Canadian Steel Duties Section 232 challenge dismissed by USCIT
This morning in the metals news: the US Tribunal of International Trade allowed the defendants’ motion for partial dismissal of a challenge to US Section 232 rights on Canadian steel; the Midwest is the heart of US wind capacity; and finally, American steel released its forecast for the second quarter.
Each month MetalMiner hosts a webinar on a specific topic on metals. Explore upcoming webinars – including the next one scheduled for Thursday, June 24 – and sign up for each on the MetalMiner events page.
The International Trade Tribunal rejects the challenge under article 232
The US International Trade Tribunal on Tuesday dismissed a challenge to Section 232 rights on Canadian steel.
Maple Leaf Marketing, based in Midland, Texas, filed the lawsuit. The company is the US agent for EndurAlloy ™ production tubes for the Calgary-based company Endurance Technologies Inc.
Maple Leaf challenged the “constitutionality and legality of duties imposed on reimported steel pipes ”in accordance with Section 232.
Since 2011, most of America’s wind capacity has been built in the Midwest, the Energy Information Administration reported.
“The Texas, Midwest, and Central regions, which are home to some of the nation’s most prolific wind resources, accounted for the largest share of US wind capacity growth from 2011 to 2020 with 73% of additions,” reported the EIA. “At the start of 2011, the Texas region (which covers the area served by ERCOT) had 9.4 GW of wind capacity; by the end of 2020, capacity had increased to 27.9 GW.
In addition, wind capacity in the Midwest has tripled from 8.6 GW in 2011 to 26.9 GW in 2020.
Meanwhile, in 2011, the central region had about half the wind capacity of the Texas and Midwest regions, the EIA added. The Central region has added 20.5 GW of wind capacity over the past decade, more than any other region.
US Steel releases second quarter forecast
US Steel released its guidance for the second quarter, estimating adjusted EBITDA of $ 1.2 billion.
In addition, the steelmaker expected a net profit of $ 880 million.
“Higher steel prices and strong demand for flat-rolled steel coupled with well-managed operations are expected to generate Adjusted EBITDA that will more than double our first quarter performance,” said David B. Burritt, president and CEO of US Steel. “Continued strong demand and low steel inventories are driving continued improvements in today’s market. These market fundamentals show no signs of slowing down and give us more and more confidence in another strong year in 2022. ”
Find out why technical analysis is a superior forecasting methodology than fundamental analysis and why it is important for your steel purchase.