Steel export to US may fall by 9-14 million tonnes after Trump’s tariff hike
Major steel exporters to the US comprise Canada, Brazil, South Korea, Mexico and Russia which together account for close to 60% of the shipments. India exported close to 0.9 MT steel to America in 2017.business Updated: Mar 05, 2018 18:00 IST
Steel exports to the US from various countries is likely to fall by 9-14 million tonnes, as the Trump government decides to impose higher tariff on import of steel and aluminium, says a report.
US President Donald Trump on Thursday said he would impose 25% import tariff on steel and 10% on aluminium to protect US producers.
“We estimate that steel exports to the US by other countries can decline by 9-14 MT due to imposition of higher import duties and ramp-up in its domestic steel mill utilisation rates by 80-85% from 72% at present,” said a report by Kotak Institutional Equities.
The US produced 82 MT steel in 2017 and imported 36 MT. The imports can fall to 22-25 MT if the US steel production increases to 91-96 MT assuming mill utilisations improve to 80-85%.
Major steel exporters to the US comprise Canada, Brazil, South Korea, Mexico and Russia which together account for close to 60% of the shipments. India exported close to 0.9 MT steel to America in 2017.
The report further said it “expects a low direct impact of US trade protection on the global steel markets , “ 9-14 MT is close to 2-3% of global steel trade of 460 MT and 0.6-0.9% of the global steel demand.”