Chris Rogers, analyst at Panjiva, S&P Global Market Intelligence, says: “There appears to be little prospect of the European Union being granted an exemption to America’s section 232 duties on steel (25% on top of any other duties) and aluminum (10%) ahead of the June 1 deadline," according to Chris Rogers, analyst at Panjiva, S&P Global Market Intelligence.
According to Rogers, European Commissioner Cecilia Malmstrom has told the European Parliament that the US may choose to 'impose some sort of cap on EU exports' instead of duties.
“Yet, as outlined in Panjiva research of 23 May, the EU has repeatedly stated it won’t accept restrictions on its exports and instead plans to implement tariffs from 20 June. There is the potential for a further extension of the deadline. EU and US representatives will meet both at the OECD trade ministerial meetings from May 30 and their Global Steel Overcapacity Forum (including Japan) on Thursday," said Rogers.
He added that, 'In the meantime exporters from the EU appear to be betting that a late exemption may not be possible. Panjiva data shows that the number of seaborne shipments to 24 May increased by 2.6% on the same period a month earlier, which followed a 7.6% increase in April vs. March.”
Source: Panjiva, S&P Global Market Intelligence