At the beginning of last week, US authorities announced the results of their latest negotiations regarding the new tariffs for the import of steel. Whilst confirming agreements with Argentina, Brazil and Australia for permanent exemption from the measures, they also said that negotiations with Canada, Mexico and the EU will continue until the end of May.

The extension of the temporary exemption from the measures could well be positive news, but it also increases the uncertainty for a further month in key markets such as the EU.

Meanwhile Argentina and Brazil confirmed that they have accepted a quota system related to the tariffs, meaning Brazilian exports to the US will be somewhat reduced from the levels of 2017 going forward. Argentina’s sales will be capped at a certain level.

As negotiations continue, most eyes are focused on the possible trade war that this new measure could create between the US and China. Last week the Chinese authorities said that they stopped pre-certification of US scrap cargoes and will inspect every single shipment of US scrap entering the country.

Starting 4 May and lasting until 4 June 2018, “China’s ports will empty each and every container of scrap material originating from the United States of America,” according to a notice from the North American arm of the China Certification and Inspection Group. The notice covers all types of scrap but for metal scrap it highlighted that it would check for the presence of powdery substances. The body also said it had suspended processing applications or issuing certificates for pre-shipment inspection of scrap cargoes.