US Steel trade with Turkey, Europe may affect with Section 232
NEW YORK (Scrap Register): The recommendations of the US' Section 232 case would close the market off totally for Turkish and European steel exporters if any are implemented.
Turkish steel exports into the US fell almost 23% last year to 1.83 million mt, while January 2018 saw an 84% drop to 42,000 mt, it could also affect around 15% fall on all European steel exports, with over 3 million mt/year having to find a new home.
A European mill source said a further safeguarding would have little direct impact on European exports noting a number of US anti-dumping duties are already in place for a range of steel products.
US, which being the world's largest steel importer, if build barriers to preserve the domestic steel sector, global trade balance will be destroyed.
Europe and China had already announced they would retaliate against the US in the event of any of the recommendations being implemented, and Turkey would likely follow suit.
"We may also review our steel imports from US, depending upon the US' Section 232 decision, while our scrap imports from this country can be also reduced," CIB Chairman Namik Ekinci said.
However, despite a number of existing trade cases, the US remains the second-largest export destination for Europe after Turkey.