SMM9: according to the Office of the United States Trade Representative, the United States will take additional measures to solve the problem of steel imports from Mexico and Brazil. The U.S. government will continue to exempt certain steel imports from Mexico and plans to hold more negotiations in December.
In view of the downturn in the US steel market, the US government has announced a reduction in quotas for semi-finished steel imports from Brazil, according to an announcement issued on Friday. Brazil's quota for semi-finished products in 2020 will be reduced from 350000 tons to 60, 000 tons, the Office of the United States Trade Representative said in a statement on Monday. Other steel products maintain existing quotas and plan to discuss steel import quotas for 2021 with Brazil in December.
The United States believes that the epidemic has accelerated the contraction of the US steel market. Since the beginning of this year, US steel imports from most countries have declined significantly, but the amount of steel imported from Brazil has dropped only slightly.
As a result of the epidemic, demand for steel in the automotive and construction industries has declined, with benchmark steel prices in the United States falling 12 per cent this year. The industry believes that it may still take a year or two for the US steel industry to return to pre-pandemic levels. For the Chinese market, some of the business that exports to Mexico, Brazil and then to the United States may be affected. The overall proportion of foreign trade in China's steel market is relatively small, and this news basically has no impact.
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