On October 30, the US and the EU agreed to replace Section 232 steel and aluminium tariffs
against the bloc's 27 countries with tariff-rate quotas.
The decision is likely to increase exports from the EU to the US, leading to reduced domestic supply and higher prices in Europe.
A majority of market sources believe that the short-term positive impact will help to increase prices in Europe, but the situation is unlikely to have a long-lasting effect.
“European mills will definitely enter negotiations with their long-term buyers with more confidence after the announcement. This, combined with other factors, such as rising energy and emission costs as well as demand recovery driven by re-stocking, will result in some price recovery. The question is – how long will it last?” a German distributor said.
“The mills [in Europe] will try to export more, this might give some support during negotiations in November, but I...