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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
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Nigeria and India seek to accelerate energy transition
A senior government official in Nigeria said that Nigeria wants to work with India to speed up its energy transition plan. Agbu Kefas said that Nigeria will seek India's technical assistance to implement its green power plans in addition to funding. He made this statement at the India Energy Week. "The world is moving to green energy, and we must also move with it." Kefas stated that the biggest challenge is to raise the funds to keep up. India is increasing its non-fossil energy capacity. It plans to connect a record amount of solar and wind power to its grid by the end of its fiscal year in March 2025. Nigeria has already asked the United States for funding to accelerate Africa's largest oil producer's energy transition plans. Kefas added that alternative energy can also be a solution for those communities who have not been able to connect to the grid. Nigeria's power grid is prone to frequent failures, due to vandalism and under-investment, as well as an ageing infrastructure. (Reporting and writing by Mrinalika roy; Editing by William Maclean).
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Karnataka State in India receives investment proposals totaling $115 billion.
A government spokesperson announced that Karnataka, a state in southern India, had received investment proposals totaling nearly 10 trillion rupees (115.31 billion dollars) as the country attempts to boost its manufacturing sector and create jobs in an economy slowing down. At the Invest Karnataka event held on Tuesday, a spokesperson stated that the proposed investments would be focused on renewable energy, automobiles, steel, semiconductors, and other areas. Not all of the proposals have been approved and the government does not provide a timetable for these investments. New Indian Express reported last week that the state government plans to implement 70% of the proposals. This is up from the 40% to 50% it had planned for the 2022 event, according to a state official. Some of the companies that have made investments include India's Mahindra and Mahindra and JSW Group as well as Germany's Bosch, Japan's Toyota Motor and Taiwan's Foxconn. Karnataka is India's largest contributor to the economy, and includes the IT hub Bengaluru. It is also a major exporter for software, IT services, and manufactured goods. These commitments come as New Delhi tries to reduce imports and boost its domestic manufacturing, while also taking advantage of Sino-U.S. trade tensions which have prompted companies like Apple to divert their manufacturing away from China. The Indian Defence Minister Rajnath Singh, who inaugurated the event, said that India's strong economy and consumption makes it an attractive investment destination. Recent moves, such as a reduction in personal income taxes, are expected to drive demand. Sajjan Jindal, chairman and managing director of the JSW Group - whose businesses span industries such as cement, steel and paints - said that it will invest 13 billion rupees (1.2 trillion Indian Rupees) in expanding its operations within the state. Anand Mahindra, the chairman of Mahindra who spoke at the event, said that the company, which has a large presence in Karnataka already, will invest close to 400 billion Indian Rupees ($4.61 billion) in the state over the next couple of years.
The U.S. gold demand is causing India's gold leasing rates to rise to a record.
Industry officials reported that gold leasing rates in India had doubled to a new record within a single month, after the rates on the overseas market jumped because of a shortage as banks from around the world diverted the precious metals to the United States.
The second largest gold consumer in the world, Kalyan, is experiencing higher jewellery production costs. This could affect jewellers like Titan, Kalyan, and Tribhovandas Bhimji Zaveri.
Shekhar Bhahandari, President and Business Head of Kotak Mahindra Bank, said that gold leasing rates have doubled over the past month. They could continue to rise, he added.
He said that leasing rates would remain high for the next few weeks, given the uncertainty surrounding geopolitics, the trade war and the higher prices of futures on CME compared to the spot market.
Reports have revealed that global bullion banks fly gold to the United States via London, Switzerland and Asian hubs like Dubai and Hong Kong in order to take advantage of the high premium on U.S. spot gold prices over U.S. futures.
Gold leasing rates have risen in London, which is the world's largest over-the-counter market.
In India, banks that rely on imports borrow gold from foreign banks and lend it to jewellers. Bhandari says that rising borrowing costs in India have increased leasing rates proportionally.
Amit Modak is the chief executive officer of PN Gadgil and Sons in Pune, a jeweller based on the west coast. "Now they don't know how to deal with it."
A Mumbai-based dealer for a bullion-importing bank stated that the gold-supplying banks have not brought any gold into India since the market has been in discount. Deliveries on COMEX, however, fetch premiums, according to a Mumbai-based seller.
On Monday, the premium of COMEX futures prices over spot price widened to $28 per ounce. In India, discounts were as high as $24.
The vaults of bullion banks in major Indian cities are almost empty. Banks have taken their gold to the United States, and they are no longer interested in bringing the gold back to India, given the current discounts.
Due to the lack of demand, Indian discounts could have reached $100. "But a supply shortage is preventing them from skyrocketing," said he. (Reporting and editing by Clarence Fernandez; Additional reporting by Siddhi Nyak)
(source: Reuters)