Trump Targets Foreign Steel with 50% Import Tariff

Trump Tariff

Trump Targets Foreign Steel with 50% Import Tariff

US President Donald Trump has announced a significant escalation in trade protectionism by doubling Section 232 tariffs on imported steel from 25% to 50%. The statement was made at a rally held at US Steel’s Mon Valley Works in Pittsburgh, Pennsylvania. While the specific date and mechanism for implementation remain unclear, the move signals stronger trade defense ahead of the election season.

The 50% tariff aims to shield domestic producers from what Trump described as unfair foreign competition. The policy will particularly affect exporters from China, South Korea, Turkey, and Brazil, who already face quotas and duties under Section 232.

Nippon Steel’s $14 Billion Investment Secures US Steel’s Future

In addition to the tariff hike, Trump confirmed that Nippon Steel will move forward with a $14 billion investment in US Steel. While not framed as a full acquisition, Trump emphasized that US Steel will retain operational control and remain headquartered in Pittsburgh. He claimed the investment would be the largest in Pennsylvania’s history and a milestone for the US steel industry.

According to Trump, the plan includes $2.2 billion to modernize the Mon Valley mill and $7 billion to revamp steel mills and ore mines in Indiana, Minnesota, Alabama, and Arkansas. The investment is expected to create 100,000 jobs over the next 14 months and secure blast furnace operations for at least a decade.

The Metalnomist Commentary

The move to double tariffs, while politically potent, reflects a broader trend of industrial reshoring and national resource security. The Nippon investment adds long-term operational value, but short-term market volatility is inevitable. Policymakers and steel-consuming sectors must now prepare for elevated costs and complex supply chain recalibrations.

Nippon Steel Recruits Former U.S. Secretary of State Pompeo for US Steel Acquisition

Nippon Steel has enlisted former U.S. Secretary of State Mike Pompeo to help finalize its acquisition of US Steel. Pompeo, who served as the leading diplomat under the Trump administration, will provide strategic counsel for the $14.1 billion transaction.

This acquisition faces considerable resistance from potential U.S. presidential candidates and the United Steel Workers (USW) union. Whether Pompeo's involvement will sway former President Trump, a current presidential candidate, is still uncertain. Pompeo has been rumored to join Trump's administration if Trump wins the upcoming election.

In a statement from Nippon Steel, Pompeo expressed his enthusiasm, stating, "I am proud to work on a deal that not only revitalizes an iconic American company but also strengthens America's supply chain and protects American jobs."

Nippon Steel contends that acquiring US Steel will serve as a strategic countermeasure against China. By incorporating US Steel, Nippon Steel aims to achieve the necessary scale to effectively compete with Chinese rivals in the global market.

Leveraging Section 301 Tariffs to Combat Circumvention of Chinese Steel and Aluminum Exports

In light of significant government subsidies aiding low-cost Chinese steel and aluminum products, the U.S. steel and aluminum industries advocate for the extension of Section 301 tariffs beyond China to third-party countries. This strategic move aims to shield U.S. industries from the influx of cheap, subsidized materials. The Aluminum Association (AA) and the American Iron and Steel Institute (AISI) have both submitted statements to the U.S. Trade Representative (USTR), urging enhanced enforcement measures to prevent the circumvention of existing tariffs.

Industry Concerns and Actions

The AA emphasized the need to impose anti-dumping and countervailing duties on Chinese imports, which has effectively reduced China's direct exports to the U.S. However, the redirection of these exports to third-party countries has surged, threatening U.S. manufacturers who produce similar goods. Consequently, industry representatives are pushing for the expansion of Section 301 tariffs to encompass processed Chinese steel and aluminum products entering the U.S. via third countries.

The Biden administration, following a review of Section 301 tariffs applied from 2018 to 2022, announced an increase in tariffs on a series of products, including steel and aluminum, effective August 1. Despite this, U.S. industries call for broader application of these tariffs to include circumvention through third-party processing.

Detailed Proposals and Data

In their statement, AISI highlighted the necessity of reinforcing origin regulations for steel products processed in third countries using Chinese materials. The current determination of origin by the Customs and Border Protection (CBP) is based on the final substantial transformation location. AISI advocates for considering the melting and pouring locations to prevent unfair trade practices.

Data from the Department of Commerce’s Steel Import Monitoring and Analysis System (SIMA) indicate that approximately 1.7 million metric tons of Chinese-origin steel have entered the U.S. since January 1, 2022, with 17% processed in third countries. AISI suspects that actual figures may be higher due to underreported origin data.

Strategic Importance and Recommendations

Expanding Section 301 tariffs to cover Chinese steel and aluminum products processed in third countries would send a strong message of the administration's commitment to combating unfair trade practices and protecting American jobs. The AA further recommended extending these tariffs to aluminum-intensive products manufactured using Chinese aluminum in third countries, aligning with USTR Katherine Tai's goals of protecting U.S. workers and bolstering supply chain resilience.

Ferro-Titanium Section 232 Tariffs Requested by US Producer Galt Alloys

Galt Alloys

Galt Alloys petitioned the Commerce Department to include ferro-titanium Section 232 tariffs on imports. The Ohio-based producer argues foreign shipments depress domestic production and market prices significantly. This ferro-titanium Section 232 tariffs request could transform the US specialty alloys market dynamics.

Domestic Capacity Meets US Steel Industry Demand

Galt and Michigan-based AmeriTi possess sufficient capacity to supply America's annual requirements completely. The US imported only 2,022 tonnes of ferro-titanium in 2024, down 50% from 2021. Meanwhile, Canada, Estonia, Latvia, and the UK supplied 94% of total imports. These nations ship primarily powdered ferro-titanium, a premium product over lump form.

Import costs could increase 50% if tariffs apply after Trump doubled steel rates. Currently, ferro-titanium carries only a 3.7% general duty rate versus steel's 25%. Furthermore, the alloy remains exempt from Trump's "Liberation Day" measures entirely. The USMCA agreement also protects Canadian ferro-titanium from additional duties presently.

Strategic Implications for US Steel Manufacturing

Ferro-titanium acts as a critical deoxidizer and desulfurizer in steel production processes. The alloy contains 70% titanium with iron comprising the remaining balance. Therefore, securing domestic supply strengthens America's steel manufacturing independence and competitiveness. Galt claims imports prevent domestic expansion and profitability despite US price premiums.

Foreign producers contest dumping allegations with Latvia's LLR expecting no specific actions. However, the ferro-titanium Section 232 tariffs proposal aligns with broader protectionist policies. As a result, US steel producers face potential cost increases for essential inputs. Stakeholders must submit comments on Galt's petition by June 4th deadline.

The Metalnomist Commentary

Galt's petition highlights the delicate balance between protecting domestic producers and maintaining competitive input costs for downstream manufacturers. With only two US ferro-titanium producers versus diverse import sources, tariffs could create supply vulnerabilities and price spikes. The 50% import decline since 2021 suggests market forces already favor domestic production without additional protection.

Acerinox Stainless Steel Output Rises Despite Lower EBITDA in Q1

Acerinox Stainless Steel

Strong U.S. operations support Acerinox stainless steel production growth

Acerinox stainless steel output rose 11% year-over-year and 29% quarter-over-quarter in Q1 2025, driven by resilient performance in the U.S. market. The Spanish producer reported 512,000 tonnes of stainless steel and high-performance alloys during the period, with stainless steel alone accounting for 488,000 tonnes.

Revenue grows, but alloy surcharges weigh on earnings

While group revenues climbed 17% from Q4 to €1.55 billion, EBITDA fell 32% quarter-on-quarter to €102 million. Stainless steel segment EBITDA dropped by 50%, reflecting weaker European prices and lower alloy surcharges. European market softness was worsened by rising import pressure, with import share jumping from 14% to 22%.

Outlook driven by U.S. demand and strategic cost controls

Acerinox expects Q2 earnings to improve, backed by a strong U.S. order book and cost-optimization efforts at its Spanish Acerinox Europa and Haynes facilities. However, the company anticipates weaker high-performance alloy sales in Europe, even as U.S. volumes hold steady. The firm’s ongoing strategic plan aims to counteract tariff disruptions and safeguard profitability.

The Metalnomist Commentary

Acerinox’s performance shows how regional diversification—especially U.S. strength—can buffer global stainless producers from European price volatility. Its focus on cost control and operational strategy will be key as trade tensions and import surges continue reshaping the stainless steel landscape.

China’s Predatory Steel Exports : A Threat to Latin America

The Latin American steel industry is grappling with a severe crisis precipitated by China’s predatory trade practices. The influx of cheap Chinese steel has flooded the market, imperiling local producers' livelihoods. Gabriela Fajardo Mejia, an expert in international relations at the University of Navarra, highlighted in her interview with Diálogo Américas that China’s steel overproduction endangers 1.4 million jobs across Latin America’s steel sector, compelling numerous companies to cease operations and lay off workers. Furthermore, Chinese steel production often bypasses established environmental and quality standards, with transparency regulations being routinely ignored.

Henry Ziemer, a researcher at the Center for Strategic and International Studies (CSIS), pointed out that China's slowdown in real estate and construction has diminished domestic steel demand. Consequently, Chinese producers are compensating for reduced domestic sales through aggressive export strategies. With the U.S. market becoming increasingly inhospitable for Chinese steelmakers, they are now targeting Latin American countries, which present fewer trade barriers, to dispose of their surplus inventory.

The Chinese government's subsidies for steel production and exports during the pandemic exacerbated the issue, leading to a global proliferation of low-cost Chinese steel. In retaliation, Mexico, Chile, and Brazil have significantly raised tariffs on Chinese steel imports to safeguard their domestic industries, and other nations are expected to follow suit. Alejandro Wagner, the former Secretary-General of the Latin American Steel Association (Alacero), indicated in a BBC interview that the influx of inexpensive Chinese steel has caused significant damage to Latin American steel industries, forcing several major companies to halt their operations.

In March, Chilean steelmaker CAP suspended operations at its Huachipato plant due to the unsustainable business environment created by dumped Chinese steel. Operations resumed only after the Chilean government imposed substantial tariffs on Chinese steel. Similarly, Fabio Galan, president of Colombian steelmaker Acerías Pazdelrio, remarked on the devastating economic impact of cheap Chinese steel imports and called for fair competition.

Reports also suggest that Mexico’s iron ore mines, previously plundered by organized crime cartels, were pivotal in transporting stolen ore to China, highlighting the detrimental effects of China’s opaque and unfair trade practices.

Brazilian steel producer Gerdau temporarily laid off workers at its São José dos Campos plant in response to the unfair competition from Chinese steel. CEO Gustavo Werneck emphasized that this action was merely the initial step in tackling the surge of cheap Chinese steel imports.

Fajardo Mejia underscored the subsidies Chinese steel companies receive, enabling them to lower costs without adhering to quality and environmental standards. She also noted the considerable environmental impact, revealing that Chinese steel production emits 45% more CO2 per ton than Latin American production.

As a countermeasure, imposing tariffs on Chinese steel could escalate trade tensions between Latin American countries and China, with potential retaliatory actions from China, known for its coercive diplomacy. Historical instances, such as China’s bans on Argentine soybean products and Canadian canola seeds, exemplify possible consequences.

CSIS researcher Ziemer highlighted that China, the world’s largest steel producer, generates more steel than the combined output of the next nine largest producers, influencing international prices and destabilizing Latin American economies through dumping practices. He proposed that the current scenario offers an opportunity for the U.S. to collaborate with Latin American countries to counteract China’s unfair trade practices and safeguard domestic industries.

Mexico Steel Import Restrictions Tighten as Government Purges Foreign Suppliers

Mexico Steel

Over 1,000 Steel Suppliers Face Removal Amid Triangulation Concerns

Mexico steel import restrictions are intensifying as the government moves to purge 1,062 foreign suppliers from its official registry. The Ministry of Economy uncovered irregularities in over 47% of registered foreign steel firms, with many found to be non-existent or misrepresented. Authorities are conducting site inspections in six countries, including Malaysia.

Anti-Tariff Triangulation Drives Trade Crackdown

The move aims to prevent tariff circumvention practices, especially the rerouting of Chinese steel through Mexico to access the U.S. duty-free. Mexico steel import restrictions follow U.S. accusations of trade triangulation and recent tariff increases under former President Donald Trump. Despite exemptions under USMCA, Banco BASE estimates Mexico faces a 19.51% effective tariff rate on goods entering the U.S.

Domestic Steel Use to Rise in Energy Infrastructure

Mexico’s government is pushing for more domestic steel usage in national energy projects. The state utility CFE plans to increase the use of Mexican steel in transmission towers from 30% to 60% by 2030. However, limited domestic suppliers for turbines and generators remain a bottleneck. Engineers are consulting on integrating Mexican-made cable and steel into upcoming infrastructure.

The Metalnomist Commentary

Mexico’s regulatory push highlights a broader shift toward trade transparency and domestic industrial development. The steel sector will feel immediate impacts, but long-term resilience hinges on capacity-building within Mexico’s heavy equipment supply chain.

Bushveld Mineral

South African Output Cuts to Boost China's Vanadium-Nitrogen Exports

Rising Exports Driven by Lower South African Production and Strong US Demand

China’s vanadium-nitrogen exports are expected to see significant growth in 2025, primarily due to output cuts from a major South African producer, increasing demand from the US, and strong export interest from Chinese producers. Market participants anticipate a boost in global vanadium-nitrogen trade, benefiting China’s export numbers.

Impact of South African Output Cuts on Global Vanadium-Nitrogen Supply

South African vanadium-nitrogen production has been notably impacted by ongoing equipment maintenance at Bushveld Minerals Vametco plant. From mid-December to March 2025, the plant will operate at reduced capacity due to a cash shortage. In 2024, Bushveld’s production fell by 19%, amounting to 1,387 tonnes. This reduction in South African output is expected to continue in 2025, with the producer operating at low run rates due to negative profit margins. Consequently, China is positioned to capitalize on these cuts by increasing its exports.

Global vanadium-nitrogen alloy production is heavily concentrated in China and South Africa, with other countries lacking the necessary technology due to intellectual property restrictions. While European and US steel mills often prefer using ferro-vanadium (80% grade) over vanadium-nitrogen, China’s export increase in vanadium-nitrogen reflects changing dynamics in the alloy market.

Surge in China’s Vanadium-Nitrogen Exports and US Market Demand

China’s vanadium-nitrogen exports more than doubled in 2024, reaching 2,523 tonnes, up from 945 tonnes in 2023. This growth can be attributed to South Africa’s lower output and China’s expanded export activities. Notably, in December 2024, China’s vanadium-nitrogen exports surged five-fold to 377 tonnes, compared to just 67 tonnes a year earlier.

The US was the largest buyer of Chinese vanadium-nitrogen in 2024, importing 892 tonnes, more than double the 335 tonnes purchased in 2023. Canada also saw a dramatic increase in imports, with 323 tonnes imported, a more than five-fold rise from 60 tonnes in 2023. India’s demand also increased by 69%, reaching 317 tonnes in 2024. The US demand for vanadium-nitrogen is expected to continue to rise, as the US government, under President Trump, has pledged to boost domestic construction activities, which will likely increase the demand for steel alloys.

Export Prices and Market Dynamics

Chinese export prices for vanadium-nitrogen are currently in the range of $20.30 to $21 per kilogram, lower than European prices of $23.80 to $24.20 per kilogram. Chinese smelters are more inclined to sell to overseas markets to address domestic oversupply issues. In 2024, China produced 41,500 tonnes of vanadium-nitrogen, surpassing domestic steel mills' consumption of 34,800 tonnes. However, some alloy smelters reduced production from 2023 levels due to negative profit margins and weaker steel demand.

US Government Takes 10pc Stake in Intel Amid Chip Strategy

Intel

Washington Pushes Semiconductor Independence

US president Donald Trump confirmed that the government acquired a 10pc stake in Intel, worth about $11bn. He emphasized that the US “paid nothing” for the shares. The move comes alongside the administration’s broader push to expand domestic semiconductor production.

Trump previously announced a 100pc tariff on all chip and semiconductor imports. However, companies currently building or committed to building plants in the US will be exempt from the charge. This strategy reflects efforts to strengthen US energy and technology security while reducing dependence on foreign chip supply.

Government Expands Strategic Holdings in Key Sectors

The Intel stake is not the first direct government involvement in industry under Trump. The administration took a “golden share” during Nippon Steel’s acquisition of US Steel. In another case, the Department of Defense invested $400mn in rare earth producer MP Materials, securing a 15pc stake.

Such actions demonstrate a pattern of strategic intervention in critical supply chains. By aligning government investment with national security priorities, Washington signals that semiconductors now rank alongside steel and rare earths as essential for long-term resilience.

The Metalnomist Commentary

The US government’s stake in Intel underscores the growing overlap between industrial strategy and national security. As tariffs reshape global trade, semiconductors remain central to technological leadership and geopolitical competition.

EU Prepares Countermeasures Against U.S. Import Tariffs

U.S. Tariffs

The European Union is finalizing a series of countermeasures in response to the U.S.'s decision to impose a 20% tariff on imports, effective April 9. These tariffs are in addition to the existing duties on various goods, particularly steel and aluminum, which have already been heavily impacted by U.S. trade policies. The European Commission is working on a first set of responses, and further actions may be introduced depending on how the tariffs affect EU industries.

EU's Strong Stance Against U.S. Tariffs

European Commission President Ursula von der Leyen emphasized the EU's firm position on combating what it perceives as unfair trade practices. Von der Leyen stated that Europe will not accept "dumping" in its markets, referring to the practice of selling products at artificially low prices. The EU’s commitment to protecting its markets from global overcapacity remains a key aspect of its response. Von der Leyen also expressed disappointment, noting that many Europeans feel let down by their “oldest ally” – a reference to the U.S.

Impact on Non-Ferrous Metals, Energy, and Minerals

The U.S. tariffs, set to begin on April 9, will apply to most foreign imports, with some key exceptions. Energy products, as well as various minerals, including non-ferrous metals, are exempt from the new tariffs. Additionally, oil products, base oils, coal, and some fertilizers and chemicals will not be subject to the new duties. However, the tariff will still target steel, aluminum, and automobiles, industries that have already been under the strain of separate, earlier tariffs.

A Changing Global Trade Landscape

These tariffs are expected to have significant effects on global trade, particularly in sectors that rely heavily on international imports and exports. With many European industries vulnerable to the impact of these tariffs, the EU is preparing to take action to mitigate any economic fallout. The bloc is closely monitoring indirect effects, which could involve shifts in trade patterns and increased pressure on affected sectors.

Conclusion: Europe's Preparedness in a Trade Conflict

As the EU finalizes its countermeasures, the bloc is determined to protect its markets and industries from the negative effects of U.S. tariffs. Although the initial measures focus on steel and aluminum, the broader scope of U.S. tariff policies could continue to challenge global trade dynamics. The EU’s response will likely shape future trade relations between Europe and the U.S. in the coming months.

Trump's Abrupt Tariff Decision: Pausing Global Levies While Increasing China's Tariffs

China Tariff

In a surprising shift, President Donald Trump announced that he would pause the punitive tariffs on key US trading partners, which were set to begin today. However, he simultaneously raised tariffs on Chinese imports to an extraordinary 125%. This move marks a significant reversal from earlier statements, as Trump justified the pause with the recent volatility in financial markets, particularly in the stock and bond markets.

Pausing Global Tariffs but Targeting China

Trump’s decision, announced via social media, paused reciprocal tariffs on nearly every country except China. These tariffs, which had ranged from 17% on countries like the Philippines and Israel to 49% on Cambodia, were set to begin today. The pause will last for 90 days, offering a temporary respite to US trading partners.

However, the increased tariffs on Chinese imports stand in stark contrast. According to Treasury Secretary Scott Bessent, the tariff rate on China will rise to an unprecedented 125%. This escalation follows ongoing trade tensions between the US and China, with China repeatedly increasing its trade actions against the US.

The EU, which would have faced a 20% tariff starting today, has already prepared retaliatory measures. The European Union has also proposed countermeasures for the 25% tariff on steel and aluminum imports imposed earlier by the US.

Flexibility in Tariff Policy and Trade Negotiations

In a shift from earlier policy, President Trump indicated a willingness to consider exemptions for certain US importers who may be disproportionately affected by the tariffs. This move contrasts with previous statements where the administration had insisted on a blanket approach. Energy commodities and critical minerals were exempt from both the baseline 10% tariff and the higher reciprocal tariffs.

Furthermore, Bessent suggested that trade discussions may also involve non-trade issues, with the US considering a major LNG project in Alaska that could attract interest from South Korea, Japan, and Taiwan. These potential deals could factor into negotiations aimed at reducing the US trade deficit with these countries.

China’s Response and Global Impact

China, predictably, responded to the new tariffs with its own retaliatory measures. As of April 10, China will increase import tariffs on US goods by 50 percentage points, reaching a total of 84%. This escalation underscores the growing trade conflict between the two largest economies in the world.

The UK and Canada have also indicated potential countermeasures. The UK, which remains subject to a 10% tariff, has included refined oil products from the US in a list of goods that could be targeted. Mexico and Canada, however, were excluded from the latest round of tariffs, further highlighting the complex nature of US trade policies.

Uncertainty Surrounds Tariff Strategy

The sudden reversal in tariff policy caught many in the administration by surprise. US Trade Representative Jamieson Greer, who had been testifying before the House Ways and Means Committee, was blindsided by the announcement. This left many questioning the coherence and strategy behind Trump’s tariff decisions.

Representative Steven Horsford of Nevada remarked that there appeared to be no clear strategy, as evidenced by Greer’s reaction. This further compounded the sense of unpredictability surrounding US trade policy.

Conclusion: A Shifting Trade Landscape

President Trump's abrupt changes to tariff policies, particularly the increase in tariffs on China, signal that the US is deepening its trade conflict with the country. While the temporary pause on global tariffs provides some relief to US allies, the continued escalation with China may have long-lasting effects on global trade dynamics. As negotiations unfold, businesses worldwide will be watching closely to understand the full impact of these decisions.

Europa Plant Drives 3Q Rise in Acerinox’s Stainless Steel Output Amid Challenges

Acerinox

Acerinox, a prominent Spanish stainless steel producer, saw an uptick in its steel output in the third quarter of 2024, driven by the reactivation of the Acerinox Europa plant in Los Barrios, Spain. This follows a significant five-month shutdown due to workers' strikes earlier this year. The plant’s resumption in production helped the company achieve a rise in melt shop production from the second quarter, signaling a positive recovery. However, despite the production increase, Acerinox's revenues in the stainless steel segment faced a decline due to ongoing challenging market conditions, particularly in Europe and the US.

Key Highlights from Acerinox’s Third-Quarter Performance:

• Production and Shipments Growth: Acerinox’s stainless steel output rose by 11.85% year-on-year, totaling 473,000 tons in the July-September period. The ramp-up of the Acerinox Europa plant contributed to a notable 23.2% increase in shipments from the previous quarter.

• Market Challenges: Despite the rise in shipments, the company’s stainless steel revenues declined both on a quarterly and yearly basis. Finished stainless steel prices have decreased, primarily due to reduced alloy surcharges, although the base price in the US remained stable.

• EBITDA Decline: The group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the third quarter fell by 9% year-on-year, amounting to €86 million. The group's performance in the January-September period also showed a significant retreat, with EBITDA down by 47%, reflecting the industry's overall weakness.

• High-Performance Alloys Struggles: Acerinox’s high-performance alloys segment experienced a 46% year-on-year decline in EBITDA, driven by a sharp drop in nickel prices. However, the segment saw a 5.9% increase in output, reaching 18,000 tons in the third quarter.

• Strategic Moves and Diversification: In response to persistent weakness in the European market, Acerinox has diversified its portfolio. The company’s recent acquisition of Haynes aims to strengthen its foothold in the US market, especially focusing on higher value-added products. Additionally, Acerinox sold its loss-making subsidiary, Bahru Stainless, for $95 million to improve its balance sheet.

Outlook for Acerinox in Q4 2024:

Acerinox anticipates that market conditions will remain challenging in the fourth quarter. Geopolitical uncertainties, macroeconomic volatility, and market seasonality are expected to impact demand for stainless steel, particularly in Europe. The company has curtailed production at the Acerinox Europa plant in response to low demand and declining prices. However, Acerinox expects its EBITDA for the final quarter to surpass third-quarter levels, thanks to the sale of Bahru Stainless, though adjusted EBITDA is projected to remain lower.

The global stainless steel industry continues to grapple with high production costs, low sales prices, and declining demand, particularly in Europe. Meanwhile, the aerospace sector and the high-performance alloys market are expected to provide some relief for Acerinox as the company focuses on diversifying its revenue streams.

Mill Steel Acquires Maryland Metals Processing to Expand Capacity and Reach

Mill Steel

Mill Steel, a leading distributor of carbon steel, stainless steel, and aluminum, has acquired Baltimore-based Maryland Metals Processing. The acquisition, announced today, will allow Mill Steel to enhance its processing capabilities and shipping footprint across the U.S. Maryland Metals Processing will retain its name and workforce, operating independently while benefiting from Mill Steel’s expanded reach.

Strategic Expansion in Steel Processing

The acquisition strengthens Mill Steel’s position in the market by adding processing capacity to its existing operations. The move also expands Mill Steel’s geographical presence, particularly in the Northeast, where Maryland Metals Processing has established a strong presence. The deal comes after Mill Steel's expansion in August 2023 with the addition of a slitting line facility and looping pit in Ohio. While the financial terms of the acquisition were not disclosed, the strategic benefits are clear: Mill Steel can now offer enhanced services and faster deliveries to its growing customer base.

Global Stainless Steel Output Sees Growth in 2024

Stainless Steel

Stainless Steel Production Increases Worldwide in 2024

Global stainless steel production saw an impressive rise in 2024, with output increasing across all regions. According to the World Stainless Association, stainless steel melt shop production rose by 5.4% in the first nine months of the year. This increase brings total production to 46.1 million tons (mn t), reflecting strong demand for this critical material used in a variety of industries worldwide.

Regional Growth Across the Globe

Notably, several countries and regions saw substantial gains. The combined output from Brazil, Indonesia, Russia, South Africa, and South Korea surged by 11.2%, reaching 5.86 million tons. This increase highlights the rising production capabilities of emerging and established markets alike. In North America, the U.S. saw a significant boost in production, climbing 9.1% year-on-year to reach 1.5 million tons.

Europe also contributed to the global rise, with its stainless steel production increasing by 4.9%, totaling 4.69 million tons. Even in Asia, beyond China and South Korea, production expanded by 8.1%, reaching 5.39 million tons.

China’s Contribution to Global Production

China, which remains a dominant player in global stainless steel production, saw its output rise by 3.4% year-on-year, reaching 28.63 million tons in the first three quarters of 2024. Despite slower growth compared to other regions, China's output still accounts for a significant portion of the global total, underlining its continued importance in the steel industry.

Conclusion: A Positive Outlook for Stainless Steel Production

The global rise in stainless steel production reflects a robust recovery and ongoing demand across industries. With positive trends in multiple regions, the stainless steel market appears poised for continued growth. As production capacities increase worldwide, the outlook for the global steel market remains strong, driven by both traditional and emerging markets.

India Proposes 12% Safeguard Duty on Steel Imports to Curb Surge

India steel

DGTR Moves to Protect Domestic Mills Amid Import Spike and Global Trade Shifts

India Responds to Steel Import Surge with Temporary Protection

India’s Directorate General of Trade Remedies (DGTR) has proposed a 12% provisional safeguard duty on flat steel imports to support the struggling domestic steel industry. The measure, if approved, would remain in effect for 200 days, according to a DGTR notice released on 18 March.

The recommendation comes in response to a sharp rise in imports of hot-rolled coils (HRC), cold-rolled sheets, galvanized, and color-coated steel. The agency cited a “sudden, sharp and significant increase” in volumes that threatens local producers. Indian steel mills had earlier pushed for a higher 25% duty, but the DGTR settled on a lower rate.

Trade Diversion Drives Surge in Imports

The investigation began in December, following a complaint from the Indian Steel Association. The DGTR linked the import surge to trade flow shifts caused by U.S. Section 232 tariffs and similar global protectionist actions. These measures redirected steel exports from major producers like South Korea, China, and Japan toward India.

India turned into a net steel importer in the 2023–24 fiscal year. Between April 2024 and January 2025, finished steel imports rose 21% year-over-year to 8.4 million tonnes, government data show. South Korea led the inflows, followed by China and Japan, who together made up over 75% of total imports.

Selective Exemptions and Domestic Price Reactions

The proposed duty will not apply to HRC imports priced above $675/t cif, offering a price-based exemption. Furthermore, most developing countries will be exempt, except for China and Vietnam, which each account for more than 3% of India’s total steel imports.

The expectation of protectionist measures has already pushed domestic HRC prices higher, reversing the multi-year lows seen earlier in 2024. Market participants had warned of continued price weakness without government intervention.

A final ruling will follow a public hearing, the DGTR said.

Eurofer Warns of Fourth Consecutive Year of EU Steel Demand Recession

Eurofer

Steel Market Weakness Deepens Amid Tariff Pressure and Global Overcapacity

The European Steel Association (Eurofer) forecasts that EU apparent steel consumption will contract by 0.9% in 2025, marking the fourth consecutive year of decline. This represents a sharp reversal from its earlier prediction of 2.2% growth. Steel-using sectors are also projected to shrink by 0.5%, instead of the 1.6% recovery previously expected.

Eurofer cites the new U.S. 50% tariffs on steel as a significant additional burden on an already fragile market. Global overcapacity, high energy costs, and geopolitical tensions continue to erode the competitiveness of EU steelmakers. As a result, producers may face capacity closures, job losses, and delays in decarbonisation investments.

The association now expects any demand recovery to be postponed until the first quarter of 2026, contingent on improvements in global economic conditions. If no resolution is reached between the EU and U.S. over tariffs, Eurofer urges the European Commission to enact emergency trade measures under its Steel and Metals Action Plan.

In 2024, EU apparent steel consumption declined by 1.1%, while domestic deliveries fell 2%. Steel-using industries, particularly automotive and construction, contracted by 3.7%, intensifying the sector’s challenges.

The Metalnomist Commentary

Eurofer’s outlook underscores the compounding impact of trade disputes, structural overcapacity, and energy costs on Europe’s steel industry. Without swift trade safeguards and competitive energy pricing, EU steelmakers risk losing ground to global rivals, jeopardising both jobs and decarbonisation goals.

Mexico's Auto Industry Struggles with US Tariffs Despite USMCA Exemption

Mexico Car Tariffs

Despite the recent decision by US President Donald Trump to pause reciprocal tariffs on several nations, Mexico's automotive industry continues to face significant challenges. The 25% tariffs on exports of automobiles, steel, and aluminum, announced last month, remain in place. These tariffs, coupled with Trump's global 25% tariff on auto imports, continue to impact Mexican carmakers.

USMCA Exemption Still Leaves Uncertainty

Mexico and Canada do benefit from an exemption in the US-Mexico-Canada Agreement (USMCA) for imports that comply with regional content rules. However, the specifics of how this exemption will be implemented remain unclear. Mexico is still in negotiations with the US to eliminate or reduce the tariffs in certain cases.

Gabriel Padilla, head of the Mexican auto parts association INA, explained that their primary focus is to extend the tariff application to auto parts covered by the USMCA. He stressed the importance of demonstrating the integration levels by component grade to show what is beneficial for both countries. According to a recent INA study, the US’s 25% tariffs on steel and aluminum could cost auto parts companies $2.94 billion more in additional costs.

Negotiations and Uncertainty Continue

Despite ongoing negotiations, the uncertainty surrounding the tariffs is causing some companies to pause exports while awaiting clarity. Rogelio Garza, president of the Mexican automaker association AMIA, mentioned that some companies are hesitant to continue shipments until the impact of the tariffs becomes clearer. He expects more concrete definitions regarding the auto tariffs within the next two months.

Garza also pointed out that the paused shipments contributed to a 6% decline in Mexican auto exports to the US in the first quarter, as reported by the national statistics agency Inegi. The total exports fell to 775,886 units, down from the previous year's figures.

Conclusion: A Time of Adjustment for Mexico’s Automotive Sector

The automotive industry in Mexico faces a period of uncertainty as it continues to navigate the effects of US tariffs. While the USMCA exemption provides some relief, the lack of clarity on its implementation and ongoing negotiations leave many carmakers in a state of flux. The situation is further complicated by the high costs imposed by the tariffs on steel, aluminum, and auto parts. As negotiations unfold, the next couple of months will be critical for determining the future of the Mexican automotive sector.

EU and UK Extend Steel Safeguard Measures to 2026

In a significant policy update, the European Commission has extended its steel safeguard measures for an additional two years, setting the new expiration date to June 2026. This decision, announced on June 25, 2024, follows an in-depth investigation prompted by 14 EU member states, which highlighted the necessity of these measures to prevent significant damage to the EU steel industry​.

The investigation identified several critical factors contributing to the ongoing import pressures on the EU market. These include persistently high global steel production capacity, increased exports from China to third countries (notably in Asia), and a rise in trade defense and restrictive measures by other countries. Additionally, there has been a significant decline in steel demand within the EU, further straining the market​.

First introduced in July 2018 in response to the US's Section 232 tariffs on steel, the EU’s safeguard measures involve Tariff-Rate Quotas (TRQs). These quotas allow certain volumes of steel imports at lower duty rates, with a 25% duty imposed on imports exceeding these quotas. The latest extension includes technical adjustments to better align the measures with current market conditions, effective from July 1, 2024.

Similarly, the UK government has extended its steel safeguard measures until June 30, 2026. This decision, approved by the UK Secretary of State for Business and Trade on June 26, 2024, came after a recommendation from the Trade Remedies Authority (TRA). The UK steel industry, facing similar global pressures and market imbalances, has welcomed this extension as vital for its protection.

Industry experts have underscored the importance of these measures in maintaining the stability of the steel market within the EU and the UK. They argue that the measures help counteract the effects of global overcapacity and redirected trade flows, providing a necessary buffer for domestic producers​​.

In conclusion, both the EU and the UK are taking significant steps to safeguard their steel industries from ongoing global market pressures, ensuring stability and protection for the foreseeable future.

Blanket US Aluminium Tariffs to Have Limited Impact on European Trade Flows

US Aluminium

Trump's 25% Tariff on All Aluminium Imports Will Affect US Consumers, Not European Markets

US President Donald Trump’s announcement of a blanket 25% tariff on all aluminium imports is expected to have minimal impact on European trade flows. This contrasts with earlier plans to impose tariffs specifically on imports from Canada and Mexico. According to market participants, the new approach is unlikely to disrupt European markets as much as the previous strategy might have.

Impact of Blanket Tariffs on Aluminium Trade

Trump’s new tariffs, which will apply to all aluminium imports, are set to be announced soon. This blanket tariff on steel and aluminium is expected to affect all exporting countries without distinguishing between suppliers. Canada, the UAE, and Argentina were the leading exporters of unwrought aluminium to the US last year, but the tariffs will now apply to everyone, making it difficult for countries like Canada to redirect excess supplies to Europe as initially anticipated.

Under the previous plan, markets predicted a shift in trade flows, with more Canadian aluminium potentially moving to Europe. This was expected to reduce European premiums due to an increase in supply, as demand in Europe remained weak. However, under the new tariff strategy, this shift is likely to be less pronounced. The global competitiveness of Canadian aluminium is diminished when tariffs apply universally, making aluminium from other regions, such as the Middle East and South America, less attractive in the US market.

Consequences for US Consumers and Domestic Production

The main consequence of these blanket tariffs will be higher costs for US consumers. While the tariffs could potentially drive up domestic production, increasing capacity will take years. In the meantime, US buyers will face higher prices for aluminium imports, particularly from Canada, as shipping times from these suppliers are shorter than those from more distant countries.

Market analysts believe that, despite the tariffs, US consumers will continue to import from Canada because of these logistical advantages. The blanket tariff strategy is unlikely to redirect a significant volume of Canadian aluminium to Europe, meaning the overall impact on European aluminium flows will be minimal.

Conclusion: A Shift in Costs, Not Trade Flows

In conclusion, Trump’s blanket tariffs on aluminium imports are expected to result in higher costs for US consumers but will have limited consequences for European trade flows. The market will likely experience some adjustments, but European aluminium premiums are not expected to drop significantly as a result of these changes.

Enduring Reliance Amid Sanctions: Europe’s Russian Titanium Dilemma

VSMPO Titanium

Introduction: A Supply Chain Unbroken in Wartime

Despite sweeping economic sanctions imposed by the West following Russia’s invasion of Ukraine in February 2022, one supply chain has proved remarkably resilient: Russian titanium sponge. Europe’s quandary over this advanced material—indispensable to aerospace, defense, and medical-device manufacturing—has only deepened.

Russia’s Command of Titanium

Russia ranks among the world’s largest titanium producers. VSMPO-AVISMA, the country’s flagship producer, accounts for 90% of Russia’s titanium output and exports to some 50 countries. The company is estimated to control up to 30% of the global titanium market and nearly half of aerospace-grade supply.

Russia’s dominance rests on abundant raw-material reserves and comparatively low energy costs. Because titanium smelting is energy-intensive, commercial viability depends on cheap power and gas—conditions Russia has historically met.

Airbus A380

Trade that Continues Despite Sanctions

On 7 March 2022, Boeing announced it would halt purchases of Russian titanium used in aircraft manufacturing. Rolls-Royce and Boeing subsequently suspended procurement from VSMPO-AVISMA indefinitely.

Europe, however, charted a different course. Airbus urged the European Union to keep Russian titanium outside future sanctions packages. As Airbus chief executive Guillaume Faury argued, titanium represents a small share of Russia’s total exports, so sanctions would inflict little pain on Moscow while dealing a heavy blow to Europe’s aerospace industry.

Today, Airbus still sources roughly half of its titanium from VSMPO-AVISMA. Boeing, by contrast, once relied on Russia for about one-third of its titanium but has since stopped buying Russian material.

The Limits—and Exceptions—of EU Sanctions

Notably, while the EU has restricted imports of Russian steel and coal, titanium has not been sanctioned. The metal remains a strategic material used in fuselages, turbine blades, satellites, and other critical systems.

Dependence on Russian metals endures in other segments as well. From March to June 2022, combined EU-US imports of Russian aluminum and nickel rose to $1.98 billion—more than 70% above the prior-year period.

Washington and Brussels have generally refrained from designating industrial metals as sanction targets. Europe continues to import large volumes of Russian natural gas, and Russia supplies about 40% of global palladium—vital for semiconductors—implicating everything from automobiles to smartphones.

CBAM

CBAM: A New Variable

The EU’s Carbon Border Adjustment Mechanism (CBAM), introduced in October 2023, adds another layer of complexity. CBAM initially covers cement, electricity, fertilizers, iron and steel, aluminum, hydrogen, and certain downstream products in steel and aluminum. After a transition phase through 2025, full implementation begins in 2026, imposing carbon costs on imports equivalent to those borne by EU producers.

While fertilizers, cement, hydrogen, and non-exported electricity may see limited near-term impact, aluminum stands out as a key target sector. Most exports to the EU beyond steel and aluminum are not yet covered, though the European Commission has signaled possible expansion to high-leakage categories such as organic chemicals and plastics.

Russia is structurally disadvantaged under CBAM. Steel production in Russia, Ukraine, and Türkiye tends to be more carbon-intensive, implying higher embedded-carbon costs at the border.

Ambiguities in Sanctions and Industry’s Dilemma

The United States placed VSMPO-AVISMA on its “military end-user” list, restricting access to advanced technologies, but stopped short of a direct ban on titanium sales—an acknowledgment of global industry’s reliance on the material.

Indeed, during the early stages of the war, VSMPO-AVISMA avoided sweeping US and European sanctions. Although Washington temporarily listed the company in December 2020, the measure was later rescinded.

Recent moves, however, suggest a tightening environment. In April 2024, a joint US-UK action prompted the CME and LME to prohibit trade in newly produced Russian aluminum, copper, and nickel dated after 13 April—an effort widely read as constraining Russia’s influence in metals markets.

Ukraine Titanium Mine

Ukraine: A Viable Alternative?

Against this backdrop, Ukraine has emerged as a potential alternative. Until 2020, the country supplied 90% of Russia’s ilmenite—the feedstock for titanium sponge. With that supply chain severed by war, Ukrainian resources could help challenge Russia’s dominance.

US companies have begun talks with Kyiv on a joint venture anchored by the Zaporizhzhia Titanium-Magnesium Plant (ZTMP). Such partnerships could forge a new titanium hub in Eastern Europe, strengthening Ukraine’s economic footing for decades.

The risks are significant. Ongoing conflict and occupation threaten both Donbas deposits and the ZTMP facilities, which remain exposed to shelling and sabotage.

Aviation’s Growth—and Its Dilemma

The aerospace-titanium market was valued at roughly $100 million in 2022 and is projected to grow at a CAGR exceeding 5% from 2023 to 2032—reflecting the rebound in air travel and a pipeline of commercial aircraft programs.

Despite supply-chain turbulence from war, energy constraints, and labor shortages, passenger traffic continues to recover, lifting titanium demand. In October 2022, Airbus announced plans to deliver more than one aircraft per week to India, persisting with expansion despite engine-supply challenges and domestic carrier capacity constraints—developments that further complicate titanium sourcing.

The Reality of Diversification

Boeing reportedly began diversifying away from Russian titanium after the 2014 annexation of Crimea. Airbus, by contrast, remains heavily reliant on Russian supply.

Globally, China produced around 100,000 t of titanium in 2013—twice the combined output of Russia and Japan at the time—making it the world’s largest producer. Japan ranked third, with Osaka Titanium Technologies standing as the world’s second-largest producer of titanium sponge.

The Metalnomist Commentary: An Unfinished Dilemma

Europe’s struggle over Russian titanium sponge epitomizes the knotty realities of modern supply chains. Between economic sanctions and security imperatives, between industrial competitiveness and moral principle, Europe has yet to find a definitive answer.

With CBAM’s full force arriving in 2026, higher carbon-cost pass-throughs on Russian metals seem likely, intensifying pressure to rewire supply. Yet, as Airbus’s position illustrates, displacing Russian titanium in the short term remains daunting.

The gap between industrial necessity and political sanction endures—witness VSMPO-AVISMA’s August 2025 statement that it stands ready to resume cooperation with Boeing. For now, Europe must navigate this dilemma with prudence: balancing sanction principles, industrial realities, and emergent environmental rules—while accelerating the use of recycled titanium wherever feasible.