EU to curb steel imports after Trump tariffs

EU manufacturers of the products ranging from hot and cold rolled sheets, plates, coated steel and tubes include ArcelorMittal, Voestalpine and Tata Steel. (Reuters)
Updated 18 July 2018
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EU to curb steel imports after Trump tariffs

BRUSSELS: The European Union will launch measures on Thursday designed to prevent a surge of steel imports into the bloc following the US imposition of tariffs on incoming steel and aluminum, the EU’s official journal said.
The European Commission has proposed a combination of a quota and a tariff to counter EU concerns that steel products no longer imported into the United States would instead flood European markets.
The measures are the third part of the EU’s response to US tariffs. It has also imposed tariffs on €2.8 billion ($3.3 billion) of US imports, including bourbon and motor bikes, and has launched a legal challenge at the World Trade Organization.
The quotas for 23 steel product categories have been set at the average of imports over the past three years, with a 25 percent tariff set for volumes exceeding those amounts. These quotas are allocated on a first come first serve basis.
The main exporters of steel to the EU are China, India, Russia, South Korea, Turkey and Ukraine.
The Commission said that the EU steel industry was “in a fragile situation and vulnerable to a further increase in imports,” with US tariffs reducing its capacity to sell there making them even more vulnerable.
“In the absence of provisional safeguard measures, it is likely that the situation will develop into actual serious injury in the foreseeable future,” the EU official journal said.
European Trade Commissioner Cecilia Malmstrom said in a statement that the bloc was faced with no choice given the threat of serious harm to EU steelmakers and workers, but that EU markets would remain open with traditional trade flows.
The Commission will continue its investigation, which was launched on March 26, until the end of the year. The provisional safeguards can be in place for up to 200 days.
Imports of 28 products increased by 62 percent from 2013 to 2017, most noticeably in 2016 and with further rises this year. However, for five products, imports did not increase, leading the Commission to exclude them from its measures.
For 12 steel product categories, imports from countries including China, Russia and Ukraine are already subject to anti-dumping and anti-subsidy duties. The Commission said it would consider suspending or reducing them to avoid the imposition of “double duties.”
EU manufacturers of the products ranging from hot and cold rolled sheets, plates, coated steel and tubes include ArcelorMittal, Voestalpine and Tata Steel.


Australia overtakes Qatar as top global LNG exporter

Updated 11 min 7 sec ago
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Australia overtakes Qatar as top global LNG exporter

  • Australia shipped 6.79 million tons of LNG in November while Qatar exported 6.2 million tons
  • Australia has invested heavily in a number of LNG export projects over the last few years

LONDON: Australia has become the largest exporter of liquefied natural gas (LNG) in the world, overtaking Qatar for the first time, according to data published on Monday.

Australia shipped 6.79 million tons of LNG in November while Qatar exported 6.2 million tons, according to Refinitiv Eikon, the financial data arm of Thomson Reuters.

While LNG exports from Australia increased by more than 15 percent from the previous month, Qatar’s exports dropped by 3 percent.

Australia has invested heavily in a number of LNG export projects over the last few years. Just last month, the first LNG shipment left the country’s new offshore Ichthys project on the northwestern coast of Australia.

Analysts expect Australia will look to maintain its lead ahead of the Qataris.

“Competition between Qatar and Australia for the share of global LNG market is set to intensify further,” said Abhishek Kumar, senior energy analyst at Interfax Energy’s global gas analytics in London.

“Australia has boosted its market share in recent years by bringing online a slew of LNG export projects. This is in stark contrast with the situation in Qatar where the export capacity has remained around 77 million tons per annum,” he said.

Ehsan Khoman, head of regional research and strategy at MUFG, in Dubai, said Australia has an advantage over Qatar due to it being geographically closer to major gas importers.

“The lower transportation freight costs will remain the backbone of Australia comparative advantage as an exporter vis-à-vis Qatar, given the country’s closer proximity to the largest LNG importers in Asia, namely, Japan, China and South Korea,” he said.

Rising LNG exports from US will add to the global market competition, he said.

“Going forward, the LG space is likely to undergo a major transformation driven by new supplies coming from the US, with our expectation of a three-way tug of war between the US, Australia and Qatar to intensify in the medium term for global leadership among LNG exporters, notably for a larger share of the key market in Asia.”

The data follows Qatar’s announcement last week that it would leave the Organization of Petroleum Exporting Countries (Opec) in early 2019 to focus on gas production.

Kumar said he expects Qatar to ramp up efforts to maintain its market position as competition grows from other exporters.

“Qatar has plans to vigorously defend its market share in the coming years as it is moving ahead with expanding the capacity of its Ras Laffan plant to around 110 million tons per annum by the end of 2025 or early 2026,” he said.