Industry News: Steel & aluminum tariffs with Canada and Mexico to come to an end, iron ore price reaches a five-year high
As mentioned, this past weekend an agreement was reached between the U.S. and Canada and Mexico to end the tariffs on steel and aluminum imports. This agreement is a big step forward in allowing the revised trade agreement from last fall to be ratified into place. The USMCA or United States-Mexico-Canada Agreement is intended to replace NAFTA. This is particularly important for scrap steel and the auto industry because of the provisions included. In a previous update we highlighted what this would mean for domestic car production.
There has also been a recent surge in the price of iron ore all the way to a five year high. Iron ore, the main component to producing steel, is now up 38% in 2019. This boom in value has been attributed to the Vale mine collapse and subsequent closure in Brazil as well as an unexpected and significant increase in demand for steel in China.
Going forward the latest updates from within the steel industry may be able to help recoup some of the losses the scrap metal market has seen so far in 2019. We will be keeping a close eye on the market going forward and track performance throughout the rest of the year. As always feel free to give us a follow and share with your friends on Facebook and LinkedIn to stay in the conversation with us!