Fears of global trade war subsiding, Worldsteel says

Fears that a global trade war would swiftly follow the imposition of Section 232 tariffs by the United States have been overplayed, World Steel Association (Worldsteel) director-general Edwin Basson has said, launching its latest short-range forecast.

The tariff debate is moving further and further away from steel, according to Basson, who said that initial fears of a significant effect on steel prices have subsided now that exclusions have been given to most importers to the US. “Markets are beginning to relax, understanding that this posturing has to [happen] before we know what reality is. Inevitably, some part of that will turn into reality. That reality is not going to have a big effect on steel,” he said. “Trade continues. It is the cost at which the trade continues that sometimes has an effect. But as long as economies are growing [and] as long as economies require steel, steel will be traded,” he added. Basson said that some in the market feel that the global economies are now too interlinked and there has been protectionist behavior to disrupt this. “Eventually, rationality will prevail. The economies are too interlinked at...

Published

Carrie Bone

April 17, 2018

19:32 GMT

London