As the US and the EU reached an agreement to abolish Section 232, EU steel exports to the US could increase significantly, which will also lead to higher domestic steel prices in the EU due to reduced inventories.
The United States announced that it would lift the Section 232 duty on steel and aluminum through November 1. European mills may increase their exports to the United States, which will support the rise in steel prices in the face of limited supply. The European Association of Steel Producers (Eurofer) has a positive attitude towards the abolition of duties, but will continue to follow this trend in the future.
In the past few years, steel exports from Europe have been restricted by a Section 232 duty. While steel exports may have reached past levels, the market was uncertain about US demand.
HRC prices have risen to a record high in the US compared to prices in the EU internal market over the past two months. The prices were supported by the maintenance of two mega-factories. Thus, the EU steel price will be supported by the Section 232 Tariff Waiver Agreement.