greater self-sufficiency in aluminium. Import Dependency Aluminium and steel have been lumped together again in Trump's tariff battles, despite the fact that they are very different markets. According to the U.S. Geological Survey, while U.S. imports of steel account for only 23%, aluminium accounts for 47%. The U.S. relies heavily on the importation of primary aluminum from Canada. Canada supplies over two million tons each year. Markets are already adapting to possible shifts in trade flows and pricing. In a matter of a few days, the CME Midwest U.S. Premium contract, which captures delivered metal costs on top of the underlying aluminum price, grew by $100, to $629 per metric tonne. The implied tariff cost has not been fully priced because the London Metal Exchange is currently trading for $2,645 a ton. Tariffs for 2018 on the aluminium market were highly negotiable. Canada was included at first, then excluded, included again, and exempted once again. This happened twice in a single month. It seems that the same carve-outs will occur this time. The European premiums for Canadian metal have fallen sharply. This is a sign that Canadian shipments are being diverted away from the American market, which has higher tariffs. Tariffs for POWER TRUMPS Aluminium production has not been affected by steel tariffs. From 20 at the beginning of the century, the number of primary aluminum smelters in the United States has decreased to four. New Madrid, Missouri, the only plant that reopened after tariffs in 2018 closed in January 2024. The U.S. primary steel production in 2018 was 670,000 tonnes, compared to 740,000 tons the previous year, before import tariffs first came into effect. The "Green Aluminum Smelter Project" of Century Aluminum, which was awarded $500 million by the Department of Energy under the Bilateral Infrastructure Act and Inflation reduction Act of the previous administration, is the only hope. Century just drew down the first tranche of $10 million to fund future studies. This tells you that a new smelter will not be starting up anytime soon. The project is still in need of a source of renewable energy that will allow it to be classified as green. Electrolysis is the process that produces aluminium, and it consumes a lot of energy to turn alumina into a metal. High power costs are the main reason for the demise of U.S. Smelters. They remain the biggest obstacle to any greenfield smelter projects. Data centres are increasingly competing for renewable energy. Don't Litter It is easier for the United States than ever to reduce its import dependence. It is easy to find the solution, but it is often thrown out. With 106,7 billion aluminium cans sold in 2021 (over a quarter of global consumption), the country is the largest consumer of aluminum beverage cans. According to the Container Recycling Institute, recycling rates were only 43% in 2023. This is down from 57% in 2014. Under half of cans are thrown out to be landfilled or trashed. The improper sorting of metal at recycling plants results in a loss of about one-third. CRI estimates that the total waste in 2021 will be over 1 million tons of aluminum with a nominal value of $1.6 Billion. This is a significant amount of aluminum that's wasted every year, and it's more than the domestic production of primary metallic. Remelting an aluminum beverage can uses a fraction of the energy required to produce virgin metal. All countries with high recycling rates have some sort of deposit return system. According to the CRI, states that have deposit schemes in place achieved a rate of recycling of 74% compared to 26% for states without deposit schemes. If you introduce more deposit return schemes, some of the one million tonnes landfill waste could be returned back to the supply chain. The energy shortages in the United States mean that increasing recycling will be a more effective way to increase its domestic aluminum supply than tariffs. Tariffs will be imposed on the aluminum market and the U.S. consumers. These are the opinions of the columnist, an author for.
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Ford CEO denounces cost and chaos caused by Trump tariffs
Ford Motor CEO Jim Farley stated that U.S. president Donald Trump's tariffs, both proposed and implemented, have caused "a lot more cost and chaos," even though Farley believes Trump wants to strengthen the American automotive industry in general. Businesses across the country have issued warnings about Tariffs and their impact Many manufacturing companies find it difficult to determine whether Trump will implement his policy promises or plan their next steps. Ford executives stated at a Tuesday analyst conference that they are looking into areas where it could build up its inventory in preparation for possible 25% tariffs on imported goods from Mexico and Canada. Trump had planned to implement these duties in early February, but then delayed them until March. The carmaker Trump's increased tariffs for steel and aluminum on Monday are not likely to have a significant impact. Ford executives stated that the majority of materials are sourced from the U.S. Ford expects to absorb a portion of costs from suppliers more affected. "President Trump talked a great deal about strengthening the U.S. automotive industry, bringing in more production and innovation, which would be a major accomplishment for this administration. Farley stated that so far we are seeing a lot more cost and chaos. Analysts say that Dearborn's General Motors and Jeep maker Stellantis are less vulnerable to the fallout of threatened tariffs against Mexico and Canada. Ford has a larger manufacturing base in the U.S. and its vehicles imported from other countries have lower profits than the products that its competitors import. Ford shares fell 0.4% during Tuesday's morning trading. (Reporting and editing by Nora Eckert, Chizu Nomiyama, and Nick Zieminski).
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South African rand stable, markets focused on Trump steel tariff impact
The rand of South Africa was flat on Monday as traders assessed the impact of U.S. President Donald Trump’s tariffs on imports such as steel and aluminum, which could spark a multi-fronted trade war. The rand was trading at the same level as its previous closing price of 18.45 USD/Rand. Trump increased tariffs on imports of steel and aluminum to 25%, "without exceptions or exclusions", on Monday. The aim was to boost production in 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." Data from the Statistics Agency showed that South Africa's manufacturing production fell by 1.2% in December compared to last year after a decline of 1.9%, but with a revised downward revision in November. The yield on South Africa's benchmark government bond for 2030 has increased by 5 basis points to 9.15%. The blue-chip Top-40 Index closed down 0.2% on the Johannesburg Stock Exchange. Reporting by Sfundo parakozov and Bhargavacharya, Editing by Tannur anders, Ed Osmond and Mark Heinrich
Nornickel, a Russian company, says that it is actively involved in talks with China on a JV
Nornickel of Russia, a major producer in the refined nickel and palladium industry, announced on Tuesday that it was in active discussions on a joint-venture in China, with potential investments being included in its early financial plans.
The details of the discussions were not disclosed.
In December, two sources familiar with the matter said that Nornickel was in talks with Chinese conglomerate Xiamen C&D to form a joint venture in China for processing Nornickel's raw copper material into metal.
We are in active discussions with our Chinese partners and therefore cannot reveal the details just yet. We are including these funds in our financial model for 2025-2026, said Nornickel Vice President of Strategic Planning Sergey Dubovitsky during a conference call.
He claimed that the $2.1 billion announced for capital investment by 2025 does not include any potential investments in Chinese projects.
Nornickel is diversifying its production by establishing plants outside of Russia. This comes after the company diverted its sales to Asian countries in response to Western sanctions.
Nornickel may not be directly sanctioned by the West, but some Western producers have been influenced to stop buying Russian metal. They also face complicated payments and limited access to Western equipment.
Nornickel's 2024 net profit fell 37% to $1.8 billion due to Western sanctions and low metals prices.
Dubovitsky didn't elaborate on whether the models were backed by the board of directors. The company stated that it planned to increase capital investments in 2026-2027, but not beyond the level of $2.5-3.0 Billion.
Nornickel, who has been trying to reduce the stocks of metals that it couldn't sell due to Western sanctions, also reiterated Tuesday its intention to sell all of its production by 2025.
The company's Chief Financial Officer, Sergey Malyshev, said: "We plan to sell all we produce this year and reduce our inventory by a portion."
Vladimir Potanin, Nornickel's billionaire president, called the growth of net working capital due to the accumulation of inventories as a negative trend in recent years.
On February 10, the company stated that they expected a global surplus of nickel in 2025, and that this year's global palladium markets would be balanced. It plans to produce between 204,000-211,000 tons of Nickel this year. (Reporting and writing by Anastasia Lyrchikova, Anastasia Teterevleva and Gleb Bryanski; Editing and reviewing by Jan Harvey and David Evans).
(source: Reuters)