Oct 13, 2023
EU: Provisional anti-dumping duties imposed on key raw material – Stainless Espresso
2023-11-03
13 October 2023 – The European Commission (EC) imposed provisional anti-dumping duties on 12 October 2023 on a key raw material used in battery production, among others, but also partly in stainless steel production. And the outlook for US construction stocks remains positive.
EU: Provisional anti-dumping duties imposed on key raw material
The European Commission (EC) has imposed provisional anti-dumping duties of up to 34.6% in the case against electrolytic manganese oxide originating in China on 12 October 2023. This is in response to a request by European manganese dioxide producers who felt threatened by imports from China.
Source: Commission Implementing Regulation (EU) 2023/2120 of 12 October 2023
Manganese oxide is used, among other things, in stainless steel production (Ni-Cr-Mg grades), but is also an important raw material in the production of batteries, e.g. for electric vehicles.
Unnecessary cost driver for industry
On the one hand, the Commission is trying to protect European industry at all costs, whether justified or not, but on the other hand, it is at the same time increasing the costs for urgently needed raw materials.
The EC should be aware that such a measure may also have an impact on the production costs of stainless steel.
Anti-dumping on ferro-nickel?
Just imagine if someone had the idea of protecting European producers of nickel products from imports from Russia. Or from Brazilian ferro-nickel.
US construction stocks well supported
Spending on construction projects in the US amounted to US$1.85 trillion in 2022. Residential construction accounted for half of the total, with public construction projects and commercial construction accounting for shares of 20 and 30 per cent, respectively.
Annual growth of up to 5% possible
By 2030, however, analysts believe spending could pick up even further, growing by an average of five percent or 26 billion US dollars annually. This is the conclusion of a study that estimates the construction investments needed, among other things, to build production sites for semiconductors, hydrogen and electric cars as well as to relocate production facilities from abroad back to the USA.
This results in a positive outlook for construction companies and producers of construction equipment and should support US construction stocks in the long run.
Source: Steel News
