STEEL TRADE FLOWS: Protectionism's unintended consequences

In the first in a series on how global trade flows have changed since the rise of protectionism in the steel market, we look at the unintended consequences of recent coated steel trade cases in Europe and the USA.

In Europe, the trade defence measures on coil have already had a positive effect on domestic steel prices, but the cases targeting hot rolled coil (HRC) and hot dipped galvanized coil (HDG) are expected to create shortages of material and will have negative consequences for independent distributors. Buyer sources are concerned that the trade defence measures focus more on protecting the interests of steelmakers and ignoring the problems that buyers will face as a result of their implementation. Smaller independent distributors, which traditionally depend on being able to mix coils of different origins and prices, could be injured both by a lack of steel sources and by higher prices, according to market participants. Meanwhile, distributors affiliated to steelmakers might now have the advantage of lower steel prices, according to market sources. While deals are likely to be made at the same prices with all distributors, those affiliated to steel mills...

Published

Maria Tanatar

Michael Cowden

March 09, 2017

18:48 GMT