Elizabeth Gaines (an Australian businesswoman who serves as CEO of the iron ore company Fortescue Metals Group): “Steelmakers are enjoying record profits.”
Biden is in negotiations with the EU to prevent an escalation of tariffs on metal
Iron, copper, aluminum, or palladium. Futures contracts for major industrial metals are hitting all-time highs amid a cycle (or cyclogenesis, or even a supercycle) triggered by the pandemic, driven by several tailwinds: first and foremost, the strong recovery from the crisis in China, the world’s leading steel producer; trillion-dollar monetary and fiscal stimulus packages in response to the impact of COVID-19; and the acceleration of the energy transition to combat climate change, which requires metals at every stage—from electric vehicles to solar panels and wind turbines.
Demand—especially from China—is strong, and the overall business climate is much less confrontational than it was when Donald Trump was in the White House. In conclusion, the sector index that includes the six major mining and basic resources companies and the rest of the industry in the Stoxx 600 has risen nearly 55% since late October 2020, when the market began to anticipate the coronavirus vaccine and, consequently, the economic recovery.
On the political front, the Biden administration is in talks with the EU to prevent an escalation of tariffs on metal exports, and the approach now seems to be more about aligning interests to counter China’s influence in the market than about continuing to be at odds. This could mean fewer tariffs between the United States and Europe, which in recent years have been a burden on the sector. Via: ElEconomista.com
