Steel Products Prices North America
June 25, 2017
Aluminum's Tussle Over 232 Mirrors Steel
Written by Tim Triplett
The Department of Commerce hearing Thursday on the proposed Section 232 for aluminum revealed the same big rift between supporters and opponents as in the steel industry. And for many of the same reasons, notably the effect on prices for downstream manufacturers and consumers and possible retaliation by global trading partners. Commenting on the proceedings, financial services firm Cowen & Co. reported a general lack of support in the testimony due to the potential adverse consequences of sharply restricting aluminum imports on national security grounds.
The Section 232 hearing had a diverse mix of speakers, the majority of whom questioned whether Section 232 was the correct approach to the current problem, which is largely overproduction and dumping of aluminum by China. In terms of national security, the U.S. military sources almost all of its aluminum domestically, they testified, and U.S. aluminum production is 3-4 times larger than is necessary to meet the military’s needs.
